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2 April 2014
Little Rock Grand Jury Returns Indictment in Federal Income Tax Refund SchemeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, announced today that Christopher Minor, age 39; Annie Watkins, age 60; and Roosevelt Oliver, age 50, all of Osceola, Arkansas, were indicted on charges of filing and conspiring to file false, fictitious and fraudulent claims for federal income tax refunds in a 14-count indictment handed down by a federal grand jury in Little Rock.
“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims," stated SAC Henry. "The object of these schemes is to defraud the government and the taxpaying public.”
The indictment alleges that beginning in or about January 2010 through February 2011, the defendants participated in a scheme to obtain payment of federal income tax refunds from the Internal Revenue Service (“IRS”) by using unemployed individuals’ names, social security numbers, and dates of birth to file false tax returns in the individuals name without their consent.
The refunds were received in the form of a check or debit card, and in most instances, the taxpayer was unaware of the return being filed and did not receive any part of the proceeds. In total, Minor, Watkins and Oliver caused approximately 29 false returns to be filed, claiming approximately $91,835.00 in false refunds.
This investigation was conducted by IRS-Criminal Investigation. Assistant U.S. Attorney Cameron McCree is prosecuting this case for the United States.
Note: An indictment is a form of accusation and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Ligonier Man Sentenced to Probation for Converting SSI Benefits to His Own UseRead the Press Release
PITTSBURGH - A Ligonier resident has been sentenced in federal court to 2 years’ probation, 100 hours of community service and restitution in the amount of $26,302.02 on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Ronald Clarke Gray, 63.
According to information presented to the court, Gray converted to his own use over $1,000.00 in Social Security Income Benefits from the Social Security Administration.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Social Security Administration, Office of Inspector General for the investigation leading to the successful prosecution of Gray.
Lawyer Sentenced to Ten Years for Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Derian Eidson, 50, of Yorba Linda, California, a suspended member of the California bar, was sentenced today by United States District Judge Troy L. Nunley to 121 months of imprisonment and a fine of $200,000, following conviction at trial on two counts of money laundering, United States Attorney Benjamin B. Wagner announced.
The Court found that Eidson “betrayed the trust that she took when she swore to uphold the laws of the State of California and the United States.” According to evidence presented at the trial, Eidson was an insurance defense lawyer in 2001 when she met Steven Zinnel, a Sacramento businessman. The two began a romantic relationship, and also a near-decade-long relationship transacting in assets that Zinnel had illegally concealed during his child support litigation and personal bankruptcy. Trial testimony established that Zinnel’s motivation was to hide assets from his ex-wife and children; Eidson’s motivation was identified by the Court as “greed.” In the course of the scheme, Eidson used her attorney client trust account to conceal funds.
“Attorneys who misuse their position to perpetrate financial crimes debase the profession, and are particularly deserving of prosecution and imprisonment,” said U.S. Attorney Wagner. “Practicing law is a privilege; it is not a license to steal and conceal.”
"Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings," said Jose M. Martinez, IRS - Criminal Investigation Special Agent in Charge. "The defendant in this case was an attorney, who used her legal knowledge to defraud the bankruptcy court and launder the proceeds of that crime. Today's sentence reflects the seriousness of the crimes, promotes respect for the law and provides just punishment."
Together with Zinnel, Eidson established a shell company, Done Deal, for the purpose of receiving distributions from Zinnel’s silent partnership an electrical infrastructure company. Keeping Done Deal and the Done Deal bank account in Eidson’s name allowed Zinnel to conceal his ownership interest in the company from the bankruptcy court and family court. Once Zinnel’s debts were discharged, both Zinnel and Eidson used the Done Deal, according to the Court, as “an ATM machine.”
The Court pointed out the many opportunities that Eidson had to abandon the scheme and advise Zinnel of the illegality of his actions. Judge Nunley also rejected arguments Eidson made for leniency on the basis that she had already lost her law practice, and that her network of “law-abiding” friends and loved ones would make her less likely to reoffend. Instead, the Court found that these factors only served to highlight Eidson’s culpability, stating that while some defendants without such advantages commit crimes out of desperation, Edison’s offense “wasn’t a crime of desperation. This was a crime of greed.”
Zinnel was sentenced to 212 months imprisonment for his role in the offense on March 4, 2014.
This case is the product of an investigation by the FBI and IRS Criminal Investigation. Assistant United States Attorneys Matthew D. Segal, Audrey B. Hemesath, and Kevin Khasigian prosecuted the case.
Lawyer Sentenced to Ten Years for Money LaunderingRead the Press Release
SACRAMENTO, Calif. —
Lake Charles Woman Sentenced for Wire FraudRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Carol A. Thrasher, 61, of Lake Charles, La., was sentenced by U.S. District Judge Richard T. Haik, to three years in prison and three years of supervised release for stealing from her employer. She was also ordered to pay $551,357 in restitution.
According to evidence presented at the guilty plea on September 30, 2013, Thrasher admitted that from January 2007 to April 2012, while working as a manager for a Westlake, La., company, she stole $551,357. Thrasher was entrusted with her company’s Midsouth Bank account and used funds from it to pay the balance of a personal Capital One credit card multiple times over the five-year period. The credit card payments Thrasher made ranged from a few hundred dollars to more than $8,000. She reportedly used the Capital One card to pay for the majority of her living expenses, and she also stated that she spent the money on gambling, shopping, dining and vacations, and had no assets left to pay the victim.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
Justice Department Files Lawsuit Against Clark County, Nev., for Compensation Discrimination and RetaliationRead the Press Release
The Department of Justice announced the filing of a lawsuit today against Clark County, Nev., alleging that the county discriminated against Therese Scupi, an African-American woman, on the basis of race and sex and retaliated in violation of Title VII of the Civil Rights Act of 1964, as amended. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion.
The complaint, filed in the U.S. District Court for the District of Nevada, alleges that the county discriminated against Scupi by subjecting her to compensation discrimination and retaliation from 2007 to the present. According to the complaint, Scupi, Director of Diversity for the county, was paid significantly less than four white county employees who had duties substantially similar to Scupi’s. The complaint also alleges that the county subjected Scupi to retaliation when she complained of disparities in her pay that she believed were based on her race and sex.
Through this lawsuit, the United States is seeking declaratory and injunctive relief requiring the county to develop and implement appropriate and effective measures to prevent and correct race and sex discrimination and retaliation, as well as monetary damages for Scupi as compensation for the county’s actions.
“Pay discrimination based on gender and race is a priority enforcement initiative for the Department of Justice,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Nationwide, women earn only about 77 cents for every dollar earned by a man, and women of color earn even less.”
Scupi originally filed a charge of race and sex discrimination and retaliation with the Equal Employment Opportunity Commission (EEOC), a federal agency that enforces laws against discrimination in employment. The EEOC’s Las Vegas Local Office investigated the matter, determined that there was reasonable cause to believe that discrimination and retaliation had occurred and referred the matter to the Department.
“Women and men deserve equal pay for equal work, and federal law holds employers to that responsibility,” said Director Amy Burkholder for the EEOC’s Las Vegas Local Office. “We were pleased to work with the Department of Justice on this case and are hopeful that employers take note of the need to address such discrimination in the workplace.”
The continued enforcement of Title VII is a priority of the department’s Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on the division website.
Jamaican Drug Courier Convicted at TrialRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that yesterday a federal jury found Santana James (23, Montego Bay, Jamaica) guilty of conspiracy to possess 500 grams or more of cocaine with the intent to distribute, and possession of cocaine with the intent to distribute. James faces a minimum sentence of five years, up to a maximum penalty of 40 years in federal prison. Her sentencing is scheduled for June 18, 2014. James was indicted on August 27, 2013.
According to testimony and evidence presented at trial, on August 13, 2013, James traveled from Montego Bay, Jamaica to Ft. Lauderdale, Florida with cocaine. An investigation revealed that she swallowed approximately a half kilogram of cocaine in more than eighty saran wrapped pellets, wore altered undergarments with more than a kilogram of cocaine concealed within them, and inserted a cylinder shaped package filled with cocaine into her body. James brought the cocaine into the United States at the behest of Horace Anthony Troupe, another Jamaican national. Once James arrived with the cocaine, Troupe added it to cocaine brought in by his other drug couriers.
On August 18, 2013, Troupe and co-defendant Antonio Richards were arrested in St. Petersburg, Florida, with 7.5 kilograms of cocaine contained in six individually wrapped packages. Both Troupe and Richards previously pleaded guilty to conspiracy to possess with the intent to distribute five kilograms or more of cocaine. They are scheduled to be sentenced later this month.
This case was investigated by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the St. Petersburg Police Department, and the Pinellas County Sheriff’s Office HIDTA Task Force. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Carlton Gammons.
It was prosecuted as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
Individual Indicted for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, PR – Yesterday afternoon, a federal grand jury returned a seven-count indictment against Kafi Rhaman Farrakhan for counterfeit credit card and manufacturing and aggravated identity theft, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. The investigation was conducted by the United States Secret Service.
Kafi Rahman Farrakhan, aka “Ramon Chris Manuel,” aka “Ramon Charlie Manuel,” aka “Cedric Briggs Stewart,” aka “Eric Shawn Fulton,” knowingly and with intent to defraud, possessed device-making equipment, that is a credit card encoder. Said possession affected interstate and foreign commerce, in that the credit card encoder was used to create fraudulent credit cards that were possessed and used in Puerto Rico with credit card numbers issued by banks located outside of Puerto Rico. The banks were: Wells Fargo Bank, JP Morgan Chase Bank, and Target VISA.According to the indictment, the defendant did knowingly possess, without lawful authority, means of identification of other victims; that is, various credit card numbers, during and in relation to a felony violation. The defendant used various fraudulent credit cards to pay for his stay at different hotels and to buy luxury items such as designer handbags. The defendant obtained credit card numbers purchased from black market internet.
The defendant is facing a forfeiture allegation that includes: all fraudulent credit cards and identification documents; one credit card encoder; one Hewlett Packard TouchSmart personal computer; one Hewlett Packard Pavilion dv7 laptop computer; one Louis Vuitton handbag; three Guess handbags; and one Miami Beach, Glam Rock, diamond bracelet.
This case is being prosecuted by Assistant U.S. Attorney Justin R. Martin. The maximum penalties are 15 years of imprisonment for count one and two additional years for each aggravated identity theft count. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.Hyde Park Man Pleads Guilty to Transporting Woman to Engage in ProstitutionRead the Press Release
BOSTON - A Hyde Park male pleaded guilty today to transporting a woman from Massachusetts to New Jersey, Vermont and Pennsylvania for the purpose of prostituting the woman.
Darrell B. Graham, a/k/a Diamond, 51, pleaded guilty to transporting a woman to engage in prostitution. In September 2012, Graham was indicted. Sentencing is scheduled for July 23, 2014.
At the change of plea hearing, the government stated that Graham promised the 19-year-old victim money and dreams of a better life. Instead, Graham took the victim’s identification documents, posted her picture on the Internet, instructed her to cut ties with her family and friends, and for the next two months prostituted the victim in hotel rooms located in Massachusetts and elsewhere. Graham never paid the victim, and instead caused her to engage in prostitution by a coercive scheme that included placing the victim in fear and using violence and threats of violence. Specifically, Graham pleaded guilty to transporting the victim from Massachusetts to New Jersey on Aug. 18, 2011, to Vermont on Sept. 19, 2011, and to Pennsylvania on Sept. 24, 2011.
The plea agreement, if accepted by the judge, calls for a sentence of 10 to 15 years in prison, three years of supervised release, and fines, restitution and forfeiture in amounts to be determined at sentencing.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Kristina E. Barclay and S. Theodore Merritt of Ortiz’s Civil Rights Enforcement Team.
Husband and Wife Doctors Indicted for Healthcare FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that a Federal Grand Jury has indicted Dr. Robert Barrow, age 60, and Dr. Angela Barrow, age 50, of Little Rock charging both with one count of conspiracy to commit health care fraud and six counts of health care fraud. In addition, Dr. Robert Barrow is also charged with four counts of making false statements in relation to health care matters.
According to the indictment, Dr. Robert Barrow and Dr. Angela Barrow were husband and wife physicians who together owned and operated Your Doctor’s Office, a medical clinic in Little Rock. It goes on to allege that the doctors affiliated with a local massage therapist, whose services were billed to health insurers as physical therapy and with whom the doctors would split the proceeds. Related claims to Medicare and Arkansas Blue Cross and Blue Shield alone exceeded $1.2 million during the alleged fraud. The indictment also claims that Dr. Robert Barrow billed for therapeutic ultrasounds that were never performed.
If convicted, the Barrows face up to ten years’ imprisonment on each of the six counts of health care fraud as well as ten years’ imprisonment for the overarching conspiracy. Dr. Robert Barrow also faces up to five years’ imprisonment on each count of making false statements in relation to health care matters.
The indictment arises out of a joint investigation by the Federal Bureau of Investigation and the Office of the Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant United States Attorney Alexander Morgan.
An indictment contains only allegations. The Defendants are presumed innocent until proven guilty.
Hogsett Announces Federal Bank Robbery ChargesRead the Press Release
Scott County bank allegedly robbed by Pikeville, Kentucky man
SCOTTSBURG - Joseph H. Hogsett, United States Attorney, announced today that Jason Lee Robinson, 34, of Pikeville, Kentucky, was charged by Information with one count of bank robbery following an investigation by the Federal Bureau of Investigation and the Scottsburg, Indiana, Police Department.
“Protecting Hoosier communities is one of the top priorities of my office,” said Hogsett. “Violence will not be tolerated and those who chose to commit criminal acts will be held accountable.”
The Information alleges that on June 20, 2013, Robinson robbed the Westview branch of the Scott County State Bank located at North Michael Drive in Scottsburg, Indiana. Court documents further allege that Robinson entered the bank branch and handed the teller a note that said, “this is a robbery, give me the money in the top drawer, no die (sic) pack, no talking.” The teller handed Robinson the money and he left the bank with over $1,300.
The government further alleges that law enforcement agents viewed video surveillance from near-by businesses and observed a man matching Robinson’s description get into a Honda Minivan and drive away. An anonymous caller advised the Scottsburg Police that the individual in the video may be Robinson and the vehicle he was in belonged to his grandparents in Pikeville, KY.
On July 5, 2013, Robinson was stopped by law enforcement officials near Phoenix, Arizona while driving the Honda Minivan. Officials there detained Robinson and he was brought back to Indiana to face federal charges.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Robinson faces a maximum of 20 years in prison and a $250,000 fine. An initial hearing will be scheduled in New Albany, Indiana, before a U.S. Magistrate Judge.
An information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Georgia Man Admits Traveling from New York to New Jersey for Illicit Sexual Conduct with ChildrenRead the Press Release
TRENTON, N.J. – A Georgia man living in Long Island, N.Y., admitted today he traveled from New York to New Jersey to have sexual contact with a minor, U.S. Attorney Paul J. Fishman announced.
Richard J. Simone Jr., 23, of Acworth, Ga., pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to Count One of an indictment charging him with traveling across state lines for the purpose of engaging in sexual conduct with a minor. Simone has been in custody since his arrest in September 2013.
According to documents filed in this case and statements made in court:
Simone admitted that beginning in July 2013, he engaged in numerous graphic communications over the Internet with an individual he believed was the father of a 9-year-old girl. In those communications, Simone discussed having sex with the girl and her minor babysitter. The individual with whom he was corresponding was actually an undercover agent from the Department of Homeland Security, Homeland Security Investigations, and both of the minors were fictitious. On Sept. 13, 2013, Simone traveled from Long Island to Monmouth County, N.J., for the purpose of having sex with the two minors. Simone was arrested when he arrived at the location where he and the undercover had arranged to meet.
The count to which Simone pleaded guilty carries a maximum potential penalty of 30 years in prison and a $250,000 fine. He will also be required to register as a sex offender. Sentencing is scheduled for August 6, 2014.
U.S. Attorney Fishman credited agents of Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; the West Long Branch Borough Police Department, under the direction of Chief of Police Lawrence L. Mihlon, for the investigation leading to today’s guilty plea. He also thanked HSI New York; U.S. Customs and Border Protection, and the Monmouth County Prosecutor’s Office, for their assistance with the investigation.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and Harvey Bartle, attorney in charge of the U.S. Attorney’s Trenton Office.14-116
Defense counsel: Guy L. Womack Esq., Houston, Texas
Simone, Richard Indictment
Former University of Louisville Executive Charged with Embezzling Funds Tied to UofL Medical Groups and Tax FraudRead the Press Release
– Diverted $2.8 million
– Failed to report $2,470,735 to Internal Revenue ServiceLOUISVILLE, Ky. – A former University of Louisville accountant, promoted to Executive Director of the Department of Family & Geriatric Medicine at the University of Louisville School of Medicine (DFGM) was arraigned today on a seven-count federal indictment charging theft and bribery in programs that receive federal funds, money laundering, mail fraud, and filing false federal income tax returns, announced David J. Hale, United States Attorney for the Western District of Kentucky.
As part of the nearly six year scheme, Perry Chadwick Vaughn, 36, of Sellersburg, Indiana, allegedly diverted contractual checks and patient payments to the University Family and Geriatric Medicine Associates account then withdrew $2,809,489 for his personal use and benefit.
According to the indictment, between January 2007 through August 2013, Vaughn was the Executive Director of the Department of Family and Geriatric Medicine at the University of Louisville School of Medicine (DFGM-UofL) and business manager of its affiliated private physician practice groups (collectively “DFGM-Practice Groups”). As Executive Director, he was responsible for all business and accounting functions, including payroll, budgeting, tax reporting, accounts receivable, accounts payable, and bank reconciliations. The DFGM-Practice Groups included the Department of Family and Community Medicine, University Family Practice, University Family and Geriatric Medicine Associates, and University Family Practice Associates Center for Primary Care. The indictment alleges Vaughn used his position as Executive Director to defraud and obtain money by false pretenses from DFGM-UofL and used his position as business manager to defraud and obtain money by false pretenses from four UofL private physician practice groups.
Between November 2007 through March 2013, Vaughn allegedly diverted forty contractual checks issued to DFGM-UofL to bank accounts of DFGM-Practice Groups totaling $666,810. He then made withdrawals and payments from DFGM-Practice Groups bank accounts for his own personal use and benefit. Between January 2007 and August 2013, Vaughn allegedly diverted $604,025 in patient payments from DFGM-UofL accounts into bank accounts of the DFGM-practice groups. He then made withdrawals and payments from DFGM-Practice Groups bank accounts for his own personal use and benefit. During that same time period, Vaughn allegedly made withdrawals and payments from DFGM-Practice Groups bank accounts totaling $2,809,489 for his personal use and benefit. $1,270,835 of the funds were from payments diverted from DFGM-UofL to DFGM-Practice Groups bank accounts. The remaining $1,538,654 in funds taken from the DFGM-Practice Group bank accounts were from general funds of the DFGM-Practice Groups. During that same time period Vaughn allegedly made a number of misrepresentations to University of Louisville Audit Services by transferring funds between bank accounts to conceal his theft and by providing false bank statements of the DFGM Practice Groups.
Further, Vaughn is charged with money laundering for making financial transactions involving the proceeds of unlawful activities designed to conceal the nature, location, source, ownership, or the control of the proceeds of the specified unlawful activities. According to an Affidavit attached to a criminal complaint, from 2011 to 2013, Vaughn purchased/leased nine luxury vehicles with a combined value of nearly $475,000. Further, Vaughn purchased real estate, a $9,000 bracelet, luxury vacations, and a Las Vegas casino.
Further, Vaughn is charged with four counts of filing false federal income taxes with the United States Internal Revenue Service (IRS) for calendar years 2008 through 2012. Vaughn is charged with failure to report $377,492 in total income for calendar year 2008, $610,470 in total income for calendar year 2009, $160,121 in total income for calendar year 2010, $546,022 in total income for calendar year 2011, and $776,630 in total income for calendar year 2012.
In addition, on September 3, 2013, U.S. District Judge John G. Heyburn II granted the United States’ motion for Temporary Restraining Order enjoining and prohibiting Vaughn, (including family members, financial institutions, and other entities having possession or control of Vaughn's assets), from transferring, selling, dissipating, concealing, or otherwise disposing of, in any manner, his assets in real or personal property, owned, gained or acquired by him or on behalf of his ex-wife.
A trial date has been set for June 3, 2014. If convicted at trial, Vaughn faces up to 55 years in prison, a 16 year period of supervised release, and a fine of $1,250,000.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and is being investigated by the University of Louisville Police Department, the United States Secret Service, the Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former ThermoEnergy Executive Indicted on Mail Fraud and Employment Tax ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Nashville Field Office, announced today that a Federal Grand Jury has indicted Andrew Thurman Melton, age 67, a resident of Pulaski County, Arkansas, on 12 counts of mail fraud and 5 counts of failing to truthfully account for and pay over employment taxes to the IRS.
"Corporate Executives have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," said Special Agent in Charge Christopher A. Henry with IRS Criminal Investigation. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
According to the Superseding Indictment, Melton was a Certified Public Accountant and the Executive Vice President, Chief Financial Officer (CFO), and Treasurer for ThermoEnergy Corporation at the time of the alleged offenses. Melton’s wages were supposed to be garnished as a result of a Judgment against him personally. However, Melton allegedly caused checks to be issued from ThermoEnergy to pay the Judgment and expensed those payments on ThermoEnergy’s financials as if the payments were legitimate business expenses of the company. The Superseding Indictment alleges that between, in or about August 2006 and April 2009, through this scheme, he obtained approximately $109,575.80.
Additionally, the Superseding Indictment charges that during the calendar years 2005 through 2009, ThermoEnergy withheld tax payments from its employees’ paychecks. However, beginning in approximately October 2005, ThermoEnergy made no payroll tax payments to the IRS and failed to file quarterly employment tax returns (Forms 941) with the IRS. Altogether, ThermoEnergy failed to account for and pay over approximately $1.9 million in payroll taxes. As the Executive Vice President, CFO, and Treasurer, Melton was responsible to collect, truthfully account for, and pay over ThermoEnergy’s payroll taxes.
The statutory penalty for Mail Fraud is not more than 20 years’ imprisonment and/or not more than a $250,000 fine with not more than three years of supervised release. The statutory penalty for Employment Tax Fraud is not more than 5 years’ and/or not more than a $250,000 fine with not more than 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
Note: An indictment is a form of accusation and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Substitute Teacher Sentenced to More Than 16 Years for Multiple Armed RobberiesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard yesterday sentenced Eddie Battles (26, Valdosta, Georgia) to 16 years and 2 months in federal prison for eleven counts of armed robbery and two counts of brandishing a firearm in furtherance of a crime of violence. Battles pleaded guilty on June 20, 2013.
According to court documents, Battles started robbing Dollar General stores in and around South Georgia and North Florida in November 2011. In most of the robberies, he used a loaded Hi-Point 9mm pistol. Battles acted alone until March 2012, when his brother, Eric Williams, joined in the robberies. Together, Battles and Williams robbed four Dollar General stores and one Family Dollar store in North Florida, during March and April 2012. They were caught and arrested after a robbery in Welborn, Florida on April 18, 2012.
Battles had worked as a substitute teacher in Valdosta during the time he committed the robberies. He also previously worked as an assistant manager at the Dollar General store in Lake Park, Georgia. The Lake Park store was the first one he robbed.
Eric Williams pleaded guilty for his role in the offenses on August 21, 2013, and is scheduled to be sentenced on April 14, 2014.
This case was investigated by the Jacksonville Sheriff’s Office, the Hamilton County Sheriff’s Office, the Suwanee County Sheriff’s Office, the Lowndes County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Frank Talbot.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
This case is also a part of ATF’s Frontline strategy to consolidate limited law enforcement resources by deconflicting cases and coordinating efforts in critical communities.
Former Prince George’s County Police Officer Sentenced to 10 Years in Prison for Conspiracy to Distribute Untaxed Cigarettes and Cocaine, and Gun ChargesRead the Press Release
Members of the Conspiracy Paid an Undercover Agent $1,770,230 for More Than 17 Million Contraband Cigarettes
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced former Prince George’s County police officer Sinisa Simic, age 30, of Woodbridge, Virginia, today to 10 years in prison, followed by four years of supervised release, for: an extortion conspiracy under color of official right arising from a scheme involving the transport and distribution of untaxed cigarettes; conspiracy to distribute cocaine; and, possession and transfer of a firearm in furtherance of a drug trafficking crime and a crime of violence. Judge Messitte also ordered Simic to forfeit $1,137,898.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to Simic’s plea agreement, between July 2009 to January 2010, Simic participated in a conspiracy to transport and distribute untaxed cigarettes in Maryland, Virginia and elsewhere. As part of the conspiracy, Simic used his official authority as a Prince George’s County police officer to ensure the safe transport and distribution of the untaxed cigarettes in exchange for cash payments from a source and an undercover agent working with the FBI . During November 2009, law enforcement intercepted conversations on Simic’s cellular phone which indicated that Simic and his co-conspirator, Mirza Kunjundzic, both wanted Kunjundzic to be armed while they were protecting the contraband cigarettes during transportation and distribution. Simic subsequently obtained a 50 caliber handgun requested by Kunjundzic, which was recovered at Simic’s residence at the time of his arrest, along with a 9mm handgun. On December 2, 2009, Simic and Kunjundzic transported 80 cases of contraband cigarettes to New Jersey in exchange for $3,400 paid by the undercover agent.
From July 2009 through January 2010, Simic and Kunjundzic also distributed cocaine to the undercover agent and source. For example, on October 7, 2009, Simic and Kunjundzic delivered 114.5 grams of cocaine to the undercover agent, who paid them $6,520 for the cocaine and to transport and protect a delivery of contraband cigarettes. A portion of the cocaine was secreted in the shipment of contraband cigarettes. Similarly, on October 22, 2009, Simic and Kunjundzic delivered 244.3 grams of cocaine to the undercover agent and on and November 12, 2009, they delivered 268.2 grams of cocaine, for which they were paid $13,800 and $4,000, respectively, for the cocaine and to transport contraband cigarettes. Simic was armed during each of the transactions.From September 9, 2009 through at least January 26, 2010, Simic and Kunjundzic provided protection for eight shipments of contraband containing 575.5 master cases of cigarettes and were paid a total of $52,120, including the payments for the cocaine. The tax loss attributable to Simic relating to the illegal cigarette trafficking is $1,356,358, based on losses of $819,600 to Maryland, $122,940 to Virginia and $413,818 to the federal government.
On February 26, 2014, Mirza Kunjundzic, age 33, of Woodbridge, Virginia, was sentenced to 15 years in prison after pleading guilty to conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
United States Attorney Rod J. Rosenstein praised the FBI and IRS for their work in these investigations and expressed his appreciation to Prince George’s County Police Chief Mark A. Magaw for the assistance that he and his department provided. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, A. David Copperthite and Sujit Raman, who prosecuted the case.
Former Onebanc Senior Vice President Indicted on Bank Fraud ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation - Nashville Field Office; David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; Christy Romero, Special Inspector General for TARP (SIGTARP); and Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; announced an Indictment charging Gary Alan Rickenbach, age 56, of Little Rock, Arkansas with one count of conspiracy to commit bank fraud, misapplication of bank monies, making false entries to deceive the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, obstructing an OCC examination and money laundering was unsealed today. The indictment also seeks forfeiture of the monies involved.
“When a bank executive misuses their position, it violates the public trust and puts the financial stability of the institution at risk,” said SAC Henry. “ This indictment demonstrates the government’s commitment to protecting the integrity of our nation’s financial system. We are proud to work with our law enforcement partners by lending our expertise in these complex financial investigations.”
“Rather than deal with the reality of having made a $1.5 million bad loan that couldn’t be collected, Rickenbach, a senior loan executive at Onebanc, and others, in early 2009, allegedly attempted to hide the loss from non-bank board members and federal regulators in order to conceal the bank’s true financial condition, and Rickenbach looked to TARP money to fund his fraud,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Later, when bank executives worried that the bank’s initial October 2008 request for $10 million in taxpayer TARP funds wouldn’t be enough to improve the bank’s capital position, they increased their request to $17.3 million, which the bank received in June 2009. Defrauding the federal government and taxpayers out of their hard-earned TARP investments is criminal, morally bankrupt, and won’t be tolerated, and SIGTARP and our law enforcement partners will aggressively investigate all allegations of fraud related to TARP and bring perpetrators to justice.”
“We are committed to holding accountable wrongdoers whose fraudulent actions impact the safety and soundness of financial institutions regulated by the Federal Reserve Board,” said Mark Bialek, Inspector General.
According to TARP records, One Financial Corporation, the parent company of One Bank and Trust of Little Rock, Arkansas, received $17.3 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP) in June 2009. To date, these funds are still outstanding.
Rickenbach was a Senior Vice President of Onebanc until February 2013. The indictment charges that he conspired with other persons to make false loans for the purpose of hiding the bank’s loss of a $1.5 million bad loan made in Aril 2007. The bad loan became uncollectable in 2008, and beginning in 2009, Rickenbach and others hid the loss from the federal examiners by making loans to entities that he created or controlled. The new loans made by Rickenbach made Onebanc appear to have less financial problems to the federal examiners than was true.
Rickenbach faces a possible sentence of not more than five years’ imprisonment, not more than a $250,000 fine and/or not more than three years of supervised release for the conspiracy charge. The maximum sentence for the money laundering conspiracy charged in Count 2 is not more than 20 years’ imprisonment, not more than a $500,000 fine and/or not more than five years of supervised release.
The case was investigated by special agents from the IRS-Criminal Investigations, Federal Bureau of Investigation, SIGTARP, Federal Reserve, and the FDIC. First Assistant United States Attorney Pat Harris and Assistant United States Attorney Angela Jegley are prosecuting this case for the United States.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Former Massachusetts RMV Employee Sentenced for Producing False DocumentsRead the Press Release
BOSTON – A former employee of the Massachusetts Registry of Motor Vehicles was sentenced today for his role in a conspiracy to produce false information documents.
Alexander Brewer, 25, of Boston, was sentenced by Senior U.S. District Judge Mark L. Wolf to 24 months of probation and a $3,000 fine. In May 2013, Brewer pleaded guilty to conspiracy to produce false identification documents. From December 2011 through December 2012, Brewer issued Massachusetts driver=s licenses to individuals who presented legitimate Puerto Rican identity documents, in an identity other than their own, to obtain driver=s licenses for the purpose of concealing their true identities.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Former Federal Contract Employee Sentenced to 13 Months in Prison for Disclosing National Defense InformationRead the Press Release
WASHINGTON – Stephen Jin-Woo Kim, a former federal contract employee, was sentenced today to 13 months in prison for the unauthorized disclosure of national defense information, announced Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Kim pleaded guilty on Feb. 7, 2014, in the U.S. District Court for the District of Columbia, to one count of making an unauthorized disclosure of national defense information. The plea agreement, which was contingent upon the Court’s approval, called for Kim to be sentenced to 13 months in prison, to be followed by a year of supervised release. The Honorable Colleen Kollar-Kotelly accepted the plea today and sentenced Kim accordingly.
Kim, 46, was a Lawrence Livermore National Laboratory employee on detail to the State Department’s Bureau of Verification, Compliance and Implementation (VCI) at the time of the disclosure. At the time, Kim worked as a Senior Advisor for Intelligence to the Assistant Secretary of State for VCI. According to court documents, on June 11, 2009, Kim knowingly and willfully disclosed to a reporter TOP SECRET/SENSITIVE COMPARTMENTED INFORMATION (TS/SCI) relating to the national defense.
The information concerned the military capabilities and preparedness of North Korea and was contained in an intelligence report classified at the TS/SCI level that Kim accessed on a classified computer database. Within hours of the disclosure, a news organization published an article on the Internet that included the TS/SCI national defense information that Kim had disclosed.
“Stephen Kim was a sophisticated consumer of intelligence who knew the enormous damage that could be done by disclosing highly classified information about North Korea’s military capabilities,” said U.S. Attorney Machen. “He is now headed to federal prison to pay the price for betraying the trust of his country and placing our nation’s security at risk. Hopefully this prosecution will deter others who are considering compromising our nation’s most sensitive secrets.”
“As a federal contract employee to the State Department, Kim abused his position of trust and put the security of our nation at risk by knowingly disclosing Top Secret information,” said Assistant Director in Charge Parlave. “Today’s sentence serves as a warning to anyone who has access to information held by the U.S. government and would consider compromising our nation’s secrets – we will continue to take all necessary steps to investigate and prosecute those who illegally divulge national security information.”
Kim was indicted in August 2010. According to court documents that were filed at the time of the plea, Kim admitted that he did not believe that he was exposing government waste, fraud, abuse, or any other kind of government malfeasance or misfeasance. Further, Kim admitted that he had reason to believe that his unauthorized disclosure could be used to the injury of the United States or to the advantage of a foreign nation. Finally, he acknowledged that he was never authorized, directly or indirectly, by the United States Government to communicate any national defense information to the media.
This investigation was conducted by the FBI’s Washington Field Office with the assistance of the State Department’s Diplomatic Security Service. The prosecution was handled by Assistant U.S. Attorneys G. Michael Harvey, Jonathan M. Malis, and Thomas A. Bednar of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Deborah A. Curtis and Julie A. Edelstein of the Counterespionage Section of the Justice Department’s National Security Division.
14-077Former Federal Contract Employee Sentenced to 13 Months in Prison for Disclosing National Defense InformationRead the Press Release
WASHINGTON – Stephen Jin-Woo Kim, a former federal contract employee, was sentenced today to 13 months in prison for the unauthorized disclosure of national defense information, announced Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Kim pleaded guilty on Feb. 7, 2014, in the U.S. District Court for the District of Columbia, to one count of making an unauthorized disclosure of national defense information. The plea agreement, which was contingent upon the Court’s approval, called for Kim to be sentenced to 13 months in prison, to be followed by a year of supervised release. The Honorable Colleen Kollar-Kotelly accepted the plea today and sentenced Kim accordingly.
Kim, 46, was a Lawrence Livermore National Laboratory employee on detail to the State Department’s Bureau of Verification, Compliance and Implementation (VCI) at the time of the disclosure. At the time, Kim worked as a Senior Advisor for Intelligence to the Assistant Secretary of State for VCI. According to court documents, on June 11, 2009, Kim knowingly and willfully disclosed to a reporter TOP SECRET/SENSITIVE COMPARTMENTED INFORMATION (TS/SCI) relating to the national defense.
The information concerned the military capabilities and preparedness of North Korea and was contained in an intelligence report classified at the TS/SCI level that Kim accessed on a classified computer database. Within hours of the disclosure, a news organization published an article on the Internet that included the TS/SCI national defense information that Kim had disclosed.
“Stephen Kim was a sophisticated consumer of intelligence who knew the enormous damage that could be done by disclosing highly classified information about North Korea’s military capabilities,” said U.S. Attorney Machen. “He is now headed to federal prison to pay the price for betraying the trust of his country and placing our nation’s security at risk. Hopefully this prosecution will deter others who are considering compromising our nation’s most sensitive secrets.”
“As a federal contract employee to the State Department, Kim abused his position of trust and put the security of our nation at risk by knowingly disclosing Top Secret information,” said Assistant Director in Charge Parlave. “Today’s sentence serves as a warning to anyone who has access to information held by the U.S. government and would consider compromising our nation’s secrets – we will continue to take all necessary steps to investigate and prosecute those who illegally divulge national security information.”
Kim was indicted in August 2010. According to court documents that were filed at the time of the plea, Kim admitted that he did not believe that he was exposing government waste, fraud, abuse, or any other kind of government malfeasance or misfeasance. Further, Kim admitted that he had reason to believe that his unauthorized disclosure could be used to the injury of the United States or to the advantage of a foreign nation. Finally, he acknowledged that he was never authorized, directly or indirectly, by the United States Government to communicate any national defense information to the media.
This investigation was conducted by the FBI’s Washington Field Office with the assistance of the State Department’s Diplomatic Security Service. The prosecution was handled by Assistant U.S. Attorneys G. Michael Harvey, Jonathan M. Malis, and Thomas A. Bednar of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Deborah A. Curtis and Julie A. Edelstein of the Counterespionage Section of the Justice Department’s National Security Division.
14-077Former Dhhr Employee Indicted on Multiple Fraud and Identity Theft ChargesRead the Press Release
CHARLESTON, W.Va. – Shannon Collins, 41, of Logan, West Virginia, was indicted yesterday by a federal grand jury sitting in Charleston for committing thirty-five counts of mail fraud, access device fraud, social security fraud and aggravated identity theft while employed by the Logan office of the West Virginia Department of Health and Human Resources (DHHR). According to the indictment, Collins, also known as Shannon Varney, worked as a case worker in the Logan DHHR office in 2009. Collins is charged with using the social security numbers of two deceased individuals to establish false accounts through which she could claim benefits. Collins then accessed the accounts, filed false claims and had benefits mailed to her post office box. Collins also mailed herself two EBT Cards, formerly known as the food stamp program, which she used until December of 2009. The indictment alleges that from April of 2009 to December of 2009, Collins defrauded DHHR out of $52,000.
If convicted, Collins faces up to 20 years in prison for each count of mail fraud, and two years of mandatory incarceration for each count of aggravated identity theft. She also faces up to five years incarceration for the misuse of social security numbers and ten years for the access device fraud.
The investigation was conducted by the Office of the Inspector General for DHHR, assisted by the United States Postal Inspection Service, the Social Security Administration, and the United States Department of Agriculture. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Former Clarence Man Sentenced for Non Payment of Child SupportRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Jonathan O. Dale, 62, formerly of Clarence, N.Y., who was convicted of failure to pay child support, was sentenced to six months in prison by U.S. Magistrate Judge H. Kenneth Schroeder. The defendant was also ordered to pay restitution totaling $73,250.85.
Assistant U.S. Attorney Marie P. Grisanti and Maura O’Donnell, who handled the case, stated that from May of 1999 and continuing through to the present, Dale has failed to pay court ordered child support obligations and arrears totaling approximately $90,000.
The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, under the direction of Special Agent in Charge Thomas O’Donnell.Former CNMI Senator Sentenced to 41 Months Imprisonment for Obstructing Justice and Violating the Endangered Species ActRead the Press Release
Saipan, MP – United States Attorney for the Districts of Guam and the Northern Mariana Islands Alicia A.G. Limtiaco, announced that JUAN MANGLONA AYUYU, former Senator for the island of Rota in the Northern Marianas Commonwealth Legislature, was sentenced on March 31, 2014, by Judge Ramona Manglona in the District Court for the Northern Mariana Islands. Ayuyu was sentenced to 41 months in federal prison followed by three years of supervised release for his convictions of Conspiring to Obstruct a Grand Jury Investigation and Conspiring to Violate the Endangered Species Act. Ayuyu was also ordered to perform 100 hours of community service.
Ayuyu and his legislative assistant, Ryan James Inos Manglona, attempted to transport eight federally protected Mariana fruit bats, or Fanihi, on board a Freedom Air flight from Rota to Saipan. The bats, however, were discovered by the Transportation Security Administration (TSA), and Ayuyu instructed Manglona to lie to a Federal grand jury investigating their involvement.
The investigation was led by Erwin T. Flores, Conservation Inspector with the CNMI Division of Fish & Wildlife, an agency under the CNMI Department of Lands and Natural Resources, together with agents of the U.S. Fish and Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Garth R. Backe.
Former Bank CEO and President Charged with Bank Fraud, Conspiracy and PerjuryRead the Press Release
Earlier today, an indictment was unsealed charging Poppi Metaxas, the former Chief Executive Officer (“CEO”) and President of Gateway Bank, FSB (“Gateway”), with bank fraud, bank fraud conspiracy and perjury. According to the indictment, in 2009, Metaxas fraudulently caused Gateway to execute a sham “round trip” transaction in which the bank self-funded a down payment to make it appear that Gateway had sold toxic, non-performing mortgage loans. This morning, the defendant surrendered to federal agents in California and was arraigned at the federal courthouse in San Francisco, California.
The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Christy Romero, Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and David A. Montoya, Inspector General of the Department of Housing and Urban Development, Office of Inspector General (“HUD-OIG”).
The indictment alleges that in February and March 2009, Metaxas engaged in a scheme to defraud Gateway in connection with Gateway’s sale of non-performing mortgage loans to three entities in exchange for $15 million. Specifically, Metaxas caused Gateway to enter into a sham agreement to loan money to Ideal Mortgage Bankers Ltd. d/b/a Lend America (“Lend America”), a mortgage lender and Gateway’s largest mortgage lending client. Lend America in turn provided that money to the three entities that were planning to purchase the non-performing mortgage loans. Thus, Metaxas and others, through a series of wire transfers, used the proceeds of the sham loan to Lend America to satisfy the 25% down payment that the three entities owed to Gateway in connection with the sale of the mortgage loans, in order to deceive observers and regulators into believing that Gateway had successfully removed these toxic assets from its books. To conceal the fraudulent “round trip” of the loan funds, in October 2009, Metaxas provided false testimony to the Office of Thrift Supervision when she was asked about the source of the down payment.
“As alleged in the indictment, Poppi Metaxas placed herself above the interests of the bank, her board of directors, and the regulators, and lied to and misled those around her. She abused the trust placed in her by the bank, and committed fraud,” stated United States Attorney Lynch. “Other executives who mislead their company’s board or regulators should be on notice. Working with our law enforcements partners, both federal and local, we will find you, and we will hold you accountable in a court of law.” Ms. Lynch expressed her grateful appreciation to New York State Department of Financial Services and the Office of Comptroller of the Currency.
“As alleged, Metaxas engaged in a scheme to defraud her employer using lies and misrepresentations in connection with the sale of non-performing mortgage loans. The FBI, along with its law enforcement partners, remains committed to investigating those who prey upon our financial institutions and their customers. Those who engage in this type of financial fraud will be identified and held accountable,” stated FBI Assistant Director-in-Charge Venizelos.
“In the last number of years, we have seen enormous and damaging developments in the mortgage and housing markets. Indictments such as this set an important precedent that bad banker behavior will not be tolerated and will be aggressively pursued. We are deeply committed to working in partnership with other federal, state, and local authorities to ensure that corrupt individuals do not use their positions to enrich themselves at the expense of the government,” said HUD-OIG Inspector General Montoya.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Martin Coffey, Walter Norkin, and John Nowak.
This prosecution was the result of efforts by President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
POPPI METAXAS
Age: 60
Hillsborough, CA
E.D.N.Y. Docket No. 14-CR-190 (JFB)
Federal Jury Finds North Oaks Man Guilty of Defrauding Investors Out of $1.5 Million in Wind Energy ProjectRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a jury found a 52-year-old North Oaks man guilty of defrauding investors to persuade them to invest in a purported wind energy project. Instead of building the wind energy project, the defendant used the investors’ $1.5 million to pay for his personal expenses and his other wind energy projects. On April 1, 2014, following a six-day trial, the jury convicted Gregory Joseph Jaunich on five counts of mail fraud. Jaunich was indicted on July 16, 2013.
According to the evidence presented at trial, from October 2006 through January 2007, Jaunich solicited funds from individual investors and investor groups for the purchase of membership units in Averill Wind, a company Jaunich created to develop and operate a wind energy project in Clay County, Minnesota. To induce these investments, Jaunich made false material representations concerning the project’s status, including telling them that the project was closer to completion than what was actually the case. In addition, Jaunich failed to disclose that at the time he was soliciting investments in Averill Wind, he was under criminal investigation by federal law enforcement for fraudulently overbilling Xcel Energy for wind energy production.
From October 2006 through January 2007, Jaunich received more than $1.5 million from investors. Jaunich told investors that the funds would be used to develop, operate and maintain the Averill project. Instead, Jaunich diverted almost all of the funds to his own personal use, to pay personal expenses and debts, and to pay expenses and debts relating to other wind energy projects. To keep the scheme from being discovered, in April 2007 and June 2008, Jaunich mailed letters to the investors containing false information about the status of the Averill Project and the use of the investors’ money via the United States Postal Service.
For his crimes, Jaunich faces a potential maximum penalty of 20 years in prison on each count. U.S. District Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Kimberly A. Svendsen and John Kokkinen.
To learn more on how to protect yourself from mail fraud, visit http://www.stopfraud.gov/protect-massmarket.html.Federal Grand Jury Charges Clarksville Man with Producing and Passing Counterfeit U.s. CurrencyRead the Press Release
Photocopied bills circulated in Louisville, Jeffersonville and New Albany areas
CLARKSVILLE - Joseph H. Hogsett, United States Attorney, announced today that Johnathon Alan Frantz, 22, of Clarksville, Indiana, was charged by federal grand jury indictment with making, possessing and passing counterfeit United States currency following an investigation by the United States Secret Service, with assistance from the Jeffersonville and Clarksville Indiana Police Departments.
“Maintaining the integrity of our currency is a priority of my office,” said Hogsett. “Those who chose to compromise our economy with fake bills will be held accountable.
The indictment alleges that between July 7, 2013 and November, 18, 2013, Frantz produced counterfeit Federal Reserve Notes using a color copier. Frantz then used the counterfeit notes he produced to purchase goods including gift cards and debit cards to obtain change in the form of genuine United States currency. He operated this scheme at various retail outlets and restaurants in the Clarksville, New Albany, Corydon and Louisville areas. In total, Frantz passed nearly $7,000.00 in counterfeit bills.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Frantz faces a maximum of 20 years in prison and a $250,000 fine. An initial hearing will be scheduled in Evansville, Indiana, before a U.S. Magistrate Judge.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Export Scheme Charges Unsealed in U.S. District CourtRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, today announced that a federal grand jury sitting in Harrisburg returned an Indictment against three individuals and two corporations, charging them with smuggling technology out of the United States for use by the Pakistan Atomic Energy Commission. The Indictment was unsealed on March 31, 2014, after it was determined that none of the individuals were in the United States. The Indictment was returned by the grand jury in January of this year.
United States Attorney Peter Smith stated that the Indictment alleged that Shafqat Rana, formerly of Lancaster, Pennsylvania, along with Abdul Qadeer Rana and Shahzad Rana, both of Lahore, Pakistan, used two corporations, Optima Plus International, a Pennsylvania corporation, and Afro Asian International, a Pakistani corporation, to export goods from the United States to Pakistan. The goods were allegedly shipped through a common carrier in Dauphin County.
Shafqat Rana allegedly took orders for “dual use” items, that is, items with both a commercial and military or nuclear application, from Afro Asian and acquired the items in the United States. After the items were shipped to Pakistan, they were resold to the Pakistan Atomic Energy Commission, an arm of the Pakistani Army, in violation of United States law.
The United States Department of Commerce (DOC), has the authority to regulate the export of “dual-use” items from the United States to foreign countries, as necessary, to protect, among other things, the national security and foreign policy of the United States. These regulations include the requirement of obtaining a license from DOC, under certain circumstances, before export from the United States.
The Indictment charges that the defendants shipped and exported goods from the United States to restricted end-users in Pakistan while providing false and fraudulent invoices to the freight forwarders, thereby causing the freight forwarders to fail to file the required export declarations. The defendants also allegedly created false and misleading invoices given to freight forwarders that undervalued and mislabeled the goods and listed false purchasers and end-users of the goods.
According to the United States Attorney’s Office, Shafqat Rana has left the United States and returned to Pakistan.
The case was investigated by U.S. Department of Commerce criminal investigators and the Harrisburg office of the FBI. Assistant U.S. Attorney Gordon Zubrod coordinated the grand jury investigation and has been assigned to prosecute the case.
El Canonazo Store Owner and Four Others Sentenced in Firearms Smuggling CaseRead the Press Release
LAREDO, Texas – Arturo Gonzalez, 42, businessman and owner of two J.C. Twiss El Canonazo sporting apparel and firearm accessories stores in Laredo, has been ordered to prison following his conviction of attempting to export more than 600 firearm magazines to Mexico, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio. A federal jury in Laredo convicted Gonzalez Jan. 9, 2014, after a three-day trial and approximately nine hours of deliberation.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, handed Gonzalez a 63-month sentence. Also sentenced today were Juan Carlos Ordonez-Guzman, 28, of Nuevo Laredo, Mexico, Juan Fernando Guzman Jr., 35, a U.S. citizen living in Nuevo Laredo, Jorge Sosa, 45, and Leticia Moncada Infante, 57, both of Laredo, who all pleaded guilty for their roles in the offense. Ordonez-Guzman received a 36-month sentence, while Sosa, Guzman and Infante were each sentenced to 24-month terms of federal imprisonment.
At the hearing, additional testimony was presented from Sosa, who testified that Gonzalez had directed him to provide ammunition to Mexican couriers. Judge Marmolejo assessed Gonzalez a $7,000 fine, payable immediately. Gonzalez and the others will also be required to serve a term of three years of supervised release following completion of the prison. Ordonez-Guzman is expected to face deportations proceedings following completion of his prison term.
“Today’s sentencing sends a clear message to individuals who sell, transport and facilitate the attempted smuggling of weapons, ammunition and other related items,” said Ayala. “Preventing these items from being acquired from or delivered to the wrong hands is a top priority for HSI. Our special agents will continue working jointly with our law enforcement partners and utilize our expertise in export enforcement to keep our citizens safe and secure.”
According to testimony at trial, Gonzalez personally delivered boxes containing AK-47 assault rifle magazines to Infante at the north Laredo store on Shiloh Drive on Nov. 28, 2012, after the store’s closing hours. She told jurors she had received a telephone call in advance from a Mexican contact to proceed to the store, receive the boxes and was to deliver them to a Mexican semi-tractor driver whom she would meet at a prearranged time and location who would smuggle the boxes to Mexico. Additional testimony from other witnesses and court records confirmed Infante waited in her car as Gonzalez loaded several boxes from his store into the trunk of her car. Those boxes were delivered moments later to a truck driver who was arrested trying to drive into Mexico with them.
An HSI special agent posed as another courier sent by a Mexican buyer. Gonzalez directed the agent to receive boxes containing another 288 AK-47 assault rifle magazines in an alley behind the north Laredo Store on Nov. 30, 2012. After noting the number of people watching, Gonzalez directed the agent to proceed to the back alley of his store. The agent testified he never received any paperwork nor was asked for identification from Gonzalez. A short time later, the agent delivered the boxes to another Mexican truck driver who was arrested attempting to smuggle the boxes into Mexico.
Sosa, a former employee of Gonzalez, testified that Gonzalez introduced him to at least two persons from whom he had received money and directed him to accept cash from them on his behalf. He also testified Gonzalez directed him to deliver the last load of 360 AK-47 assault rifle magazines to Guzman at Sosa’s personal storage unit. Sosa and Guzman testified that both met at Sosa’s storage unit on Dec. 7, 2012, where Guzman picked up five boxes containing a total of 360 magazines. Guzman was apprehended shortly after the event.
Additional evidence was also presented that Gonzalez had told Guzman he feared law enforcement was closing in on him and that it would be better if Guzman did not pick up the last set of magazines from Gonzalez or at the store. Gonzalez apparently wanted to get the magazines out of his store and have them moved to a storage unit owned by Sosa. The undercover recording had Gonzalez saying “this is the plan” before instructing Sosa to move the magazines to the storage unit, where Guzman would pick them up.
Gonzalez testified and admitted that he had in fact delivered the boxes to Infante and the undercover agent on Nov. 28 and 30, but that he was not doing anything illegal. During his testimony, Gonzalez admitted he did not check for identification prior to delivering the assault rifle magazines. In his defense, Gonzalez stated that he had received an unusually large order from a Laredo hunter for 1,500 rifle magazines. Although never having met the gentleman before, Gonzalez quoted a price of $30,000 for the order, which the man immediately paid for in cash that he happened to be carrying with him. Gonzalez could not remember the man’s name, did not record the man’s phone number or contact information, did not photograph his identification information and did not provide any receipt or document to the buyer. Gonzalez reiterated that story today.
Gonzalez claimed he had no intention of providing any AK-47 rifle magazines to Guzman. He further claimed Sosa moved the magazines to the storage unit and delivered them to Guzman without Gonzalez’s knowledge or consent.
The jury disagreed and convicted him on all three counts as charged.
Evelyn Linaldi-Delfin and Jesus Roberto Cisneros-Villarreal, who also pleaded guilty in the case are set for sentencing April 8, 2014. They are in custody pending that hearing.
All AK-47 assault rifle magazines referenced in this case were intercepted and recovered in the United States. No magazines traveled to Mexico.
Previously released on bond, Gonzalezwas taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Guzman and Ordonez-Guzman will remain in custody pending their transfer, while Sosa and Moncada were allowed to remain on bond and voluntarily surrender in the near future.
The investigation was conducted by HSI with the assistance of Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorney Jose Homero Ramirez is prosecuting the case.
Drug User Sentenced to 5 Years Probation for Illegally Possessing PistolsRead the Press Release
JOHNSTOWN, Pa. - A resident of Patton, Pa., has been sentenced in federal court to five years probation on his conviction of unlawful possession of firearms by a user of illegal controlled substances, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on John B. Zollinhofer, 43.
According to information presented to the court, on Sept. 22, 2011, Zollinhofer, who was an unlawful user of, and addicted to, illegal controlled substances, possessed two Smith and Wesson pistols, a Ruger revolver and a Rossi revolver.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Zollinhofer.
According to Mr. Hickton, Zollinhofer was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Drug Kingpin Sentenced for Operating a Criminal EnterpriseRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mohamed Taher, 35, of Lackawanna, N.Y., who was convicted following a jury trial of operating a continuing criminal enterprise, conspiracy to import marijuana into the United States, conspiracy to possess with intent to distribute marijuana, false statements and aggravated identity theft, was sentenced to 25 years in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti, who handled the case, stated that between late 2005 and May of 2007, Taher ran a long running, multi-faceted criminal enterprise that employed multiple narcotics traffickers. Taher and the enterprise imported marijuana into the United States from Canada, and then distributed the marijuana to others in Detroit, Chicago and Buffalo. In furtherance of the defendant’s enterprise, Taher utilized fraudulent identifications to enter into Canada to meet with his associates and his marijuana supplier. In doing so, Taher made false statements to Customs and Border Protection Officers when he claimed to be another individual when he was encountered at the U.S.-Canada border.
Defendants Abdulfatah Mosed, Salah Mohamed Ahmed, Basheer Saleh, Yasin Abdulla and Bradley Parry were previously convicted of conspiracy to possess with intent to distribute marijuana.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Customs and Border Protection, under the direction Randy Howe, Acting Director of Field Operations, the New York State Police, under the direction of Major Michael Cerretto, the Michigan State Police and the Willoughby Hills, Ohio Police Department.Des Moines Pharmacist Indicted for Drug Diversion, Mail Fraud, and Tax FraudRead the Press Release
DES MOINES, IA – On April 2, 2014, an indictment charging Mark Graziano, part owner of Bauder Pharmacy, and A. Michael Enloe, was unsealed following the defendants’ arraignment, announced United States Attorney Nicholas A. Klinefeldt. The sixteen-count indictment charges both Graziano and Enloe with the charge of conspiracy to distribute hydrocodone, a controlled substance, and further charges Graziano with eleven counts of mail fraud and four counts of tax evasion.
The charge of conspiracy to distribute a controlled substance, in violation of Title 21, United States Code, Section 846, carries a maximum penalty of ten years in prison and a maximum fine of $500,000. The charge of mail fraud, in violation of Title 18, United States Code, Section 1343, carries a maximum penalty of ten years in prison and a maximum fine of $250,000. The charge of tax evasion, in violation of Title 26, United States Code, Section 7201, carries a maximum penalty of five years in prison and a maximum fine of $100,000.
Today’s indictment is the result of an investigation conducted by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation. Prosecution of this matter is being handled by the U.S. Attorney’s Office for the Southern District of Iowa.
The public is reminded that an indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.
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Danville Man Pleads Guilty to Fiduciary Fraud SchemeRead the Press Release
SAN JOSE – Leo Joshua Kennedy pleaded guilty in federal court in San Jose today to committing wire fraud, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Kennedy admitted to fraudulently transferring money out of Backhouse Fiduciary Services trust accounts. Kennedy worked as an accountant at Backhouse Fiduciary Services, a San Jose-based company engaged in the business of administering beneficiary trust accounts. Kennedy further admitted to having stolen an amount of money between $7 million and $20 million from various beneficiary trust accounts at Backhouse Fiduciary Services. Kennedy made these illegal transfers without account-holders? permission and used the funds to pay for his personal investments and living expenses.
Kennedy, 62 of Danville, was indicted by a federal Grand Jury on October 31, 2012. He was charged with ten counts of wire fraud in violation of 18 United States Code Section 1343. Under the plea agreement, Kennedy pled guilty to one count of wire fraud.
Kennedy is currently released on bond. Bail was set in the amount of $50,000.
Kennedy’s sentencing hearing is scheduled for August 20, 2014 before The Honorable Lucy Koh, U.S. District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of wire fraud in violation of 18 United States Code Section 1343 is 20 years imprisonment and a fine of $250,000, plus restitution in the amount of $13,787,151. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
DME Owner Convicted on All CountsRead the Press Release
HOUSTON – Andrea Michelle Tellison, 47, has been convicted today of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. The jury returned its verdicts this afternoon following three days of trial and less than two hours of jury deliberation.
Tellison, the director of operations, chief compliance officer and co-owner of Texas Durable Medical Company was charged in March 2013 with health care fraud and aggravated identity theft in relation to the submission of approximately $1.48 million worth of enteral nutrition and enteral feeding supply claims to Medicare.
During trial, jurors heard the testimony of six Medicare beneficiaries detailing that they did not need tube feedings and did not receive tube feeding supplies despite Tellison billing thousands of dollars for those items. They also heard from seven Houston area physicians who stated they did not order tube feedings or tube feeding supplies for the Medicare beneficiaries and that they did not authorize Tellison to use their names and UPIN numbers to submit claims to Medicare and Medicaid for those items.
The government presented evidence including many forms that had been signed by Tellison indicating that Medicare beneficiaries needed tube feedings and tube feeding supplies. However, evidence demonstrated she did not order those items for delivery despite billing Medicare for the 29,113 tube feeding supply kits.
Special Agents from the Railroad Retirement Board (RRB) and the FBI testified that in a 2011 interview, Tellison admitted both knowledge of the false and fraudulent claims and the insufficient inventory for delivery to Medicare beneficiaries. A Forensic accountant from the FBI further testified that Tellison not only failed to purchase the 29,113 tube feeding supply kits, but that she also failed to purchase sufficient quantities of nutritional products for delivery. Various representatives from Medicare and Medicaid contractors provided supporting testimony about how these federally funded programs operate and the claims submitted by Tellison.
U.S. District Judge Lee Rosenthal, who presided over the trial, permitted Tellison to remain on pending sentencing to be held later this year. At that time, she faces up to 10 years in federal prison on each count of health care fraud and a mandatory two-year-term for each count of aggravated identity theft which must be served consecutively to each other and to any other prison term imposed.
The investigation into Tellison was the result of a joint investigation conducted by agents from the FBI, RRB - Office of the Inspector General, Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorneys Julie Redlinger and Tina Ansari prosecuted the case.
Convicted Felon Gets 15 Years for Robbing Neighborhood StoreRead the Press Release
Kareem McBride, a/k/a "Alif Holmes," 32, of Philadelphia, PA, was sentenced today to 15 years in prison for robbery and gun charges. McBride pleaded guilty on May 20, 2013 to robbery which interferes with interstate commerce, using and carrying a firearm during a crime of violence, and being a convicted felon in possession of a firearm.
On October 12, 2012, McBride robbed the Wyalusing Food Market, at 54th and Wyalusing, at gunpoint. The store is owned by a husband and wife. McBride entered the store wearing a black knit hat pulled down over his face, brandishing a loaded black revolver that he pointed directly at the female store owner who had been working behind the counter. McBride forced the victim to give him money from the cash register, then pointed his gun at the male store owner who had been in the back of the store. The male store owner had a gun of his own and when McBride pointed his gun at him, the victim shot McBride. The male store owner then detained McBride on the street outside of the store until the police arrived.
McBride was charged with convicted felon in possession of a firearm because he had previously been convicted of a felony. He had amassed nine separate convictions between 1999 and 2011 for drugs, robbery and firearms crimes before robbing the Wyalusing Food Market.
In addition to the prison term, seven years of which is mandatory, U.S. District Court Judge Mary McLaughlin ordered three years of supervised release and a $300 special assessment.
The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Thomas Zaleski.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Chimayo Woman Sentenced to Three Years in Federal Prison for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Dora Martinez, 50, of Chimayo, N.M., was sentenced in federal court this afternoon to three years in federal prison followed by three years of supervised release for her heroin trafficking conviction.
Martinez was arrested on Aug. 5, 2013, on an indictment charging her with possession of heroin with intent to distribute. According to the indictment, Martinez unlawfully possessed more than 100 grams of heroin on April 22, 2013 in Rio Arriba County, N.M.
Martinez entered a guilty plea to a heroin trafficking charge on Nov. 22, 2013. In entering her guilty plea, Martinez acknowledged that she was driving near Espanola, N.M., on April 22, 2013, when New Mexico State Police officers pulled her over and arrested her after observing her complete a drug transaction. Martinez admitted that at that time, she had 134.2 grams of heroin in her possession and that she intended to distribute that heroin for profit.
Chief Pete N. Kassetas of the New Mexico State Police said, “The arrest, prosecution and subsequent conviction of Dora Martinez is a significant accomplishment and is demonstrative of what can happen when law enforcement agencies work together. However, it is more significant for the community of Chimayo. It is especially disheartening when a longtime resident (Martinez) of Chimayo is found to be contributing to the heroin problem instead of helping combat as many members of her community have over the years. The New Mexico State Police is committed to the citizens of northern New Mexico and will continue to work with the community and other law enforcement agencies in combatting the drug problem.”
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Charlotte Man Sentenced to 10 Years in Prison for Discharging A FirearmRead the Press Release
CHARLOTTE, N.C. – On Tuesday, April 1, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Gerald Wayne Hairston to serve 120 months in prison for a federal firearms violation, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hairston, 30, of Charlotte, was also sentenced to five years of supervised release.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division joins U.S. Attorney Tompkins in making today’s announcement.
According to court records and yesterday’s sentencing hearing, in April 2012, Hairston was a patron at a restaurant located on Pineville Mathews Road, in Pineville, N.C. Court records indicate that Hairston got into fight with at least one other patron at the restaurant. Following that fight, records show that Hairston retrieved a firearm from his car, pointed the gun at a group of patrons outside the restaurant and fired two to four shots. According to court records, Hairston then fled the scene and was later arrested by law enforcement. Officers found a Ruger, model P-5, 9 millimeter pistol with ammunition and drugs in Hairston’s car. Hairston pleaded guilty to one count of discharging a firearm in furtherance of a drug trafficking crime in May 2013.
Hairston has been in federal custody since January 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF. The prosecution for the government was handled by Assistant U.S. Attorney Ann Claire Phillips of the U.S. Attorney’s Office in Charlotte.
Caribbean Corridor Strike Force Seizes 1,774 Kilos of Cocaine, 2 Venezuelans ArrestedRead the Press Release
SAN JUAN, PR – On March 31, 2014, the Caribbean Corridor Strike Force (CCSF) intercepted a Zodiac type vessel off the coast of Dorado while attempting to smuggle a load of cocaine into Puerto Rico. Two Venezuelan nationals and 1,774 kilograms of cocaine where seized during the interdiction announced United States Attorney Rosa Emilia Rodríguez-Vélez today. Yesterday, U.S. Magistrate Camille L. Vélez-Rivé authorized a complaint charging Reny Alexander López-Meneces and Andri Rivas Rojas-Irving with conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States.
On March 31, 2014, at approximately 6:00pm, a US Customs and Border Protection (CBP) marine patrol aircraft of the Caribbean Air & Marine Branch (CAMB) detected a Zodiac vessel traveling southbound heading directly to Puerto Rico. While under surveillance, the aircraft coordinated with the CBP Marine Patrol Units to intercept the Zodiac. Upon detection of the CBP marine units, the occupants of the vessel began to jettison what appeared to be bales of contraband into the water.
Additionally, while avoiding interdiction, one of the Zodiac crew members fell overboard while in the process of throwing bales into the water. A total of three bales where recovered from the ocean along with the man that had fallen over board. The Zodiac type boat was detained with a total of 58 additional bales and one more crew member.
The contraband, in the form of brick shape objects, was field tested and yielded positive results to cocaine. A total of two crew members were placed under arrest. The crew members were later identified as Reny Alexander López-Meneces and Andri Rivas Rojas-Irving. Further, a total of 61 bales of cocaine were seized with an approximate weight of 1,774.4 kilograms.
“These arrests are a clear indication of the continued success of the Caribbean Corridor Strike Force” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This is just another example of the fine work our State and Federal law enforcement partners accomplish every day. With the continued collaboration and assistance of our law enforcement partners, we will continue our efforts to bring the most powerful and prolific drug organizations to justice.”
“ICE HSI is committed to working with our federal, state and local counterparts in an effort to stop the movement of contraband in the Caribbean,” said Ángel M. Meléndez, Special Agent in Charge of HSI San Juan. “Those involved in drug trafficking should know that the Caribbean is no longer an option to transship narcotics into the United States.”
“Our air and marine assets are always ready to assist all federal, state and local law enforcement partners to interdict smuggling ventures and curb criminal activity in the island,” stated Johnny Morales, Director of Air Operations at the CBP Caribbean Air and Marine Branch.
“With this significant cocaine seizure the Caribbean Corridor Strike Force proves once more its effectiveness in cutting the Caribbean pipeline of drugs between South America and the United States,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA, Caribbean Division.
The case was investigated by agents from the Caribbean Corridor Strike Force (CCSF). The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona.The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr., announced today that Angel Gonzalez, 38, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum 40 years, a fine of $5,000,000.00, or both.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between 2006 and December 2010, the defendant conspired with two co-defendants to possess and distribute cocaine in Buffalo. The defendants stored cocaine and the proceeds of drug sales at Gonzalez’s residence on Auburn Avenue in Buffalo. The defendant was paid for allowing the money and drugs to be stored at his residence.
“This case should serve as a reminder to criminals that you don’t have to be the individual selling drugs in our community to be arrested,” said U.S. Attorney Hochul. “If you assist others in filling the streets with dangerous and potentially deadly narcotics, you will be prosecuted as if you committed the crime yourself.”
The defendant was arrested in December 2012 along with Renwick Samuel and Mica Donadelle. Charges are pending against Samuel and Donadelle. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Safe Streets Task Force of the Federal Bureau of Investigation.
Sentencing is scheduled for July 16, 2014 at 10:00 a.m. before Judge Skretny.Belcourt Pleads Guilty to Bribery and EmbezzlementRead the Press Release
The United States Attorney's Office announced that Tony James Belcourt, the former Chief Executive Officer of the Chippewa Cree Construction Corporation entered pleas today in four of the six indictments handed down by the Grand Jury charging him with wide-ranging public corruption. Belcourt is also a former member of the Chippewa Cree Tribal Business Council and a former member of the Montana State House of Representatives from Box Elder. Belcourt appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
Belcourt pled guilty to embezzlement in one count of United States v. Belcourt, et al, CR-13-39-GF-BMM which alleged the embezzlement of over $300,000, in the first half of 2010, using a pipe shipping contract that more than doubled the actual cost of shipping. Additional details can be found in the government's extensive Offer of Proof filed with the Court with that case number and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, et al, CR-13-82-GF-BMM which alleged that in November 2009 he accepted a $100,000 payment from Hunter Burns Construction, a company awarded a $1.7 million construction contract four months after the payment to Belcourt. Additional details can be found in the government's Offer of Proof filed with the Court with that cause number and accessible through PACER.
In a separate hearing earlier in the day before Judge Morris, Hunter Burns and Hunter Burns Construction, LLC, each pled guilty to conspiracy to file false claims in United States v. Belcourt, et al, CR-13-99-GF-BMM which alleged that four months later, in April 2010, Hunter Burns Construction made a $100,000 false claim to the Chippewa Cree Construction Corporation and against federal project funds based on mobilization costs that had not been incurred. Additional details can be found in the government's Offer of Proof filed with the Court with that case number and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, et al, CR-13-98-GF-BMM which alleged that he accepted a $300,000 payment from K & N Consulting, a company doing business with the Chippewa Cree Tribe after the floods of 2010. Belcourt served as the Tribe's Emergency Incident Commander and awarded insurance and FEMA contracts in connection with the recovery and reconstruction efforts after the flooding. Additional details can be found in the government's Offer of Proof filed with the Court and accessible through PACER.
Belcourt also pled guilty to bribery in United States v. Belcourt, CR-14-17-GF-BMM which alleged that Belcourt committed tax fraud in the filing of his 2009 tax return which failed to disclose $135,000 in income received by Belcourt and his wife that year. The Offer of Proof for case number CR-13-82 contains the details.
Air Force Senior Airman Convicted of Child Sex OffenseRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Air Force Senior Airman Jason Alan Hargrove (27, Brandon) guilty of attempted enticement of a child for sex. He faces a mandatory minimum sentence of 10 years, up to a maximum penalty of life in federal prison. His sentencing hearing is scheduled for June 23, 2014. Hargrove was indicted on January 8, 2014.
According to testimony and evidence presented at trial, Hargrove posted an advertisement on a public website soliciting members of the public for sex. He attached a picture of his genitalia to the posting. An undercover officer, posing as a 14-year-old female in the 9th grade, responded to Hargrove’s posting, expressing interest. Upon learning the purported “child’s” age, Hargrove attempted to induce the “child” to engage in sexual acts with him, and discussed various sex acts with the “child.” Additionally, Hargrove repeatedly requested to visit the “child’s” home when he believed her mother wasn’t present. On October 27, 2013, Hargrove drove to what he believed to be the “child’s” home to engage in sexual acts with the “child” and was arrested.
This case was investigated by the U.S. Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another 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 (CEOS), 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.projectsafechildhood.gov.
1 April 2014
“Shattered Window Bandit” Sentenced to 193 Years for Multiple Armed RobberiesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven yesterday sentenced Demetrius Renaldo Bowers (29, Tampa) to 193 years in federal prison for a string of eight armed robberies that he committed between September and November 2012 throughout the Tampa Bay area.
On June 26, 2013, a federal jury found Bowers guilty of sixteen robbery and firearms offenses.
According to evidence presented at trial, between September 23, 2012 and November 4, 2012, while armed with a black semi-automatic handgun, Bowers robbed eight fast-food franchise restaurants in Hillsborough, Pinellas, and Hernando counties near the time the restaurants were closing. In each robbery, Bowers used a concrete block to smash the window of the victim business, wore a black ski mask covering his face, and held the victim-employees at gunpoint while demanding money. After the robbery of a Papa John's restaurant off of Gunn Highway in Tampa, law enforcement recovered the ski mask worn by the robber. DNA recovered from the ski mask positively matched Bowers. Law enforcement then obtained other evidence which identified him as the perpetrator of the other armed robberies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff's Office, the Tampa Police Department, the Largo Police Department, and the Hernando County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Josephine W. Thomas and Carlton C. Gammons.
Widespread Group of Defendants Charged with Securities FraudRead the Press Release
An indictment charging a market manipulation scheme was unsealed today against six defendants in connection with the trading of stock in Super Nova Resources, Inc. (“SNRR”), announced United States Attorney Zane David Memeger. Charged with conspiracy, wire fraud, and securities fraud are: Carl Marciniak, 50, of California, Jeffrey Weinfurter, 46, of Yorba Linda, CA, James Wheeler, 54, of Corona, CA, Daniel Starczewski, 67, of Cornelius, NC, Danny Colon, 46, of Edgewater, NJ, and Louis Buonocore, 59, of Woburn, MA. According to the indictment, the defendants ran the scheme with the intent to cause approximately $150 million in losses to participants in the over-the-counter U.S. securities market.
If convicted, each defendant faces a maximum statutory penalty of 55 years in prison, three years of supervised release, a $5.5 million fine, and a $300 special assessment.
The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Judy Smith and Patrick J. Murray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525U.S. Attorney Hickton Statement on Adam BusbyRead the Press Release
PITTSBURGH - David J. Hickton, United States Attorney for the Western District of Pennsylvania, issued the following statement today regarding Adam Busby, charged in connection with a series of hoax bomb threats against the University of Pittsburgh in late March and April 2012:
"On March 21, 2014, Adam Busby was released from detention in Ireland while he awaits a hearing before Ireland’s Supreme Court on his appeal of his extradition to Scotland to face terror charges in that country. He had been continuously incarcerated on a European Union warrant since July 2012. We have taken all available legal action to extradite him to face charges in Western Pennsylvania after he faces pending charges in the U.K. We have been informed that he is residing in a Dublin hostel and the bail conditions dictate that he has no access to the Internet. We are closely monitoring the proceedings overseas and are working to obtain his extradition to the U.S. on the charges pending here."
Two Plead Guilty in New Jersey Federal Court to Roles in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Defendants Managed “Cash Out” Crews for Organization that Allegedly Capitalized on Information Hacked From Customers of More Than a Dozen Global Financial Institutions
TRENTON, N.J. – An alleged member of an international cybercrime, identity theft and credit card fraud conspiracy admitted today to using information hacked from customer accounts held at more than a dozen banks, brokerage firms, payroll processing companies and government agencies in an attempt to steal at least $15 million from American customers, the second member of the conspiracy to plead guilty this week, U.S. Attorney Paul J. Fishman announced.
Robert Dubuc, 40, of Malden, Mass. – who was in court today – and Oleg Pidtergerya, 49, of Brooklyn, N.Y. – who was in court yesterday, March 31, 2014 – each pleaded guilty to an information charging one count of wire fraud conspiracy, and one count of conspiracy to commit access device fraud and identity theft. Both defendants entered their guilty pleas before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to documents filed in the case and statements made in court:
Both Dubuc and Pidtergerya were asked by leaders of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 33, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Pidtergerya managed a cash out crew in New York for Sharapka and Yanovitsky, and defendant Dubuc controlled a cash out crew in Massachusetts for the organization.
Pursuant to the scheme, conspiring hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated “cash out” operation, employing crews of individuals known as “cashers” to withdraw the stolen funds from the Fraudulent Accounts, among other ways, by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
During their guilty plea proceedings, Pidtergerya and Dubuc admitted they were aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. Both men admitted coordinating ATM and bank withdrawals of the stolen funds. In addition they admitted to sending proceeds of the fraud to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
The wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison, and the conspiracy to commit access device fraud and identity theft count carries a maximum potential penalty of five years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 7, 2014, for Pidtergerya and July 8, 2014, for Dubuc.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation. He also thanked the Department of Homeland Security’s Customs and Border Protection for assistance with the Yarmolitsky arrest.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges and allegations concerning alleged conspirators are merely allegations and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-112
Defense counsel: Oleg Pidtergerya: Mitchell Elman Esq., Port Washington, N.Y.
Robert Dubuc: Angelo Servidio Esq., Nutley, N.J.Pidtergerya, Oleg Information
Dubuc, Robert InformationTwo Honduran Nationals Sentenced for Conspiring to File False Claims for IRS RefundsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge W. Earl Britt, sentenced MARDOQUEO MEJIA FAJARDO and JORGE ERNESTO TINOCO to more than 4 years incarceration and ordered them to pay restitution of approximately $1.4 million to the United States Department of Treasury for their participation in a conspiracy to file false claims for IRS refunds.
According to the charging document, both these men are citizens of the Republic of Honduras and were illegally residing in the United States. From June 2011 to March 2013, FAJARDO and TINOCO conspired with others to defraud the United States by filing fraudulent income tax returns with the Internal Revenue Service. These returns were filed under the Individual Taxpayer Identification Number program, which was initiated for resident and nonresident aliens to file returns and pay the taxes they owed. The returns filed by members of this conspiracy were fictitious. Wage and tax statements were fabricated to make it appear that the named taxpayers worked for legitimate companies, earning income and paying taxes. The refund checks were directed to Post Office boxes in eastern North Carolina that were opened in the name of fictitious individuals with fraudulent forms of identification.
IRS-Criminal Investigation Special Agent in Charge, Jeannine A. Hammett said, “We are committed to the pursuit of those who undermine the federal tax system by filing fraudulent returns claiming refunds. These two defendants sought to enrich themselves by essentially stealing from all of us who pay our taxes honestly.”
This was a joint investigation conducted by the Internal Revenue Service – Criminal Investigation, the Department of Homeland Security and the United States Postal Inspection Service. Assistant United States Attorney Susan Menzer is prosecuting the case for the government.
Two Connecticut Men Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nelson Areizaga-Rosa, 38, and Ricardo Ortiz-Rosa, 42, both of Connecticut, who were convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, were each sentenced to 180 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on March 17, 2011, the defendants were stopped for speeding by a Chautauqua County Sheriff’s deputy on I-86 in the Town of Ellicott. The defendants, who are cousins, were later arrested along with two other individuals.
Law enforcement officers subsequently discovered $60,000 in U.S. currency secreted in the spare tire of the vehicle the defendants were riding in, money that represented the proceeds from the sale of two kilograms of cocaine. Officers also seized more than a kilogram of heroin, a quantity of cocaine, and multiple firearms. An additional four defendants were also arrested. During a search warrant later executed at a residence in Campbell, Ohio, officers recovered another $205,000 in U.S. currency. Five vehicles were also seized during the course of the narcotics investigation.
All eight defendants in this heroin trafficking investigation have been convicted.
The sentencings are the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff’s Lieutenant David Bentley, the Chautauqua County Sheriff’s Department, under the direction of Sheriff Joseph Gerace, and the Jamestown Police Department, under the direction of Harry Snellings.Two Charged in Tax Fraud Scheme Targeting More Than 600 VictimsRead the Press Release
HOUSTON - A 13-count federal indictment has been returned against Tanzanian national Amon Rweyemamu Mtaza and Dion Hatch, of Houston, alleging a stolen identity refund fraud (SIRF) scheme, announced United States Attorney Kenneth Magidson.
Hatch, 40, was taken into custody this morning and is expected to make her initial appearance before U.S. Magistrate Judge Frances Stacy today at 2:00 p.m. Mtaza, 38, was arrested upon the filing of a criminal complaint March 3, 2014. He appeared for a detention hearing Thursday, March 28, 2014, at which time he was ordered into custody pending further criminal proceedings.
The indictment, returned March 26, 2014, charges both defendants with one count of conspiracy to commit wire fraud, six counts of wire fraud and six counts of aggravated identify theft.
Mtaza and Hatch engaged in a sophisticated tax fraud/identity theft case involving the filing of hundreds of fraudulent tax returns, according to allegations. Mtaza and Hatch allegedly used stolen and unlawfully obtained personal identity information, including the names and Social Security numbers, of true persons to prepare fraudulent U.S. income tax returns. The suspects electronically filed the fraudulent federal income tax returns in order to generate and obtain tax refunds to which they were not entitled, according to the charges. Mtaza and Hatch then either directed the fraudulently obtained tax refunds to be deposited onto reloadable debit cards or disbursed as U.S. Treasury checks.
The fraudulently obtained refunds were used to obtain cash and goods for their own benefit, according to the allegations. The tax refund filings attributed to this group allegedly account for an excess of $1.8 million in losses and more than 600 victims.
Each conviction of conspiracy to commit and substantive counts of wire fraud carry a possible 20-year prison sentence as well as a possible $250,000 fine. If convicted of aggravated identify theft, the defendants also face an additional mandatory two-year prison term on each counts which must be served consecutively to any other prison term imposed.
The investigation leading up to the arrest was conducted by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Suzanne Elmilady is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Tulsa Man Pleads Guilty to Brandishing A Firearm While Robbing A Woman in Casino Parking LotRead the Press Release
TULSA, OKLAHOMA – A Tulsa man pleaded guilty today to brandishing a gun during a robbery at an Indian gaming establishment, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Dominique Amoia McDowell II, age 19, entered a plea of guilty before U.S. District Court Judge John Dowdell to the charge of Brandishing a Firearm During and in Relation to a Crime of Violence . This matter was prosecuted in United States District Court because the armed robbery occurred in Indian Country.
On January 12, 2014, McDowell approached a Native American woman in the Osage Nation Casino Tulsa parking lot and robbed her of $600 at gunpoint. Osage Nation law enforcement and casino security officials used their collective resources to identify and find McDowell immediately after the robbery. The officers found McDowell inside the casino gambling with the money he had just stolen. Osage Nation Police officers took McDowell into custody and recovered $540 and a firearm.
“The United States is committed to working together with our tribal law enforcement partners to hold accountable those who commit violent crimes in Indian Country. I commend the Osage Nation Police Department and Bureau of Indian Affairs for their quick response and joint investigative efforts,” commented United States Attorney Williams.
McDowell faces a mandatory minimum sentence of seven years and up to life imprisonment. Parole has been abolished in the Federal system.
Assistant United States Attorneys Clint Johnson and Trent Shores prosecuted this case on behalf of the United States of America.
The Government’s Response Concurring in Defendant Musto’s Motion for Temporary Release from Custody for Medical TreatmentRead the Press Release
On March 31, 2014, the United States Attorney’s Office for the Middle District of Pennsylvania filed its response to a motion filed previously on behalf of the Defendant in United States v. Musto. Both filings relate to the trial Court’s prior Amended Order of January 7, 2014 committing the Defendant to the custody of the Attorney General for mental health evaluation.
The Government’s response contains the report of the staff psychiatrist at the Federal Medical Facility at Butner, N.C. In light of that report the Government concurred in the defense motion seeking release of the Defendant from Butner temporarily for examination, medical analysis and treatment by his local physicians.
The Government further requested that the defense be directed to provide (1) the Court and the Government with an update report in one month including all appropriate medical diagnoses and decisions regarding his medical treatment;(2) if appropriate, a renewed defense motion for indefinite continuance. In the absence of such a motion, the Government requested that the Court hold a hearing to schedule the next appropriate step in the case.
Tampa Tax Fraudster Sentenced to Two Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Kesham Evans Jr. to two years in federal prison on one count of aggravated identity theft charged in connection with Evans cashing two fraudulent Treasury checks. Evans pleaded guilty on January 4, 2014.
According to court documents, on two occasions in July 2013, Evans sold a United States Treasury check, at a discounted price, to undercover law enforcement agents. These Treasury checks were issued as a result of tax returns filed in the names of individuals who were victims of identity theft. They had a total face value of more than $25,000. At least one of the victims confirmed that he did not file a tax return and that the Treasury check issued in his name was fraudulent. The victim did not know Evans nor did he authorize Evans to endorse a check issued in his name.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, Hillsborough County Sheriff’s Office and Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.