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3 April 2014
Final Defendant Sentenced in “Operation Cowtown Tobacco”Read the Press Release
ATF, Texas Comptroller of Public Accounts and Euless Police Department
Led Investigation into Trafficking of Contraband CigarettesDALLAS — A multi-year investigation into the trafficking of untaxed cigarettes, including purchasing cigarettes and selling them with counterfeit tax stamps to avoid paying state cigarette taxes, in violation of the Contraband Cigarette Trafficking Act, has led to the conviction of 11 Texas residents, most of whom are from North Texas.
The last convicted defendant was sentenced this week in federal court in Dallas. Glen Murray McDonald, 50, of Pasadena, Texas, was sentenced by U.S. District Judge David C. Godbey to serve nine months in federal prison and nine months on home confinement. He pleaded guilty in August 2013 to one count of trafficking in contraband cigarettes and one count of receipt of counterfeit securities. Ten other convicted defendants pleaded guilty to similar offenses and received a variety of sentences. In addition, convicted defendants were ordered to pay restitution in amounts ranging from approximately $24,000 to $1.1 million.
The investigation began in October 2009 when officers from the Euless Police Department responded to a suspicious person call at a home in Euless, Texas. Later that same night, they executed a search warrant at the house and confiscated more than 2,760 cartons of contraband cigarettes and 11,580 counterfeit Texas tax stamps.
In making the announcement today, U.S. Attorney Saldaña said, “I commend the efforts of the men and women of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Texas Comptroller of Public Accounts, the Euless Police Department and the Tarrant County District Attorney’s Office in this operation.”
During the investigation, special agents with ATF received information about various tobacco tax diversion schemes in North Texas, including purchasing cigarettes and selling them with counterfeit tax stamps to avoid paying state cigarette taxes.
“ATF’s mission is to stop violent criminals and dismantle criminal organizations. Through this joint investigative effort, multiple criminal organizations were dismantled which were responsible for the diversion of state revenue caused by the trafficking of contraband tobacco products. I’d like to recognize the Euless Police Department, the Texas Comptroller of Public Accounts and the Tarrant County District Attorney’s Office whose outstanding efforts contributed to the successful outcome of this investigation,” said ATF Special Agent in Charge Robert R. Champion of the Dallas Field Division.
“This is an example of how federal investigators utilize the expertise of the Comptroller’s office to bring tax cheats to justice,” Texas Comptroller Susan Combs said. “We have the expertise and statutory authority to conduct tax investigations as well as share information such as business purchases and tax reports with law enforcement. We will continue to provide our services to federal and local investigators to ensure compliance and protect honest retailers.”
Cigarettes sold in Texas are required to have a federal tax assessed; that tax is paid by the manufacturer before cigarettes leave the warehouse. Texas also requires that a state tax be paid in the form of a tax stamp affixed to each package of cigarettes sold. Only companies licensed by the Texas Comptroller’s Office are allowed to purchase tax stamps and bond them to cigarette packages. The current cigarette tobacco tax stamp is $1.41 per package of cigarettes. By purchasing contraband cigarettes, people involved in the sale of untaxed cigarettes avoid paying Texas taxes in the amount of $1.41 per package, or $14.10 carton, or $846 for a master case of 60 cartons.
Assistant U.S. Attorney Katherine E. Pfeifle prosecuted the cases.
Federal Jury Convicts Ponemah Man for Strangling A WomanRead the Press Release
MINNEAPOLIS—Earlier today, a jury in federal court in Duluth found a 47-year-old Ponemah man guilty of strangling a woman while on the Red Lake Indian Reservation. Following a three-day trial, the jury convicted Terry Dean Iceman on one count of strangulation. Iceman was indicted on November 13, 2013.
According to the evidence presented at trial, on July 18, 2013, Iceman assaulted the victim by strangling and attempting to strangle her. For his crime, Iceman faces a potential maximum penalty of 10 years in prison. United States District Chief Judge Michael J. Davis will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.Fci Danbury Employee Indicted for Role in Inmate Early Release Bribery SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Ronald G. Gardella, Special Agent-in-Charge, Department of Justice Office of the Inspector General, New York Field Office, today announced that a federal grand jury in New Haven returned an indictment today charging KISHA PERKINS, a case manager at the Federal Correctional Institution in Danbury (FCI Danbury), for her role in a scheme to solicit and collect cash bribes from FCI Danbury inmates in exchange for a recommendation that inmates be released early to “halfway houses.”
The indictment charges PERKINS, 42, of Waterbury, with one count of paying a bribe to a public official, and one count of acceptance of a bribe by a public official. PERKINS was arrested on a federal criminal complaint on March 14, 2014.
As alleged in the criminal complaint, in June 2013, PERKINS approached another FCI Danbury employee about an opportunity to participate in a scheme to solicit a cash bribe from an inmate at FCI Danbury in exchange for the inmate’s early release to a halfway house. At that time, PERKINS held the job title of “Unit Counselor” at FCI Danbury and did not have administrative authority to recommend inmates for early release. PERKINS explained that the inmate and the inmate’s husband were willing to pay $20,000, and that PERKINS’ co-worker, who would receive half of the money, was needed to complete the scheme because the co-worker had the administrative ability to recommend inmates for early release.
PERKINS’ co-worker declined to participate in the scheme, reported the incident to law enforcement and agreed to cooperate in the investigation, which included the use of numerous consensually recorded conversations.
In July 2013, PERKINS’ co-worker told PERKINS that he/she had changed his/her mind and wanted to participate in the scheme. It is alleged that PERKINS informed her co-worker that a scheme involving the inmate who had been previously identified was no longer feasible.
As the investigation continued, in February 2014, PERKINS’ co-worker identified a second inmate as a possible candidate for the bribe scheme. Is it alleged that PERKINS agreed to participate and, after extensive planning, on March 8, 2014, PERKINS and her co-worker traveled to a commuter lot off of Exit 28 on Interstate 84 to pick up a partial bribe payment of $5,000 in cash in a fast food bag that, as PERKINS believed, was to be dropped off by an acquaintance of the inmate.
If convicted, PERKINS faces a maximum term of imprisonment of 15 years on each count.
After her arrest on March 14, PERKINS was released on a $100,000 bond. Her bond was revoked on March 28 and she is currently detained. An arraignment and detention hearing is scheduled for April 7 in New Haven.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Department of Justice Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
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(203) 821-3722 [email protected]East Central Franklin Woman Sentenced to More Than Four Years for Pharmacy RobberyRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Michelle
L. Wilcox, 28, of East Central Franklin, was sentenced today in U.S. District Court in Bangor to
51 months in prison and three years of supervised release for robbing the Western Maine
Pharmacy in Kingfield, Maine. She was also ordered to pay $1,153 in restitution. She pled guilty to the crime on October 18, 2013.Court records reveal that on June 3, 2013, the defendant, wearing a gray hooded sweatshirt and sunglasses, entered the pharmacy and passed a note to a technician demanding all of the Suboxone strips and stating that she had “a weapon and will use it.” She absconded with
85 8mg Suboxone strips. A Franklin County Deputy Sheriff identified the defendant from detailed witness descriptions and review of a surveillance video. Within hours of the robbery, the defendant was arrested and confessed.The investigation was conducted by the Federal Bureau of Investigation, the Franklin
County Sheriff’s Department and the Maine State Police.Dubuque Man Sentenced to 20 Years for Distributing Child PornographyRead the Press Release
A man who distributed child pornography was sentenced today to twenty years in federal prison.
Robert Buss, age 50, of Dubuque, Iowa, received the sentence after a January 9, 2014, guilty plea to one count of distribution of child pornography. At the guilty plea hearing, Buss admitted that, in 2012, he used the Internet to distribute child pornography. Information provided at the sentencing hearing indicated that defendant also attempted to entice three minors to send him sexually explicit depictions of themselves, including a boy he met while on a mission trip to Haiti.
Buss was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Buss was sentenced to 240 months’ imprisonment. A special assessment of $100 was imposed, and Buss must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations, the Dubuque Police Department, and the Iowa Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-1020.
Dubuque Man Headed to Federal Prison for Meth FireRead the Press Release
A man who caused a fire while attempting to manufacture methamphetamine in his Dubuque apartment was sentenced today to six and one‑half years in federal prison.
Jeremiah Shaw, 42, from Dubuque, Iowa, received the prison term after an October 11, 2013 guilty plea to one count of attempting to manufacture methamphetamine near a playground.
Information disclosed at the plea and sentencing hearings indicated that Shaw attempted to cook methamphetamine at his apartment on April 28, 2013. Shaw’s attempted cook caused a fire to ignite in the apartment. Two other people were present in the apartment, which was located within 1,000 feet of three separate playgrounds.
Shaw was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Shaw was sentenced to 78 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Shaw is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Dubuque Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/ login.pl. The case file number is CR 13-1014.
Dual Chinese/U.S. Citizen Sentenced in Money Laundering SchemesRead the Press Release
CORPUS CHRISTI, Texas - Kin Fu Chow, 47, of Chicago, Ill., has been ordered to prison for his involvement in a money laundering conspiracy involving alien smuggling activity, announced United States Attorney Kenneth Magidson. Chow pleaded guilty to one count of money laundering on Jan. 2, 2014.
Today, Senior U.S. District Judge Hayden Head handed Chow a sentence of 15 months in federal prison to be immediately followed by three years of supervised release.
Chow was a leader in a large money laundering conspiracy operating in the Southern District of Texas. The money laundering was accomplished through other illegal activity including alien smuggling and drug trafficking.
Chow purchased a 1975 Cessna 310R aircraft to enable the criminal organization to smuggle illegal money, aliens and drugs. He was responsible for the smuggling of Chinese nationals into the United States via Mexico. Chow’s co-conspirators were arrested in 2010 and the aircraft was seized as part of their prosecution. At the time of their arrest, Chow then fled to China. He returned to the U.S. on an aircraft that landed in Seattle, Wash., in October 2013, at which time he was immediately arrested.
Chow will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is a result of the efforts of a multi-agency Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Sky’s the Limit.” The investigation was led by Homeland Security Investigations, Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration and the Corpus Christi Police Department. Assistant United States Attorney Julie K. Hampton is prosecuting.
Desperado's Co-owner, Wife, Plead Guilty to Racketeering Conspiracy ChargeRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that James Panos, 56, and wife Jennifer Panos, 48, of Broussard, La., entered guilty pleas before U.S. Magistrate Judge Patrick Hanna to one count of racketeering conspiracy at the now closed Desperado’s Cabaret in Carencro, La. This plea is conditional and does not become final until it is accepted by U.S. District Judge Elizabeth E. Foote.
James Panos and Jennifer Panos are the last two defendants in a 10-count indictment to plead guilty. They were charged on May 15, 2013, in an indictment alleging racketeering conspiracy, drug conspiracy, and firearms charges. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway.
James Panos and Jennifer Panos face 20 years in prison, a fine of not more than twice the gross profits or other proceeds, and three years of supervised release for one count of racketeering conspiracy. As part of the plea agreement, they agreed to forfeit illegal proceeds already seized and to forfeit the Desperado’s property.
The U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Department of Homeland Security Investigations, Louisiana State Police, and Lafayette Metro Narcotics investigated the case. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy prosecuted the case.
Court Enters Judgment Against Pontiac, Mich., Law Firm and Permanently Enjoins the Firm from Continuing to Pay Wages to Employees Without Paying Associated Payroll TaxesRead the Press Release
On April 3, 2014, a U.S. District Court for the Eastern District of Michigan in Detroit issued a judgment against the law firm Hatchett, DeWalt & Hatchett PLLC in the amount of $122,994.12 for unpaid federal employment and unemployment taxes and penalties for late filing partnership income tax returns for various tax periods from 2003 to 2012.
The Honorable Robert H. Cleland also entered a stipulated order of permanent injunction requiring Hatchett, DeWalt & Hatchett PLLC to file all employment, unemployment and partnership tax returns on a timely basis, to deposit all due taxes in an appropriate federal depository bank and to pay all required liabilities due on each return on a timely basis. The order enjoins the law firm from assigning property or making any payments until the employment tax and withholding liabilities are first paid to the Internal Revenue Service (IRS). It also requires the law firm to provide monthly affidavits to the IRS verifying that the requisite tax deposits have been made in a timely manner.
The permanent injunction order was issued in response to the Feb. 4, 2014, suit filed by the Department of Justice, alleging that Hatchett, DeWalt & Hatchett PLLC had been engaged in a practice known as “pyramiding,” whereby a business withholds taxes from its employees but intentionally fails to remit them to the IRS as mandated by law.
Related Materials:
United States v. Hatchett, DeWalt & Hatchett PLLC.
Complaint
Judgment
Stipulated Order of Permanent InjunctionColumbus Man Sentenced for Using Stolen Identities to Defraud Federally Funded Tutoring ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Ashkir Ali, 46, of Columbus was sentenced to 18 months for billing two area school districts more than $100,000 for tutoring sessions that were never provided.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Thomas D. Utz, Jr., Special Agent in Charge for the North Central Region of the U.S. Department of Education, Office of Inspector General and Ohio Auditor of State Dave Yost announced the sentence handed down today by U.S. District Judge Edmund A. Sargus Jr.
Ali pleaded guilty on November 14, 2013 to one count of making false statements in invoices he sent to the U.S. Department of Education’s Supplemental Education Services Program.
“These crimes were committed in order to abuse a program set up to help central Ohio schoolchildren,” U.S. Attorney Stewart said. “We will continue to work with federal and state law enforcement to uncover and prosecute such crimes.”
“Ali’s students never learned the meaning of the word ‘sentence’ from him,” Auditor Yost said. “But he’ll have plenty of time to ponder what it means while serving his.”“We appreciate the excellent working relationship with the U.S. Attorney’s Office and look forward to continuing our work for the cause of fiscal integrity.”
Ali owned WAISS Network Technologies. According to court documents, Ali created fraudulent forms using forged tutor, student and parent names and other information. He billed Columbus City Schools and was paid for tutoring 51 students who either never attended tutoring or who went very few times. Investigators determined the fraudulent scheme netted Ali approximately $100,000 over a two-year period.
Ali used the same method to defraud Southwestern City Schools out of approximately $20,000 in the 2010-2011 school year. Investigators did not find a single student from Southwestern City Schools who attended tutoring allegedly provided by WAISS.
Allegations surfaced of possible misconduct by providers of the Supplemental Education Services Program in January 2011. The Auditor of State’s Special Investigations unit conducted a special audit of the Columbus City School District in June 2011.
U.S. Attorney Stewart commended the investigation by the U.S. Department of Education Office of Inspector General and State Auditor Yost’s Special Investigations Unit, as well as Assistant U.S. Attorney Kenneth Affeldt who prosecuted the case.
# # #Charleston Man Sentenced to Federal Prison for Possessing Stolen FirearmRead the Press Release
CHARLESTON, W.Va. – A Charleston man who admitted possessing three stolen firearms was sentenced today, U.S. Attorney Booth Goodwin announced. Joshua Caudill, 28, of Charleston, West Virginia, previously pleaded guilty in February of 2013. Caudill admitted that he and Cody Fuller, 27, also of Charleston, West Virginia, burglarized a home on Tilbury Lane in St. Albans in November of 2012 and stole three firearms. Caudill was sentenced to 76 months imprisonment, 70 months for the possession of stolen firearms, and an additional six months for violating the conditions of his supervised release. Fuller pleaded guilty to his role in the offense and was sentenced to 57 months in federal prison in July of 2013.
The arrests of Caudill and Fuller were the result of investigations into a string of burglaries in Kanawha County that occurred in October and November 2012. Various agencies, including the Charleston Police Department and the Kanawha County Sheriff’s Department, conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Cedar Rapids Man Sentenced to 16 Years for Receiving Child PornographyRead the Press Release
A man who received child pornography was sentenced today to sixteen years in federal prison.
Jason Smith, age 21, of Cedar Rapids, Iowa, received the sentence after an October 7, 2013, guilty plea to one count of receipt of child pornography. At the guilty plea hearing, Smith admitted that, between 2011 and 2013, he used the Internet to receive child pornography. Information provided at the sentencing hearing indicated that defendant also posed as a female on the Internet, enticed minors to masturbate for him on webcam, and saved videos of these minors on his computer.
Smith was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Smith was sentenced to 192 months’ imprisonment. A special assessment of $100 was imposed, and Smith must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-54.
Business Owner Sentenced for Mail Fraud Conviction Related to 2006 Mountain View FireRead the Press Release
SAN JOSE – Fauzia Lodhi, formerly of Mountain View but now residing in Mission Viejo, Calif., was sentenced on April 2, 2014, to 16 months in custody for her conviction on mail fraud, announced U.S. Attorney Melinda Haag and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Joseph M. Riehl.
Lodhi, 53, pleaded guilty to committing mail fraud on May 1, 2013. Lodhi admitted that she submitted both fraudulent business income interruption claims and fraudulent business personal property claims to State Farm Insurance arising from damage incurred during a fire at her business on May 17, 2006. The business was Postal Express, located at 801 West El Camino Real, Mountain View, Calif. Previous to the fire, Lodhi had provided inflated inventory and revenue statements to a State Farm insurance agent in order to induce State Farm to insure Postal Express for business interruption and loss of business personal property in excess of the actual value of the business. Lodhi then submitted insurance claims to State Farm based on the falsely inflated inventory and revenue statements.
In addition, Lodhi intentionally misrepresented the amount of business interruption insurance payments and loss of business personal property insurance payments to which she was entitled under her State Farm insurance policy. She admitted that she used the fraudulently-obtained business interruption payments to satisfy her outstanding debts.
The sentence was handed down by the Honorable Lucy H. Koh, United States District Court Judge. Judge Koh also sentenced Lodhi to a three-year period of supervised release and ordered the defendant to pay restitution of $54,896 to State Farm Insurance. Lodhi was ordered to self-surrender on July 30, 2014.
Matt Parrella is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mountain View Police Department, and the Mountain View Fire Department.
(Lodhi indictment )
Armed Career Criminal Sentenced to 15 Years. United States Attorney’s Office Seeks Signifcant Penalties for 3 Other Men on Federal Firearms ChargesRead the Press Release
Hogsett’s Office maintains relentless pace to stem the tide of gun violence
EVANSVILLE - Joseph H. Hogsett, United States Attorney, announced today the sentencing of an armed career criminal and the charging either by criminal complaint or by indictment for federal firearms violations of three other men. Two of those additionally charged may also qualify as armed career criminals, if convicted.
“Gun violence continues to torment Hoosier communities. Those who choose to illegally carry firearms will be held strictly accountable and the revolving door of justice stops here and now. Evansville is a peaceful community and we intend to do everything we can to keep it that way,” Hogsett said.
Hogsett announced that, yesterday, U.S. District Court Judge Richard L. Young sentenced Derrick W. Vogt, 33, Tell City, Indiana, to 15 years in federal prison for being a convicted felon in possession of a firearm and being an armed career criminal. In August of 2013, at the time of his guilty plea, Vogt admitted to possession of a Beretta, Model 3032 Tomcat, .32 caliber pistol.
Vogt’s criminal record includes three felony burglary and four felony theft convictions as well as one felony sexual battery conviction, all in Perry County, Indiana. Vogt was subject to the enhanced penalty under the armed career criminal statutes which impose mandatory minimum sentences for person who have accumulated violent felony convictions.
In addition, Hogsett announced that a federal grand jury had returned two indictments, against other men.
The first indictment alleges Glynn Petticord, 42, of Evansville, possessed a Taurus, .45 caliber pistol, after being found in an east side Evansville hotel by United States Marshals. Petticord has four prior felony convictions for robbery, auto theft, battery and criminal recklessness, dating back to 1994.
The second indictment alleges that Jacob Roy Hammond, 22, of Dover, Tennessee, was in possession of two firearms (a Springfield Arms, .40 caliber semi-automatic pistol and a Walther, .22 caliber semi-automatic pistol) when he was located outside a hotel on the north side of Evansville by the United States Marshals. Hammond has five felony convictions for burglary and one for selling a controlled substance in Tennessee, for a total of six felonies.
Hogsett also announced the filing of a criminal complaint against Cornelius Ratliff, 29, of Evansville, for knowingly possessing a firearm as a convicted felon. On March 17, 2014, the Evansville Police Department made a routine traffic stop. Ratliff was a passenger in the vehicle. He was asked to exit the vehicle so that a search of the vehicle could ensue. Upon exiting the vehicle, Ratliff ran away and, upon being pursued, pulled a silver handgun from his waistband and aimed it at Evansville police officers.
Hogsett further observed, “if we are successful in taking all of these individuals off the streets, a total of 21 felony convictions go with them. That goes a long way toward improving the safety of communities throughout southwestern Indiana.”
Upon his arrest, a background check of Ratliff revealed a felony conviction for second degree murder as well as two felony convictions for being a felon in possession of a firearm.
This sentencing and all additional charges come as part of the U.S. Attorney’s Violent Crime Initiative (VCI). Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 225 defendants have been charged.
According to Assistant U.S. Attorney Todd S. Shellenbarger and Assistant U. S. Attorney Lauren Wheatley, who are prosecuting the cases for the government, Hammond and Petticord face a maximum of life in prison and a $250,000 fine, based on the armed career criminal sentencing enhancement. An initial hearing will be scheduled in Evansville, Indiana, before a United States federal district court Magistrate Judge.
An indictment and criminal compliant are only charges and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Annandale Mortgage Broker Sentenced to 38 Months in PrisonRead the Press Release
ALEXANDRIA, Va. – Kil Seok (“Michael”) Seo, 49, formerly of Fairfax, Va., was sentenced today to 38 months in prison for engaging in bank fraud and aggravated identity theft as part of a mortgage fraud scheme. Seo also was ordered to pay restitution of $894,600 to several banks that were the victims of Seo’s criminal conduct.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement following today’s sentencing by U.S. District Judge James C. Cacheris.
Seo was indicted on Dec. 10, 2009, by a federal grand jury on charges related to a scheme to defraud mortgage lenders, and he entered a guilty plea in U.S. District Court on Jan. 14, 2014.
According to court records, Seo, an Annandale, Va., mortgage broker, schemed with others, including Peter Jin, to defraud lenders by transferring title to residential properties into the names of victims without their knowledge or consent and then opening home equity lines of credit in victims’ names, again without their knowledge or consent. Seo and Jin then opened bank accounts in the victims’ names for the purpose of receiving the fraudulently obtained loan proceeds. As part of the scheme, Seo obtained from the Virginia Department of Motor Vehicles an identification card in the name of a victim but with Seo’s photo. He used that fraudulent ID to take out a home equity loan in the victim’s name. In total, the scheme resulted in losses to the lenders of nearly $900,000.
In 2009, co-defendant Jin pleaded guilty to mail fraud and aggravated identity theft charges in connection with his role in the offense and was sentenced to 48 months in prison. Seo has resided in South Korea since 2009, and he was extradited to the United States in November 2013 to face the criminal charges contained in the December 2009 indictment.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Timothy D. Belevetz and Mark D. Lytle 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.Anesthesiologist Sentenced to Five Years in Prison for Unlawfully Distributing OxycodoneRead the Press Release
A former hospital anesthesiologist was sentenced today in U.S. District Court in Seattle to five years in prison and three years of supervised release for distribution of oxycodone, announced U.S. Attorney Jenny A. Durkan. HIEU TU LE, 40, of Snohomish, Washington, a medical doctor licensed in Washington State since 2004, operated medical clinics in Seattle and Everett, Washington. LE admits that between March 2012 and July 2013 he wrote oxycodone prescriptions for cash and obtained oxycodone that he distributed for cash, all without a legitimate medical need to do so. At sentencing U. S. District Judge Thomas S. Zilly noted the “potential public danger of the conduct.”
“This defendant essentially operated an open-air drug market out of the parking lot of his medical clinic,” said U.S. Attorney Jenny A. Durkan. “As a medical doctor he knew the damage of addiction but sold drugs to feed his greed.”
According to records filed in the case and statements made in court today, LE left his job as an anesthesiologist with Valley General Hospital in Monroe, Washington in March 2012. From March to September 2012, LE operated a medical clinic on Seattle’s Capitol Hill neighborhood providing medical marijuana authorizations. In September 2012, LE opened a clinic in Everett called Northwest Green Medical. Beginning in March 2012 and continuing until July 2013, LE wrote multiple oxycodone prescriptions for cash to people who did not need the prescriptions for legitimate medical purposes. LE would also hand deliver the prescriptions to an Everett pharmacy, pick up the oxycodone pills, and then sell the pills to people who he knew did not have a legitimate medical need for the pills. LE knew that some of the people to whom he sold the pills were reselling them to others, feeding drug addiction in the community. LE’s Everett clinic was the subject of a federal search warrant in July 2013. At that time, LE voluntarily surrendered his DEA registration, which had authorized him to prescribe controlled substances.
In requesting a lengthy prison sentence, prosecutors highlighted the damage of prescription medication addiction, and LE’s unique culpability. “According to the Centers for Disease Control and Prevention (CDC), in 2010 there were 16,651 overdose deaths involving prescription opioids, a tally which outnumbered overdose deaths from all other illicit drugs (including heroin and cocaine) combined. In 2009, for the first year ever, opioid deaths surpassed motor vehicle crashes as a cause of death in the United States. …. As a medical doctor, the defendant ignored the harsh realities of addictive painkillers, suggesting that he lost whatever moral compass he may have had,” prosecutors wrote in their sentencing memo.
As part of the plea agreement, LE is forfeiting to the government various brokerage and bank accounts as proceeds of his drug distribution, and a 2009 Toyota Highlander Hybrid purchased with drug distribution proceeds.
The case was investigated by the Drug Enforcement Administration (DEA) and Health and Human Services (HHS), and is being prosecuted by Assistant United States Attorneys Mike Lang and Matthew Diggs.
Ambulance Company Driver Sentenced to PrisonRead the Press Release
PHILADELPHIA – Valeriy Davydchik, 59, of Philadelphia, PA, was sentenced today to 24 months in prison for his role in a conspiracy to defraud Medicare involving Penn Choice Ambulance Inc., located in Camp Hill, PA and Huntingdon Valley, PA. On April 9, 2013, the defendant, Anna Mudrova, Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Penn Choice Ambulance Inc. were indicted and charged with conspiracy to commit health care fraud and related charges. All defendants have pleaded guilty and await sentencing before U.S. District Court Judge Juan R. Sànchez.
From September 2009 through January 2013, Penn Choice transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. Penn Choice falsified reports to make it appear that the patients needed to be transported by ambulance. Penn Choice billed Medicare for these medically unnecessary services. As a result, Penn Choice caused Medicare to pay more than $1.5 million based on these fraudulent claims. Defendant Davydchik joined Penn Choice in 2011 as an ambulance driver. He transported patients who walked to and from the ambulance, and often drove patients to medical appointments in his personal vehicle. Penn Choice submitted claims to Medicare for ambulance transport for these patients. Defendant Davydchik also falsified records and delivered kick-back payments to Medicare beneficiaries to induce them to be transported by Penn Choice ambulance even though such transport was not medically necessary.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered defendant Davydchik to pay restitution to Medicare and imposed a 3-year term of supervised release after imprisonment. The Court also ordered the forfeiture of any assets traceable to the offense, and in lieu of assets, a money judgment against the defendant of $870,310.14.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alton Doctor Sentenced on Charges of Health Care Fraud and Illegal Dispensation of Controlled SubstancesRead the Press Release
Follow @SDILNewsViwathna Bhuthimethee, 69, a medical doctor who operated the Walk In Clinic, located on East Broadway Street in Alton, Illinois, was sentenced, today, in district court to twelve months and a day in federal prison on his guilty plea to the fifteen felony counts of an indictment which charged health care fraud against the Illinois Medicaid program and illegal distribution of Schedule III controlled substances (Hydrocodone) and Schedule IV controlled substances (Xanax) by prescribing outside the usual course of professional conduct and without legitimate medical purpose, Stephen R. Wigginton, the United States Attorney for the Southern District of Illinois announced. The Court also imposed a $5,000 fine, a $1,500 special assessment, restitution to Medicaid of $397.48, and two years of supervision following release from prison.
“Our evidence showed, for most patients, that Bhuthimethee did not operate a legitimate medical practice, but instead was engaged in a scheme to distribute controlled substances illegally, thereby defrauding Health Care Benefit Programs, namely, Illinois Medicaid, by running what was in essence a prescription service for drug addicts, commonly known as a ‘Pill Mill’.” said United States Attorney Wigginton. “As I have long noted – whether you are a doctor, a lawyer, a pharmacist, or an accountant, you cannot hide behind a license and a diploma. If you commit federal crimes, you will be prosecuted!” The illegal distribution charges involved four specific patients to whom Bhuthimethee continued to prescribe controlled substances in spite of the patients’ out of control behavior, overdoses and failed drug screens.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Drug Enforcement Administration; and the Federal Bureau of Investigation, the Illinois State Police, Medicaid Fraud Control Bureau; the Alton Illinois Police Department and the Madison County Coroner’s Office. The prosecution was handled by Assistant United States Attorney Michael J. Quinley and Special Assistant United States Attorney Stuart Zander.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or, you may call 1-800-447-8477.
Alleged Lynn Gang Member Arrested for Drug TraffickingRead the Press Release
BOSTON – A Lynn man, who is allegedly a member of the Magnolia Street Steelers gang, was arrested today for drug trafficking in North Andover. The arrest marks the 44th individual charged in the multi-phase investigation dubbed "Operation Whiplash."
On Sept. 25, 2013, Tyrone Shepherd, a/k/a Pooh, 30, was indicted on charges of conspiracy to distribute cocaine base and four counts of distribution of cocaine base. Operation Whiplash was a wide-ranging FBI Gang Task Force investigation of several gangs in and around Lynn and Revere. Operation Whiplash is the successor investigation to Operation Melting Pot which, in 2010, resulted in 62 Lynn gang leaders, members, and associates of the Avenue King Crips, Bloods, Gangsta Disciples, Deuce Boyz/Soldiers, and Latin Kings being charged in federal and state court. More than 40 guns were seized.
The goal of Operation Whiplash was to target the gangs and gang members who remained in and around Lynn, before they were able to fully reconstitute and seize power in the vacuum created by Operation Melting Pot. Operation Whiplash has resulted in state and federal charges against 44 leaders, members and associates of the Money Over Broken Bitches (M.O.B.B.) street gang in Lynn, the Bloods in Revere, and other gangs. These individuals, including 27 federal defendants, face drug, firearms, and witness tampering charges. Operation Whiplash also resulted in the seizure of 16 firearms.
According to the detention affidavit filed today, Shepherd is a member of the MIC (Magnolia, Intervale and Columbia) Street Gang, also known as the Magnolia Street Steelers. Shepherd has a tattoo of the insignia of the Pittsburgh Steelers, which is also a symbol of the gang. On Sept. 25, 2013 the FBI issued an arrest warrant and offered a reward of $5,000 for information leading directly to his arrest.
If convicted, Shepherd faces a statutory mandatory minimum sentence of five years and a maximum of 40 years in prison; a mandatory minimum term of four years and up to a lifetime of supervised release; and a $5 million fine on the charge of conspiracy to distribute cocaine base. If convicted on the charge of distribution of cocaine base, Shepherd faces a maximum of 20 years in prison, a mandatory minimum term of three years and up to a lifetime of supervised release; and a $1 million fine.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett, and Chief Kenneth L. Santoro of the Lynn Police Department, made the announcement today. Operation Whiplash was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, Essex Sheriff’s Office, Revere Police Department, Chelsea Police Department, North Andover Police Department, Suffolk County District Attorney’s Office, and the Massachusetts Department of Corrections. The case is being prosecuted by Assistant United States Attorneys Peter Levitt and Timothy A. Moran of Ortiz’s Strike Force Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Accountant Enters Guilty Plea to Preparing False Tax ReturnsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that JAMES BUTCHER (58, of Little Falls, NY), an accountant engaged in the business of preparing tax returns, entered a guilty plea to the felony offense of aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2). The defendant is facing a statutory maximum of 3 years imprisonment, a maximum fine of $250,000.00, and restitution to the IRS for tax years 2007-2010. BUTCHER is scheduled to be sentenced on August 1, 2014, before the Honorable David N. Hurd in Utica, NY.
During the plea hearing on April 2, 2014, BUTCHER admitted the following. That he was the owner and operator of a tax preparation business named Jim’s Income Tax Service, which he operated out of his residence located in Little Falls, New York. From 2007 through 2010, he prepared forty false Form 1040 returns for fourteen of his clients. All forty of the 1040 forms contained false or inflated “Schedule A” deductions. Specifically, they all contained false or inflated charitable deductions and some also included false or inflated unreimbursed employee expenses. In preparing these forty returns, the defendant created and falsified expenses and deductions relating to charitable contributions and job expenses. He further admitted that he inflated deductions without being directed to do so by his clients. The total tax loss resulting from the forty false and fraudulent returns for tax years 2007-2010 is $140,446.00.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
25 Defendants Charged in Separate Schemes That Resulted in Thousands of Identities Stolen and Millions of Dollars in Identity Theft Tax FilingsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), announce the filing of federal charges against 25 defendants in 19 separate cases, dealing with thousands of stolen identities and millions of dollars of fraudulent identity theft tax filings. Today’s cases reaffirm the joint federal and local commitment to crack-down on stolen identity tax refund fraud (SIRF) perpetrators.
According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in 2013. While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions. Florida’s rate of 192.9 complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 340.4 complaints per 100,000 residents.
In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012.
The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service (USPIS), Miami Division, Social Security Administration, Office of Inspector General (SSA-OIG), Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Town of Davie Police Department, Florida Highway Patrol, Lee County Sheriff’s Office, Broward Sheriff’s Office (BSO), Ft. Lauderdale Police Department, Coconut Creek Police Department, Sunrise Police Department, Coral Springs Police Department, Miramar Police Department and North Miami Police Department.
Since the inception of the Strike Force, we have charged 296 defendants responsible for approximately $485.5 million in intended stolen identity refund fraud loss and in excess of $106 million in actual SIRF fraud loss.
The U.S. Attorney’s Office and the IRS have also attacked this problem at its root by revoking so called “electronic filing identity numbers” or EFIN numbers, which allow individuals to file tax returns on behalf of others. Before revoking these EFIN numbers, SIRF fraudsters had used them to file 166,495 fraudulent tax refund claims over the past two years.
United States Attorney Wifredo A. Ferrer stated, “The number of stolen identities and the dollar amount of the tax fraud involved in these cases is staggering. These cases serve as a reminder that each and every one of us is a potential victim. While we have a talented and effective team dedicated to fight this fraud, we need everyone – both taxpayers and institutions – to remain vigilant in safeguarding personal identifying information. Protect it as if it were a trade secret.”
IRS Special Agent in Charge José A. Gonzalez stated, “Today’s announcement should send a message to those who might consider disguising themselves as legitimate tax return preparers or Electronic Filing Identification Number (EFIN) holders for the purpose of submitting false claims with the IRS. Protecting the integrity of our U.S. tax system is essential, therefore, those who chose to corrupt this system will be investigated and brought to justice, regardless of their level of participation in the fraud.”
“Criminals all over South Florida are turning to computers to make an easy buck at the public’s expense,” said George L. Piro, Special Agent in Charge, FBI Miami. “Identity theft, the fastest growing crime here, is as easy as one, two, three. One, criminals steal someone’s name and social security number; two, they use that identity to file a fraudulent tax return on line; and three, they collect the refund check. Repeat thousands of times. Don’t become a victim, learn how you can protect your personal identifying information from these thieves at FBI.GOV or FTC.GOV.”
U.S. Secret Service Special Agent in Charge Paula Reid added, “Once again, the U.S. Secret Service is glad to be an integral part of combatting this massive fraudulent scheme that is plaguing South Florida. Together, we will continue to identify and penalize those who misuse our government systems with no regard to the financial and unjust impacts they cause on others.”
Ronald Verrochio, Inspector in Charge for Postal Inspection Service stated, “Tax return fraud directly affects millions of Americans each year and indirectly affects every tax payer throughout the country, we are committed to working with our law enforcement partners to combat this problem.”
Alysa D. Erichs, Special Agent in Charge for ICE-HSI stated, “Homeland Security Investigations utilizes its vast authorities to work with their partners to disrupt and dismantle criminal organizations involved in tax refund fraud schemes and other financial violations that affect our citizens and economy.”
“U.S. Postal Service employees are honest, hardworking, and trustworthy, but when a Postal Service employee engages in criminal activity, our Special Agents will investigate those matters vigorously, as we did in this case,” says Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General.
Today, U.S. Attorney Ferrer, joined by members of the Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:
- United States v. Rhim-Grant, et al., Case No. 14-20181-Cr-Lenard. United States v. Nydia Tanay Laron Nelson, Case No. 14-2375-mj-Goodman
On March 21, 2014, Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, were charged by information in a scheme to steal identities for the purpose of conducting stolen identity fraud. On April 1, 2014, Nydia Tanay Laron Nelson, 30, of Miami, was charged by criminal complaint in connection with the same scheme.
According to the criminal complaint, the defendants conspired to steal the identities of Miami-Dade Public Schools students by exploiting Rhim-Grant’s access to the student information computer database as a food service manager at Horace Mann Middle School. Over the course of more than a year approximately 400 student identities were stolen from across the Miami-Dade County Public Schools district, resulting in numerous fraudulent tax returns.
The information and complaint charge the defendants with conspiracy to commit computer fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Miami-Dade Schools Police Department. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
- United States v. Marlon Maikel Palacios, Case No. 14-20121-Cr-Cooke
On February 28, 2014, Marlon Maikel Palacios, 38, of North Miami, was charged in a twelve count indictment for his participation in a conspiracy to defraud the government and mail theft.
According to the indictment, the defendant, a former [effective 3/28/2014] mail carrier for the U.S. Postal Service, provided to his co-conspirators addresses on his mail routes used with filing false tax returns with the IRS, receiving IRS correspondence, and tax refund checks. The defendant would then identify and pull the IRS correspondence and refund checks, for which the defendant would be paid. With the IRS correspondence, the defendant’s co-conspirators would file false, fictitious, and fraudulent federal income tax returns and thereafter claim refunds to which they were not entitled from the IRS.
The indictment charges the defendant with conspiracy to defraud the government with respect to federal income tax refunds and theft of mail by a postal employee.
Mr. Ferrer commended the investigative efforts of the USPS-OIG, USPIS, ICE-HSI, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Andy R. Camacho.
- United States v. Rodelyn Lamour and Nestor Armando Herrera, Case No. 14-20169-Cr-Martinez
On March 14, 2014, Rodelyn Lamour, 26, and Nestor Armando Ficquire Herrera, 22, of Miami, were charged in a seven count indictment for their participation in a conspiracy to steal mail and a stolen identity tax refund scheme.
According to the indictment, the defendants used a stolen postal service key to open various apartment complex mailboxes and steal mail containing debit cards. The debit cards contained refunds from fraudulent federal income tax returns filed using stolen identities. The defendants then used the stolen debit cards to obtain cash, without the knowledge or authorization of the identity theft victims. The intended loss to the IRS was approximately $39,000.
The indictment charges the defendants with conspiracy, theft of mail, use of a postal service key, unauthorized use of personal identification information, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of USPIS. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
- United States v. Paul Evans Auguste, Case No. 14-80087-Cr-Scola
On February 12, 2014, Paul Evans Auguste, 30, of Miami, was charged in a seven-count indictment for his participation in a stolen identity tax refund scheme.
According to the criminal complaint, Auguste sold approximately 260 stolen identities to an undercover law enforcement officer and stated that he could provide the undercover law enforcement officer any types of identities he would want, including those of children and the elderly. Auguste also stated his intention to conduct tax fraud with the multitude of stolen identities he maintained at his residence. Law enforcement obtained a federal search warrant for Auguste’s residence which revealed an additional 1,200 stolen identities in his possession.
The defendant was charged with access device fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of ICE-HSI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
- United States v. Freddie Howard, Case No. 14-60068-Cr-Rosenbaum
On April 1, 2014, Freddie Howard, 56, of Davie, was charged in a one-count information in a stolen identity refund fraud scheme that involved the submission of approximately $22 million in fraudulent refund claims.
According to the information, Howard operated a tax preparation business called QTS1, Inc. (Quality Tax Service) in Broward County. Howard prepared false and fraudulent tax returns using the identity information of willing participants and stolen identity information. Howard used false and fictitious income and withholding tax information on the returns submitted to the IRS to justify fraudulent large-dollar refund requests. The requested refund amounts generally ranged from $60,000 to $1,400,000, and Howard typically requested payment of these refunds via U.S. Treasury tax refund check. To conceal his identity, Howard submitted the tax returns to the IRS by mail and did not include preparer information. Howard also blocked out the tax preparer software information, and used other people to contact the IRS to inquire about the status of the fraudulent returns.
According to the information, Freddie Howard submitted over $22 million in false and fraudulent tax refund claims to the IRS. The IRS paid approximately $4.5 million on these refund requests.
The defendant was charged with access device fraud and identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
- United States v. Anthony A. Pace, Jr., et al., Case No. 14-20101-Cr-Moore/Torres
On February 18, 2014, Anthony A. Pace, Jr., 29, Brandon A. Terry, 29, Derel L. Henry, 39, and Rosa Johnson, 26, all of Miami, were charged in a twenty-three count indictment for their participation in a $3.3 million stolen identity tax refund scheme.
According to the indictment, the defendants obtained personal identifying information, including names, dates of birth and Social Security numbers, of hundreds of identity theft victims, for use in this identity theft tax fraud scheme. The defendants used this stolen personal identity information, including personal identity information of former and current inmates of the Miami-Dade Corrections and Rehabilitation Program, to file false and fraudulent federal income tax returns without their victims’ knowledge and authorization. Based on Internet Protocal data and a unique tax filing number issued by the IRS called an EFIN, each of the defendants filed false and fraudulent tax returns using stolen identities and directed the IRS to deposit the funds into bank accounts and onto debit cards accessible to the members of the scheme.
According to disclosures at bond hearings, Anthony A. Pace, Jr. was employed as a correctional officer with the Miami-Dade Corrections and Rehabilitation Program. False and fraudulent tax returns were filed in the names of former and current prisoners using an EFIN associated with defendant Pace. These same tax filings directed payment of the illicit tax refund proceeds into accounts controlled by Pace and Johnson. ATM video reveals that Pace was withdrawing funds from the accounts into which the illicit funds were deposited.
The indictment charges all of the defendants with conspiracy to make false claims, in violation of 18 U.S.C. ' 286 and aggravated identity theft, in violation of 18 U.S.C. ' 1028A, defendants Brandon Terry and Derel Henry with access device fraud, in violation of 18 U.S.C. ' 1029, and defendants Anthony Pace and Rosa Johnson with theft of government property, in violation of 18 U.S.C. ' 641.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI and USSS. The case is being prosecuted by Assistant U.S. Attorney Peter A. Forand.
- United States v. Judes Stanley Celestin, Case No. 13-60243-Cr-Scola
On September 27, 2013, Judes Stanely Celestin, 36, of Hallandale Beach, was charged in a sixteen-count indictment in a stolen identity refund fraud scheme that resulted in the submission of approximately $1 million in fraudulent refund claims.
According to the indictment, Celestin set up Florida corporations (JC Easy Tax and Taxes on Time) with himself as the president and then opened up bank accounts at numerous different banks from 2010 through 2012 in the name of these corporations. Celestin subsequently caused false and fraudulent tax returns to be filed with the IRS in the names of individuals without these individuals’ knowledge or authority. In total, Celestin caused approximately $1 million dollars in tax refund monies to be direct deposited to these bank accounts and related bank accounts from 2010 through 2012 and then withdrew the money for his own personal use.
The defendant was charged with wire fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
- United States v. Karl Moltimer, Case No. 14-20117-Cr-Altonaga
On February 27, 2014, Karl Moltimer, 34, of Miami, was charged in a fourteen-count indictment in a stolen identity tax refund fraud scheme that resulted in the submission of over $1 million in fraudulent refund claims.
According to the indictment, Moltimer obtained EFIN numbers that permitted him to file tax returns in the names of other persons. Moltimer opened bank accounts for himself and his business name. Moltimer, through his EFINs, caused false and fraudulent tax returns seeking refunds to be filed with the IRS using stolen individuals’ personal identity information. Moltimer caused the fraudulently obtained tax refunds to be either deposited into bank accounts controlled by him, paid via refund anticipation checks controlled by him, or paid via pre-paid debit cards controlled by him. Moltimer caused over one million dollars in false and fraudulent tax refund claims to be submitted to the IRS from 2009 through 2012 through his EFINs.
The defendant was charged with wire fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
- United States v. Marlon Hamilton, Case No. 14-20175-Cr-Moreno
On March 18, 2014, Marlon Hamilton, 40, of Hialeah, was charged in a six count indictment for his participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $190,000. The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
- United States v. Marcus Braxton, Case No. 14-20174-Cr-Ungaro
On March 18, 2014, Marcus Braxton, 29, of Plantation, was charged in a six count indictment for his participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $58,500.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
- United States v. Richard Anthony Siler, Case No. 14-20116-Cr-Williams
On February 27, 2014, Richard Anthony Siler, 50, of Hollywood, was charged in a nine-count indictment in a stolen identity refund fraud scheme that involved the sale of over 5,000 people’s identities.
According to the indictment and other documents filed in court, Siler discussed selling approximately 10,000 to 15,000 identities to a confidential source who told Siler that the identities would be used to file taxes. Siler indicated to the confidential source that these identities were “never revealed before.” Siler discussed selling the 10,000 to 15,000 identities to the confidential source for approximately $6,200. On February 14, 2014, an FBI controlled e-mail account received an e-mail from Richard Siler containing approximately 5,200 individuals’ personal identifying information that appeared to be patients. On that same date, the confidential source provided Siler with $6,200 in currency and Siler was arrested.
The defendant was charged with access device fraud and identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
- United States v. Giovanni Francois Noel, Case No. 14-20198-Cr-Moore
On March 28, 2014, Giovanni Francois Noel, 24, of North Miami Beach, was charged in an eight count indictment for his participation in an identity theft tax refund scheme.
According to the indictment, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant stole the means of identification, specifically, the name and date of birth, of seven individuals.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the IRS-CI and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
- United States v. Wallens B. Alcime, Case No. 14-02372-mj-Goodman
On April 1, 2014, Wallens B. Alcime, 26, of Miami, was charged by criminal complaint for his participation in a stolen identity tax refund scheme.
According to the criminal complaint, a confidential source informed law enforcement that Alcime was using the mailing addresses of accomplices to receive stolen identity tax refunds deposited onto pre-paid debit cards. A controlled delivery was arranged where Alcime took possession of a debit card loaded with stolen identity tax refunds while under law enforcement surveillance. Alcime was later captured on surveillance video making cash withdrawals from the debit card.
The defendant was charged with access device fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
- United States v. Steven Toussaint, et al., Case No. 14-20161-Cr-Martinez
On March 14, 2014, Steven Toussaint, 32, and Emmanuel Alphonse, 28, both of Miami, were charged by indictment in a scheme to launder money from stolen identity tax refund fraud.
According to the indictment, the defendants conspired to conduct financial transactions the purpose of which was to conceal the proceeds of theft from the government. Each defendant is also charged with ten counts of money laundering connected to individual money orders cashed on various dates alleged in the indictment.
The complaint charges the defendants with conspiracy to commit money laundering and money laundering.
Mr. Ferrer commended the investigative efforts of USPIS and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
- United States v. Mark Anthony Dacres, Jr., Case No. 14-20204-Cr-Ungaro
On April 1, 2014, Mark Anthony Dacres, Jr., 30, of Homestead, was charged in a seven-count indictment for identity theft in connection with his unauthorized possession of at least fifteen social security numbers belonging to other individuals. Dacres was found with over 1,700 names, dates of birth and social security numbers of other individuals.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
- United States v. Providencia Llanos, Case No. 14-20205-Cr-Lenard
On April 1, 2014, Providencia Llanos, a/k/a “Providensia Llanos,” a/k/a “Providencia Allison,” 36, of Miami Gardens was charged in a seven-count indictment for identity theft in connection with her unauthorized possession of at least fifteen social security numbers belonging to other individuals. Llanos was found with over 3,000 names, dates of birth and social security numbers of other individuals.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
- United States v. Stevens Nore, Case No. 14-14016-Cr-Middlebrooks
On March 24, 2014, Stevens Nore, 35, of Port St. Lucie, was charged in a twenty-eight count indictment for his participation in tax fraud and identity theft schemes.
According to the indictment, from June 11, 2009 through April 2012, Nore owned and operated Fraternity Tax and Services, a tax return preparation business located in Fort Pierce. Nore prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2009 to 2011. Nore also filed false tax returns for 2010 and 2011 by falsely stating the amount of gross receipts and sales on Schedule C forms. The defendant stole three tax refunds totaling $26,349.30 to which he was not entitled, and used the identity of two individuals without their permission.
Nore was charged with twenty-one counts of preparing false tax returns, two counts of filing false tax returns, three counts of theft of public money, and two counts of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.
- United States v. Rony Maurival, Case No. 14-14014-Cr-Middlebrooks
On March 24, 2014, Rony Maurical, 38, of Port St. Lucie, was charged in fifty-two count indictment for his participation in tax fraud and identity theft schemes.
According to the indictment, from July 3, 2008 through March 23, 2012, Maurival owned and operated RJ’s Tax & Services, a tax return preparation business located in Fort Pierce. Maurival prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2008 to 2011. Maurival also filed false tax returns for 2009 and 2010 by falsely claiming Head of Household and falsely stating Schedule C income, gross receipts, and sales. The defendant stole three tax refunds totaling $3,292 to which he was not entitled, and used the identity of three individuals without their permission.
Maurival was charged with forty-four counts of preparing false tax returns, two counts of filing false tax returns, three counts of theft of public money, and three counts of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.
If convicted, the defendants face a possible maximum statutory sentence of twenty years in prison for each count of wire fraud; ten years in prison for conspiracy to make false claims against the United States; five to fifteen years in prison for access device fraud; ten years in prison for stealing government funds; and two years in prison consecutive to any other term for aggravated identity theft.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
2 April 2014
Whitestown Man Sentenced to over 56 Years for Producing Child PornographyRead the Press Release
Hogsett announces another "Operation Community Watch" prosecution
INDIANAPOLIS - U.S. Attorney Joseph H. Hogsett announced today the sentencing of Daniel Alan Jines, 37, of Whitestown, on federal child pornography charges, including 10 counts of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography. Jines was sentenced by U.S. District Judge William Lawrence to a total term of imprisonment of 680 months. (56.5 years)
“This is in essence a life term for Mr. Jines,” said Hogsett. “If anyone is this district abuses children the way he did, my office will find you and prosecute you as aggressively as the law allows.”
According to court documents, the investigation into Jines’ child pornography activity began with law enforcement detecting previously identified child pornography files being offered for download through an internet connection traced back to Jines’ home. A search of Jines’ home on February 20, 2013, uncovered a large, particularly disturbing collection of images of the sexual abuse of children, and Jines was arrested that evening for his receipt and possession of those images.
A continuing investigation uncovered that Jines had sexually abused a minor female for several years, beginning when she was as young as 8 years old. Jines videotaped a portion of that abuse, occurring when the child was 10-13 years old, between May 2008 and May 2010. The content of those videos shocked even veteran child abuse investigators.
“Approximately a year ago, this office launched Operation Community Watch, an effort to protect Hoosier children by identifying and bringing to justice those who would sexually exploit our children,” said Hogsett. “This case is a prime example of how child pornography investigations, which can often transcend state and international borders, ultimately can lead to the protection of children who may live in neighborhoods right here in Indiana. Mr. Jines’ horrific campaign of abuse fully justifies this long sentence, and is well deserved.”
This matter was investigated by Homeland Security Investigations (“HSI”), the Carmel Police Department and the Hamilton County Metro Child Exploitation Task Force.
“While we are pleased with the significant sentence imposed, no amount of time behind bars seems adequate punishment for such monstrous behavior,” said Gary Hartwig, Special Agent-in-Charge of HSI Chicago. “Daniel Jines inflicted permanent psychological, physical, and emotional scars on his young victim and deserves to spend the rest of his life in prison where he can never hurt another child. Protecting children from sexual abuse and exploitation is one of HSI’s most vital missions.”
“This is another example of why the child exploitation task force model is so important. This individual will no longer have the ability to victimize a child because highly skilled investigators from the local and federal level are able to work together with the United States Attorney’s Office to focus on these important cases. The sentence itself should serve as a warning to those out there who would prey upon our children that we are looking for you, and we will find you. Our greatest hope is that the attention this case gets will serve as a beacon to victims who continue to suffer in silence, so that they know there are people and organizations here to help them,” said Captain Andy Dietz, Director Hamilton County Metro Child Exploitation Task Force.
According to Assistant U.S. Attorneys A. Brant Cook and MaryAnn Mindrum, who prosecuted the case for the government, Jines’ sentence also includes lifetime supervised release and a $5000.00 fine.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Virginia Beach Coast Guardsman Pleads Guilty to False ClaimsRead the Press Release
NORFOLK, Va. – Jeffrey T. Byrne, 43, pleaded guilty today to charges of making false claims against the United States Coast Guard (USCG).
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Marty J. Martinez, Special Agent in Charge, Coast Guard Investigative Service (CGIS), Chesapeake Region, made the announcement after the plea was accepted by United States Magistrate Judge Lawrence R. Leonard.
Byrne was charged by criminal information on March 25, 2014 with presenting false claims to the USCG. Byrne faces a maximum penalty of five years in prison when he is sentenced on July 2, 2014 by Chief United States District Judge Rebecca Beach Smith.
According to the statement of facts filed with the plea agreement, in September 2011, Byrne, a USCG reservist assigned to a duty station in Portsmouth, Virginia, received activation orders. Byrne, who at the time resided in Hampton Roads, claimed that his permanent address was Frisco, North Carolina. By claiming Frisco, Byrne was allowed to claim higher lodging and per diem costs based on living more than fifty miles from his assigned duty location. He also began renting a home from his then girlfriend, whom he later married, even though reservists are prohibited from renting their temporary lodging from friends or family. In July 2012, Byrne married his girlfriend and continued to file lodging and receipts using his spouse’s maiden name, even after she legally changed her last name. He also continued to enter a false name and date of birth for his spouse on USCG dependent documents in order to prevent the USCG from detecting the fraud. When CGIS investigators interviewed Byrne on January 24, 2104 regarding his expense claims, he admitted to the fraud. Byrne has since paid back the estimated loss of $112,346.78 to the U.S. Coast Guard Finance Center, Chesapeake, Virginia.
This case was investigated by Special Agents of the Coast Guard Investigative Service. Assistant United States Attorney Stephen W. Haynie and Special Assistant U.S. Attorney Austin D. Shutt, United States Coast Guard, 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.Vian Woman Sentenced to 37 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CORTNEY DAWN WILSON, age 22, of Vian, Oklahoma, was sentenced to 37 months imprisonment, followed by 3 years of supervised release for Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1); 841(b)(1)(C) and 18 U.S.C. Section 2.
The charges are a result from an investigation by the Sallisaw Police Department, the Bureau of Indian Affairs and the Drug Enforcement Administration. The defendant was indicted in August, 2013 and pled guilty in October, 2013.
The Indictment alleged that on or about February 19, 2012, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which she will serve her nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Uniontown Woman Produced Child Pornography Then Shared It with Co-WorkerRead the Press Release
PITTSBURGH - A Fayette County resident pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Lisa A. Renze, 48, of Uniontown, Pa., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that, on Jan. 30, 2010, Renze employed, used, persuaded, induced, enticed, and coerced a minor under the age of 16 years to engage in sexually explicit conduct for the purpose of producing digital photographs of the conduct. The sexually explicit digital photographs taken on Jan. 30, 2010, and other occasions between 2009 and 2011, were then distributed by Renze to her friend and Pennsylvania Turnpike Commission co-worker, John Longo.
Judge Fischer scheduled sentencing for Aug. 1, 2014, at 9:30 a.m. The law provides for a total sentence of not less than 15 and up to 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant on bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Department of Homeland Security, Immigration and Customs Enforcement, with the assistance of the Pennsylvania State Police, conducted the investigation that led to the prosecution of Renze.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Lawyer Sentenced in International Investment Fraud and Money Laundering SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that U.S. District Judge Mary S. Scriven yesterday sentenced Lawrence S. Hartman, a/k/a Larry Hartman, a/k/a Larry Hart, a/k/a Lawrence Scott Hartman-Grosser (48, Costa Rica; a U.S. lawyer formerly of New York and Florida), to 10 years in federal prison for conspiracy to commit mail fraud and wire fraud. The court also ordered Hartman to forfeit his interest in his residence in Santa Ana, Costa Rica, a parcel of land located in Pasco County, several offshore entities, several foreign and domestic bank accounts, two vehicles (2009 Jaguar XKR; 2010 Genesis LX150ST3), three luxury watches, and more than $129,500 from the sale of a condominium – all of which are traceable to proceeds of the offense. As part of his sentence, the court also entered a money judgment in the amount of $42.5 million, which represents proceeds of the mail and wire fraud conspiracy.
Hartman was charged in March 2009. In May 2013, he was arrested by Nicaraguan authorities. Hartman was deported from Nicaragua and turned over to U.S. authorities on May 15, 2013. His apprehension and expulsion was achieved through the joint cooperation of various agencies, including U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the U.S. Secret Service, the U.S. Department of State Bureau of Diplomatic Security, U.S. Embassy Managua, INTERPOL Washington, and the Nicaraguan National Police. He pleaded guilty on November 20, 2013.
According to evidence and testimony presented at the trials of Hartman’s co-conspirators, from at least as early as July 2004 through at least March 13, 2008, Hartman, along with Paul Robert Gunter (Odessa, Florida), Simon Andrew Odoni (originally of the UK), Richard Sinclair Pope (originally of the UK) and others, engaged in a sophisticated investment fraud and money laundering scheme. The scheme involved worthless stock in hijacked dormant publicly-traded companies in the United States that was sold to victim-investors, primarily in the United Kingdom. The scheme used boiler room telemarketers, mostly in Spain, who employed high pressure and misleading sales techniques. The victim-investors wired more than $127 million to Gunter's bank accounts in the Middle District of Florida. Hartman and his co-conspirators used the victim-investors' funds to perpetuate the fraud scheme and for their own personal enrichment. Victim-investors' funds were used to buy, among other things, luxury items including an airplane, two vessels, vehicles, including the Jaguar and a Ferrari, and real property in the Caribbean islands, England, and Florida.
Gunter and Odoni proceeded to trial in April 2013. Both were convicted of multiple criminal offenses, following a 19-day jury trial. On July 30, 2013, Gunter was sentenced to 25 years, and Odoni was sentenced to 13 years and 3 months in federal prison. Pope, who pleaded guilty, cooperated and testified for the government, and was sentenced to 4 years and 9 months in prison. The court also ordered all three individuals to forfeit their interests in real property and bank accounts in the U.S. and abroad, as well as other assets purchased with fraud proceeds.
In another related trial that took place in May 2012, Houston lawyers Roger Lee Shoss and Nicolette Loisel were convicted of one count of conspiracy to commit wire fraud in connection with their participation in the corporate identity theft aspect of the scheme. As part of the investigation, federal agents seized nearly $5 million in U.S. currency. The court previously granted the government's request to use these assets, as well as those forfeited by Hartman, to help compensate victims for their losses.
“This case truly demonstrates the collaborative effort of federal and international law enforcement partners throughout the world” said Shane Folden, Acting Special Agent in Charge of HSI Tampa. “HSI is committed to bring individuals like Hartman, who prey on some of our most vulnerable citizens, to justice.”
“Mr. Hartman is the last piece of this long term investigation,” said John W. Joyce, Special Agent in Charge, U.S. Secret Service, Tampa Field Office. “Several agencies worked tirelessly for many years to bring Hartman and others to justice and to provide restitution to the victim investors in this case. These criminals will all serve just sentences for the fraudulent schemes they devised and live differently than the opulent lifestyles they grew accustomed to.”
The case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Tampa, Florida, as well as the U.S. Secret Service, Tampa, Florida and Newark, New Jersey Field Offices. The government received assistance from several other authorities, including the City of London Police, the UK's Serious Fraud Office and Norfolk Constabulary, the Spanish National Police, the U.S. Securities and Exchange Commission, the Ontario Securities Commission, and the British Columbia Securities Commission. The case was prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Kelley Howard-Allen.
U.S. Attorney and Social Security Administration Announce Impact of Benefit Fraud Prosections in MarylandRead the Press Release
Partnership Between the Social Security Administration and Department of Justice Increases Criminal Prosecution of Fraud in SSA’s Title II and Title XVI Benefit Programs
Baltimore, Maryland – Since October 2012, the U.S. Attorney’s Office for the District of Maryland has participated in the Social Security Administration (SSA) Fraud Prosecution Project, which places attorneys in federal districts around the country to serve as Special Assistant United States Attorneys (SAUSAs). The District of Maryland is one of a dozen such districts to participate in the program, which will expand to at least ten additional districts in 2014. Assigned SAUSAs work within their assigned district to bring criminal indictments charging individuals who have actively defrauded SSA. These schemes can last many years and result in large financial losses to the agency. Collateral benefits of the program include providing a deterrent effect and punishment to those who steal from SSA benefit programs and who undermine the public’s trust in SSA’s stewardship of the trust funds.
FEDERAL CRIMINAL PROSECUTIONS
Since October 2012, 15 defendants have pleaded guilty to their participation in fraud schemes affecting SSA’s benefit programs. Five of those defendants have been sentenced to between one month and 33 months imprisonment. Twelve defendants have also been ordered to pay a total of $761,109 in restitution to SSA, Maryland Medicare and Maryland Medicaid, with individual defendants paying between $6,480.15 and $190,900.
“We increased federal prosecutions of criminals who defraud the Social Security Administration as a result of unprecedented support from the agency,” said U.S. Attorney Rod J. Rosenstein. “These cases are important in order to punish and deter people who lie, cheat and steal to gain government benefits they do not deserve.”
“I’m gratified at the results of this joint effort, and I want to thank United States Attorney Rod J. Rosenstein and Chief Counsel David Black for their unwavering support,” said Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division. “The SSA-OIG is steadfast in its commitment to combating Social Security fraud, and relies heavily on the cooperation of both the Department of Justice and the Social Security Administration. These results illustrate with remarkable clarity what can be accomplished to preserve Social Security funds for those entitled to them when each of those parties not only commits to combating fraud waste and abuse, but acts on that commitment.”
The following are examples of cases involving social security fraud schemes prosecuted in Maryland.
Deceased Beneficiary
U.S. District Judge George L. Russell III sentenced Robert Errol Jackson, age 45, of Baltimore, today to 33 months in prison followed by three years of supervised release for theft of government property, in connection with an 18 year fraud scheme to obtain his grandfather’s social security benefits. Judge Russell also entered an order that Jackson pay restitution of $190,900 for social security benefits unlawfully received.
According to his plea agreement, Jackson’s grandfather received monthly cash benefits from the Social Security Administration (SSA) at the time of his death on June 9, 1992. The benefits were paid by direct deposit into a checking account. After his grandfather’s death, Jackson took possession of the debit card in his grandfather’s name and used the card to regularly withdraw money from the account until December 3, 2010, when the benefits were terminated. From June 1992 to December 2010, SSA deposited a total of $190,900 into the account on the grandfather’s behalf. Jackson had no legal entitlement to these benefits.
Jackson was incarcerated between 1990 and 1994, and again between 2004 and 2010. During his imprisonment, Jackson told others to withdraw money from the account and spend it at his direction, including by sending money to Jackson in prison. He spent substantially all of the social security benefits that SSA had deposited in the account on his grandfather’s behalf. When the grandfather’s benefits were suspended in 2010, Jackson called SSA and unsuccessfully attempted to impersonate his grandfather in order to resume the payment of benefits.
Work Concealment
Charles David Jones, Sr., age 58, of Frederick, Maryland, pleaded guilty on February 27, 2014, to theft of government property, after he received at least $110,000 in disability benefits while working at a Frederick restaurant.
According to his guilty plea, Jones applied for disability benefits in March 2002, claiming that he could no longer work and was disabled. Starting in July 2002, Jones began to work as a cook at a Frederick restaurant and was promoted to manager and head chef. Jones never reported this work to SSA. On October 13, 2003, Jones purchased the restaurant and continued to manage and operate the restaurant through at least August 2011. In February 2004, Jones was awarded disability benefits by SSA, retroactive to August 2002 and continued to receive benefits until they were suspended in 2011. In March 2010, Jones signed and submitted to SSA a Continuing Disability Review Report, in which he claimed that he was not working and was not able to work.
Jones faces a maximum penalty of 10 years in prison at his sentencing, which is scheduled for June 24, 2014 at 9:30 a.m. Under the terms of his plea agreement, Jones will also be required to pay restitution of at least $110,000.
On February 21, 2014, Ronald William Burke, age 53, of Crisfield, Maryland, was indicted by a federal grand jury on charges arising from his concealment of work activity while receiving Title II disability benefits.
The three count indictment alleges that Burke, who qualified for disability benefits in April 2010, returned to work as a commercial waterman without notifying SSA. The indictment alleges that Burke maintained an active commercial fishing license between 2010 and 2013, and owned and operated commercial fishing boats during the same period, including the “Laura” and the “Belinda Jean.” On January 26, 2012, the indictment alleges that Burke signed an SSA work activity report, on which he was obligated to report all work activity since his disability in January 2010. Burke is alleged to have falsely certified that he had not worked during the entirety of that period, when in fact he had been self-employed as a commercial waterman during some of that time.
Burke allegedly received $36,691 in unlawful disability benefits and $35,610 in unlawful Medicare services between 2010 and 2013. He faces a maximum sentence of 10 years in prison for theft of government property; and five years in prison for making a false statement to SSA and for improper receipt of Title II benefits.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.Debit Card Program Fraud
Scerena Simpson Genus, age 35, and her mother, Doreen Spence, age 50, both of Baltimore, pleaded guilty to a scheme to steal social security benefits. Genus was sentenced to two years in prison and Spence to 11 months in prison. Both were ordered to pay restitution of $6,480.15.
According to their plea agreements, beginning no later than September 2011, co-conspirators in Jamaica, including cousins and other family members of Genus and Spence, applied by telephone for Direct Express debit cards in the names of social security beneficiaries, impersonating the victims and using the victims’ personal identifying information. The co-conspirators obtained the personal information of the victims by, among other means, telling the victims that they had won the Jamaican National Lottery and that they would send them “winnings” from the lottery if the victims provided their personal information. The Direct Express debit card program can be used by beneficiaries of federal programs which disburse cash benefits. The co-conspirators signed up for Direct Express in the name of the victims and requested that the victims= monthly social security benefits be loaded onto the debit cards and sent to the home of Genus and Spence.
Spence and Genus received at least five of the more than 23 debit cards that the co-conspirators applied for and used the cards to make purchases and cash withdrawals at locations around Baltimore. Soon after withdrawing the benefits Spence and Genus wired a portion of the funds to the Jamaican co-conspirators, keeping a portion of the stolen benefits for themselves. The total amount of benefits fraudulently withdrawn from the five cards by Genus and Spence was $6,480.15.
United States Attorney Rod J. Rosenstein thanked the Social Security Administration, Office of Inspector General for its work in these investigations. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul Nitze, on detail from the Social Security Administration, who handles SSA-related fraud cases in Baltimore and Greenbelt, as well as Assistant U.S. Attorney Justin S. Herring, who is handling the Jones case.
Two Moving Company Managers Sentenced to 18 Months in PrisonRead the Press Release
SAN JOSE-- Asaf Nass, the operations manager for AY Transport, was sentenced today to 18 months in prison for his role in a conspiracy to commit extortion in a moving fraud scheme, announced U.S. Attorney Melinda Haag. The sentencing hearing follows an earlier sentencing hearing on March 5, 2014 in the same case in which Randy Goldberg, the chief executive officer of National Moving Network, was sentenced to 18 months imprisonment for his involvement in the same scheme.
Nass pleaded guilty on March 8, 2012, to conspiracy to commit extortion. According to the plea agreement, Nass worked as the operations manager for AY Transport, also known as Progressive Van Lines, a moving company headquartered in San Jose, California. Nass admitted to participating in a scheme to extort moving customers by working with a Miami-based moving broker, National Moving Network, to falsely lure customers into moves based upon inaccurate prices, and to subsequently holding customer goods hostage unless the victim paid increased fees. The increased fees for the release of the goods sometimes amounted to two or three times the amount of the original bid provided by National Moving Network. If a customer refused to pay the fees, their goods were sometimes held in storage lockers, and Nass on occasion instructed AY Transport employees to sell the customers’ goods at auction. According to the plea agreement, the losses resulting from the scheme exceeded $250,000. The final restitution amount remains undetermined and is the subject of a restitution hearing scheduled for May 21, 2014.
Nass is the ninth defendant to be sentenced in connection with the AY Transport/National Moving Network case. On March 5, 2014, Randy Goldberg, the president of the National Moving Network, was also sentenced to 18 months imprisonment as a result of his guilty plea to one count of criminal possession of household goods in violation of 49 U.S.C. § 14915. Seven other defendants holding different positions in the two companies have been sentenced to probationary sentences following guilty pleas for their respective roles in the scheme.
The Department of Transportation, Office of Inspector General, and Federal Bureau of Investigation initiated the investigation in 2003 following numerous customer complaints regarding the tactics employed by AY Transport and National Moving Network.
The sentence was handed down by U.S. District Court Judge Lucy H. Koh following the defendant’s guilty plea to one count of conspiracy to commit extortion in violation of 18 U.S.C. § 371. Judge Koh also sentenced the defendant to a term of 3 years of supervised release. The defendant will begin serving the sentence on June 18, 2014. A separate hearing to determine the restitution amount is scheduled for May 21, 2014 at 9:30 a.m.
Jeff Nedrow and Jeff Schenk are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of a four-year investigation by the U.S. Department of Transportation Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division.
Two Men Charged with Odometer FraudRead the Press Release
Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery and U.S. Attorney for the Eastern District of Wisconsin James L. Santelle announced today that a federal grand jury indicted two men for odometer tampering and related crimes. Erick Sanchez-Pulido, 30, and his brother, Israel Sanchez-Pulido, 31, were charged with one count of conspiracy, 15 counts of odometer tampering, four counts of making false odometer statements and other charges. Both men are Mexican citizens who were allegedly in the U.S. illegally and, prior to their arrests, had been living in the Chicago area.The indictment charges that the Sanchez brothers purchased high-mileage used motor vehicles at Wisconsin auto auctions, rolled back the vehicles’ odometers, altered the mileage readings on the vehicles’ titles and sold the vehicles to unsuspecting consumers. The indictment alleges that from late 2009 through February 2014, the defendants rolled back the odometers on at least 146 vehicles.
“Odometer fraud harms consumers making one of the biggest purchases in their lives: an automobile,” said Assistant Attorney General Delery. “Not only do purchasers end up paying more for used cars, but the rolling back of mileage on odometers could ultimately affect a car’s safety and the costs of future repairs to consumers."
“Today’s charges reflect the abiding focus of the Justice Department on identifying, investigating and prosecuting perpetrators of consumer fraud who victimize trusting, unsuspecting car buyers,” said U.S. Attorney Santelle. “I acknowledge and commend the excellent work of agents of the National Highway Traffic Safety Administration and the Wisconsin Department of Transportation that resulted in this important indictment—premised on conspiratorial conduct in altering mileage readings and rolling back odometers.”
“Tampering with odometers is a crime that puts consumers’ lives and wallets at risk,” said NHTSA Acting Administrator David Friedman. “Safety is the Department of Transportation's top priority, and we will continue to work with our Department of Justice and state DOT partners to deter odometer fraud and inform consumers of the potential signs of and dangers associated with this crime.”
The case was investigated by the National Highway Traffic Safety Administration’s Office of Odometer Fraud Investigation and the Wisconsin Department of Transportation. Trial Attorney Patrick Jasperse, with the Consumer Protection Branch at the U.S. Department of Justice, and Assistant U.S. Attorney Jonathan H. Koenig are prosecuting the case. The Wisconsin Department of Justice’s Division of Criminal Investigation and the Kenosha County Sheriff’s Department assisted in making the arrests.
More information on odometer fraud is available at www.nhtsa.gov/Odometer-Fraud. Tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf .
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent until such time, if ever, that the government proves their guilt beyond a reasonable doubt.
Two California Men Indicted for Selling Endangered Black Rhinoceros HornsRead the Press Release
Edward N. Levine, 63, of Mill Valley, Calif., and Lumsden W. Quan, 46, of San Francisco, were indicted by a federal grand jury in Las Vegas today for the illegal sale of two horns from an endangered black rhinoceros, announced Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, and Daniel G. Bogden, U.S. Attorney for the District of Nevada. The indictment is a result of “Operation Crash,” a nationwide effort led by the U.S. Fish & Wildlife Service (FWS) and the Justice Department to investigate and prosecute those involved in the black market trade of endangered rhinoceros horns.
The indictment charges Levine and Quan each with one count of conspiracy to violate the Lacey Act and the Endangered Species Act and one count of violating the Lacey Act. The Lacey Act prohibits the sale of wildlife that was transported in violation of law. The Endangered Species Act prohibits the interstate transportation of endangered species for a commercial purpose and the interstate sale of an endangered species.
According to the indictment, over the course of approximately two months, Quan and Levine negotiated the sale of two black rhinoceros horns by e-mail and telephone, ultimately communicating with a law enforcement officer acting in an undercover capacity. The indictment further alleges that Quan and Levine offered to sell the two black rhinoceros horns for $55,000 and agreed to meet the buyer in Las Vegas. On March 19, 2014, after directing another person to drive with the horns from California to Las Vegas, Quan and Levine flew from California to Las Vegas, to make the sale. Quan met the law enforcement officer acting in an undercover capacity in a Las Vegas hotel room, where Quan sold two black rhinoceros horns for $55,000. Both men were arrested later that day.
Rhinoceros are herbivores of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law and the black rhinoceros is endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by 180 countries around the world to protect fish, wildlife and plants that are or may become imperiled. Nevertheless, trafficking in rhinoceros horn has skyrocketed in recent years due to the demand for horn for ornamental carvings, good luck charms or alleged medicinal purposes. As a result of this demand, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live rhinos, rising from 13 in 2007 to more than 1,000 in 2013.
The investigation is being conducted by the U.S. Fish and Wildlife Service’s Office of Law Enforcement. Officers from the National Park Service, U.S. Forest Service, and Nevada Division of Wildlife assisted with the arrests on March 19. The case is being prosecuted by Trial Attorney Todd S. Mikolop of the U.S. Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Kate Newman of the U.S. Attorney’s Office for the District of Nevada.
Two Bangor Residents Plead Guilty to Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Adam
Hathorn, 36, of Bangor and Tina Keaton, a/k/a “Fumble” 32, of Bangor pleaded guilty today in U.S. District Court in Bangor to conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.”According to court records, the defendants illegally distributed MDPV in Penobscot
County and elsewhere between April and December 2011. Prior to October 21, 2011, MDPV was classified as a controlled substance analogue. On that date, it was classified as a Schedule I controlled substance. The defendants obtained quantities of MDPV from other members of the conspiracy in the Bangor area and then traded, sold, or otherwise distributed them to others.
The defendants face up to 20 year in prison, a $1,000,000 fine, or both. They will be sentenced after the completion of presentence investigation reports by the U.S. Probation Office.
Hathorn and Keaton are two of 14 defendants charged as part of the conspiracy. A third defendant, Matthew Tardiff, 27, of Old Town, Maine, pled guilty to the conspiracy charge on
January 27, 2014 and awaits sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration.Twelve Indicted in Heroin Trafficking Conspiracy; Two Charged with Distribution Resulting in DeathRead the Press Release
TERENCE TAYLOR a/k/a “Peezy” a/k/a “Sonny”, 35; ARTHUR MCKINNIS a/k/a “Notchy”, 23; NOEL JONES a/k/a “Skinny” a/k/a “Noe”, 26; TERRELL DYER a/k/a “T”, 29; PERCY DEPRON a/k/a “Doo”, 27; ERNEST DIAZ a/k/a “E.O.”, 24; MALCOLM BOLDEN a/k/a “Little Mac”, 19; TERRELL DAVIS a/k/a “Fest”, 22; MELVIN SMITH a/k/a “Mel”, 29; THEODORE GRIFFIN a/k/a “Old Timer” a/k/a “Nokie”, 59; NARCISSE TROTTER a/k/a “Nerk”, 43; and AARONISHA LEWIS a/k/a “Molly”, 24; all residents of New Orleans, were indicted by a federal grand jury on Thursday, March 27, 2014, for conspiring to distribute one kilogram or more of heroin in the New Orleans area from January 2011 to the present, announced U. S. Attorney Kenneth Allen Polite, Jr. The indictment was unsealed today.
TAYLOR and BOLDEN are also charged with distribution of heroin on or about July 26, 2013, resulting in the death of Kevin Ryan. Several of the defendants are charged with additional counts of distributing heroin and using telephones in furtherance of heroin trafficking. According to the indictment, GRIFFIN faces an additional charge of maintaining a drug-involved premise for allowing a residence located at 4848 Deanne Street in New Orleans to be used for drug-related activities.
“The arrests made today are part of DEA’s response to the addiction, crime, violence, and despair brought on by the growing threat of heroin,” stated DEA Special Agent in Charge Keith Brown. “Heroin is a killer that does not discriminate. It destroys lives, families, and hope in every segment of society; and the individuals who sell heroin are spreading potential death in every foil package sold on the streets of this country. DEA, working shoulder to shoulder with law enforcement agencies across the New Orleans area, is fully committed to stopping the spread of this deadly drug and to bringing to justice those who profit from the misery created by heroin.”
“The St. Tammany Parish Sheriff’s Office has a long-standing and proud partnership with our federal law enforcement partners. The work we do together is helping remove life- threatening drugs from our communities and making sure that those who would supply these drugs to others face the consequences of their actions,” stated St. Tammany Sheriff Jack Strain.
U. S. Attorney Kenneth Allen Polite, Jr., reiterated the charges in the indictment are only allegations, and that the guilt of the defendants must be proven beyond a reasonable doubt.This case has been investigated jointly by the Drug Enforcement Administration, Federal Bureau of Investigation with assistance from the St. Tammany Parish Sheriff’s Office, and is being prosecuted by Special Assistant United States Attorney Michael Redmann, assigned from the Orleans Parish District Attorney’s Office, and Assistant United States Attorney Mark Miller.
(Download Indictment )
Three Arrested After Being Named in New Indictment That Alleges Money Laundering, Health Care Fraud and Tax Fraud SchemesRead the Press Release
LOS ANGELES – Three people who were recently named in a superseding indictment that adds health care fraud charges to money laundering and tax fraud schemes were arrested this morning by federal authorities.
Edgar Hakobyan, 30, of Glendale; Karen Sarkissian, 43, of Glendale; and L’Tanya Smith, 57, of Ladera Park, were taken into custody without incident and are scheduled to be arraigned on the indictment this afternoon in United States District Court. These three defendants were named in a superseding indictment returned by a federal grand jury on March 27.
Previously in this case, two defendants were named in the original indictment that alleged a conspiracy to launder the proceeds of health care fraud through five sham corporations they owned and operated. Glendale residents Khachatour Hakobyan, 46, and Aram Aramyan, 59, have pleaded not guilty to charges that allege they deposited millions in fraudulent proceeds into bank accounts for the bogus companies and then wrote checks from these corporations to themselves and their relatives, including Edgar Hakobyan. Khachatour Hakobyan and Aramyan have each been charged with five counts of filing false tax returns based on their failure to report all of their income from those corporations between 2007 and 2011. Khachatour Hakobyan and Aramyan are scheduled to go on trial on January 27, 2015, before United States District Judge Margaret M. Morrow.
Two of the defendants arrested today are charged with health care fraud related to a clinic on Sunset Boulevard in Echo Park. The clinic was operated by Sarkissian and employed Smith, a physician’s assistant. Between July 2009 and March 2010, Smith allegedly prescribed or ordered medically unnecessary tests and services, some of which were never provided to the patients. Those prescriptions and orders led to more than $11 million in fraudulent claims to Medicare. Sarkissian is also charged as a part of the money laundering conspiracy based on his involvement in laundering the fraudulent proceeds generated through the Sunset Clinic through the corporations set up by Khachatour Hakobyan and Aramyan.
Edgar Hakobyan is charged with conspiracy to commit money laundering and money laundering based on his involvement in receiving checks from the sham corporations, which he either cashed or deposited in his own bank accounts.
Special Agent in Charge Erick Martinez of IRS Criminal Investigation's Los Angeles Field Office stated, “The defendants have allegedly laundered millions of dollars of fraudulently obtained Medicare funds through their businesses, failing to report it as income. IRS Criminal Investigation will not stand still while criminals line their pockets with illicit proceeds obtained from publically funded health care programs.”
If they are convicted of the charges in the superseding indictment, the five defendants would face sentences of as much as 395 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
As part of this investigation, charges have previously been filed against others associated with the money laundering and health care fraud schemes. Susanna Artsruni, of North Hollywood, has pleaded guilty and admitted she caused $25 million in fraudulent claims to be submitted to Medicare through three medical clinics and her own durable medical equipment company (see: http://www.justice.gov/usao/cac/Pressroom/2014/002.html). Earlier this week, Erasmus Kotey, 77, of Montebello, pleaded guilty to health care fraud in relation to one of the clinics operated by Artsruni and a second unrelated clinic (see: http://www.justice.gov/usao/cac/Pressroom/2014/038.html).
All of these cases are the products of an investigation by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS - Criminal Investigation.
The cases were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion.
Release No. 14-040
St. Albans Felon Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
Charleston, W. Va. - Lucas R. Lynch, 31, of St. Albans, West Virginia plead guilty today to the federal charge of felon in possession of firearms, announced United States Attorney Booth Goodwin. Lynch, who is prohibited from possessing guns due to a prior felony conviction in 2003, conspired with Keary Drake of Charleston to sell stolen firearms and split the proceeds. In November of 2013, Lynch and Drake drove to St. Albans where they picked up two stolen guns, a rifle and a shotgun. On their way from St. Albans, police attempted to stop the car for a traffic violation. Lynch failed to stop and attempted to evade capture. In the process, Drake was injured while trying to jump from Lynch’s moving vehicle. Lynch continued to flee from police until his car engine malfunctioned. When questioned, Drake and Lynch admitted their participation in the illegal gun scheme, and acknowledged that they were not permitted to possess firearms.
Lynch faces a maximum penalty of up to ten years in prison when he is sentenced on July 9, 2014. Drake previously plead guilty on February 24, 2014 and is scheduled to be sentenced on June 2, 2014.
The St. Albans Police Department conducted the investigation, assisted by the Bureau of Alcohol, Firearms and Tobacco Enforcement. AUSA Erik Goes is handling the prosecution.
Southern Oregon Couple Sentenced to Federal Prison for Fraud and Tax ChargesRead the Press Release
MEDFORD, OR – Kenneth Johnson, 62, and Diana Arredondo, 56, both of Central Point, Oregon, were sentenced to federal prison based on an embezzlement and tax fraud scheme relating to the operation of a local hotel. Johnson was a partner in the Super 8 Hotel in Central Point, Oregon since it opened in October 2005. He was in charge of the hotel’s daily operations and reported the hotel’s revenue to his partners in Montana. Johnson hired his girlfriend, Arredondo, as the assistant hotel manager. They operated the hotel from October 2005 through 2011. Johnson engaged in a scheme to defraud his hotel partners by providing them false information regarding the amount of cash collected by the hotel, and diverting some of the funds for his and Arredondo’s use. Over a period of time, Johnson diverted a total of about $500,000 and shared some of the tainted funds with Arredondo. In addition, both defendants filed fraudulent income tax returns, failing to report the money embezzled from the hotel. Based on a plea agreement entered into with the government, Johnson pleaded guilty to tax fraud and wire fraud and Aredondo pleaded guilty to tax fraud.
On Monday, March 31, 2014, Senior U.S. District Judge Owen M. Panner sentenced Johnson to 33 months in federal prison and Arredondo to 10 months in prison. Johnson was ordered to pay $561,101.05 in restitution and Arredondo was ordered to pay $16,229.00 in restitution.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigation, and was prosecuted by Assistant U. S. Attorney Judith Harper.
Six Defendants Indicted in Alleged Conspiracy <br /> to Bribe Government Officials in India to Mine Titanium MineralsRead the Press Release
A federal indictment returned under seal in June 2013 and unsealed today charges six foreign nationals, including a Ukrainian businessman and a government official in India, with participating in an alleged international racketeering conspiracy involving bribes of state and central government officials in India to allow the mining of titanium minerals. Five of the six defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA), among other offenses.
Acting Assistant Attorney General David A. O’Neil of the Department of Justice’s Criminal Division, U.S. Attorney Zachary T. Fardon for the Northern District of Illinois and Special Agent in Charge Robert J. Holley of the FBI’s Chicago Field Office made the announcement.
“Fighting global corruption is part of the fabric of the Department of Justice,” said Acting Assistant Attorney General O’Neil. “The charges against six foreign nationals announced today send the unmistakable message that we will root out and attack foreign bribery and bring to justice those who improperly influence foreign officials, wherever we find them.”
“Criminal conspiracies that extend beyond our borders are not beyond our reach,” said U.S. Attorney Fardon. “We will use all of the tools and resources available to us to ensure the integrity of global business transactions that involve U.S. commerce.”
“This case is another example of the FBI’s willingness to aggressively investigate corrupt conduct around the globe” said Special Agent in Charge Holley. “With the assistance of our law enforcement partners, both foreign and domestic, we will continue to pursue those who allegedly bribe foreign officials in return for lucrative business contracts.”
Beginning in 2006, the defendants allegedly conspired to pay at least $18.5 million in bribes to secure licenses to mine minerals in the eastern coastal Indian state of Andhra Pradesh. The mining project was expected to generate more than $500 million annually from the sale of titanium products, including sales to unnamed “Company A,” headquartered in Chicago.
One defendant, Dmitry Firtash, aka “Dmytro Firtash” and “DF,” 48, a Ukrainian national, was arrested March 12, 2014, in Vienna, Austria. Firtash was released from custody on March 21, 2014, after posting 125 million euros (approximately $174 million) bail, and he pledged to remain in Austria until the end of extradition proceedings.
Five other defendants remain at large: Andras Knopp, 75, a Hungarian businessman; Suren Gevorgyan, 40, of Ukraine; Gajendra Lal, 50, an Indian national and permanent resident of the United States who formerly resided in Winston-Salem, N.C.; Periyasamy Sunderalingam, aka “Sunder,” 60, of Sri Lanka; and K.V.P. Ramachandra Rao, aka “KVP” and “Dr. KVP,” 65, a Member of Parliament in India who was an official of the state government of Andhra Pradesh and a close advisor to the now-deceased chief minister of the State of Andhra Pradesh, Y.S. Rajasekhara Reddy.
The five-count indictment was returned under seal by a federal grand jury in Chicago on June 20, 2013. All six defendants were charged with one count each of racketeering conspiracy and money laundering conspiracy, and two counts of interstate travel in aid of racketeering. Five defendants, excluding Rao, were charged with one count of conspiracy to violate the FCPA.
As alleged in court documents, Firtash controls Group DF, an international conglomerate of companies that was directly and indirectly owned by Group DF Limited, a British Virgin Islands company. Group DF companies include: Ostchem Holding AG, an Austrian company in the business of mining and processing minerals, including titanium; Global Energy Mining and Minerals Limited, a Hungarian company, and Bothli Trade AG, a Swiss company, for which Global Energy Mining and Minerals was the majority shareholder. In April 2006, Bothli Trade and the state government of Andhra Pradesh agreed to set up a joint venture to mine various minerals, including ilmenite, a mineral which may be processed into various titanium-based products such as titanium sponge, a porous form of the mineral that occurs in the processing of titanium ore.
In February 2007, Company A entered into an agreement with Ostchem Holding, through Bothli Trade, to work toward a further agreement that would allow Bothli Trade the ability to supply 5 million to 12 million pounds of titanium sponge from the Indian project to Company A on an annual basis. The mining project required licenses and approval of both the Andhra Pradesh state government and the central government of India before the licenses could be issued.
As alleged in the indictment, the defendants used U.S. financial institutions to engage in the international transmission of millions of dollars for the purpose of bribing Indian public officials to obtain approval of the necessary licenses for the project. They allegedly financed the project and transferred and concealed bribe payments through Group DF, and used threats and intimidation to advance the interests of the enterprise’s illegal activities.
According to the indictment, Firtash was the leader of the enterprise and caused the participation of certain Group DF companies in the project. Firtash allegedly met with Indian government officials, including Chief Minister Reddy, to discuss the project and its progress, and authorized payment of at least $18.5 million in bribes to both state and central government officials in India to secure the approval of licenses for the project. Firtash also allegedly directed his subordinates to create documents to make it falsely appear that money transferred for the purpose of paying these bribes was transferred for legitimate commercial purposes, and he appointed various subordinates to oversee efforts to obtain the licenses through bribery.
As alleged in the indictment, Knopp supervised the enterprise and, together with Firtash, met with Indian government officials. Knopp also met with Company A representatives to discuss supplying titanium products from the project. Gevorgyan allegedly traveled to Seattle and met with Company A representatives. Gevorgyan also engaged in other activities, including allegedly signing false documents, monitoring bribe payments and coordinating transfers of money to be used for bribes. Lal, also known as “Gaj,” allegedly engaged in similar activities, reported to Firtash and Knopp on the status of obtaining licenses, and recommended whether, and in what manner, to pay certain bribes to government officials.
The indictment further alleges that Sunderalingam met with Rao to determine the total amount of bribes and advised others on the results of the meeting, and he identified various foreign bank accounts held in the names of nominees outside India that could be used to funnel bribes to Rao. Rao allegedly solicited bribes for himself and others in return for approving licenses for the project, and he warned other defendants concerning the threat of a possible law enforcement investigation of the project.
The indictment lists 57 transfers of funds between various entities, some controlled by Group DF, in various amounts totaling more than $10.59 million beginning April 28, 2006, through July 13, 2010.
The indictment seeks forfeiture from Firtash of his interests in Group DF Limited and its assets, including 14 companies registered in Austria and 18 companies registered in the British Virgin Islands, as well as 127 other companies registered in Cyprus, Germany, Hungary, the Netherlands, Seychelles, Switzerland, the United Kingdom and one unknown jurisdiction and all funds in 41 bank accounts in several of those same countries. Furthermore, the indictment seeks forfeiture from all six defendants of more than $10.59 million.
This case is being investigated by the FBI’s Chicago Field Office. The case is being prosecuted by Assistant U.S. Attorneys Amarjeet Bhachu and Michael Donovan of the Northern District of Illinois and Trial Attorney Ryan Rohlfsen of the Criminal Division’s Fraud Section.
The Justice Department has worked closely with and has received significant assistance from its law enforcement counterparts in Austria, as well as the Hungarian National Police, and greatly appreciates their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proof beyond a reasonable doubt.Six Defendants Indicted in Alleged Conspiracy to Bribe Government Officials in India to Mine Titanium MineralsRead the Press Release
CHICAGO — A federal indictment returned under seal in June 2013 and unsealed today charges six foreign nationals, including a Ukrainian businessman and a government official in India, with participating in an alleged international racketeering conspiracy involving bribes of state and central government officials in India to allow the mining of titanium minerals. Beginning in 2006, the defendants allegedly conspired to pay at least $18.5 million in bribes to secure licenses to mine minerals in the eastern coastal Indian state of Andhra Pradesh. The mining project was expected to generate more than $500 million annually from the sale of titanium products, including sales to unnamed “Company A,” headquartered in Chicago.
One defendant, DMITRY FIRTASH, aka “Dmytro Firtash” and “DF,” 48, a Ukrainian businessman, was arrested March 12 in Vienna, Austria. Firtash was released from custody on March 21 after posting 125 million euros (approximately $174 million) bail, and he pledged to remain in Austria until the end of extradition proceedings.
Five other defendants remain at large: ANDRAS KNOPP, 75, a Hungarian businessman; SUREN GEVORGYAN, 40, of Ukraine; GAJENDRA LAL, 50, an Indian national and permanent resident of the United States who formerly resided in Winston-Salem, N.C.; PERIYASAMY SUNDERALINGAM, aka “Sunder,” 60, of Sri Lanka; and K.V.P. RAMACHANDRA RAO, aka “KVP,” and “Dr. KVP,” 65, a Member of Parliament in India who was an official of the state government of Andhra Pradesh and a close advisor to the nowdeceased chief minister of the State of Andhra Pradesh, Y.S. Rajasekhara Reddy.
“Criminal conspiracies that extend beyond our borders are not beyond our reach,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “We will use all of the tools and resources available to us to ensure the integrity of global business transactions that involve U.S. commerce,” he said.
“Fighting global corruption is part of the fabric of the Department of Justice,” said Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division. “The charges against six foreign nationals announced today send the unmistakable message that we will root out and attack foreign bribery and bring to justice those who improperly influence foreign officials, wherever we find them.”
Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, said: “This case is another example of the FBI’s willingness to aggressively investigate corrupt conduct around the globe. With the assistance of our law enforcement partners, both foreign and domestic, we will continue to pursue those who allegedly bribe foreign officials in return for lucrative business contracts.”
The five-count indictment was returned under seal by a federal grand jury in Chicago on June 20, 2013. All six defendants were charged with one count each of racketeering conspiracy and money laundering conspiracy, and two counts of interstate travel in aid of racketeering. Five defendants, excluding Rao, were charged with one count of conspiracy to violate the federal Foreign Corrupt Practices Act.
As described in the indictment, Firtash controls Group DF, an international conglomerate of companies that was directly and indirectly owned by Group DF Limited, a British Virgin Islands company. Group DF companies include: Ostchem Holding AG, an Austrian company in the business of mining and processing minerals, including titanium; Global Energy Mining and Minerals Limited, a Hungarian company, and Bothli Trade AG, a Swiss company, for which Global Energy Mining and Minerals was the majority shareholder. In April 2006, Bothli Trade and the state government of Andhra Pradesh agreed to set up a joint venture to mine various minerals, including ilmenite, a mineral which may be processed into various titanium-based products such as titanium sponge, a porous form of the mineral that occurs in the processing of titanium ore.
In February 2007, Company A entered into an agreement with Ostchem Holding, through Bothli Trade, to work toward entering into a supply agreement in which Bothli Trade would sell 5 million to 12 million pounds of titanium sponge from the Indian project to Company A on an annual basis. The mining project required licenses and approval of both the Andhra Pradesh state government and the central government of India before the licenses could be issued.
The racketeering conspiracy count alleges that the defendants:
- used U.S. financial institutions to engage in the international transmission of millions of dollars for the purpose of bribing Indian public officials to obtain approval of the necessary licenses for the project;
- used Group DF, including its business reputation and financial resources, to advance, participate in, and finance the project, as well as to fund, transfer, and conceal bribe payments connected with the project; and
- used threats and intimidation to advance the interests of the enterprise’s illegal activities.
According to the indictment, Firtash was the leader of the enterprise and oversaw, directed and guided certain of its illegal activities. Firtash allegedly:
- caused the direct and indirect participation of certain Group DF companies in the project;
- met with Indian government officials, including Chief Minister Reddy, to discuss the project and its progress;
- authorized payment of at least $18.5 million in bribes to both state and central government officials in India to secure the approval of licenses for the project;
- directed his subordinates to create documents to make it falsely appear that money transferred for the purpose of paying these bribes was transferred for legitimate commercial purposes; and
- appointed various subordinates to oversee efforts to obtain the licenses through bribery.
Knopp allegedly supervised the enterprise and, together with Firtash, met with Indian government officials. Knopp also met with Company A representatives to discuss supplying titanium products from the project. Gevorgyan allegedly traveled to Seattle and met with Company A representatives. Gevorgyan also engaged in other activities, including allegedly signing false documents, monitoring bribe payments, and coordinating transfers of money to be used for bribes. Lal, also known as “Gaj,” allegedly engaged in similar activities, reported to Firtash and Knopp on the status of obtaining licenses, and recommended whether, and in what manner, to pay certain bribes to government officials.
Sunderalingam allegedly met with Rao to determine the total amount of bribes and advised others on the results of the meeting, and identified various foreign bank accounts held in the names of nominees outside India that could be used to funnel bribes to Rao. Rao allegedly solicited bribes for himself and others in return for approving licenses for the project, and warned other defendants concerning the threat of a possible law enforcement investigation of the project.
As part of both the racketeering and money laundering conspiracies, the indictment alleges that one or more of the defendants caused funds to be transferred to and from the United States to promote the bribery of public officials in India. The indictment lists 57 transfers of funds between various entities, some controlled by Group DF, in various amounts totaling $10,597,050, beginning April 28, 2006, through July 13, 2010.
The indictment seeks forfeiture from Firtash of his interests in Group DF Limited and its assets, including 14 companies registered in Austria and 18 companies registered in the British Virgin Islands, as well as 127 other companies registered in Cyprus, Germany, Hungary, the Netherlands, Seychelles, Switzerland, the United Kingdom, and one unknown jurisdiction, and all funds in 41 bank accounts in several of those same countries. Further, the indictment seeks forfeiture from all six defendants of more than $10.59 million.
The charges in the indictment carry the following maximum penalties on each count: racketeering conspiracy ― 20 years in prison and a $250,000 fine; money laundering conspiracy ― 20 years and a $500,000 fine, or a fine totaling twice the value of the funds involved in the money laundering; interstate travel in aid of racketeering ― five years and a $250,000 fine; and conspiracy to violate the Foreign Corrupt Practices Act ― five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The case is being investigated by the Chicago Office of the FBI. The government is being represented in court by Assistant U.S. Attorneys Amarjeet Bhachu and Michael Donovan, and Trial Attorney Ryan Rohlfsen, of the Criminal Division’s Fraud Section.
The Justice Department has worked closely with and has received significant assistance from its law enforcement counterparts in Austria, as well as the Hungarian National Police, and greatly appreciates their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proof beyond a reasonable doubt.
Indictment
Rhode Island Leader of Sophisticated, Violent Fraudulent Document Ring Pleads Guilty to Racketeering and Money LaunderingRead the Press Release
RICHMOND, Va. – Felipe Alvarado Gonzalez, age 46, a Mexican National who resided in Pawtucket, Rhode Island pleaded guilty today to Conspiracy to Engage in Racketeering and Conspiracy to Launder Money. Alvarado Gonzalez faces a maximum of 40 years’ imprisonment, a fine of $750,000, and three years of supervised release. Further, the defendant is illegally within the United States and faces deportation following the service of his prison sentences.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Katrina W. Berger, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the guilty plea was accepted by Magistrate Judge M. Hannah Lauck.
According to court papers, this defendant is connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308. The FDE originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, and had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and, Nashville, Tennessee. The criminal enterprise was dismantled within the United States on November 18, 2010. In the prior case and connected prosecutions, a total of 30 defendants were convicted. On February 16, 2012, United States District Judge James R. Spencer sentenced the overall leader, Israel Cruz Millan, to 300 months’ imprisonment. On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, after a jury convicted him for racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents.
According to court filings, the FDE restarted its operations while the Israel Cruz Millan, et al. case was still pending. Beginning at some point prior to February 2012, Manuel Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in the United States, supervising operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island. As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens. In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers. In his sworn Statement of Facts, Felipe Alvarado Gonzalez, also known as “Wicho,” admitted that, while working under Hidalgo Flores, he supervised runners operating in the Pawtucket, Rhode Island cell.
The cost of fraudulent documents varied depending on the location, with counterfeit Resident Alien and Social Security cards typically selling for approximately $150. Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico. In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.
The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale. According to court filings, the FDE continued those tactics in 2013. The First Superseding Indictment charges four FDE members, including Manuel Hidalgo Flores, with targeting a competitor in the Richmond, Virginia area on October 6, 2013. That planned attack was thwarted, however, by law enforcement intervention.
Counting this guilty plea, 33 members of this organization charged in the Richmond, Virginia federal cases have been convicted. Currently, Alvarado Gonzalez is scheduled to be sentenced on July 7, 2014, before United States District Court Judge James R. Spencer. Out of the 12 defendants arrested in the current case on October 30, 2013, 9 are scheduled to proceed to a jury trial on June 2, 2014.
The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C. office. ICE HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department. Assistant United States Attorney Michael Gill and Trial Attorney Maria Gonzalez Calvet, of the Criminal Division's Fraud Section, 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.Prosecution of Methamphetamine Drug Trafficking Organization Results in Lengthy Federal Prison Sentences and Significant Cash SeizuresRead the Press Release
LUBBOCK, Texas — The last defendants convicted in an Organized Crime Drug Enforcement Task Force (OCDETF) operation targeting the Simon Chavez Drug Trafficking Organization (DTO), have been sentenced. That DTO was responsible for distributing large quantities of methamphetamine in Lubbock, Texas, and surrounding areas. The operation resulted in significant seizures of methamphetamine, three vehicles and more than $313,000 in cash. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On March 21, 2014, U.S. District Judge Sam R. Cummings sentenced Simon Orlando Chavez, Jr. to the statutory maximum of 240 months in federal prison. Chavez pleaded guilty to distribution and possession with intent to distribute methamphetamine. Judge Cummings also sentenced Jimmy Cordova, who pleaded guilty to the same offense, to 188 months in federal prison.
“Targeting drug organizations that have infiltrated north Texas and jeopardized the safety and security of our communities continues to be a priority in this district,” said U.S. Attorney Saldaña. “I commend the dedicated investigative efforts of the DEA and Homeland Security Investigations (HSI), who were assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service Criminal Investigation, the Lubbock Police Department, the Lubbock County Sheriff’s Office and the Texas Department of Public Safety.”
“The convictions of Simon Orlando Chavez, Jr. and his co-conspirators are indicative of DEA’s continued commitment to fully identify, investigate and bring to justice drug trafficking organizations determined to make a living on the backs of addiction,” said Daniel R. Salter, Special Agent in Charge of DEA, Dallas Field Division. “A prison sentence of 240 months, which Chavez received, should serve as a warning to other drug trafficking organizations that DEA and our state, local and federal partners are united in our efforts to keeping our communities safe.”
Six additional defendants also pleaded guilty to distribution and possession with intent to distribute methamphetamine and were sentenced as follows:
- Jose Luis Lara-Sosa, 87 months
- Jose Montemayor, 87 months
- Sammy Chavez, 121 months
- Antonio Rosa, 51 months
- Ruben Deleon, 71 months
- Anthony Deleon, 57 months
Other defendants pleaded guilty to various other offenses and were sentenced:
- Jessica Trevino, 120 months, possession with intent to distribute methamphetamine
- Brian Melcher, 175 months, possession with intent to distribute methamphetamine
- Francisco Avalos-Alejandre, 100 months, possession with intent to distribute 500 grams or more of methamphetamine
- Ira Newton-Davis, 48 months, unlawful use of a communication facility
- Tiffany Lashell Copley, 12 months and a $5,000 fine for operating an illegal gambling business
“To maximize our effectiveness, organized criminal actions require a unified law enforcement response,” said David M. Marwell, Special Agent in Charge of HSI Dallas. “Our collaborative work with the OCDETF task force resulted in this successful investigation, and these significant prison sentences. The methamphetamine addiction that this criminal operation was promoting has destroyed countless lives.”
Assistant U.S. Attorney Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, prosecuted the cases.
Progreso Mayor Convicted in Bribery SchemeRead the Press Release
McALLEN, Texas - Omar Leonel Vela, 36, has entered a plea of guilty to conspiracy and bribery concerning programs receiving federal funds, announced United States Attorney Kenneth Magidson.
Vela, the mayor of Progreso was originally charged along with several others based on their alleged participation in a scheme to create a “pay to play” public contracting system in Progreso. Today, Vela admitted he participated in the scheme from 2004 through 2013.
The school district for Progreso is the Progreso Independent School District (PISD). From 2004 through 2013, PISD received more than $1 million per year in federal program grants and funds from the U.S. Department of Education. In order to obtain contracts from PISD or from the City of Progreso, contractors were required to pay bribes to Vela and others.
Vela and others were able to extract bribes from contractors as a result of their political control of Progreso and PISD. Vela was a government official, giving him a level of control over local government. Vela and others facilitated the scheme by gathering bribe payments from contractors and delivering the payments, of which he would then receive a portion.
According to the plea agreement, during the time frame of the conspiracy, Vela and others required a local architect, his firm, a construction company and the school board attorney to pay bribes and kickbacks to Vela and others in order to obtain work with PISD or the City of Progreso. In total, Vela and others extracted more than $300,000 in bribe payments.
In addition, from April 2009 to December 2012, Vela instructed the owner of a plumbing and electrical supply company to provide fraudulent invoices to PISD and the City of Progreso for products they did not provide. When the invoices were paid, the owner returned the funds to Vela, resulting in more than $14,000 in kickbacks.
The charges against the others in this case remain pending. They are presumed innocent unless and until convicted through due process of law.
U.S. District Judge David Hittner, who accepted the pleas today, has set sentencing for July 25, 2014. At that time, Vela faces up to five years in federal prison for the conspiracy and another possible 10 years for the bribery involving federal programs conviction. Both convictions carry as possible punishment a maximum fine of $250,000. He was permitted to remain on bond pending that hearing.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
Pennsylvania Man Federally Charged with Delivery of A Controlled SubstanceRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Brown, 34, of Scotland, Pennsylvania was indicted today by a federal grand jury in Harrisburg charging him with one count of Delivery of a Schedule II Controlled Substance, crack cocaine.
If convicted, Brown faces a statutory maximum of 20 years’ imprisonment and a $1 million fine.
This case is being investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. This case is being prosecuted by Special Assistant United States Attorney Laura J. Kerstetter, who is an Assistant District Attorney in the Franklin County District Attorney’s Office.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine of $1 million. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Olean Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Willie G. Reid, 46, of Olean, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession of child pornography. The charge carries a maximum sentence of 10 years in prison, a fine of $250,000 and a term of supervised release of at least five years to life.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on May 2, 2013, Reid was in possession of images and videos of child pornography on his computer at his residence in Olean. The defendant possessed over 600 image and video files of child pornography. Some of the files images depicting violence, and some of the children shown in the images and videos were prepubescent and under the age of 12 years. Reid used peer-to-peer software to download child pornography and shared it with others.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 4, 2014 at 1:00 p.m. before Judge Arcara.New Hampshire Residents Sentenced on Armed Bank Robbery ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel
Barry, 38, of Pembroke, New Hampshire, was sentenced today in U.S. District Court to 63 months in prison and 5 years of supervised release for armed bank robbery. He was also ordered to pay $15,471 in restitution. The charges arose from the October 19, 2013 armed bank robbery of Kennebunk Savings in Eliot, Maine and the October 26, 2013 armed bank robbery of the
Ocean Communities Federal Credit Union (OCFCU) in Sanford, Maine.Brianne Mone, 27, of Dover, New Hampshire, was sentenced to 45 months in prison and
3 years of supervised release for aiding and abetting armed bank robbery. The charges arose from the August 21, 2013 armed bank robbery of Citizen’s Bank in Somersworth, New
Hampshire and the October 2013 armed bank robbery of OCFCU. She was also ordered to pay
$10,708 in restitution.According to court records, during the Kennebunk Savings robbery, Barry vaulted over the teller counter and took $7,896 from the teller drawers, while an associate, Philip Gage, pointed a Ruger Red Hawk .44 Magnum revolver at tellers. Barry was the source of the .44
Magnum revolver used by Gage during the robbery as well as the source of a Dan Wesson .22 caliber revolver that was used by Gage to rob $8,574 from OCFCU. Both firearms we recovered during a search of Barry’s residence.Mone was the getaway driver for the Citizen’s Bank and OCFCU armed bank robberies. During the Citizen’s Bank robbery, Gage gave a teller a handwritten demand note that read, in part, “I have a bomb and a gun if you say a word you will die” and absconded with
$3,132.This case was investigated by the Federal Bureau of Investigation, the Maine State
Police, and the Eliot, Kittery, Sanford, Berwick, York, Maine and Exeter, Somersworth, Alton and Pembroke, New Hampshire police departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these armed bank robberies were quickly solved because local, state, county and federal law enforcement agencies across two states worked closely together.”Nevada Man Sentenced for $2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nevada, Mo., man has been sentenced in federal court for his role in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.
Lyle E. Tourtillott, 68, of Nevada, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, April 1, 2014, to three years and one month in federal prison without parole. The court also ordered Tourtillott to pay $1,012,000 in restitution.
On Sept. 3, 2013, Tourtillott pleaded guilty to two counts of mail fraud.
In a separate but related case, Bob True Beisly, III, 40, of Nevada, and Ronald Bunn, 45, of Deerfield, Mo., were sentenced on March 20, 2014. Beisly was sentenced to two years and 11 months in federal prison without parole (to run consecutively to his state criminal cases) and ordered to pay $559,616 in restitution to Cargill. Beisly pleaded guilty on Aug. 6, 2013, to one count of wire fraud and one count of mail fraud. Bunn was sentenced to two years and three months in federal prison without parole and ordered to pay $754,564 in restitution to Cargill. Bunn pleaded guilty on Nov. 12, 2013, to two counts of mail fraud.
In a separate but related case, Jeffrey Hobbs, 41, of Exeter, Mo., was sentenced on Nov. 21, 2013, to two years and eight months in federal prison without parole and ordered to pay $2,334,180 in restitution to Cargill. Hobbs pleaded guilty on May 20, 2013, to one count of wire fraud. Each of the defendants will be held jointly and severally liable for the restitution payments.
Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Tourtillott, Beisly and Bunn approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Tourtillott, Beisly and Bunn for the delivery of loads of grain, corn or feed that did not truly exist. Hobbs referred to these as “ghost loads.”
Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”
Tourtillott worked as a driver for his brother, the owner of T&T Grain, which held contracts with Cargill to deliver feed or grain to the Butterfield feed mill. Tourtillott admitted that he received fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Hobbs provided Tourtillott with the fictitious scale ticket, Tourtillott would pay a kickback to Hobbs and later receive payment from Cargill. On several occasions, investigating agents conducted undercover audio and video recordings, which confirmed that Tourtillott worked with Hobbs in obtaining fictitious scale tickets at the grain feed mill.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Bunn owned and operating RB Grain. Bunn was contracted through The Scoular Company to transport shipments of wheat, corn and grain to the Cargill feed mill in Butterfield. Bunn also admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Scoular received a payment from Cargill based on the submission of a fictitious scale ticket, Scoular issued a check to Bunn based on the delivery of wheat, corn or feed that was never delivered.
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million.
These cases were prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the FBI and the Missouri State Highway Patrol.Navajo Woman Sentenced to Eighteen Months for Role in Armed Robbery on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Jerrileta Singer, 33, an enrolled member of the Navajo Nation who resides in Farmington, N.M., was sentenced this morning to 18 months in federal prison followed by three years of supervised release for her robbery conviction. Singer also was ordered to pay $400 in restitution to the victim of her crime.
Singer and her co-defendant Eddie Shirley, 28, a Navajo man who resides in Shiprock, N.M., were charged in Dec. 2012, in a criminal complaint with robbing the Sonic Drive-In Restaurant in Shiprock at gunpoint on Nov. 30, 2012. The two were later indicted and charged with robbery, and with using and brandishing a firearm during and in relation to a crime of violence.
Singer pled guilty to the robbery charge of the indictment on July 25, 2013. In entering her guilty plea, Singer admitted robbing four individuals who were in the restaurant by use of force, violence and intimidation and taking money belonging to the restaurant.
Shirley pled guilty to the firearms charge of the indictment on June 25, 2013, and admitted brandishing a firearm during the armed robbery of the restaurant. On Sept. 30, 2013, Shirley was sentenced to seven years in federal prison followed by five years of supervised release.
This case was investigated by Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Natchitoches Man Sentenced for Bankruptcy FraudRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that Wesley A. Pace, 38, of Nachitoches, La., was sentenced by U.S. District Judge Dee D. Drell, to 15 months in prison and three years of supervised release for bankruptcy fraud. He was also ordered to complete 300 hours of community service within the supervised release time period.
According to evidence presented at the guilty plea on November 14, 2013, Pace filed for bankruptcy in March of 2008. In his court filings, Pace did not declare his ownership of mineral rights to a parcel of land in Natchitoches Parish. One month later, he sold the mineral rights for $95,000 without informing the bankruptcy trustee of the sale or providing the money to the bankruptcy trustee as required by the Bankruptcy Act.The FBI, assisted by the U.S. Trustee’s Office, Region 5, conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Milo Man Sentenced to 1½ Years for Damaging Energy FacilitiesRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Michael
J. Weston of Milo, Maine was sentenced yesterday in U.S. District Court in Bangor to 1½ years in prison and 3 years of supervised release for damaging property of an energy facility. He was also ordered to pay $43,236 in restitution. The charges arose out of Weston’s theft of copper wire from substations owned by Emera Maine, formerly known as Bangor Hydro Electric
Company.
According to court records, in 2010 and 2011, Weston cut holes in fencing or cut locks to break into substations at Brooksville, Derby, Enfield, Milo and Orrington and stole hundreds of pounds of copper ground wire from the facilities. Over that period, Bangor Hydro was the victim of theft at about 19 of its substations. According to Bangor Hydro officials, it is extremely dangerous for anyone without experience with electricity to enter the fenced areas of its transmitting substations and remove wire. Weston sold the stolen copper wire to Chester
Gray’s Salvage Yard in Corinth, Maine.
The investigation was conducted by the Federal Bureau of Investigation, the Maine State
Police and the Maine Fire Marshal’s Office.Mexican Police Officer to Be Arraigned Today on Federal Drug Trafficking Charges Involving About 20 Pounds of NarcoticsRead the Press Release
RIVERSIDE, California – A Tijuana municipal police officer is expected to appear in United States District Court this afternoon to be arraigned on federal indictment that accuses him of illegally transporting more than 13 pounds of heroin and over six pounds of methamphetamine.
Noe Raygoza-Garcia, 33, a Mexican national, was indicted on March 27 on one count of possession with intent to distribute heroin and methamphetamine.
Raygoza was arrested on March 13 after federal officials saw him driving erratically on Interstate 15 near the Border Patrol checkpoint north of Temecula. After he was stopped by authorities and gave answers that aroused suspicion, a drug-detecting canine alerted to the vehicle, where Border Patrol agents found narcotics hidden in the rear seat, according to court documents.
If he is convicted of the one count in the indictment, Raygoza would face a mandatory minimum sentence of 10 years in federal prison and a maximum possible penalty of life.
Raygoza is currently being held without bond.
The case against Raygoza was investigated by the United States Border Patrol.
Release No. 14-039
Manhattan U.S. Attorney Charges 24 Members of Bronx Street Gang with Racketeering Conspiracy, Narcotics Trafficking, and Firearm OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), and Thomas J. Cannon, the Special Agent-in-Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), announced charges against 24 members of a criminal organization, known as “Murda Moore Gangstas” (“MMG”), who controlled the area in and around the Moore Housing Projects, near East 149th Street and Jackson Avenue, in the Bronx, New York. The MMG gang members are charged with racketeering, narcotics, and firearm offenses.
Twenty-one of the defendants, including those taken into custody today and five of the defendants who were in state or federal custody on other charges, will be presented in Manhattan federal court this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “Keeping our neighborhoods safe and secure from gang violence remains one of this Office’s highest priorities. Cases like this one, where we worked closely with our local and federal law enforcement partners to charge 24 leaders and members of a violent gang that allegedly terrorized the Moore Housing Projects in the Bronx, can make a big difference. All New Yorkers have the right to the peaceful enjoyment of their neighborhoods, whether they live in Mott Haven or Riverdale. That requires the combined efforts of law enforcement to make and prosecute cases like this one.”
ICE HSI Special Agent-in-Charge James T. Hayes said: “This organization’s alleged illicit activities of narcotics and weapons trafficking created a nightmare of crime and violence in the neighborhoods where they operated,” said James T. Hayes Jr., special agent in charge of HSI New York. “Only through continuous law enforcement cooperation can these criminals be taken off the streets and allow law-abiding citizens to reclaim their communities.”
DEA Acting Special Agent in Charge James J. Hunt stated, “Law enforcement’s collaboration and resources over the past two years led to the indictments of 24 members of the Murda Moore Gangsta crew on charges ranging from racketeering, narcotics and firearms felonies. Law abiding residents in surrounding areas of the Moore Housing Projects had been caught in the crossfire of violence associated with drug trafficking. Today’s arrests are the second wave of an investigation focused on reclaiming the Mott Haven community from the carnage, crime and fear that are linked to the MMG drug operations.”
NYPD Commissioner William J. Bratton said: “The NYPD will continue to work with our law enforcement partners to track down street crews that commit violent crimes amongst law abiding citizens. The Mott Haven community and residents in the Moore and Saint Mary Park Houses will hopefully feel safer knowing that their children can now play in the area that these crew members once used as their own personal battle ground, and that these crews have been removed from their midst. I want to thank the members of the NYPD's Bronx Gang Squad, 40th Precinct, the Drug Enforcement Administration, and the United States Attorney’s Office, Southern District of New York, for their efforts in bringing these criminals to justice.”
ATF Special Agent-in-Charge Thomas J. Cannon said: “Today’s arrests are convincing indicators that this investigation is far from over. We are pleased to be working with our fellow agencies to ensure that all of our respective resources are being utilized as efficiently as possible. In this way, this organization will be swiftly eradicated. The people of New York deserve nothing less.”
According to the Indictment unsealed today in Manhattan federal court:
From 2006 through 2014, MMG has been a criminal enterprise consisting of over 20 gang members who were involved in street robberies, assaults, and sales of crack cocaine, marijuana, and other drugs. MMG was started by five individuals – including TEVIN MIZELL, a/k/a “Tev Gunz,” KEVIN MIZELL, a/k/a “Kev Gunz,” EDWIN SMITH, a/k/a “Ed Black,” and JOSHUA FLADGER, a/k/a “Millz,” the defendants – who are known, within MMG, as the “Top Five.” Later, other individuals, including RICHARD SHACKLEFORD, a/k/a “Sha,” and AMAR TAYLOR, a/k/a “Capo MMG,” the defendants, also grew into leadership roles within the enterprise. MMG members protected and controlled its territory in and around the Moore Housing Projects through violence, and committed various crimes within and around that territory, like shootings, robberies, assaults, and narcotics trafficking.
In particular, MMG members have been embroiled in a continuing violent feud with several rival crews and gangs located nearby in the Bronx, such as gangs from the following areas: (1) the Betances Houses (the “Lookin’ Real Good,” or “LRG,” gang); (2) the Riverpark Towers Houses (the “RPT” gang); (3) Millbrook Housing Project (the “Killbrook Up” and “Killbrook Down” gangs); and (4) Highbridge Gardens Houses (the “Young Flybridge” gang).
In addition, as stated, certain MMG members also sold narcotics in the Moore Houses, and prohibited and prevented outsiders and rival gang members from doing so in their territory. Similarly, many members of MMG committed street-level robberies, either of drug dealers or law-abiding citizens, in and around the Moore Houses. In furtherance of the gang’s activities – namely, the violence, the narcotics distribution and the robberies – members and associates of MMG obtained, possessed, and used firearms.
TEVIN MIZELL, a/k/a “Tev Gunz,” KEVIN MIZELL, a/k/a “Kev Gunz,” EDWIN SMITH, a/k/a “Ed Black,” JOSHUA FLADGER, a/k/a “Millz,” RICHARD SHACKLEFORD, a/k/a “Sha,” AMAR TAYLOR, a/k/a “Capo MMG,” RONATHAN FLADGER, a/k/a “Jeezy,” NOEL BIDO, a/k/a “Bigga,” HENNISON CURRY, a/k/a “Henny,” JOSEPH OTERO, a/k/a “Triple-H,” SHAWN ARNOLD MCFADDEN, a/k/a “Weezy,” DEQUAN BROWN, a/k/a “Dada,” TYRE DAVIS, a/k/a “Tye,” KAYMAR FRANCIS, a/k/a “Kayo,” JOSEPH HUNTLEY, a/k/a “Goonie,” ODANIS OZUNA, a/k/a “Jose Ozoria,” a/k/a “O,” JAMES ANDERSON, MARK GRAYSON, a/k/a “Biscuit,” MICHAEL JAMES, MALIK MCCOLLUM, a/k/a “Dot,” ROBERT WANNAMAKER, EDWARD BINYARD, a/k/a “E,” a/k/a “E-Wreck,” TAYVON KILPATRICK, a/k/a “Trayvon Wilson,” NICHOLAS ROSARIO, a/k/a “Nico Gunz,” the defendants, are all charged with conspiring to participate in a racketeering enterprise, the Murda Moora Gangstas street gang. In addition, 11 of these defendants are charged with one count of conspiring to distribute crack cocaine, marijuana, and MDMA, and 19 of these defendants are charged with using, carrying, possessing, and discharging firearms during the racketeering and narcotics conspiracies.
A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached to this release. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The case is assigned to U.S. District Judge Richard J. Sullivan.
Mr. Bharara praised the outstanding investigative work of the HSI New York El Dorado Task Force DEA group, the NYPD Bronx Gang Squad, the ATF, and DOCCS. He added that the investigation is continuing.
The Office’s Violent Crimes Unit is overseeing the case. Assistant U.S. Attorneys Ryan P. Poscablo, Santosh Aravind, and Andrew Bauer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
Los Angeles Man Faces Additional Federal ChargesRead the Press Release
BOSTON - A former Cambridge resident was charged today with defrauding mortgage lenders.
Mark J. Zimny, 42, was previous indicted on five counts of wire fraud, five counts of unlawful money laundering and two counts of federal tax violations. Today’s superseding indictment charges Zimny with two additional counts of bank fraud in connection with real estate mortgage loans. The previous charges, filed in January 2013, allege that Zimny defrauded business clients, engaged in unlawful monetary transactions and failed to report income on federal tax returns.
The superseding indictment alleges that Zimny owned and operated a business called IvyAdmit Consulting Associates that claimed to assist students in obtaining admission to elite American prep schools, colleges and universities. Zimny told a couple from Hong Kong that if they provided him large funds to give to schools in New England for "development contributions" he could influence admissions decisions to the schools on behalf of their two children. The indictment alleges that Zimny took the funds but never delivered them to schools as promised, and instead used the funds, in excess of $600,000, for his own purposes.
The new bank fraud charges allege that Zimny set out to defraud mortgage lenders by using misrepresentations and false documents in his loan applications to purchase real estate in Massachusetts, New York and California. Additionally, it is alleged that Zimny failed to report income he received in 2008 and 2009.
If convicted, Zimny faces a maximum sentence of 20 years in prison, three years of supervised release and a $250,000 fine on each count of wire fraud; 10 years in prison, two years of supervised release and a $250,000 fine on each count of money laundering; 30 years in prison, five years of supervised release and a $1 million fine on each count of bank fraud; and three years in prison, one year of supervised release and a $250,000 fine on each count of tax violation.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Victor A. Wild of Ortiz’s Economic Crimes Unit and Sean R. Delaney of the Department of Justice’s Tax Division.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.