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1 April 2014
Tampa Man Sentenced to More Than Seven Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore yesterday sentenced Alexander Lenox to 7 years and 6 months in federal prison for theft of government property and aggravated identity theft. Lenox pleaded guilty on December 31, 2013.
According to court documents, Lenox engaged in stolen identity refund fraud from April 2009 to May 2011, with two co-conspirators. In particular, in May 2011, Lenox was responsible for renting two hotel rooms where lists of identifying information and prepaid debit cards containing fraudulently-obtained tax refunds were found. Also found in both rooms were medical records that had been stolen from the James A. Haley Veterans Hospital, containing the identifying information of U.S. veterans. Lenox was later captured by surveillance video at various locations withdrawing money from the debit cards with the fraudulently-obtained tax refunds on them. At sentencing, he was found responsible for fraudulent tax returns requesting more than $400,000 of government funds and victimizing more than fifty people.
After the sentencing hearing, Special Agent in Charge Monty Stokes, Office of Inspector General, U.S. Department of Veterans Affairs, said "This case is the collective work of federal, state, and local law enforcement agencies to aggressively pursue those that commit identity theft. The fact that Lenox chose to victimize veterans is reprehensible."
"Alexander Lenox's sentencing of 7 ½ years is the result of the collaborative investigative effort of the Tampa Bay Alliance. Let this sentence be a warning to those individuals who continue to exploit members of our community and veterans," stated James Robnett, Special Agent in Charge, Internal Revenue Service-Criminal Investigation. "IRS-Criminal Investigation and its partners will continue to investigate individuals, such as Lenox, who commit stolen identify refund fraud (SIRF)."
Lenox’s co-conspirators, James Early Smiley and Hantz Saint Marc, previously pleaded guilty for their roles in this case. On August 12, 2013, Smiley was sentenced to 61 months in federal prison. A sentencing hearing for Saint Marc is set for May 20, 2014.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General, the Internal Revenue Service – Criminal Investigation, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Sara C. Sweeney.
Statement by Attorney General Eric Holder on the Senate Confirmation of John P. Carlin to Serve as Assistant Attorney General for National SecurityRead the Press Release
Attorney General Eric Holder released the following statement today after the confirmation of John P. Carlin to serve as Assistant Attorney General for National Security: “John Carlin is an outstanding leader and an exceptional public servant who has spent his entire legal career at the Department of Justice and its components,” said Attorney General Eric Holder. “Throughout his tenure, he has repeatedly demonstrated the skill, foresight, and vision that this position demands. I am confident that under his leadership, the National Security Division will continue to strengthen and advance its critical mission to safeguard the American people and protect this nation.”
St. Robert Daughter, Mother Indicted for $1 Million Nigerian Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two St. Robert, Mo., women were indicted by a federal grand jury today for their roles in an international fraud scheme in which victims across the country were tricked into cashing counterfeit money orders.
Lisa Kaye Barwick-Majeski, 53, and her mother, Nancy Madelen Peebles, 73, both of St. Robert, were charged with aiding and abetting others to transfer more than $1 million in counterfeit obligations (postal money orders) in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Barwick-Majeski and Peebles on March 5, 2014.
According to an affidavit filed in support of the original criminal complaint, Barwick-Majeski received counterfeit postal money orders from a source in Nigeria. She allegedly sent the money orders, along with instructions on how to be a secret shopper, to numerous victims across the country. The people who received the counterfeit money orders were to cash them and then wire part of the money back to her, the affidavit says. The money orders were eventually returned against the victims’ account as not negotiable, and the victims were obligated to pay their banks for most of the money they wired to Majeski and others. Barwick-Majeski allegedly kept a portion of the money she received and wired the remaining amount to individuals in Nigeria.
During the course of the investigation, the affidavit says, law enforcement officers seized more than $1.7 million worth of counterfeit postal money orders. Some of those counterfeit money orders were taken directly from Barwick-Majeski or Peebles and some were seized by U.S. Customs and Border Protection or intercepted en route to Barwick-Majeski or Peebles.
In addition to the counterfeit postal money orders, law enforcement officers executed a search warrant at Barwick-Majeski’s residence on Nov. 5, 2013, and seized a parcel that contained 354 counterfeit BMO-Harris Bank cashier’s checks with a total face value of more than $1 million. According to the affidavit, law enforcement officers also seized $406,800 in counterfeit Mid Missouri Credit Union cashier’s checks during the investigation.
A large number of counterfeit money orders have been cashed, the affidavit says, which total at least $212,708 cashed by 137 victims. This remains an active and ongoing investigation.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Robert, Mo., Police Department.Springfield Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Lonnie Ray Orr, 29, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Monday, March 31, 2014, to eight years in federal prison without parole.
On Nov. 21, 2013, Orr pleaded guilty to receiving and distributing child pornography. Law enforcement officers identified a computer that was using a peer-to-peer file-sharing network to share child pornography over the Internet, which they traced to Orr.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Second Beaver Falls Man Charged in Shooters Place BurglaryRead the Press Release
PITTSBURGH - A resident of Beaver County has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, stealing firearms from the inventory of a Federally Licensed Firearms Dealer, and possession of stolen firearms, United States Attorney David J. Hickton announced today.
The three-count indictment named Jaemere Scott, 20, formerly of Beaver Falls, Pa., as the sole defendant.
According to the Indictment, in or around February of 2014, Scott, along with another individual known to the grand jury as KJ, conspired to burglarize Shooters Place, a Federally Licensed Firearms Dealer, located at 416-F Constitution Boulevard in New Brighton, Pa. The Indictment further charges that on or about Feb. 7, 2014, Scott and KJ stole and illegally possessed 14 firearms from Shooters Place.
The law provides for a maximum total sentence of 25 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Patterson Township Police Department, the Beaver County Sheriff’s Office, the Beaver County Detective Bureau, the Pennsylvania State Police, the Beaver Falls Police Department, and the New Brighton Police Department, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Russell Springs, Kentucky Business Agrees to Pay $750,000 in Restitution for Role in Contraband Cigarette TraffickingRead the Press Release
– Tantus Tobacco, LLC. Pleads guilty to a superseding information
BOWLING GREEN, Ky. – A Russell Springs, Kentucky company pleaded guilty today, before Chief Judge Joseph H. McKinley Jr., to a single charge of conspiracy to engage in contraband cigarette trafficking; and the company has agreed to pay $750,000 in restitution and forfeitures; announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tantus Tobacco, LLC pleaded guilty to a Superseding Information and will pay restitution in the amount of $200,000 to the Kentucky Revenue Cabinet in lost taxes and $60,000 to the Kentucky Attorney General’s Office for its assistance in the investigation. Tantus Tobacco, LLC will forfeit $490,000 to the United States.
Tantus Tobacco, a cigarette manufacturing facility located in Russell Springs, Kentucky, acting by and through its officers and employees, aided and abetted by Jerry Burke and Charles Wells, pleaded guilty to making false material statements in reports required to be made to governmental tobacco regulatory divisions of the United States and the State of Mississippi between October 2007 through July 2008.
According to the plea agreement, from at least January 2008 to May 2008, Tantus Tobacco manufactured Berley and Berkley brand cigarettes, which they sold to Charles Wells, a cigarette wholesale distributor in Kentucky. Escrow payments are due on the Berley cigarettes, but not the Berkley. Wells would obtain the cigarettes directly from the Tantus Tobacco facility located in Russell Springs, Kentucky. However, Tantus Tobacco aided and abetted the creation of false documentation indicating that the cigarettes had been sold to J&B Wholesale (owned and operated by Jerry Burke) in Mississippi, which false documents were submitted to the State of Mississippi. These false documents allowed Tantus Tobacco to avoid making manufacturer Non-Participating Manufacturer escrow payments on the subject cigarettes and to sell the cigarettes to Wells at a discount. J&B Wholesale, in turn, submitted false and fraudulent Mississippi Tobacco Excise Returns reporting that the cigarettes were received and sold in Mississippi to the State Tax Commission in Mississippi in violation of tobacco sales reporting requirements. These false Mississippi Tobacco Excise Returns were submitted, in whole or in part, due to the cigarette diversion scheme described above in which Tantus Tobacco was an active participant.
A wholesaler selling cigarettes in Mississippi must file a monthly Tobacco Excise Return with the State Tax Commission showing the number of unstamped cigarettes received that month, plus the cigarettes stamped and available for sale that month, plus the cigarettes sold to licensed wholesalers and exempt persons that month, as well the cigarettes shipped or sold out of state, and the net taxable cigarettes and other pertinent information.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Federal Bureau of Investigation (FBI) Mississippi Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Registered Sex Offender Sentenced to 35 Years in Prison for Possessing, Receiving, and Distributing Child Pornography and for Transferring Obscene Material to A MinorRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JONATHAN DELAURA, 39, was sentenced to 35 years in prison by United States District Judge Kenneth M. Karas for receiving and distributing child pornography over the Internet, possessing child pornography, and sending obscene material to a 15-year-old boy.
U.S. Attorney Preet Bharara stated: “This case underscores the need for law enforcement to remain vigilant in protecting children from those who might prey on them over the Internet. As today’s sentencing demonstrates, we will use every tool available to law enforcement to find, prosecute and punish those who possess and distribute child pornography.”
According to documents filed in this case and statements made in related court proceedings:
On October 7, 2009, DELAURA, of Jefferson Valley, Westchester County, New York, pled guilty in Bronx County Court to sexual misconduct. His victim was a 12-year-old boy. He was sentenced on December 16, 2009, to six years of probation and registered with the New York State Sex Offender Registry.
On December 14, 2010, after Westchester Probation Department discovered that DELAURA was teaching tennis to children in Putnam County, New York, under an alias “Jon Dulak,” his probation was revoked and he was sentenced to a one-year term of imprisonment.
DELAURA was released from prison in April 2011. From May 5, 2011, through May 10, 2011, DELAURA distributed files containing images and videos of child pornography over the Internet via a Peer-to-Peer networking program.
In November 2011, DELAURA contacted a 15-year-old boy (the “Victim”) in an Internet chat room using the screen name “sillyrabbit” and claimed to be a 17-year-old girl. After an exchange of messages, DELAURA sent obscene photographs to the Victim. Thereafter, DELAURA sexually abused the Victim. On February 2, 2012, DELAURA was arrested by officers from the Putnam County Sheriff’s Department (“PCSD”). After DELAURA was arrested, PCSD officers executed a search warrant at his residence and recovered an iPod, which contained approximately 162 videos containing images of child pornography and approximately 5 still photos of images containing child pornography. The iPod also contained the obscene photographs that were sent to the Victim.
On December 12, 2012, DELAURA pled guilty in Putnam County Superior Court to two counts of Criminal Sexual Act in the 3rd Degree. Those charges related to DELAURA’s abuse of the Victim. On April 2, 2013, DELAURA entered a guilty plea in Federal Court to (1) receiving and distributing child pornography in May 2011, (2) possessing child pornography in February 2012, (3) transferring obscene material to the Victim in November 2011 and (4) doing so while registered as a sex offender.
Following DELAURA’s arrest in February 2012, an additional victim disclosed repeated sexual abuse by DELAURA in 2010 that began when the victim was 14 years old and DELAURA was the victim’s tennis instructor.
In sentencing DELAURA, Judge Karas stated that the defendant caused “indescribable pain” to the victims and their parents.
DELAURA has not yet been sentenced in Putnam County. Pursuant to his agreement with the Putnam County District Attorney’s Office, Putnam County will recommend consecutive sentences of one-and-a-third to four years on each of the counts to run concurrent with the federal sentence.
Mr. Bharara praised the efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in New York, the Putnam County Sheriff’s Department, the Yorktown Police Department, the Putnam County District Attorney’s Office, and the Westchester County District Attorney’s Office in connection with this investigation.
The case is being handled by the White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
Portland Man Receives 30-Month Federal Sentence for Hurling Molotov Cocktail at Portland Police CarRead the Press Release
PORTLAND, Ore. – Yesterday, U.S. District Judge Marco A. Hernandez sentenced Sergey Yefimovich Turzhanskiy, 26, to 30 months in federal prison for possession of an unregistered destructive device. Turshanskiy pleaded guilty to using the device, a Molotov cocktail, in a 2012 attack on a Portland Police Bureau (PPB) patrol car.
Turzhanskiy entered PPB’s North Precinct parking lot at 449 North Emerson Street at about 1:30 am on November 5, 2012. He ignited the Molotov cocktail (a glass beer bottle with fuel and a cloth wick), and hurled it at a parked patrol car. The device bounced off the hood of the car onto the ground and initially failed to break. Turzhanskiy picked up the device and threw it a second time at the vehicle. It hit the pavement, broke and caused a fire next to the car. Turzhanskiy fled on a bicycle but was apprehended by the police a few blocks away.
A native of Ukraine, Turzhanskiy immigrated to the United States as a child, became a U.S. citizen, and grew up in Chicago, Illinois. He had lived in Portland a short time when the crime occurred.
After serving the prison sentence, Turzhanskiy will be on supervised release for three years. In light of Turzhanskiy’s prior associations, Judge Hernandez ordered as a special condition of supervised release that he “shall have no communication or contact with anarchist groups or affiliates” in the future. He has already paid $1,314.12 in restitution to the City of Portland for damage to the patrol car.
“We are pleased with the sentence imposed by Judge Hernandez,” stated United States Attorney Amanda Marshall. “Violent attacks such as this one on law enforcement deserve substantial punishment as a deterrent to similar conduct by others.”
In addition to the Portland Police Bureau, investigative work in the case was performed by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen F. Peifer.
Physician Pleads Guilty for Role inDetroit-area Medicare Fraud SchemeRead the Press Release
A Detroit-area physician pleaded guilty today for her role in a $7 million health care fraud scheme.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Adelina Herrero, 72, of Ann Arbor, Mich., pleaded guilty before U.S. District Judge Paul D. Borman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing will be scheduled at a later date.
According to court documents, beginning in approximately April 2010 and continuing through approximately April 2013, Herrero and others agreed that she would refer Medicare beneficiaries whom she had never seen or treated to Advance Home Health Care Services Inc. (Advance) and Perfect Home Health Care Services LLP (Perfect), which were both owned by co-conspirators. Herrero signed medical documents, such as home health care certifications and plans of care for these beneficiaries, falsely certifying that they were under her care and that they required home health care. Advance, Perfect and other home health agencies then used Herrero’s false documents to support their claims to Medicare for home health services — including physical therapy services — that were never rendered and/or not medically necessary. Herrero knew the medical documents she signed for her co-conspirators would be used to support false claims to Medicare. Herrero admitted that in exchange for signing the home health care documents, she accepted kickback payments from a co-conspirator.
The false and fraudulent claims to Medicare arising from Herrero’s conduct total approximately $1,382,208 in billings for home health services and physician services, of which Medicare paid $1,321,372.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Special Trial Attorney Katie R. Fink and Trial Attorney Patrick J. Hurford of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .PG&E Charged with Multiple Violations of the Natural Gas Pipeline Safety ActRead the Press Release
SAN FRANCISCO, Calif. – On April 1, 2014, a federal grand jury for the Northern District of California returned an indictment charging Pacific Gas and Electric Company (“PG&E”) with multiple violations of the Natural Gas Pipeline Safety Act of 1968 (“PSA”), announced U.S. Attorney Melinda Haag, California Attorney General Kamala D. Harris, San Mateo County District Attorney Stephen M. Wagstaffe, U.S. Department of Transportation Office of Inspector General Special Agent in Charge William Swallow, and FBI Special Agent in Charge David J. Johnson. PSA violations were uncovered in the course of an investigation initiated after the fatal San Bruno natural gas pipeline explosion in 2010.
The indictment alleges that PG&E knowingly and willfully violated the PSA and its regulations between 2003 and 2010. According to the indictment, the charges stem from PG&E’s record keeping and pipeline “integrity management” practices. The indictment alleges that PG&E failed to address recordkeeping deficiencies concerning its larger natural gas pipelines knowing that their records were inaccurate or incomplete.
The indictment also alleges that PG&E failed to identify threats to its larger natural gas pipelines and that PG&E did not take appropriate actions to investigate the seriousness of threats to pipelines when they were identified. In addition, the indictment alleges that PG&E failed to adequately reprioritize and assess threatened pipelines after the pipelines were over pressurized as required by the PSA and its regulations.
“The citizens of Northern California deserve to have their utility providers put the safety of the community first,” said U.S. Attorney Haag. “Today’s indictment of PG&E for violating the minimum safety standards established by the Natural Gas Pipeline Safety Act reflects the company’s failure to follow that very basic principle. This investigation is the result of strong collaboration among federal, state, and local law enforcement authorities, the California Attorney General’s Office, and the San Mateo County District Attorney’s Office. I look forward to continuing to work closely with these partners in our efforts to hold PG&E accountable for their disregard for the safety of our community.”
“Today’s indictment is an important step in providing justice for the individuals, families and community devastated by the 2010 pipeline explosion and fire in San Bruno,” said California Attorney General Kamala D. Harris. “As alleged in the indictment, PG&E knowingly and willfully failed to identify and evaluate threats to its transmission pipelines, including Line 132 underneath much of San Bruno. When allegedly faced with evidence of transmission line problems, PG&E knowingly and willfully chose not to assess and remediate the problems. My office will continue our work with local and federal partners in prosecuting this matter in federal court and holding PG&E accountable for its alleged conduct."
“The indictment returned by the Grand Jury is an important step in holding PG&E criminally responsible for their willful misconduct,” said San Mateo County District Attorney Stephen M. Wagstaffe. “The San Bruno Police Department and my office will continue to support and work closely with the offices of the United States Attorney and the California Attorney General to bring PG&E to justice.”
“Pipeline safety is a top priority for the Department of Transportation and the Office of Inspector General,” said William Swallow, DOT OIG regional Special Agent-in-Charge. “The lasting impacts among families and the community stemming from the tragic explosion in San Bruno remind us of why it is important to exercise vigorous management and oversight. The DOT OIG will continue to work with our law enforcement and prosecutorial colleagues to ensure that parties responsible for protecting public health and safety are held to the highest standards.”
“The Federal Pipeline Safety Act is designed to guard against risks to life or property in the course of distributing goods and services to entrusting consumers,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “This office has the responsibility not only to uphold and enforce the criminal laws of the United States but also to do everything we can to protect the public. The charges alleged in this indictment should be symbolic of the FBI’s commitment to serving justice no matter how long it takes.”
PG&E is charged with 12 separate violations of the PSA. The maximum statutory penalty for each count for a corporation is $500,000 or a fine based on the gain the corporation made as a result of the violation or the loss caused to victims.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The prosecution is the result of a three-year investigation conducted by the U.S. Attorney’s Office for the Northern District of California, the California Attorney General’s Office, the San Mateo County District Attorney’s Office, the United States Department of Transportation Office of Inspector General, the FBI, the Pipeline and Hazardous Material Safety Administration, and the city of San Bruno Police Department.
Arraignment on the indictment in the United States Magistrate Court has not yet been scheduled. Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.
(PG&E indictment )
New York Man Charged with Attempting to Rob A Milford Convenience StoreRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a Criminal Information in U.S. District Court in Scranton charging Jeremiah Anderson, age 29, of Port Jervis, New York, with the attempted robbery of a convenience store in Milford, Pennsylvania.
According to United States Attorney Peter J. Smith, Anderson and Daviandra Green entered the Hilltop Sunoco / Extra Mart, in Milford, Pennsylvania on October 5, 2011, and attempted to rob it without success. Green was also charged with the offense and pleaded guilty on January 8, 2014. She is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation; the Eastern Pike Regional Police Department; and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New London Heroin Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that XAVIER CLUFF, 41, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. According to court documents and statements made in court, CLUFF was intercepted over court-authorized wiretaps ordering 100-gram quantities of heroin from his drug supplier, Luis Ariel Capellan Maldonado, for distribution purposes. CLUFF was identified as one of Capellan Maldonado’s largest and most frequent customers.
CLUFF has been detained since his arrest on April 3, 2013. On December 13, 2013, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation. Capellan Maldonado has pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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(203) 821-3722 [email protected]Nevada Sex Offender Pleads Gulty to Child Porn, Faces at least 15 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., man who is a registered sex offender pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
David Lee Knowles, 55, of Nevada, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an April 2, 2013, federal indictment. Knowles is a registered sex offender as a result of his 1997 conviction for sexual assault.
By pleading guilty today, Knowles admitted that he received and distributed child pornography between May 31, 2012, and Jan. 3, 2013. A law enforcement officer was conducting an undercover investigation into the distribution of child pornography with peer-to-peer, file-sharing networks. Knowles’s computer was identified as sharing videos of child pornography over the Internet.
Knowles must forfeit to the government any property used to commit the offense, including an iPad2, a desktop computer, an iPhone and an external hard drive.
Under federal statutes, Knowles is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Navajo Man Sentenced to 20 Years in Prison for Sexually Abusing 11 Year-old GirlRead the Press Release
PHOENIX. – On March 31, 2014, Henry Yazzie, 43, of Tuba City, Ariz., on the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 20 years in prison followed by lifetime supervised release. Yazzie previously pleaded guilty to one count of abusive sexual contact of a minor.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-08197-PCT-DGC
RELEASE NUMBER: 2014-020_YazzieFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Fanderick Chiquito, 22, an enrolled member of the Navajo Nation who resides in Upper Fruitland, N.M., pleaded guilty today to an indictment charging him with involuntary manslaughter. Chiquito entered his guilty plea without the benefit of a plea agreement.
Chiquito was arrested on Dec. 31, 2013, based on a criminal complaint alleging that he killed a Navajo woman on Dec.23, 2013, while driving under the influence of alcohol in a location within the Navajo Indian Reservation. According to court filings, Chiquito caused a three-vehicle collision near mile marker 25 on Navajo Route 36 when he tried to pass a line of vehicles and struck another vehicle head on while driving in the oncoming lane. Both vehicles spun out of control on impact and one of the vehicles struck a third vehicle. The victim, a passenger in Chiquito’s vehicle, died of internal injuries after she was transported to a hospital in Farmington, N.M. After Chiquito was treated for minor injuries, he was arrested on tribal charges based on blood test results indicating a .29 BAC.
On Jan. 22, 2014, Chiquito was charged with involuntary manslaughter in an indictment alleging that he killed the victim while driving a vehicle under the influence of intoxicating liquor and operating a vehicle carelessly and in wanton disregard for the rights and safety of others. Chiquito pleaded guilty to the indictment during this morning’s proceedings.
At sentencing, Chiquito faces a maximum penalty of eight years in federal prison followed by three years of supervised release. His sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Murrysville Woman Sentenced to Prison for Defrauding Employer, Stealing Credit CardsRead the Press Release
PITTSBURGH - A Murrysville resident has been sentenced in federal court to 42 months imprisonment followed by three years supervised release on convictions of mail fraud, access device fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Dawn Penzera-Lackey, 41.
According to information presented to the court, Penzera-Lackey engaged in two separate schemes to steal money. In the first scheme, while employed as a food manager at a country club, Penzera-Lackey stole an $1,800 check from her employer that she was supposed to use to pay a vendor. After depositing the check into her personal bank account, Penzera-Lackey attempted to defraud the vendor by mailing to the vendor a bogus check drawn on an account that had long been closed. In the second scheme, Penzera-Lackey stole three credit cards from friends, who were owners of a small business. Penzera-Lackey then used the credit cards to make various purchases for her and family members totaling $16,660.30. Penzera-Lackey also admitted responsibility for uncharged conduct relating to a theft of $3284.24 from a different employer.
Prior to imposing sentence, Judge McVerry stated that Penzera-Lackey has demonstrated little respect for the law as evidenced by her history of repeated criminal conduct.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service, the Belle Acres Borough Police Department and the Pennsylvania State Police, Belle Vernon Barracks for the investigation leading to the successful prosecution of Penzera-Lackey.
Multiple Defendants Sentenced for International Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – United States Attorney Karen Loeffler announced that four defendants were sentenced in the past week for their roles in an international conspiracy to launder the proceeds of drug trafficking.
On Monday, March 31, 2014, United States District Judge Timothy M. Burgess sentenced Claritza Natera, 45, to serve 24 months in prison. Natera, of Anchorage, pled guilty to international money laundering, admitting that in 2010 and 2011 she repeatedly deposited currency that she knew to be the proceeds of drug trafficking into her bank account in Alaska and then immediately wired the funds to persons in the Dominican Republic. She admitted that she was paid cash for conducting these transactions by a person known to her to be a cocaine dealer and an illegal alien. The court also ordered Natera to forfeit $239,990 to the United States. This amount represents the funds involved in the money laundering conspiracy. The court ordered a money judgment in that amount to be entered against Natera.Also on Monday, March 31, 2014, Judge Burgess sentenced Joel Paredes Henriquez, 34, to four years of probation and ordered him to forfeit $25,500 to the United States. Joel Paredes Henriquez pled guilty to being a member of an international money laundering conspiracy, admitting that he deposited cash that he received from a man he knew to be an illegal alien and a cocaine dealer in Anchorage into his bank account, and wired the funds to the Dominican Republic. Joel Paredes Henriquez admitted that he wired over $25,000 between March 2010 and February 2011. In a plea agreement filed with the court, the defendant admitted that he knew or believed that the funds sent were the proceeds of or were intended to promote the importation and distribution of a controlled substance. It is a federal crime to transmit funds either domestically or internationally with such knowledge.
Nerido Paredes Henriquez, 38, of Anchorage, was also sentenced on Monday, March 31, 2014. Nerido, the brother of Joel, was sentenced to a three year term of probation and ordered to forfeit $15,400 to the United States. Nerido Paredes Henriquez pled guilty to one count of structuring financial transactions, admitting that he and others made several currency deposits at different bank branches to avoid the currency transaction reporting requirements of the Bank Secrecy Act. Federal law requires financial institutions to report currency transactions in excess of $10,000, and it is a federal crime to knowingly avoid those requirements.
Last Thursday, March 27, 2014, Judge Burgess sentenced Randin Paredes Henriquez, 36, to a term of time-served in jail. Randin Paredes Henriquez of Anchorage, the brother of Joel and Nerido Paredes Henriquez, pled guilty to one count of international money laundering. In December 2011, Randin flew from Anchorage to Philadelphia enroute to the Dominican Republic. Customs agents discovered that he was smuggling cash, which he admittedly knew to be the proceeds of cocaine trafficking in Alaska. Cash in the amount of $55,720 was seized and forfeited to the United States. Randin Paredes Henriquez had been in federal custody for approximately two years, since his return to Alaska from the Dominican Republic in March 2012. It is a federal crime to take more than $10,000 in currency or equivalents into or out of the United States without declaring the funds to Customs on arrival or departure.
Earlier last month, on March 14, 2014, Judge Burgess sentenced Concepcion Egea, 57, to four years of probation and fined her $5,000. Egea, of Florida, pled guilty to one count of structuring financial transactions to avoid the currency reporting requirements.
Evidence presented in court established that the defendants shared joint financial accounts, shared an address, and made multiple cash transactions in a single day or over several days at various branches to avoid suspicion. Most of the currency deposits were approximately $5000. The funds were almost always immediately wired to persons in the Dominican Republic. Randin, Joel, and Nerido Paredes Henriquez are lawful permanent residents of the United States, but remain citizens of the Dominican Republic. Concepcion Egea and Claritza Natera are naturalized U.S. citizens, and were formerly citizens of the Dominican Republic.
In a related case, United States v. Joel Santana Pierna, et al., numerous defendants were indicted in 2012 for drug trafficking, tax fraud, identity theft, passport fraud, making false claims of U.S. citizenship, bank fraud, and uttering forged U.S. Treasury checks. Seven defendants have been convicted in that case, including a former Wells Fargo Bank teller who helped facilitate the opening and use of bank accounts in fictitious names. Two defendants in the related indictment are in federal custody awaiting trial, and one remains a fugitive. Another former bank teller was charged and pled guilty in a separate case, admitting that she aided in the negotiation of forged Treasury checks.
“Joel Santana-Pierna ran a criminal enterprise that trafficked cocaine, stole the identities of honest citizens, and attempted to steal millions from the US Treasury by filing fraudulent tax returns. Santana-Pierna and the principle ringleaders of his organization already received stiff prison terms and penalties for their crimes,” said Assistant Special Agent in Charge Steve Bellis of IRS Criminal Investigation, Seattle Field Office. “The sentences handed down to Concepcion Egea, Randin Paredes Henriquez, Nerido Paredes Henriquez, Joel Paredes Henriquez, and Claritza Natera should serve as a warning to everyone that it does not pay to flirt with the criminal element. These otherwise law-abiding people got caught up in the money and lifestyle offered to them by Joel Santana-Pierna and his organization. That’s no excuse. Their actions made them criminal conspirators and now they too must pay their debt to society.”
Kevin Feldis, First Assistant U.S. Attorney, emphasized that “Drug dealers and other criminals seek to profit from their illegal activities. Those who facilitate and participate in these criminal activities by laundering drug money and other ill-gotten gain must likewise be held accountable.”
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation; Homeland Security Investigations, Immigration and Customs Enforcement; and Drug Enforcement Administration for the investigation leading to the convictions in this case.
Morgan State University Professor Convicted in Scheme to Defraud the National Science Foundation and for Obtaining Kickbacks from Students’ StipendsRead the Press Release
Fraudulently Obtained $200,000 and Attempted to Obtain Another $500,000 through a National Science Foundation Small Business Program
Baltimore, Maryland - A federal jury convicted Manoj Kumar Jha, age 46, of Severn, Maryland, today of wire fraud, mail fraud, falsification of records, and theft of government property in connection with a scheme to fraudulently obtain research grants from the National Science Foundation (NSF) and kickbacks from students’ stipends.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Allison Lerner, Inspector General at the National Science Foundation.
“The Small Business Technology Transfer Program supports research performed cooperatively between small businesses and research institutions,” said Allison Lerner, National Science Foundation Inspector General. “This conviction of guilt on seven counts, including obstruction of justice and theft of government property, sends a strong signal to anyone who would seek to defraud this program and divert taxpayer dollars intended for scientific research to personal use. I commend the U.S. Attorney’s office for its strong support in this case.”
According to trial testimony, from January 2008 through July 2009, Jha fraudulently obtained $200,000 in grant funds from the National Science Foundation=s (NSF) Small Business Technology Transfer (STTR) program to fund a highway project, and attempted to obtain another $500,000 through the same program. Jha converted the funds to his personal use. For example, Jha made payments on his mortgage and personal credit card and authorized approximately $11,000 in salary payments to his wife, who performed no NSF-related work.
Jha, a full time professor at Morgan State University, incorporated Amar Transportation Research and Consulting, Inc. (ATRC), and was its president and only director. Trial evidence showed that Jha submitted funding proposals on behalf of ATRC to the STTR. The stated purpose of Jha=s proposed project was to enhance current models used by highway planners to optimize horizontal and vertical highway routes, and ultimately, to commercialize the result. In his application for STTR funding, Jha listed himself as the principal investigator and the University of Maryland as the CRI. Under the STTR, the primary employment of the principal investigator must be with the small business at the time of the award; and at least 40% of the research must be performed by the small business and 30% by a collaborating research institution (CRI), as measured by the budget.
Trial evidence was presented that in his applications, Jha falsely represented that: he would secure “release time” or negotiate other leave options with Morgan State University in order to spend time at ATRC working on the highway project; that ATRC had eight employees; and that another Morgan State professor would be working for ATRC as a Senior Scientific Advisor. In fact, Jha remained employed full time as a professor at Morgan State and that none of the statements were true. Jha also misrepresented the involvement of the University of Maryland in conducting research on the project and further misrepresented that he had obtained a $100,000 investment from a third party in order to qualify for matching funds from NSF.
On February 15, 2011, an investigator with the Office of Inspector General (OIG) for the NSF sent Jha a letter requesting copies of documents, including a list of all individuals who worked on the highway project and their time sheets, and the company=s expenditure ledger detailing all budget categories, as part of a proactive OIG review of ATRC’s compliance with laws, regulations, and conditions in connection with the NSF grant. On March 11, 2011, Jha provided, through his attorney, biweekly, signed time sheets purportedly maintained by Jha for a research scientist who worked on the highway project from October 1, 2008 until September 8, 2009. The time sheets were created by Jha only after receiving the OIG letter, and in such a way as to give the false appearance that the time sheets had been maintained and signed contemporaneously with the research scientist’s work. Jha also provided a copy of ATRC’s expenditure ledger as of September 10, 2009, in which he entered fictitious research expenses in order to conceal the fact that NSF funds had been converted to Jha’s personal use.
Finally, between March 4, 2008 and June 30, 2012, Morgan State University received federal funds under two subcontracts funded by the U.S. Department of Defense. Jha served as Morgan State’s Principal Investigator for those contracts and authorized stipend payments totaling approximately $100,000 to Morgan State University students working on those contracts. Trial evidence showed that between July 25, 2009 and July 24, 2010, Jha told some students who received stipend payments that they had to return a portion of the stipend funds to him, offering various false and misleading reasons. Some students returned a portion of their stipend to Jha, which Jha then used to pay personal expenses. The evidence showed that approximately $36,000 in stipend funds returned to Jha by Morgan State University students were deposited into Jha’s personal bank account
Jha faces a maximum sentence of 20 years in prison for each of four counts of wire fraud, and for one count each of mail fraud and falsification of records; and a maximum sentence of 10 years in prison for theft of government property. U.S. District Judge Ellen L. Hollander scheduled sentencing for July 11, 2014, at 10:00 a.m.
Today’s announcement is part of efforts underway by President 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 including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the National Science Foundation, Office of Inspector General for its work in the investigation and thanked the Department of Transportation Office of Inspector General for its assistance. Mr. Rosenstein praised Assistant U.S. Attorney Martin J. Clarke and Special Assistant U.S. Attorney Fara Damelin, Investigative Attorney with the Office of Inspector General for the National Science Foundation, who are prosecuting the case.
Montgomery County Man Charged with Clean Air Act ViolationRead the Press Release
Anthony Biello II, 55, formerly of Ambler, Pennsylvania, was charged today by indictment with one count of violating the Clean Air Act, announced United States Attorney Zane David Memeger. According to the indictment, Biello failed to notify the City of Philadelphia’s Air Management Services division of the U.S. Environmental Protection Agency of the removal of asbestos-containing material from a former church located at 1133 Spring Garden Street in Philadelphia.
If convicted, defendant Biello faces a maximum possible sentence of five years in prison.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the City of Philadelphia’s Air Management Services office. The case is being prosecuted by Special Assistant United States Attorneys Martin Harrell and Patricia C. Miller from the EPA.
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PATTY HARTMAN, Media Contact, 215-861-8525MoneyGram/Western Union Agent Receives 15 Year Federal Prison Sentence for Telemarketing Fraud SchemeRead the Press Release
A corrupt MoneyGram/Western Union agent was sentenced to 15 years in federal prison today, the United Attorney’s Office for the Middle District of Pennsylvania announced. Itohan Agho-Allen, of Brooklyn, New York, was convicted by a federal jury in Harrisburg of charges of laundering money paid by victims of international telemarketing fraud schemes following a six-day trial in July, 2013.
Chief U.S. Court District Judge Christopher C. Conner also ordered Agho-Allen to pay restitution of $2,371,668, and a special assessment of $2,300 and to serve a three-year term of supervised release.
Agho-Allen was convicted of criminal conspiracy, 8 counts of wire fraud and 14 counts of money laundering.
According to United States Attorney Peter J. Smith, Agho-Allen, age 39, was an agent of Miracle Multi-Link, a MoneyGram and Western Union outlet in Brooklyn, New York and had been recruited to process money transfers received from fraud schemes including sweepstakes, loans, employment opportunities, persons-in-need and internet purchases.
Between 2002 and November 2010, money transfers originating in locations in Pennsylvania, including York, Bloomsburg, Berwick, Hazleton, Lebanon, Chambersburg, East Stroudsburg and Montoursville, were transmitted through facilities to fraud participants in Brooklyn, Spain, Romania, Canada and Nigeria. Money in excess of $7 million was obtained from hundreds of victims throughout the United States through telemarketing schemes that falsely promised financial awards and other valuable items.
At trial the Government presented evidence that Agho-Allen entered fictitious identifying information into the Moneygram or Western Union computer systems disguising the true nature of the transaction and the identities of individuals perpetrating the frauds. For doing so, Agho-Allen was paid 10-15% of each transaction.
Assistant U.S. Attorney Christy Fawcett, the Government trial attorney, noted that, “The money launderer is crucial to the success of the international fraud scheme because she conceals from victims and law enforcement who is behind the fraud and where the money is going.”
Agho-Allen was indicted in March 2011 and charged with conspiracy to commit mail fraud, wire fraud and money laundering and counts of wire fraud and money laundering.
To-date, approximately 33 former MoneyGram and Western Union agents have been prosecuted by the United States Attorney’s Office in Harrisburg. Several of them testified as Government witnesses at Agho-Allen’s trial. In addition, in November 2012, the U.S. Department of Justice reached a settlement with MoneyGram which resulted in the forfeiture of $100 million to be used to compensate thousands of victims.
This case is part of an on-going, long-term investigation by the U.S. Postal Inspection Service in coordination with the United States Attorney’s Office for the Middle District of Pennsylvania and with cooperation from Canadian law enforcement agencies.
David W. Bosch, Inspector in Charge of the Philadelphia Division of the United States Postal Inspection Service, said, “This 15-year sentence reflects the damaging impact of international mass marketing frauds against primarily U.S. citizens. It should act as a deterrent to those who would prey on the most vulnerable segments of our society.”
Prosecution was handled by Assistant United States Attorney Christy H. Fawcett.
Persons who believe they were victims of the fraud scheme should visit http://www.justice.gov/criminal/vns/caseup/ or call 1-877-282-2610 (United States Only) or 317-324-0390 (International) for instructions on how to request compensation.
Persons with information and/or complaints concerning suspected marketing fraud schemes should contact their nearest United States Post Office or 1-877-USMAIL-5.
****Media AdvisoryRead the Press Release
There will be a press conference held on Wednesday, April 9, 2014, at 2:00 p.m., at the federal courthouse located at 111 Seventh Avenue SE, Cedar Rapids, Iowa. The press conference will be held in the United States Attorney’s second floor conference room. United States Attorney Kevin W. Techau will present awards to three individuals being honored for outstanding service to crime victims as part of National Crime Victims’ Rights Week. The honorees are: Investigator Corey Peiffer, Cedar Rapids Police Department; Special Agent Darrell Simmons, Iowa Division of Criminal Investigation; and Investigator Rod Fiser, Hiawatha Police Department.
Press releases and interview opportunities will be available.
United States Attorney’s Office staff will be available beginning at approximately 1:30 p.m. to escort members of the press with any camera equipment directly to the conference room upon entering the courthouse. Camera equipment will not be allowed in any other areas of the building. No mobile telephones will be allowed in the building.
Manager of Rocky Mount-Based Tax Return Preparation Business Sentenced for Filing False Tax Refund ClaimRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court today, Senior United States District Judge W. Earl Britt sentenced CRYSTAL D. DICKENS, age 25, of Rocky Mount, North Carolina, to 35 months imprisonment, followed by 3 years of supervised release. DICKENS was also ordered to pay restitution in the amount of $652,413.00.
DICKENS was named in a Criminal Information filed on August 29, 2013, charging her with filing a false, fictitious, and fraudulent 2009 tax refund claim with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287. On September 30, 2013, DICKENS pled guilty to the charge.
According to the investigation, DICKENS was a tax return preparer and manager at the main office of the now-defunct Hill's Tax Service (HTS) in Rocky Mount, North Carolina. (HTS was owned and operated by Larry D. Hill, Jr. Hill was sentenced to 100 months imprisonment on February 4, 2014 for related tax crimes). Between 2010 and 2012, DICKENS prepared and filed hundreds of false and fraudulent federal income tax returns for HTS customers, resulting in estimated tax losses to the government of approximately $1 million. The false reporting information, which included bogus interest and household help income, was intended to trigger inflated refund claims through the manipulation of the earned income tax credit (EITC). As part of the scheme, DICKENS paid herself for her "services" by netting cash payments from the fraudulent refund proceeds.
“Crystal Dickens thought she could steal from the United States Treasury,” said Jeannine A. Hammett, Special Agent in Charge, IRS-CI “Today the defendant learned she will serve 35 months in prison for her fraud. Others involved in similar schemes should take heed.”
The investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation. The case was prosecuted by Assistant United States Attorney Adam F. Hulbig.
Long Island Man Sentenced to 37 Months in Federal Prison for Trafficking MarijuanaRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that OVES ST. ORBIN WRIGHT, 56, of Massapequa, N.Y., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for trafficking marijuana.
According to court documents and statements made in court, on May 19, 2013, U.S. Customs and Border Patrol (CPB) agents in western Texas conducted a search of a tractor trailer and discovered approximately 315 pounds of marijuana secreted in a shipping crate. CBP agents contacted DEA agents in El Paso who determined that the crate was destined for a shipping facility in Enfield, Conn. On May 29, 2013, Connecticut DEA agents established surveillance at the Enfield shipping facility and observed WRIGHT and Kevin J. Dunbar unpack the crate, load the contents into a van and travel to a storage facility in East Hartford where they were arrested.
On October 22, 2013, WRIGHT pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute marijuana. Dunbar, of Manchester, Conn., pleaded guilty to the same charge on October 23, 2013, and awaits sentencing.
This matter was investigated by the Drug Enforcement Administration, with the assistance of U.S. Customs and Border Patrol. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone and Special Assistant U.S. Attorney Michael Ahearn.
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(203) 821-3722 [email protected]Leader of Drug Organization Sentenced to Twenty-Five YearsRead the Press Release
NEWPORT NEWS, Va. – Christopher Devon Barrett, 28, of Hampton, Va., was sentenced today to twenty-five years in prison, and given five years of supervised release, following his convictions for participating in a continuing criminal enterprise and possession of a firearm in furtherance of a drug trafficking crime.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Leslie Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice, Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division; Richard W. Myers, Chief of Newport News Police, and Terry L. Sult Hampton Police Chief, made the announcement after sentencing by United States District Judge Raymond A. Jackson.
According to court documents Barrett was a leader and organizer of a drug trafficking organization that obtained cocaine and heroin from local and out of state suppliers for distribution to mid- level distributors on the Virginia peninsula and elsewhere in the Eastern District of Virginia. The drug trafficking organization supplied 150 kilograms or more of cocaine during the conspiracy. Barrett arranging for suppliers and ran the day-to-day affairs of the conspiracy from the Colonial Landing Apartment complex in Hampton, Va., and other locations. He was the eighteenth defendant convicted and sentenced in connection with this investigation.
The investigative team included the DEA Hampton Post of Duty, Newport News Police Department, the Newport News Sheriff’s Department, the Virginia State Police, and the Hampton Police Division. Assistant United States Attorney Howard Zlotnick and Trial Attorney Rebecca A. Staton of the Organized Crime and Gang Section in the Justice Department’s Criminal Division prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Jury Convicts KC Men of Heroin Trafficking, Resulting in DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were convicted in federal court today for their roles in a 10-year long drug-trafficking conspiracy that resulted in the death of one individual and the distribution of more than three kilograms of heroin in the Kansas City area.
Timothy L. Kirlin, also known as “Jim Curlon,” 33, and Matthew Davis, 48, both of Kansas City, were found guilty of all nine counts contained in an Oct. 16, 2013, federal indictment.
Kirlin and Davis were each found guilty of participating in a conspiracy to distribute 1,000 grams or more of heroin, as well as cocaine, from Jan. 1, 2002, to Feb. 3, 2012. Kirlin traveled to Dallas, Texas, to procure wholesale amounts of heroin and other drugs for resale in the Kansas City area. Davis was among the conspirators who received heroin and cocaine from Kirlin and distributed it to others. Ten co-defendants have pleaded guilty and await sentencing.
On March 5, 2002, Kirlin distributed heroin to Joshua Webb, and the use of this heroin by Webb resulted in his death.
Kirlin traveled to Dallas at least once a month to purchase heroin. The usual amount that Kirlin would purchase in Dallas was four ounces of heroin, although he bought more on occasion. He sometimes transported the heroin back to Kansas City by hiding it in his rectum.
Co-defendant Patrick Holmes, 33, of Dallas, was Kirlin’s source for six years. Holmes, who pleaded guilty to his role in the conspiracy, admitted that Kirlin purchased more than three kilograms of cocaine from him for resale in the Kansas City area during the time he was involved in the conspiracy.
Because Kirlin had been shot in the head, he was unable to drive himself, and would ride the bus to Texas and frequently enlist the aid of others in the conspiracy to drive him from place to place.
In addition to the conspiracy, Kirlin was found guilty of being a felon in possession of explosives. Kirlin, who has two prior felony convictions for possession of a controlled substance, was in possession of four sticks of explosives (along with manuals on how to build explosive devices) on Feb. 2, 2012.
Kirlin was also convicted of six counts of distributing heroin and one count of possessing heroin with the intent to distribute. Kirlin must also forfeit to the government $200,000, which represents the proceeds of his illegal drug trafficking, and $1,425 that was seized by law enforcement officers.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for three hours before returning the guilty verdicts to U.S. District Judge Gary A. Fenner, ending a trial that began March 24, 2014.
Under federal statutes, Kirlin is subject to a mandatory sentence of life in federal prison without parole. Davis is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Charles E. Ambrose, Jr., and Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department.Joplin Man Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Vincent Hay, 24, of Joplin, was charged in a two-count indictment returned by a federal grand jury in Springfield. The indictment replaces a federal criminal complaint that was filed against Hay on Feb. 26, 2014.
Today’s indictment alleges that Hay received and distributed child pornography over the Internet between Jan. 10 and Feb. 25, 2014. Hay is also charged with possessing child pornography on Feb. 25, 2014.
According to an affidavit filed in support of the original criminal complaint, a law enforcement officer was conducting an undercover investigation concerning the distribution of child pornography by using peer-to-peer, file-sharing software. Hay’s computer allegedly was identified as sharing videos of child pornography over the Internet. Officers executed a search warrant at Hay’s residence, which is a block away from an elementary school, and seized two computer towers.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office and the Occupational Safety and Health Administration (OSHA) today announced that the person and corporations listed below were arraigned before the U.S. Magistrate on the Information filed in U.S. District Court.
Appearing before U.S. Magistrate Judge Lynch in Missoula on April 1, 2014 and entering pleas of Not Guilty were:
- rtin Romano, President and Registered Agent of MR Asphalt, Inc. located in Victor, MT, appeared on charges of violation of safety standard causing death of an employee. If convicted of the charge contained in the Information, ROMANO faces up to 6 months imprisonment, and a $10,000 fine. PACER Case Reference: 14-05
- Asphalt, Inc. appeared through its registered agent on charges of violation of safety standard causing death of an employee. If convicted of the charge contained in the Information, MR Asphalt, Inc. faces a maximum penalty of a $500,000 fine. PACER Case Reference: 14-05
The Information is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and
Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: Wichita Man Robbed Same StoreTwo Times in Eight DaysRead the Press Release
WICHITA, KAN. - A federal grand jury in Wichita today returned an indictment charging a Wichita man with three robberies, including two only eight days apart at a Valero gas station, U.S. Attorney Barry Grissom said.
Ricky Price, Jr., 20, Wichita, Kan., is charged with five counts, including:
- Robbing the Valero gas station at 851 S. Meridian on Jan. 11, 2014.
- Robbing the Valero gas station at 851 S. Meridian on Jan. 19, 2014.
- Brandishing a firearm during the Jan. 19 robbery.
- Robbing the Harry Grocery and Smoke Shop at 324 W. Harry on Feb. 27, 2014.
- Discharging a firearm during the Feb. 27 robbery.
Upon conviction, the crimes carry the following penalties: Robbery: A maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
Brandishing a firearm: Not less than seven years and a fine up to $250,000.
Discharging a firearm: Not less than 10 years and a fine up to $250,000.The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTS
Oscar R. Alvardo, 35, Downey, Calif.; Brayan A. Osuna-Gutierrez, 21; and Julio Sanchez, Jr., 19, Downey, Calif., are charged with one count of possession with intent to distribute approximately four kilograms of methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crime is alleged to have occurred March 17, 2014, in Sedgwick County, Kan.
An affidavit filed in the case alleges a Sedgwick County Sheriff Deputy stopped the men’s car on I-35. The drugs were discovered hidden beneath molding in the back of the vehicle.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $4 million on the possession charge, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Sedgwick County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Silvia Clemente-Rojo, 41, a citizen of Mexico, is charged with two counts of using false documents to be employed, seven counts of aggravated identity theft, two counts of misusing a Social Security number, three counts of making false statements to the U.S. government, one count of aiding the fraudulent production of an identification document, and one count of unlawfully re-entering the United States after being deported. She was found Feb. 27, 2014, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Using false documents: A maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
Aggravated identity theft: A mandatory consecutive two-year sentence and a fine up to $250,000.
Misusing a Social Security number, making a false statement to the U.S. government: A maximum penalty of five years and a fine up to $250,000.
Aiding the fraudulent production of an identification document: A maximum penalty of 10 years and a fine up to $250,000.
Unlawfully re-entering the United States; A maximum penalty of two years and a fine up to $250,000.The Kansas Department of Revenue and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Micha A. Scott, 25, Wichita, Kan., is charged with two counts of unlawful possession of firearms and ammunition after a felony conviction, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred March 12, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on each count of unlawful possession of a firearm after a felony conviction, and a penalty of not less than five years and a fine up to $250,000 on the other count. The FBI investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Colton Schalk, 24, Arkansas City, Kan., is charged with two counts of possession with intent to distribute methamphetamine, and three counts of unlawful possession of a firearm or ammunition after a felony conviction. The crimes are alleged to have occurred in December 2013 and February 2014, in Cowley County, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million on each drug count and a maximum penalty of 10 years and a fine up to $250,000 on each firearm charge. The Arkansas City, Kan., Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Alvin Harris, 55, Wichita, Kan., is charged with one count of possessing a stolen firearm, and one count of stealing a firearm from a federally licensed dealer. The crimes are alleged to have occurred March 25, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the possession charge, and a maximum penalty of five years and a fine up to $250,000 on the theft charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jose Amador-Bonilla, 27, a citizen of Nicaragua, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found March 14, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jesus Guereque-Lozoya, 50, a citizen of Mexico, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found March 10, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Aaron Ramirez-Saucedo, 28, a citizen of Mexico, is charged with unlawfully entering the United States. He was found March 26, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Philadelphia Man with Armed CarjackingRead the Press Release
Michael Green, 31, of Philadelphia, PA, was charged today by indictment with carjacking and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger. The indictment charges that the defendant committed these offenses on or about December 5, 2012.
If convicted of all charges, the defendant faces a maximum of life imprisonment, with a consecutive mandatory minimum sentence of seven years imprisonment. The defendant also faces five years of supervised release, a $500,000 fine, and a $200 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indiana Man Pleads Guilty to Illegal Possession of Destructive DevicesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Andrew Scott Boguslawski, 44, of Moores Hill, Indiana pled guilty in U.S. District Court to illegally possessing 13 unregistered destructive devices when he was stopped by an Ohio State trooper on January 1, 2014 on Interstate 70 in Madison County, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio Fire Marshal Larry Flowers, Ohio State Highway Patrol Superintendent Paul Pride and Madison County Prosecuting Attorney Stephen J. Pronai announced the plea entered today before U.S. Magistrate Judge Norah McCann King.
Boguslawski pled guilty to possession of nine fully-assembled unregistered destructive devices and four unregistered destructive devices consisting of component parts, designed and intended for use in conversion into bombs, and from which bombs could be readily assembled.
According to court documents, Boguslawski has agreed to forfeit all destructive devices and bomb making materials seized by the government.
A destructive device is an explosive device that is capable of causing property damage and personal injury and/or death to persons near the explosion. Federal law requires that destructive devices be registered in the National Firearms Registration and Transfer Record.
Troopers arrested Boguslawski at the scene. He was charged in Madison County on state charges. Those charges have been dismissed. Boguslawski was charged by a federal complaint on March 3, 2014.
U.S. Attorney Stewart and Madison County Prosecuting attorney Pronai commended the cooperative investigation by ATF, the State Fire Marshal, the Ohio State Highway Patrol and the Columbus Bomb Squad, as well as the FBI Joint Terrorism Task Force, which participated in the investigation. Assistant U.S. Attorneys Dana Peters and Salvador Dominguez are prosecuting the case on behalf of the United States.Hudson County Trio Indicted for Robberies of Sovereign Bank in Secaucus, N.J., and TD Bank in Fairview, N.J.Read the Press Release
NEWARK, N.J. – Two men and a woman from Hudson County, N.J., were indicted today in connection with their roles in two bank robberies that took place last summer, U.S. Attorney Paul J. Fishman announced.
Gary Bohanan, 44, Angel Feliu, 20, and Josephine Chenet, 45, all of North Bergen, N.J., are each charged by indictment with two counts of bank robbery. The indictment was returned by a federal grand jury sitting in Newark.
According to documents filed in this case and statements made in court:
Bohanan, Feliu, and Chenet allegedly robbed the Sovereign Bank (now Santander Bank), in Secaucus, N.J., on July 22, 2013. Bohanan and Feliu entered the bank at 10:11 a.m. Both wore latex gloves on their hands and masks over their face. Once inside, Bohanan brandished a black handgun, jumped over the counter and proceeded to empty two drawers of money into a black bag, while pointing the handgun at bank tellers. As Bohanan emptied the drawers, Feliu stood guard. Bohanan and Feliu then fled the bank into a car driven by Chenet.
Bohanan, Feliu, and Chenet also allegedly robbed the TD Bank, in Fairview, N.J., on July 26, 2013. Bohanan and Feliu, both wearing latex gloves and masks, entered the bank at 9:48 a.m. Feliu was recorded by the Bank’s video surveillance system before he pulled the mask over his face. Once inside the TD Bank, Feliu brandished a knife at employees and customers. Bohanan brandished what appeared to be a black handgun, but was later identified as an air pistol. Bohanan jumped over the counter and proceeded to empty two drawers of money into a black bag, while pointing the air pistol at bank tellers. As Bohanan emptied the drawers, Feliu stood guard and held bystanders back by brandishing the knife.
Bohanan and Feliu fled on foot and were followed by concerned citizens and victims of the bank robbery. Bohanan encountered a white GMC Savana van, pointed the air pistol at the driver and ordered the driver out of the van. Bohanan then took control of the van and attempted to flee the area by driving away in the van, drove a short distance and crashed. He exited the van and attempted to flee on foot. Law enforcement and concerned citizens located Bohanan hiding under a truck, which was parked a short distance away. Bohanan was found with a black bag containing, among other things, a black air pistol and money covered with red dye.
Feliu separated from Bohanan after the bank robbery and was seen getting into the passenger’s seat of a waiting vehicle that was driven by Chenet. Citizens followed the vehicle as it drove away at a high rate of speed and observed Feliu exit the vehicle and run into a cemetery in North Bergen, where he was located by law enforcement.
The counts of bank robbery with which Bohanan, Feliu, and Chenet are each charged each carry a maximum penalty of 20 years in prison and a fine of $250,000. Bohanan and Feliu have been detained pending trial.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Fairview, North Bergen, and Secaucus police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
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Defense counsel: Feliu: Kevin F. Carlucci Esq., Assistant Federal Public Defender, Newark
Bohanan: Carl Herman Esq., West Orange, N.J.
Chenet: Michael Gilberti, Esq., Little Silver, N.J.Bohanan et al. Indictment
Georgia Man Pleads Guilty to Possessing and Selling Crack Cocaine in Cross Lanes AreaRead the Press Release
Charleston, W.Va. – U.S. Attorney Booth Goodwin announced that Kenneth Rush, 30, of Georgia, plead guilty today in federal court in Charleston to possession with intent to distribute cocaine base, also known as “crack,” a Schedule II controlled substance. On Wednesday, May 23, 2012, Rush was found in an apartment in Cross Lanes, West Virginia, after agents of the Metropolitan Drug Enforcement Network Team (MDENT) received a tip that drugs were being sold from that location. During a subsequent search of the apartment, MDENT agents seized a substance from a kitchen cabinet that was later tested and proved to be crack. Rush admitted that the crack was his, that he obtained it from a source in Columbus, Ohio, and that he transported it to the Cross Lanes apartment with the intent of selling it in the local community. Rush further admitted to having already sold some of the crack prior to the agents’ arrival.
Rush faces up to 20 years imprisonment and a $1,000,000.00 fine when he is sentenced on July 30, 2014.
Fremont County Man Sentenced for Interstate Transportation of A Minor for Criminal Sexual ActivityRead the Press Release
On March 25, 2014, Tony Lee Stogdill, age 46, of Imogene, Iowa, was sentenced in the United States District Court in Council Bluffs, Iowa, on the charge of interstate transportation of a person under 18 years of age for the purpose of engaging in criminal sexual activity, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Judge John A. Jarvey sentenced Stogdill to 210 months imprisonment and 10 years of supervised release to follow the prison term. Stogdill was ordered to register on the sex offender registry, pay restitution (in an amount yet to be determined) and pay a $100 special assessment to the Crime Victim Fund. Stogdill remains in the custody of the United States Marshal pending his designation to a Federal Bureau of Prisons facility.
Stogdill pled guilty on November 7, 2013, to a United States Attorney’s Information charging one count of transportation of a minor in interstate commerce with the intent to engage in criminal sexual activity. The Information alleged that Stogdill transported a 15 year-old female from Iowa to Nebraska, Missouri, and Illinois, then back to Iowa and during the trip, Stogdill forcibly and against the will of the child, engaged in sexual intercourse with the minor. During the change of plea proceeding, Stogdill admitted he was an over-the-road trucker and from June 4 – 6, 2009, he took a 15 year-old female with him on a trucking trip and engaged in sex acts with the child. Stogdill admitted his actions were a historical pattern of conduct with the minor female.
Tony Stogdill’s wife, Jennifer, in an agreement with the United States Attorney’s Office, pled guilty in the Iowa District Court for Fremont County to compounding a felony regarding her “cover-up” of Tony Stogdill’s sexual abuse of a minor child in late 2009. Jennifer Stogdill was sentenced by the state court to a term of probation.
Tony Stogdill has been convicted of sex related crimes twice, prior to the instant offense. Stogdill was convicted on March 13, 1989, in Fremont County, Iowa, of false imprisonment and assault with intent to commit sexual abuse. Stogdill was also convicted in Fremont County, Iowa, on October 21, 1991, of third degree sexual abuse.
The criminal investigation was carried out by the Fremont County Sheriff’s Office, the Fremont County Attorney’s Office, the South West Iowa Narcotics Enforcement Task Force, the Council Bluffs, Iowa, Police Department, the Omaha, Nebraska, Police Department, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Fort Dodge Landlord Pleads Guilty to Conspiracy to Use Fire to Commit Wire FraudRead the Press Release
A woman who collected over $78,000 from State Farm Insurance for losses stemming from the arson of a rental dwelling she owned in Fort Dodge, Iowa, pled guilty today in federal court in Sioux City.
Shirley Weimer, age, 67 a Fort Dodge, Iowa, landlord pled guilty to one count of conspiracy to knowingly use fire to commit wire fraud in violation of federal law.
At the plea hearing, the evidence revealed Weimer had recruited a tenant of hers, Lisa Young, to burn down the home that Weimer owned and rented to Young. Weimer promised Young $10,000 of the insurance money for her role in the crime. Eventually, Weimer recruited Ashley and Gerald Straight and others into her scheme to defraud the insurance company. The scheme was executed, and the rental dwelling was intentionally (and completely) destroyed by fire.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Weimer remains free on bond previously set pending sentencing. Weimer faces a 120 month sentence, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment. Lisa Young will be sentenced for her role in the crime on April 22, 2014. Ashley Straight will be sentenced for her role in the crime on April 22, 2014, and Gerald Straight will be sentenced for his role in the crime on April 29, 2014.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3035.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, the Otho Volunteer Fire Department, the Iowa Department of Public Safety -- State Fire Marshal's Division, the Webster County Sheriff’s Office, and the Fort Dodge Police Department. The case was prosecuted Assistant United States Attorney Forde Fairchild
Former Washington Park Trustee and St. Clair County Probation Officer Sentenced on Health Care Fraud ChargeRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on April 1, 2014, Darron A. Suggs, 39, of Washington Park, Illinois, was sentenced on the one-count indictment charging that he engaged in a scheme to commit health care fraud in the United States District Court in East St. Louis, Illinois. The district court sentenced Suggs to serve five (5) years of probation. The district court also ordered Suggs to pay $64,867.00 in restitution to the Illinois Department of Human Services and pay a special assessment of $100.00.
Suggs admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Suggs admitted to falsely billing the program between June 30, 2006 and April 16, 2013, when he purportedly rendered personal assistant services to two individuals when he, in fact, did not. As a result, Suggs stole $64,867.00 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services -Office of Inspector General and the Illinois State Police - Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Liam Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 800.447.8477.
Former Taylor County, Kentucky Deputy Sheriff Guilty of Distribution of Anabolic SteroidsRead the Press Release
– Wore Taylor County Sheriff’s Department uniform and drove law enforcement vehicle during distribution
BOWLING GREEN, Ky. – A former Taylor County, Kentucky deputy sheriff pleaded guilty today, before Chief Judge Joseph H. McKinley Jr., to charges of distributing anabolic steroids, a Schedule III controlled substance, announced David J. Hale, United States Attorney for the Western District of Kentucky.
William Allen Rice, age 38, of Campbellsville, pleaded guilty to all charges in a three-count federal indictment. According to the plea agreement, Rice sold Schedule III controlled substances on three separate occasions, between May 17, 2013 and August 10, 2013. On May 17, 2013, the defendant sold a bottle of Boldenone Undecylenate, a Schedule III non-narcotic, to another individual for $150. On August 8, 2013, the defendant sold a bottle of Nandrolone Decanoate, a Schedule III non-narcotic, to another individual for $150. On August 22, 2013, the defendant sold ten bottles of Testosterone Enanthate from Lightning Pharmaceuticals in Cambridge, Massachusetts, an anabolic steroid and a Schedule III non-narcotic, to another individual for $950.
Rice was observed driving his assigned Taylor County Sheriff’s Office vehicle to prearranged meeting locations and wore his Taylor County Sheriff’s Office uniform and a pistol on his hip during one transaction with a confidential human source.
Rice was charged in a criminal complaint on October 1, 2013 and subsequently charged by federal grand jury indictment on October 16, 2013. The charges exposed Rice to a combined maximum term of imprisonment of 30 years, a combined maximum fine of $1,500,000, and a 2-year term of supervised release.
This case is being prosecuted by Assistant United States Attorney Amanda E. Gregory and was investigated by the Federal Bureau of Investigation (FBI) and Kentucky State Police.
Former Police Officer Convicted of Excessive Force and Obstruction ChargesRead the Press Release
Today, a federal jury in the U.S. District Court for the District of North Dakota sitting in Bismarck, N.D., convicted Lindrith Tsoodle, 58, of one felony count and one misdemeanor count of using excessive force on persons in his custody in November and December of 2010. Tsoodle was also convicted of making false statements to a federal law enforcement officer, and was acquitted of tampering with a witness.
Tsoodle, a former police officer with the Three Affiliated Tribes Police Department in New Town, N.D., on the Fort Berthold Reservation, was found guilty of violating the rights of two people in his custody by using excessive force. Specifically, he was convicted of twisting the neck of a handcuffed suspect, throwing him to the ground and kneeing him in the abdomen. He was also convicted of, on a separate occasion, excessively tightening the handcuffs of an arrestee, slamming him against the wall, using pepper spray on the arrestee and striking him with his hands and a baton. Both assaults occurred while the suspects were restrained and were not posing a physical threat to the defendant.
Additionally, Tsoodle was found guilty of making various false statements to a U.S. Bureau of Indian Affairs Special Agent, who interviewed the defendant following one of the assaults.
“Our constitutional system of government requires police officers to abide by the laws they enforce, and to protect the constitutional rights of all persons in their custody,” said Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division. “The Department of Justice and the Civil Rights Division will vigorously prosecute law enforcement officers who use excessive force.”
Tsoodle faces a statutory maximum penalty of 10 years for the federal excessive force count, a statutory maximum sentence of one year for the misdemeanor and faces a statutory maximum penalty of five years for the false statements count.
This case was investigated by the Minot Resident Agency of the Minneapolis Division of the FBI and was prosecuted by Special Litigation Counsel Gerard Hogan and Trial Attorney Nicholas Durham of the Civil Rights Division.
Former Owner of New Jersey Private Detective Firm Sentenced to Prison for Social Security Disability FraudRead the Press Release
NEWARK, N.J. - A Hunterdon County, N.J., man was sentenced today to 23 months in prison for fraudulently collecting Social Security disability payments while continuing to do work he claimed he was unable to do for his private detective firm, U.S. Attorney Paul J. Fishman announced.
David Disney, 46, of Alexandria Township and Saddle Brook Township, N.J. – and the former owner of DM Disney & Associates – previously pleaded guilty after one day of trial to one count of theft of government funds contained in the indictment against him. He entered his guilty plea before U.S. District Judge Faith S. Hochberg, who also imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: Disney applied for disability insurance payments in the fall of 2003 as a result of a head injury he suffered in January of that year. In his application, Disney claimed an inability to work, take care of himself or his finances, or even to concentrate for more than five minutes. Based on that application, Disney and his two dependent children were deemed eligible for monthly disability benefit payments to replace his lost income. By signing the application, Disney agreed to notify the Social Security Administration if there was any improvement in his medical condition or if he regained the ability to work and earn income.
During the time that Disney was receiving disability benefits, he continued to perform surveillance for clients of DM Disney & Associates, marketed his business through personal appearances on The Maury Povich Show, testified before the New York State Workers’ Compensation Board on behalf of clients and even applied to renew his New Jersey Private Detective License and purchase a handgun.
Between 2003 and 2008, Disney collected more than $144,000 in monthly disability payments to which he was not entitled by continuing to make false statements to the Social Security Administration and underreporting the income he was earning.
Disney admitted he took the benefits knowing he was not entitled to them.
In addition to the prison term, Judge Hochberg sentenced Disney to serve two years of supervised release and ordered him to pay a $5,000 fine and $144,000 in restitution to the Social Security Administration.
U.S. Attorney Fishman credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan of the New York Field Division, with the investigation.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Osmar J. Benvenuto of the U.S. Attorney’s Criminal Division in Newark.14-115
Defense counsel: James Patton Esq., Livingston, N.J.
Former Mutual Benefits Corporation Trustee Sentenced to Ten Years for His Role in $1 Billion MBC SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Anthony Livoti, Jr., 65, of Fort Lauderdale, was sentenced today in Miami by U.S. District Judge Robert N. Scola, Jr. to ten years in prison. Livoti was also ordered to pay over $800 million in restitution to fraud victims.
Livoti was convicted after nearly a three-month trial by a Miami federal jury of conspiracy to commit wire and mail fraud, conspiracy to commit money laundering, and mail fraud, in violation of 18 U.S.C. ' 1349, 1956(h), and 1341, respectively. The verdict was the result of Livoti’s participation in a scheme to defraud approximately 30,000 victims who invested in the viatical and life settlement company Mutual Benefits Corp. (MBC). According to the indictment, Livoti and others, including Joel Steinger, a/k/a “Joel Steiner,” Steven Steiner a/k/a Steven Steinger, and Michael McNerney, raised more than $1.25 billion from these investor-victims before being shut down by federal regulators in May 2004. Steven Steiner received a fifteen-year sentence and Joel Steinger, who recently pled guilty, is scheduled to be sentenced by U.S. District Judge Scola on June 6, 2014.
According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from the elderly, as well as persons suffering from AIDS and other chronic illnesses. Thereafter, MBC sold fractionalized interests in insurance policy death benefits, known as “viatical settlements,” to approximately 30,000 investor-victims. MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence presented at trial established that MBC misrepresented many important facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s fraudulent methods used to acquire life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors.
Anthony Livoti, Jr., an attorney licensed by the State of Florida, was MBC’s premium trustee, and as a result was entrusted with millions of dollars of investor money placed in bank accounts under his control. Livoti was also the designated “trustee” of thousands of the insurance policies sold by MBC. Evidence showed that Livoti assisted MBC with the marketing of its fraudulent investment by meeting with investors in his Fort Lauderdale law office and encouraging them to purchase MBC investments.
Witnesses testified that new investor money was regularly used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. In Ponzi-like fashion, Livoti and his co-conspirators were using new investor money to pay for earlier investor obligations. As the fraud continued, eventually investor money was required to prevent the MBC Ponzi from collapsing. Ultimately, investors lost more than $800 million.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals. This case was tried by Assistant U.S. Attorneys Karen Rochlin and Roger Cruz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former L&I Deputy Commissioner Indicted on Fraud and Extortion ChargesRead the Press Release
PHILADELPHIA - Dominic Verdi, 58, of Philadelphia, Pennsylvania was charged today by indictment with Hobbs Act Conspiracy, Hobbs Act Extortion, and Honest Services Fraud, announced United States Attorney Zane David Memeger.
The indictment alleges that Verdi, a former deputy commissioner of the Department of Licenses and Inspections for the City of Philadelphia and a member of the Philadelphia Public Nuisance Task Force, also had an ownership interest in a beer distributor named “Chappy’s Beer, Butts, and Bets.” The indictment further alleges that Verdi used his official position to coerce Philadelphia bar and restaurant owners to purchase beer from Chappy’s in exchange for favorable treatment from Verdi. The indictment also alleges that Verdi lied to employees of Philadelphia’s Inspector General’s office to conceal his ownership in Chappy’s.
If convicted the defendant faces a maximum possible sentence of 140 years in prison, three years supervised release, a maximum fine of $1.75 million, and a $700 special assessment.
The case was investigated by Federal Bureau of Investigation with assistance from the City of Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney David L. Axelrod.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former East Carroll Parish Sheriff Pleads Guilty to Aiding A Felon in Possession of A FirearmRead the Press Release
MONROE, La. –United States Attorney Stephanie A. Finley announced today that former East Carroll Parish Sheriff Mark Wayne Shumate, 52, of Lake Providence, La., pleaded guilty Monday before U.S. Magistrate Judge Karen L. Hayes, to aiding and abetting a felon in the possession of a firearm.
According to evidence presented at the guilty plea, Shumate and a convicted felon went hunting January 8, 2014. Shumate knew the person accompanying him was barred from possessing and firing a firearm because of the companion’s status as a convicted felon.
Shumate faces up to 10 years in prison, one to three years of supervised release and a $250,000 fine for one count of aiding and abetting a felon in possession of a firearm. Sentencing is set for July 7, 2014.
The FBI and ATF conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek is prosecuting the case.
Former Correctional Officer Sentenced for Murder-for-hire SchemeRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former correctional officer at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., has been sentenced in federal court for hiring someone to kill his wife’s ex-husband.
Robert W. Jones, 43, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Monday, March 31, 2014, to six years in federal prison without parole.
On Nov. 13, 2013, Jones pleaded guilty to using a telephone with the intent that a murder be committed for payment. According to court documents, Jones contacted an inmate at the federal medical center while he was employed as a correctional officer. Jones asked him to assist in hiring a hit man to murder his wife’s ex-husband (referred to as “John Doe” in public court documents). Jones was aware that the inmate had been in a leadership position in a drug-trafficking organization, an affidavit says, and had connections to individuals who could carry out such a request.
The inmate, who was cooperating with investigators, met with Jones for 10 to 15 private conversations in March and April 2012. Jones offered to give the inmate a cell phone to call a hit man, avoiding the possibility of the conversation being recorded if the call were placed on a landline at the prison.
As a part of a routine quarterly personnel shift at the medical center, Jones was moved to a different unit and was therefore unable to meet with the inmate for a period of time. The inmate later reestablished contact with Jones after being moved to a cell in the same unit that Jones was assigned. They met again on June 21, 2012, the first day they were in the unit at the same time. They had multiple meetings during July 2012, with Jones standing outside the inmate’s jail cell and speaking to him through an opening in the door. All the meetings were captured on the unit’s surveillance system. During one of those meetings, Jones told the inmate that his wife had left him and took all their belongings except the couch, television and bills, and he blamed John Doe for his wife’s departure.
An undercover FBI agent posed as a hit man named Chuey, and the inmate gave Jones a telephone number to contact Chuey. Jones contacted Chuey and made arrangements to meet in the food court located inside the Battlefield Mall in Springfield. At that meeting, Jones told the undercover agent he would pay him $1,500 to murder John Doe and provided the undercover agent with a photograph of John Doe, his home address, and $1,500 in cash. At the conclusion of the meeting, Jones was arrested.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the U.S. Medical Center for Federal Prisoners Special Investigative Support, the FBI and the Department of Justice, Office of the Inspector General.Former Belen Police Department Detective Pleads Guilty to Using Excessive Force Against ArresteeRead the Press Release
ALBUQUERQUE – John Lytle, 41, a former detective with the Belen Police Department in Belen, N.M., pleaded guilty in federal court today to violating an arrestee’s civil rights by assaulting him during the course of an investigative stop and arrest.
During his guilty plea, Lytle admitted that on March 15, 2012, while working in his capacity as a Belen Police Department detective, he repeatedly struck the victim, identified by the initials R.A., who was handcuffed and compliant during the entire course of the stop. Lytle further admitted that, at one point during the stop, he pulled the handcuffed victim from the back of a police squad car, threw him to the ground, and struck him again. The victim suffered injuries to his face and torso as a result of Lytle’s assault.
Under the terms of his plea agreement, Lytle will be sentenced to five years of probation. He also will be precluded from working or seeking future employment as a law enforcement officer in any capacity, and he must forfeit his law enforcement certification. Additionally, the Court may impose a fine, or order Lytle to pay restitution to the victim.
“The defendant has admitted that he, in his capacity as a law enforcement officer, violated a person’s constitutional rights,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously investigate and prosecute those who use the trust and authority of their official position to engage in acts of criminal misconduct.”
Today’s plea resulted from the investigative work of the Albuquerque Division of the FBI. It is being prosecuted by Assistant U.S. Attorney for the District of New Mexico Mark T. Baker and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice.
Fayetteville Woman Sentenced for Involuntary Manslaugter in Death of Fort Bragg SoldierRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, SARAH ASHLEY ROGERS, 22was sentenced by Senior United States District Judge W. Earl Britt to 96 months imprisonment, followed by 3 years of supervised release and was ordered to pay restitution in the amount of $1,388,145.29. On September 19, 2013, ROGERS pled guilty to one count of Involuntary Manslaughter in violation of Title 18, United States Code, Section 1112, and one count of Driving While Impaired in violation of Title 18, United States Code section 13, assimilating North Carolina General Statute 20-138.1.
The investigation revealed that in the early morning hours of December 8, 2012 ROGERS was stopped at an impaired driving checkpoint on Bragg Boulevard operated by Fort Bragg Law Enforcement. The officers immediately noticed extensive front end damage to the car, including what appeared to be blood and brain matter embedded in the shattered windshield. As they approached ROGERS, police noticed that both airbags in the car had recently deployed. When they approached the car, ROGERS stated that she “may” have hit something. A breathalyzer test was administered to ROGERS and the intoximeter calculated her blood alcohol concentration at .25%. The body of Private Richard Bradley Powell was found approximately 1.4 miles from the checkpoint and he was declared dead at the scene. Private Powell had recently finished basic training and had arrived at Fort Bragg only a few days prior. At the time he was struck by ROGERS, he was wearing his Army-issue physical training jacket, which had a reflective strip. That night, Private Powell had left his barracks room, walked to a convenience store on Fort Bragg, purchased groceries, and walked back towards his barracks. As he crossed over Bragg Boulevard at Gruber Road, he was struck by ROGERS who was traveling north at approximately 75 mph in a 50 mph zone and did not apply her brakes. He was in the well-lit intersection. Private Powell did not have any drugs or alcohol in his system.
Investigation of this case was conducted by the Fort Bragg Military Police, Fort Bragg Criminal Investigative Detachment, Fort Bragg Department of the Army Uniformed Police and the Federal Bureau of Investigation. Assistant United States Attorney Leslie Cooley and former Special Assistant United States Attorney David Coleman prosecuted the case of the government.
Employee Charged with Defrauding Gatto Cycle Shop in TarentumRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, United States Attorney David J. Hickton announced today.
The 10-count indictment named Brandon Bucinski, 33, of Brackenridge, Pa., as the sole defendant.
According to indictment, Bucinski defrauded Gatto Cycle Shop of the proceeds from the sale of certain of its merchandise on eBay. Bucinski was employed by Gatto to sell certain Gatto merchandise on eBay and to have the buyer remit the proceeds of sale to Gatto’s Paypal accounts. Bucinski sold the Gatto merchandise using his personal eBay and Paypal accounts and kept the proceeds from the sales for himself.
The law provides for a maximum total sentence of 200 years in prison, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Secret Service along with the Tarentum Police Department and detectives from the Allegheny County District Attorney’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dubuque Man Sentenced in Federal Court for Unlawful Possession of PseudoephedrineRead the Press Release
A man who started a fire in his home while cooking methamphetamine was sentenced on April 1, 2014, to more than fourteen years in federal prison.
Christopher Mayne, 34, from Dubuque, Iowa, received the prison term after a December 18, 2013, guilty plea to one count of possession of pseudoephedrine knowing or having reasonable cause to believe it would be used to manufacture methamphetamine.
According to information disclosed during the prosecution, during a March 23, 2013, traffic stop, police seized 180 pills of pseudoephedrine from Mayne as well as items used to manufacture methamphetamine. At the time of the traffic stop, police were investigating Mayne in connection with a fire at his residence on December 4, 2012. The fire started in Mayne’s basement, where he was manufacturing methamphetamine, and spread to other areas of the house. Three minor children were present in the home at the time of the fire. The fire ultimately consumed the entire home.
Mayne was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Mayne was sentenced to 169 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Mayne is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Lisa C. Williams and investigated by the Dubuque Drug Task Force, the Dubuque Police Department and the Dubuque Fire Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-1017.
Denver Man Sentenced to 21 Years in Federal Prison for Producing Child PornographyRead the Press Release
DENVER – Jesse Evans, age 33, of Denver, Colorado, was sentenced today by U.S. District Court Judge William J. Martinez to serve 252 months (21 years) in federal prison for production of child pornography, U.S. Attorney John Walsh, FBI Denver Division Special Agent in Charge Thomas Ravenelle and Denver Police Department Chief Robert White announced. Following his prison sentence, Evans was ordered to serve 25 years on supervised release. He will also have to register as a sex offender. The defendant, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Evans was first charged by Criminal Complaint on June 29, 2012. He was indicted by a federal grand jury on July 26, 2012. He was later charged by Information on June 12, 2013. He pled guilty before Judge Martinez to the sole count of the Information, production of child pornography, on that same date. He was sentenced today, April 1, 2014.
According to the facts contained in public court documents, on January 3, 2012, a Denver Police Department (DPD) detective initiated a child exploitation investigation. The DPD detective, acting in an undercover capacity, downloaded child pornography from another computer that was using peer-to-peer software to share files. The IP address the detective was downloading the files from had file names indicative of child pornography.
As the investigation continued, a search warrant was obtained and executed by the DPD on February 8, 2012 for Evans' residence. There were multiple computers in the residence, including two laptops. The DPD detective conducted a preview of one of the laptops, and located the downloaded file he obtained at the beginning of the investigation. It was later determined that Evans had access to three prepubescent minors.
On June 28, 2012, an FBI Special Agent who is an expert in child exploitation crimes spoke with the DPD detective. The FBI agent obtained a copy of the investigative file, which included all information obtained during the course of the investigation. The agent conducted review of the computers and located a total of nearly 100 images and videos of child pornography that the defendant produced of the three minors.
“Sexually assaulting children and recording that assault in photos or video, is an unspeakable crime that deserves severe and swift justice,” said U.S. Attorney John Walsh. “Our hearts go out to the victims in this case and their families. The defendant in this case was brought to justice by the hard work of the Denver Police Department and the FBI, working alongside a determined and able Assistant U.S. Attorney from this office. Their unflagging commitment to protecting children from predators like Evans deserves our profound thanks.”
“The work on this case is representative of the high priority the FBI places on finding those who exploit and perpetrate crimes against children,” said FBI Denver Division Special Agent in Charge Thomas Ravenelle. “The FBI will continue to vigorously investigate and prosecute individuals who prey on our most vulnerable victims.”
Denver Police Chief Robert C. White said: “We have to continue to conduct operations of this nature to protect the most vulnerable members of our community – our children. We cannot allow an adult to ever exploit or take advantage of a child.”
This case was investigated by the Denver Police Department (DPD) and the Federal Bureau of Investigation (FBI). The Denver District Attorney’s Office filed state charges, and referred potential federal charges to the U.S. Attorney’s Office.
The defendant was prosecuted by Assistant U.S. Attorney Judith Smith.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendants Plead Guilty to Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scarlet Veres, and Steven M. Veres, III, both of Clermont, formerly of Broward County, pled guilty today before U.S. District Judge Robert N. Scola, Jr. for their participation in a scheme to evade paying taxes on income received through their construction company following the 2004 and 2005 hurricanes.
Scarlet and Steven Veres each pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. At sentencing, the defendants face up to five years in prison and a fine of up to $250,000.
According to court documents, Scarlet Veres and Steven M. Veres III, who was then a licensed general contractor, were the sole shareholders of Superior Contracting, Inc., a Broward County-based construction company. In 2005, Superior Contracting, Inc. received millions of dollars from contracts to make hurricane-related repairs, including a contract to make repairs at a condominium development in Fort Pierce. During 2005, the defendants diverted corporate receipts of Superior Contracting, Inc. for their own use. In order to conceal their diversion of corporate funds, the defendants falsified the profit and loss statement of Superior Contracting, Inc. by characterizing personal expenses, including the purchase of property in Parkland, the construction of their personal residence on the Parkland property, the purchase of a residence in Osceola County, and a $550,000 personal real estate investment as business expenses. The defendants further falsified the profit and loss statement by claiming that a $400,000 personal real estate investment was a repayment of a fictitious loan previously made to Superior Construction, Inc. Pursuant to their plea agreements, the defendants agreed to pay restitution to the Internal Revenue Service in the amount of $600,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Stephanie Evans.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Cupertino Businessman Pleads Guilty to High-Tech Worker Visa FraudRead the Press Release
SAN JOSE, CA - A Cupertino businessman pleaded guilty in federal court yesterday afternoon to 19 counts of Visa Fraud, U.S. Attorney Melinda Haag announced.
In pleading guilty, Balakrishnan Patwardhan admitted that between July 2008 and October 2010 he knowingly submitted to U.S. Citizenship and Immigration Services false immigration forms and supporting documentation in I-129 applications seeking to obtain H-1B visas for 19 applicants. I-129 petitions relate to the H-1B high-technology worker visa program which requires, among other things, that an American employer certify it has high-technology jobs that cannot be filled by Americans. Patwardhan submitted 19 fraudulent I-129 petitions in which he falsely represented that the applicants had high technology job offers with Gilead Sciences in Foster City, California, an American employer, when in reality he knew that he did not have jobs for the applicants. Patwardhan also admitted that he had included altered contracts and false Statements of Work that he had created in connection with the fraudulent I-129 applications.
Patwardhan, 53, of Cupertino, CA, was indicted on March 27, 2013 on 19 counts of Visa Fraud, in violation of Title 18, United States Code, Section 1546(a). As part of his plea agreement, Patwardhan pleaded guilty to all 19 counts of the indictment. Patwardhan also agreed to pay a $100,000 forfeiture money judgment constituting proceeds he obtained as a result of his Visa Fraud. Patwardhan has been out of custody since his March 29, 2013 arrest on a $50,000 bond with one of the conditions of his pretrial release being that he not provide consulting services for technology companies or provide any visa services.
Patwardhan’s sentencing is scheduled for August 18, 2014 at 1:30 p.m. before United States District Judge Edward J. Davila in San Jose, CA. The maximum statutory penalty for Visa Fraud, in violation of Title 18, United States Code, Section 1546(a) is 10 years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Joseph Fazioli and Jeff Nedrow are the Assistant U.S. Attorneys who are prosecuting the case with the aid of Legal Assistants Laurie Worthen and Susan Kreider. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by U.S. Immigration and Customs Enforcement Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
(Patwardhan indictment )
Columbia County Man Sentenced to More Than 6 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard today sentenced John George Sessine (59, Lake City) to 6 years and 3 months in federal prison for receiving images and videos depicting the sexual abuse of minor children over the Internet. He was also sentenced to a 10-year term of supervision and ordered to register as a sex offender, following his incarceration. Sessine has been in custody since his arrest in Lake City on June 5, 2013.
According to court documents, on June 5, 2013, FBI agents and other law enforcement officers executed a federal search warrant at a residence occupied by Sessine, in Lake City, Florida. The FBI had previously learned that at least one computer using an Internet Protocol (IP) address that resolved to this residence was sharing videos of child pornography over the Internet. Sessine was at the residence and was interviewed by the agents. During an interview, Sessine stated that he used a particular file sharing program to download images and videos, and that the youngest child depicted on his computer was 10 or 12 years old. A forensic analysis of Sessine’s computer media revealed that he had collected 107 images and 104 videos of minor children being sexually abused.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.