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27 March 2014
Tampa Man Pleads Guilty to Check Kiting SchemeRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Johnathan Bergren (40, Tampa) today pleaded guilty to conspiracy to commit bank fraud. Bergren faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from at least September 2012 through August 23, 2013, Bergren, Christian Morales, and others engaged in a conspiracy to commit bank fraud by engaging in a check kiting scheme. Bergren, Morales, and others recruited by Bergren, engaged in the scheme to defraud by opening up numerous business checking accounts at federally insured financial institutions. Once the co-conspirators established the business checking accounts, they deposited checks drawn on accounts opened at other institutions into the newly established accounts. The conspirators then withdrew funds prior to the checks clearing the banks. The deposited checks were ultimately returned as Non-Sufficient Funds (NSF), Closed Account, or Refer to Maker. Despite this, Bergren and Morales had already transferred or withdrawn the funds immediately made available to accounts under their control. During the course of the scheme, Bergren and Morales opened more than 30 business checking accounts. The deposits and withdrawals were done at various federally insured financial institutions in the Middle District of Florida.
To date, Bergren, Morales, and others acting at their direction, deposited checks into accounts at financial institutions totaling approximately $493,017.65, of which $288,682.45 was withdrawn.
Morales previously pleaded guilty for his role in the scheme. His sentencing hearing is scheduled for May 15, 2014.
Following his arrest for the instant scheme on or about August 23, 2013, through and including the date of his re-arrest on a second complaint for the same type of activity on or about December 19, 2013, Bergren continued engaging in this check kiting scheme. During this second phase of the scheme, in which Morales was not involved, Bergren recruited others to open shell companies and corresponding business accounts at Bank of America into which Bergren deposited $32,167.19 worth of NSF or closed account checks. Bergren directed that third parties withdraw funds from these accounts before the NSF or closed account checks deposited into them cleared, and provide him with the cash. This resulted in an additional actual loss to Bank of America of $20,899.30. Thus, to date, Bergren is responsible for an intended loss of approximately $525,184.84 and an actual loss of approximately $309,581.75.
This case was investigated by the Tampa Police Department and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
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Taft Man Inidcted by A Federal Grand Jury for Conspiring with Others to Disribute MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against David Edward Hampton Jr., 34, resident of Taft, California, charging him with conspiracy to distribute and possess with the intent to distribute methamphetamine, attempted distribution of methamphetamine and possession with intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, David Hampton conspired with other individuals to distribute pound quantities of methamphetamine which he secured in California for distribution in South Dakota. Hampton would regularly use the U.S. Mails to deliver his methamphetamine to South Dakota.
Hampton was arrested on Tuesday March 25, 2014, at his residence in Taft, California at the time agents and police executed a search warrant at the property.
This case was the product of an investigation by the Violent Crime Task Force which includes the Bakersfield Police Department, the Kern County Sheriff’s Department, the Kern County Probation Office and the Federal Bureau of Investigation. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Hampton faces a maximum statutory penalty of no less than 10 years up to life in prison and a $5,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stanwood Washington Business Owner Sentenced to Prison for Disability Fraud SchemeRead the Press Release
A former Teamster who defrauded the union pension program as well as state and federal disability programs, was sentenced today in U.S. District Court in Seattle to one year in prison, three years of supervised release and more than $295,000 in restitution, announced U.S. Attorney Jenny A. Durkan. RICHARD STALKFLEET, 66, of Stanwood, Washington collected disability benefits for eight years, even while he was running a wood chip distribution company that earned more than half a million dollars annually. STALKFLEET put the business in his stepson’s name to try to hide his participation while he collected Teamsters Union Pension benefits, Washington State Labor and Industries Disability benefits and Social Security Disability benefits of $3,000 per month. At sentencing U.S. District Judge Ricardo S. Martinez said, “he victimized programs specifically designed to help the most needy. . . the very programs that don’t have sufficient funds to help the disabled.”
According to records filed in the case, STALKFLEET started a business known as Stalkfleet Farms in approximately 2000 and put the business in his stepson’s name. The company collected wood shavings from lumber mills and distributed them to dairy farms for use in barns. The company was quite profitable. Between November 2004 and November 2011, Stalkfleet Farms averaged monthly revenues of $43,000 and annual revenues of $516,000. The profits went right into STALKFLEET’s bank account. At the same time as he was running the successful business, STALKFLEET claimed to be disabled and unable to work since 2002, claiming his only daily activities consisted of eating, having coffee, playing with his dog, and doing “a little housework.” Due to these fraudulent claims, he collected a total of approximately $3,000 a month from the Teamsters Pension Trust, Social Security Administration and Washington State Department of Labor and Industries.
STALKFLEET fraudulently collected disability benefits between November 2004 and January 2013. As a result of his fraudulent claims, he collected $134,883 in Workers Compensation benefits, $91,831 in SSA benefits, and $69,188 in Teamsters Pension Plan benefits for a total loss of $295,902. The fraud was uncovered in 2011 when STALKFLEET had a falling out with his stepson and the stepson’s wife. L&I investigators conducted surveillance of Stalkfleet Farms and quickly confirmed that STALKFLEET was working there and driving Stalkfleet Farms trucks. Investigators interviewed more than 10 of Stalkfleet Farms’s customers. All of them thought of RICHARD STALKFLEET as the business’s true owner and their point of contact.
In asking for a prison sentence, prosecutors highlighted the length of the fraud and the fact that STALKFLEET was not struggling financially, while he took advantage of programs that are essential for the disabled. “Each of the programs defendant defrauded is a pool of limited resources intended to support disabled workers who cannot support themselves. But over the same years defendant took in millions of dollars in business revenues at Stalkfleet Farms, he drained almost $300,000 set aside for those unable to work,” prosecutors wrote in their sentencing memo.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG) and was prosecuted by Special Assistant United States Attorney Seth Wilkinson. Mr. Wilkinson prosecutes Social Security fraud cases in federal court as part of a partnership between the United States Attorney’s Office and the Social Security Administration Office of the General Counsel.
Source of Medical Patient Stolen Identities Pleads GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Ric. L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Eltonya Wiley, 40, of Lady Lake, pled guilty for her participation in a wide-ranging identity theft scheme. Wiley was the last of six defendants to plead guilty in the case. As part of her guilty plea, Wiley admitted that she made unauthorized use of medical patients’ Social Security numbers in connection with ongoing identity theft. The government alleged, and Wiley agreed that at least 92 patients of Villages Endocopy near The Villages in Central Florida had their identities stolen by virtue of Wiley’s conduct while she was an employee at that medical facility.
Specifically, Wiley pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 1349 (Count 1), three counts of wire fraud, in violation of 18 U.S.C. ' 1343 (Counts 4, 6, and 12), and one count of aggravated identity theft, in violation of 18 U.S.C. ' 1028A (Count 35). At sentencing, she faces a maximum of twenty years in prison for each count of conspiracy to commit wire fraud, and wire fraud; and, a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
Sentencing is scheduled for June 6, 2014 at 2:00 p.m. before U.S. District Judge Kenneth Marra in West Palm Beach.
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
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.
Solon Man Charged with Defrauding His Former Employer Out of Nearly $1.5 MillionRead the Press Release
A 15-count criminal indictment filed charging a Solon man with defrauding his former employer out of nearly $1.5 million, law enforcement officials said.
John A. Miller, 53, was charged with one count of conspiracy to commit mail fraud, nine counts of mail fraud, three counts of tax evasion and two counts of money laundering in connection with a scheme to defraud Parker Hannifin Corp.
“This defendant is accused of running a scheme in which he stole nearly $1.5 million from his employer,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This type of self-dealing is not fair to workers or shareholders and will not be tolerated.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Mr. Miller put a lot of effort into orchestrating and maintaining this seven year fraudulent scheme. Law enforcement will continue efforts to follow the money trial to ensure financial fraudsters are brought to justice.”
“Fraud and embezzlement schemes harm everyone,” said Kathy Enstrom, Special Agent in Charge, IRS Cincinnati Field Office. “As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer financial harm.”
Miller worked at Parker Hannifin Corp. (PHC) for 25 years where he directed work to outside contractors. In 2002, he approached his neighbor, Nancy Seaman, to do IT work for PHC, according to the indictment.
To do this, Seaman established Digital Design Services, Inc., which she operated out of her residence in Solon. In 2004, Miller approached R.K. (not charged herein), who owned and operated a billing company in Pennsylvania which had previously been a subcontractor for PHC. Miller requested that R.K. and his billing company prepare invoices and billings for PHC, and R.K. agreed to do so, according to the indictment.
Beginning around 2004, Miller engaged in a fraudulent scheme to increase the payment he was receiving from PHC by using subcontractors Seaman and R.K. to funnel payments to himself. He did his despite having a salaried position at PHC and without the knowledge or consent of PHC, according to the indictment.
Miller did this by falsely inflating the invoices submitted by Digital Design and Seaman and by asking R.K. to process payments and to pay subcontractors as designated by Miller. Under this arrangement, Miller submitted invoices in the names of Miller’s wife and son, even though neither had done any of the work submitted in these invoices nor were they even aware that Miller was using their names to submit such billings to PHC, according to the indictment.Miller caused a loss to PHC of approximately $1,489,494 between 2004 through 2011, according to the indictment.
Seaman was aware that additional amounts, over and above her Digital Design billings, were being sent to her. Miller instructed Seaman to pay these additional funds to him in cash, less a 30 percent commission to Seaman, according to the indictment.Seaman previously pleaded guilty in U.S. District Court to conspiring with Miller to conceal Miller’s tax liability from the Internal Revenue Service and to conspiring with Miller to commit wire fraud in a scheme to defraud Parker Hannifin. She is awaiting sentencing.
Miller is also charged with money laundering for using the funds he stole from Parker Hannifin Corporation to pay his tax liabilities to the IRS and to pay for his son’s tuition at Cornell University, according to the indictment.Miller is also charged with tax evasion for calendar years 2009 to 2011. During the calendar year 2009, Miller received approximately $192,042 in taxable income, and owed approximately $30,568 in income tax; during the calendar year 2010, Miller received approximately $378,571 in taxable income, and owed approximately $93,745 in income tax; and during the calendar year 2011, Miller had received approximately $217,060 in taxable income, and owed approximately $43,488.00 in income tax, according to the indictment.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations, in Cleveland, and is being handled by Assistant U.S. Attorney Christian H. Stickan.If convicted, the defendants’ sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Six Individuals Associated with the Newspaper and Mail Deliverers’ Union ArrestedRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Benjamin Castellazzo, Jr., Rocco Giangregorio, Glenn LaChance, Rocco Miraglia, also known as “Irving,” and Anthony Turzio, also known as “the Irish Guy,” with conspiring to defraud the Newspaper and Mail Deliverers’ Union (“NMDU”) and Hudson News in order to obtain a union card and employment at Hudson News for Castellazzo, Jr.
In addition, a three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Thomas Leonessa, also known as “Tommy Stacks,” with wire fraud, wire fraud conspiracy, and theft and embezzlement from employee benefit plans, in an unrelated scheme. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on March 6, 2014, and relates to Leonessa’s alleged “no show” job as a delivery driver for the New York Post.
Castellazzo, Jr., Giangregorio, LaChance, Miraglia, Turzio, and Leonessa were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Robert M. Levy at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office.
As alleged in the complaint, the NMDU is an independent union that represents approximately 1,500 employees involved in the newspaper industry in New York, New Jersey, and Connecticut. NMDU members deliver newspapers for the New York Times, the Wall Street Journal, the New York Daily News, the New York Post, and El Diario.
Between June 2009 and October 2009, Miraglia, who was a foreman at the New York Daily News – as well as an alleged associate of the Colombo organized crime family of La Cosa Nostra and the son of a deceased soldier in the Colombo family – conspired with officials of the NMDU and with Turzio, who was an employee of El Diario, to get an NMDU union card for Castellazzo, Jr. and place him in a job at Hudson News. Castellazzo, Jr. is the son of Benjamin Castellazzo, the alleged underboss of the Colombo family. Giangregorio and LaChance, who were Business Agents for the NMDU, also are charged with participating in this scheme.
As alleged in the indictment, Leonessa was employed by the New York Post to deliver newspapers by truck from a New York Post warehouse in the Bronx, New York, to New Jersey. He was also a member of the NMDU, which maintained offices, including offices for its welfare and pension funds, in Queens, New York. From about December 2010 to about September 2011, Leonessa had a “no show job” at the New York Post, that is, a job for which he was paid wages and benefits, but which he did not perform. When Leonessa did not complete his required deliveries, he was nevertheless, based on his fraudulent representations, paid wages by the New York Post and accorded benefits from employee pension and welfare funds managed by the NMDU.
“Today’s arrests indicate that the NMDU and the newspaper delivery industry are, sadly, still subject to the influence of organized crime,” stated United States Attorney Lynch. “We cannot tolerate corruption in that industry, which is relied on by newspaper readers throughout New York City and beyond. We will prosecute anyone who seeks to obtain employment – or to maintain “no show” employment – in that industry by trading on the power of organized crime. Such acts not only lead to ill-gotten gains, but they also displace innocent, hard-working union members and would-be union members from jobs they have rightfully earned. We thank our partners at the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, for their tremendous efforts to identify and root out these corrupt practices.” Ms. Lynch also extended her grateful appreciation to the New York City Police Department, the New York County District Attorney’s Office, and Waterfront Commission of New York Harbor for their assistance.
“As alleged, a paycheck in exchange for a hard day’s work was a foreign concept to these defendants. Instead, they engaged in a scheme to defraud the NMDU and Hudson News for easy money and personal gain. The FBI, along with its law enforcement partners, will continue to pursue allegations of corruption and fraud all levels,” stated FBI Assistant Director-in-Charge Venizelos.
The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The charges in the complaint and indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth A. Geddes and Allon Lifshitz and by Trial Attorney Joseph Wheatley of the Department of Justice’s Organized Crime and Gangs Section.
The Defendants:
BENJAMIN CASTELLAZZO, JR.
Age: 48
Manahawkin, NJ
ROCCO GIANGREGORIO
Age: 39
Dumont, NJ
GLENN LACHANCE
Age: 50
Oceanside, NY
ROCCO MIRAGLIA
Age: 43
Staten Island, NY
ANTHONY TURZIO
Age: 78
New York, NY
THOMAS LEONESSA
Age: 52
High Bridge, NJ
E.D.N.Y. Docket Nos. 14-CR-120 and 14-M-282
Serial Fraudster Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew sentenced Latasha Callens (35) yesterday to 12 years and 5 months in federal prison, to be followed by five years of supervised release, for bank fraud, access device fraud, mail fraud, and aggravated identity theft. As part of her sentence, the court also entered a money judgment in the amount of $223,798, the proceeds of the charged criminal conduct. Callens pleaded guilty on December 3, 2013.
According to court documents and statements made in court, Callens committed crimes from at least as early as July 2011 through her arrest in May 2013. Callens defrauded banks and individuals on at least 58 occasions during a two-year period.
In one of her schemes, Callens approached individuals, usually at ATMs, and told them about her need to cash a check and her inability to deposit the check into her bank account. She then convinced the individuals to deposit the checks into their own accounts and withdraw the funds for her. She sometimes gave them $100 for their trouble. In each case, the checks were worthless. They were generally drawn on closed accounts, because the checks and checkbooks had been stolen.
On two occasions in December 2012, Callens committed access device fraud. She used a stolen identity to obtain dental care at a Clearwater dental office. She purchased $12,000 worth of dental services under the false pretense that a co-conspirator would consent to pay for the treatment. Using a stolen credit card number provided by the co-conspirator, Callens paid for herself to receive a root canal, a bridge, an extraction, a temporary crown, a retainer, anesthesia, and other items and services.
In another scheme, Callens committed stolen identity refund fraud. For tax years 2010, 2011, and 2012, she defrauded the Internal Revenue Service and certain taxpayers by electronically filing false and fraudulent tax returns, using stolen identities and, thereby, obtaining refunds. She sought approximately $800,000 in fraudulent tax returns.
“Through the combined, tenacious investigative efforts of several key agencies in the Tampa Bay area, this predator was finally brought to justice,” said John Joyce, Special Agent in Charge of United States Secret Service’s Tampa Field Office. “Unfortunately, there are still others engaging in similar criminal behavior. Those who emulate Ms. Callens’ way of life will also eventually be apprehended and receive appropriate sentences.”
“The suspect in this case played on the sympathies of good samaritans and took advantage of their willingness to help,” said Jane Castor, Chief of the Tampa Police Department. “This sentence sends a loud and clear message that fraud of any kind is not tolerated in our city.”
"Although this was a collaborative effort of many agencies, everyone involved shared a single mission to focus on those individuals who involve themselves in tax refund fraud and identity theft. This should be a clear warning for those who engage in this type of criminal activity that the only outcome is lengthy prison terms and large monetary fines," stated Hillsborough County Sheriff David Gee.
“Stolen identity cases continue to plague our citizens and our criminal justice system,” said Clearwater Police Chief Tony Holloway. “This suspect didn’t care whose lives she impacted and from whom she stole money. She used stolen identities to make a living. She left an amazing trail of financial devastation and destruction in her wake,” Holloway added. “This sentence and accompanying money judgment send a strong and stern message to her and others like her – we will catch you, and you will pay for your crimes.”
“This case serves as an excellent example of how law-enforcement agencies from diverse jurisdictions can work together to solve crimes, protect our communities and get offenders off the street,” said Deputy Chief Bernard Seeley of the Temple Terrace Police Department. “We’re proud to be a part of this collaborative effort.”
“Individuals such as Latasha Callens who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” said James D. Robnett, Special Agent in Charge IRS Criminal Investigation. “Callens demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and together with the members of the Tampa Bay Alliance, we will hold those who engage in similar conduct accountable.”
This case was investigated by the Tampa Police Department, the U.S. Secret Service, the Hillsborough County Sheriff’s Office, the Temple Terrace Police Department, the Clearwater Police Department, and the Internal Revenue Service’s Criminal Investigations Division. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Sentencing for March 20 - 27, 2014Read the Press Release
Armand Lewis Mullendore, 58, of Afton, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 25, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Mullendore was arrested in Kemmerer, Wyoming. He received 262 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $2,000.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
John Richard Rolater, 69, of Eagle, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 25, 2014, for conspiracy to smuggle goods into the United States. Rolater appeared pursuant to a summons. He received two years of probation and was ordered to pay a $25,000.00 fine. This case was investigated by the U.S. Department of Homeland Security.
Aaron Restad, 37, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 21, 2014, for conspiracy to possess with intent to distribute, and to distribute at least 50 grams of a mixture or substance containing a detectable amount of methamphetamine. Restad was arrested in Casper, Wyoming. He received 77 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.Robert Anthony Johnson, 28, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 21, 2014, for conspiracy to possess stolen firearms. Johnson was arrested in Gillette. He received 34 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Jeremia Montoya, 20, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 20, 2014, for conspiracy to possess with intent to distribute, and to distribute between 350-500 grams of a mixture or substance containing a detectable amount of methamphetamine. Montoya was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Andre Sinclair Fuller, 31, of Fort Collins, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 20, 2014, for being a felon in possession of a firearm. Fuller was arrested in Cheyenne, Wyoming. He received 41 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Second Former Gulf Cartel Plaza Boss Pleads Guilty to Federal Drug ChargesRead the Press Release
BROWNSVILLE, Texas – Jose Luis Zuniga-Hernandez, 46, aka Wicho or XW or Commandante Wicho, has entered a plea of guilty to conspiracy to import more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between January 2002 and July 2013, announced United States Attorney Kenneth Magidson. As part of his plea, he has also agreed to a $5 million forfeiture. His brother, Armando Arizmendi Hernandez, 37, aka Commandante Mando or XW2, entered the same plea and agreed forfeiture on Tuesday, March 25, 2014.
Zuniga-Hernandez served as plaza boss of the El Control, Tamaulipas, Plaza, and during that time, Arizmendi Hernandez was second in command. Arizmendi-Hernandez became the plaza boss on Nov. 6, 2010, when Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to the El Control Plaza. At that time, Arizmendi-Hernandez resumed his duties as second in command of the Plaza.
Cartel Del Golfo Transnational Criminal Organization (CDG) plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
Zuniga-Hernandez received marijuana shipments from the States of Durango and Michoacán, Mexico, purchased at $60 per kilogram in Mexico and sold at $130 per kilogram in the U.S. Zuniga-Hernandez indicated the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and into the United States per month. Planes and clandestine air strips were used to fly the cocaine into Mexico for later importation and distribution within the United States.
Under his command were approximately 120 lookouts and 60 estacas. An estaca is a vehicle occupied by three or four armed individuals. Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza.
On Oct. 27, 2011, Zuniga-Hernandez and Arizmendi Hernandez fled into the United States with Juan Rincon-Rincon and Luis Ivan Nino-Duenes after a gun battle in Mexico involving a power struggle between the plazas of the CDG. All were found and arrested by the U.S. Border Patrol (USBP) hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG. Also found were videos of Arizmendi Hernandez, Zuniga-Hernandez and other members of the CDG in preparation for and after the Oct. 27, 2011, gun battle.
Zuniga-Hernandez and Arizmendi Hernandez have stipulated that the total relevant conduct during their leadership was well in excess of 150 kilograms of cocaine and 1,000 kilograms of marijuana. Both have agreed they obtained at least $5 million in drug proceeds as a result of the conspiracy.
They face a mandatory minimum sentence of 10 years and up to life in federal prison. Both will be sentenced before U.S. District Court Judge Hilda G. Tagle on June 30, 2014.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brownsville Police Department. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.
Rockford Resident Sentenced for Federal Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Mar. 25, 2014, Brandon Waldrip, 32, of Rockford, Tenn., was sentenced to serve 18 months in prison, by the Honorable Thomas W. Varlan, Chief U.S. District Judge, for possession of unregistered weapons and selling a firearm to a convicted felon. Upon his release from prison, Waldrip will be subject to two years of supervised release.
Waldrip pleaded guilty in September 2013, to knowingly possessing two silencers without serial numbers and not registered to him in the National Firearms Registration and Transfer Record. He also pleaded guilty to knowingly selling a firearm to a convicted felon.
Facts stipulated in the plea agreement on file with the U.S. District Court show that Waldrip began making and selling firearms silencers beginning in January 2013. In February 2013, he sold a silencer to an undercover agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Additionally, in February 2013, Waldrip sold a firearm to an individual working on behalf of law enforcement who asked if he could leave the gun at Waldrip’s house stating, “being a convicted felon, I’m not trying to have them pop up, you know, home inspection . . . .” Waldrip agreed to this request even after being informed by the individual that he was a convicted felon. The firearm was retrieved by the individual from Waldrip’s house in March 2013.
This conviction was the result of an investigation conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and Knoxville Police Department.
Rochester Man Sentenced on Drug Conspiracy and Money Laudering ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Albert L. Sturgis, 51, of Rochester, N.Y., who was convicted of conspiracy to possess with intent to distribute and distribute five kilograms or more of cocaine, 50 grams or more of cocaine base, and one kilogram or more of heroin and money laundering, was sentenced to 130 months in prison and 10 years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that the defendant was a well-known drug dealer operating primarily on the West side of the City of Rochester and was responsible for the distribution of numerous kilograms of cocaine in the Rochester area. Sturgis and 11 others were arrested in February 2010 after a nearly year-long investigation conducted by Federal and State authorities and involving the court-authorized interception of wire communication on cellular telephones utilized by the defendant and others in the drug conspiracy. All 12 defendants have been convicted, Sturgis is the eighth defendant to be sentenced. This is Sturgis’ third felony drug conviction.
The sentencing is the culmination of a multi-agency investigation under the Organized Crime Drug Enforcement Task Force (OCDETF) initiative. Federal and State law enforcement agencies, including Special Agents of the Bureau of Alcohol Tobacco Firearm and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, Special Agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, Special Agents of the Criminal Investigation Division of the Internal Revenue Service, Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, and officers from the Rochester Police Department, under the direction of chief Michael Ciminelli, worked in concert with the United States Attorney's Office in the year-long investigation.Project Safe Neighborhoods Grant AnnouncementRead the Press Release
SHREVEPORT/MONROE/ALEXANRIA/LAFAYETTE/LAKE CHARLES, La. – United States Attorney for the Western District of Louisiana, Stephanie A. Finley, and the Project Safe Neighborhoods Task Force announced today that the Department of Justice (DOJ), the Office of Justice Programs (OJP), and the Bureau of Justice Assistance (BJA) is seeking applications for funding of grants under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods (PSN).
This program furthers the Department of Justice=s mission and violent crime reduction strategy by providing support to state, local and tribal efforts to reduce gun and gang-related violent crime. Contingent on the availability of funds, grant awards totaling $300,000 are possible in the Western District of Louisiana to fund new and current comprehensive gun crime reduction strategies and gang violence reduction strategies. Grant proposal submissions must be received by the U.S. Attorney’s Office in Lafayette before 5 p.m. on April 10, 2014.
Various types of single or multi‑grantee grant applications are welcome including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication, and supervision programs;
- Prisoner Reentry Programs; or
- Other innovative related projects.
The FY2014 PSN Competitive Grant Announcement and links to other grants available, and information on the PSN Program can be found at the U.S. Attorney’s web site www.justice.gov/usao/law/ as well as www.justice.gov/usao/law/psn.html or at www.psn.gov and www.bja.gov/Funding/14PSNsol.pdf.
For more information, contact Western District of Louisiana Assistant U.S. Attorney and PSN and Anti-Gang Coordinator Robert W. Gillespie Jr. at (318) 676-3600.
Complete instructions on how to register and submit an application for this and other grants are available at www.Grants.gov. The FY2014 PSN Grant number is BJA-2014-3810. Applicants can also contact the www.Grants.gov Customer Support Hotline for technical assistance with submitting any application at 800-518-4726 or 606-545-5035 or by e-mail to [email protected].
Pennsylvania Man Pleads Guilty to Possession of Child PornographyRead the Press Release
WASHINGTON – Vincent Petaccio, 60, of Levittown, Pa., pled guilty today to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Petaccio entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Rudolph Contreras is to sentence him on June 18, 2014. Petaccio faces a maximum sentence of 20 years of imprisonment and a $250,000 fine.
According to the government's evidence, on April 12, 2013, Petaccio contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the course of two days, Petaccio engaged in instant message conversations with officer, whom he believed was the father of an under-aged girl.
During their communications, Petaccio sent the undercover officer 59 still images and 10 videos of graphic child pornography. Pursuant to a search of Petaccio’s home at the time of his arrest, law enforcement recovered approximately 150 still images and 10 videos of child pornography on his computer.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
14-072Pennsylvania Man Admits Mann Act Violations in Running Prostitution BusinessRead the Press Release
NEWARK, N.J. – An Allentown, Pa., man previously charged with sex trafficking of a minor today admitted his role in coercing women to travel from Pennsylvania to New Jersey to engage in prostitution and sexual activity for which any person can be charged with a crime, U.S. Attorney Paul J. Fishman announced.
Francisco Torrellas, a/k/a “Francisco Fordham Jr.,” “Dream,” “Daddy,” and “Pretty,” pleaded guilty before U.S. District Judge Claire C. Cecchi to Count Nine of a 10-count superseding indictment, which charged him with one count of coercion and enticement to engage in prostitution. He agreed to a sentence of 10 years in prison as part of his plea.
According to the superseding indictment and other documents filed in court:
From November 2010 to February 2013, Torrellas allegedly conspired with others to operate a prostitution business in New Jersey, Pennsylvania and elsewhere. Torrellas managed the business, traveled, and caused prostitute employees, including a minor, to travel interstate for the purpose of engaging in sex acts in exchange for money.
Torrellas used the Internet to post advertisements for sexual services on the website Backpage.com. Torrellas also developed rules for the prostitutes, booked hotel rooms, and, while incarcerated, used the phone to manage, promote, and carry on his prostitution business, specifically causing his conspirators and others to direct the proceeds of the business to his commissary account at the Essex County Correctional Facility. Torrellas also attempted to influence, delay or prevent the testimony of another person or persons in connection with the case against him.
The conspiracy count carries a maximum potential penalty of five years in prison. The Travel Act counts each carry a maximum potential penalty of five years in prison. The counts relating to trafficking and transportation of a minor carry a mandatory minimum penalty of ten years in prison and a maximum penalty of life imprisonment. The count relating to coercion and enticement to engage in prostitution carries a maximum potential penalty of 20 years in prison and the count charging obstruction of justice carries the maximum term that could have been imposed for the offenses charged. The defendant also faces a fine of $250,000 or twice the amount of the gain or loss from the offense for each count of conviction. Sentencing is scheduled for July 15, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the Secaucus, Jersey City, and the Allentown, Pa., police departments with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Danielle Corcione and Jenny Kramer of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Michael N. Pedicini Esq., Chatham, N.J.Torrellas, Francisco SIndictment
Owner of Bulk Mailing Company Sentenced to 18 Months in Prison for Multimillion-Dollar FraudRead the Press Release
NEWARK, N.J. – One of the operators of Clevett Worldwide Mailers LLC, a Succasunna, N.J., bulk mailing house, was sentenced today to 18 months in prison for defrauding clients of more than $1 million through a fraudulent bulk-mailing scheme in which he shredded millions of pieces of mail rather than delivering them, U.S. Attorney Paul J. Fishman announced.
Harold Clevett, 68, of Middlesex, N.J., previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with one count of conspiracy to commit wire fraud. Judge McNulty imposed the sentence today in Newark federal court.
Clevett’s son, Mark Clevett, 37, of Randolph, N.J., who owned and operated the business with his father, also previously pleaded guilty to the same charge and was sentenced to 24 months in prison on Feb. 24, 2014.
According to documents filed in this case and statements made in court:
Mark Clevett owned, and both Clevetts operated, Clevett Worldwide Mailers, which contracted with international and domestic customers to handle large mailings. Customers sent their mail jobs to Clevett Worldwide Mailers for sorting, addressing and delivery to the post office. The company received fees for each piece of mail and for the total weight of the mail that it handled.
Both father and son admitted that rather than sending their clients’ mail as contracted, they directed their employees to throw away all or part of it, and even called in a shredding company to destroy unsent mail.
Mark and Harold Clevett also acknowledged they charged their customers for the full amount of the mailings, even sending some of their customers fraudulent postal forms to make it appear as though the mailings were delivered. The pair admitted that between 2007 and June 2011, they discarded and shredded nearly 3 million pieces of customer mail and reaped nearly $1 million in illicit profits.
In addition to the prison term, Judge McNulty sentenced Harold Clevett to serve one year of supervised release, six months of which will be home confinement and ordered him to pay restitution of $999,461.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Michael Robertson of the U.S Attorney’s Office in Newark.
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Defense counsel: Harold Clevett: Brian J. Neary Esq., Hackensack, N.J.
Mark Clevett: Don Larsen Esq., Montville, N.J.New Middleton Man Faces Child Pornography ChargesRead the Press Release
Joey Thomas Holt, 56, of New Middletown, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about December 8, 2013, through on or about February 20, 2014, Holt knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on March 6, 2014, Holt possessed two computers, each that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Youngstown Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New Hampshire Man Charged with Coercing A MinorRead the Press Release
BOSTON – A New Hampshire man was charged today with attempting to coerce a minor to engage in sexual activity.
Karl W. Leeman, 46, of Milford, N.H., has been indicted on charges that he induced and coerced, and attempted to induce and coerce, a minor to engage in sexual activity.
In February 2014, Homeland Security Investigations undercover agents in Boston placed an advertisement on Craigslist purportedly as a mother seeking an adult interested in a “taboo relationship” with her daughter. Leeman responded that he was interested, even after the purported mother disclosed that the daughter was only 14-years-old. Leeman proceeded to engage in more than 650 email communications with the purported mother, detailing the sexual activities in which he would engage with the minor “daughter.” On Feb. 27, Leeman traveled from his place of work in Acton, Mass. to Watertown for the purpose of having sex with a minor. Upon his arrival at the designated meeting place, he was arrested by HSI agents. At the time of his arrest, Leeman was carrying alcohol, bath products, lubricant, and gifts of clothing for the minor.
If convicted, Leeman faces a statutory mandatory minimum term of 10 years in prison, a minimum of five years and a maximum of a lifetime of supervised released, and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs enforcement’s Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by HSI Manchester, the Massachusetts State Police, the Watertown Police Department and the Milford, N.H. Police Department. The case is being prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
National Crime Victims’ Rights Week Set for April 6-12Read the Press Release
CHARLOTTESVILLE, VIRGINIA – The Jefferson Area Victim Assistance Coalition will commemorate National Crime Victims’ Rights Week (April 6-12) with an event in Charlottesville honoring local officials who have displayed excellence in their work with crime victims.
The theme for National Victims’ Rights Week 2014, “30 Years: Restoring the Balance of Justice,” celebrates the enduring work of those leaders who have dedicated their professional lives to providing services to victims of crime. Through decades of advocacy and hard work, victims of crime have gained access to crime victim’s compensation or services to help rebuild their lives, among other benefits once denied to victims.
Locally, the Jefferson Area Victim Assistance Coalition will commemorate National Crime Victims’ Rights Week with a local event on Wednesday, April 9, 2014 at 9 a.m. inside Charlottesville City Hall, 605 E. Main Street. At this event, the coalition will present awards to five individuals and one agency that have devoted innumerable hours, months and years to the cause of restoring the balance of justice in the care of crime victims.
The Jefferson Area Victim Assistance Coalition consists of members from the Albemarle County Victim/Witness Program, the Albemarle/Charlottesville Domestic Violence Services Coordinator, the Charlottesville Victim/Witness Program, the FBI Victim Assistance Program-Richmond Division, the Fluvanna County Victim/Witness Program, the Greene County Victim/Witness Program, Homeland Security Investigations Victim Assistance Program, the Louisa County Victim/Witness Program, the Shelter for Help in Emergency, the United States Attorney’s Office-Victims/Witness Program and the University of Virginia Victim/Witness Program.
This event is free and open to the public.
Mountain City Residents Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Two individuals involved in a methamphetamine (meth) conspiracy in upper East Tennessee were sentenced this week by the Honorable J. Ronnie Greer, U.S. District Judge. On Mar. 24, 2014, Aaron A. Stout, 31, of Mountain City, Tenn., was sentenced to serve 168 months in federal prison, to be followed by five years of supervised release. On Mar. 26, 2014, Brittany L. Pennington, 24, of Mountain City, Tenn., was sentenced to serve 51 months in federal prison, to be followed by five years of supervised release. There is no parole in the federal system.
These two individuals, along with 18 others, were indicted in May 2013 for conspiring to manufacture meth and possessing equipment, chemicals, materials, and products to be used in the manufacture of meth. Stout was also charged with distributing meth. In his plea agreement, Stout admitted that he had manufactured a conservative estimate of 150 to 500 grams of meth. He further admitted that he had distributed between 50 to 150 grams of meth. All of the others associated with this case have been adjudicated guilty and have either been sentenced or will be sentenced later this year.
The charges against these individuals stemmed from a lengthy investigation spanning from August 2006 to May 2013. These individuals conspired to obtain pseudoephedrine and other products needed to manufacture meth from various sources in the Eastern District of Tennessee, Western District of North Carolina, and Western District of Virginia. The pseudoephedrine and other products were then used to manufacture meth utilizing the “shake and bake” method. The meth was used and distributed in the Eastern District of Tennessee.
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Methamphetamine and Pharmaceutical Task Force, and Drug Enforcement Administration. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represented the United States.
Mother, Son Plead Guilty to Selling Illegal Bath SaltsRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Verna Dean Oliver, 50, and Daniel Jerome Oliver, 27, both of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi, to possession with intent to distribute methylenedioxypyrovalerone and methylone.
According to the evidence presented at the guilty pleas, a package containing methylenedioxypyrovalerone and methylone, also known as bath salts, was intercepted from China on June 8, 2012. It was bound for the Lake Charles home of Verna Oliver and her son, Daniel Oliver. Authorities delivered the package to the home on June 26, 2012. After observing Daniel Oliver sign for the package, they detained Daniel Oliver and Verna Oliver and searched the home. Various quantities of bath salts, scales, and bags were found.
The defendants each face up to 20 years in prison, a $1 million fine, and at least three years of supervised release for possession with intent to distribute a controlled substance. Sentencing is set for June 26, 2014.
Homeland Security Investigations, the U.S. Postal Service, and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger and Special Assistant U.S. Attorney Robert C. Abendroth are prosecuting the case.
Miami Resident Convicted in Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa D. Erichs, Special Agent In Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), ,announce that Cliffort Variste, 34, of Miami, was convicted by a federal jury of one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The trial was held before U.S. District Court Judge Kathleen M. Williams. Sentencing is scheduled for June 5, 2014. Variste faces a maximum sentence of ten years in prison for the access device charge, and a mandatory term of two years in prison for each aggravated identity theft charge, at least one of which must be served consecutive to any other term in prison.
According to the indictment and evidence presented at trial, Variste obtained an IRS Electronic Filing Identification Number (“EFIN”) and used it to file approximately 52 fraudulent tax returns, many filed with stolen identities. Variste used these returns to obtain fraudulent income tax refunds, which he had deposited on to prepaid debit cards which he controlled. Variste then made numerous withdrawals and purchases on the debit cards for his own personal gain. All of the fraudulent debit cards were issued in the names of real people whose identities were stolen as part of the tax fraud.
Mr. Ferrer commended the investigative efforts of IRS-CI and HSI. This case was prosecuted by Assistant U.S. Attorneys Frank Maderal and Vanessa Snyder.
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.
Mescalero Apache Man Sentenced to Prison for Unlawful Possession of FirearmsRead the Press Release
ALBUQUERQUE – Cameron Michael Williams, 38, a member of the Mescalero Apache Nation, was sentenced yesterday afternoon to 41 months in federal prison followed by two years of supervised release for being a felon in possession of firearms and ammunition. Williams also was sentenced to eight months in prison for violating the conditions of his supervised release on a prior assault conviction, with two months to be served concurrently and six months consecutively to the 41 month sentence for a total of 47 months in prison.
Williams was arrested on July 1, 2013, based on a criminal complaint charging him with being a felon in possession of firearm and ammunition, possession of stolen firearms, and possession of less than five grams of methamphetamine. According to the criminal complaint, Williams committed these three offenses in Jan. 2013. At the time, Williams was prohibited from possessing firearms or ammunition because he previously had been convicted on an assault with a deadly weapon charge.
On Oct. 1, 2013, Williams entered a guilty plea to a felony information charging him with being a felon in possession of firearms and ammunition.
The BIA initiated the investigation into this case after guests of the Inn of the Mountain Gods in Mescalero, N.M., reported that firearms were stolen from vehicles parked in the Inn’s valet parking lot in late Jan. 2013. The investigation focused on Williams, who was then employed as a valet parking attendant, after surveillance video showed Williams in the vehicles from which the firearms were stolen. When BIA made contact with Williams at his home, they arrested him on tribal charges of larceny, possession of methamphetamine, resisting arrest and intoxication. Following Williams’ arrest on tribal charges, the FBI executed a search warrant at Williams’ residence and found three firearms, all of which had been stolen, in Williams’ backpack.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Mansfield Woman Charged with Stealing from Social SecurityRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Renee Brooks, age 57, of Mansfield, Ohio, with one count of theft of government funds.
The indictment alleges that from in or about July 1996, and continuing until in or about August 2011, Renee Brooks stole Social Security Disability Benefits in the amount of $92,081.53 from the United States Social Security Administration to which she was not entitled.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Gregory C. Sasse, following investigation by agents of the Office of Inspector General of the United States Social Security Administration.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Manager Pleads Guilty in Loan Modification Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service, Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service, Miami Division, announce that defendant Robert Harry Bacon, 34, of West Newbury, MA entered a guilty plea to Counts 1 and 2 of the indictment charging him with conspiracy to commit mail fraud and wire fraud; and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
Defendant Bacon faces up to 20 years in prison on each of the two counts to which he pled guilty, plus up to $250,000 in fines and mandatory restitution as to each charge.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.
The indictment alleges that defendant Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffer submitted in support of the guilty plea, defendant Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country that were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of the U.S. Secret Service and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and Ellen Cohen.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Madera Man Indicted for Tax EvasionRead the Press Release
FRESNO, Calif. — A federal grand jury indictment was unsealed today following the arrest of Jeffrey G. Vincent, 64, of Madera, who is charged with five counts of evading the assessment and payment of individual income taxes, United States Attorney Benjamin B. Wagner announced.
According to court documents, Vincent, the general partner of a Fresno-based engineering company (Stafford Group Limited Partnership, d/b/a Veco Technologies), has not filed an individual income tax return since 1988, despite earning income from Stafford Group, including at least $457,365 between 2007 and 2010. Vincent signed tax returns for Stafford Group in which he falsely represented that he does not have a social security number.
This case was the product of an investigation by the Internal Revenue Service - Criminal Investigations. Assistant United States Attorney Christopher Baker is prosecuting the case.
The defendant was arrested this morning and is scheduled to be arraigned on the indictment before U.S. Magistrate Judge Barbara A. McAuliffe at 1:30 p.m.
If convicted, Vincent faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count of tax evasion. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Louisiana Man, Jonathan Johnson, Pleads Guilty to Operating International Child Exploitation EnterpriseRead the Press Release
Today, U.S. Attorney Kenneth Allen Polite, Jr. announced that JONATHAN JOHNSON, age 27, of Abita Springs, Louisiana, pled guilty to Operating a Child Exploitation Enterprise in violation of Title 18, United States Code, Section 2252A(g).
According to court documents, from 2012 through 2013, JOHNSON administered two child pornography websites identified as Website A and Website B out of his Abita Springs home in order to distribute images and videos depicting the sexual victimization of children. JOHNSON’s illegal websites had over 27,000 members located throughout the world. As the administrator of these websites, JOHNSON regulated membership in the websites and created two categories of website users: members and uploaders. JOHNSON required members to register with a user name and password before they could download video files, comment on videos, or exchange private messages. Uploaders had the same privileges as members, but were also permitted to upload sexually explicit material directly to JOHNSON’s websites. JOHNSON’s websites also included tutorials that provided guidance to members and uploaders on ways to communicate with minor boys in order to coerce them into creating sexually explicit videos and JOHNSON’s websites also provided instructions so members and uploaders could avoid detection from law enforcement. JOHNSON frequently utilized and encouraged other members and uploaders to access popular social networking sites in order to search for and locate unsuspecting minor boys for the purpose of having them create sexually explicit videos. JOHNSON and other website members and uploaders created fake female Internet personas in order to initiate online communications with young boys.
During the course of the investigation of JOHNSON, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Postal Inspection Service determined JOHNSON’s websites contained approximately 2,000 videos depicting the sexual exploitation of young boys. Dubbed “Operation Roundtable,” the case against JOHNSON has resulted in ten (10) additional individuals being charged by the U.S. Attorney’s Office in New Orleans. To date, five (5) of those defendants have entered pleas of guilty to crimes involving the sexual exploitation of children.
In addition, Operation Roundtable has resulted in over twenty-five (25) additional defendants being arrested and charged with various state and federal charges throughout the United States and approximately 250 child victims have been identified and/or rescued by law enforcement officials.
“Today’s guilty plea represents a significant step in our continued efforts to dismantle a criminal enterprise that is responsible for the sexual victimization of our nation’s young people,” stated United States Attorney Polite. “Once again, I commend HSI and the Postal Service for being dedicated partners in Operation Roundtable. Together, we are committed to utilizing our collective resources to bring justice to both the victims and the perpetrators of these crimes. Our important investigation is on-going.”
“With at least 27,000 members worldwide, this criminal oversaw the largest child pornography network ever discovered in this agency’s history,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. “Never before have so many minor victims been identified in the course of a single child exploitation investigation. Protecting children is one of HSI’s highest priorities and we will continue to investigate and seek prosecution of these dangerous criminals who exploit innocent victims and destroy lives for their own selfish desires.”
“Postal Inspectors investigate a wide variety of crimes in our mission to protect the integrity of the U.S. Mail, but sexual exploitation of children is particularly heinous,” said U.S. Postal Inspection Service Inspector in Charge Robert Wemyss. “When these predators use a combination of mail and the Internet to exploit our children we will ensure no aspect of their crimes escape justice.”
JOHNSON will be sentenced on July 17, 2014 by U.S. District Judge Nannette Jolivette Brown. JOHNSON has been in federal custody since his arrest on June 13, 2013.
JOHNSON is facing a mandatory minimum term of incarceration of twenty (20) years to a maximum sentence of life imprisonment. JOHNSON will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
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.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Fraud Unit Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
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Local Man Sentenced on Computer Hacking ChargesRead the Press Release
St. Louis, MO – JONATHAN COWDEN was sentenced today to fifteen months of imprisonment resulting from his conviction for hacking a website associated with an Israeli-based business. Cowden was also ordered to pay restitution to the victims of his hacking crimes.
The hacking charge against Cowden resulted from a series of computer intrusions Cowden executed between November 2011 and January 2012. Cowden’s attacks typically looked for vulnerabilities in websites that he could exploit, which allowed him to gain unauthorized access to data and information which he then posted on-line.
Jonathan Cowden, formerly of St. Louis but currently of San Diego, California, pled guilty last August to one felony count of computer fraud, in violation of 18 U.S.C. § 1030. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the Federal Bureau of Investigation, the Regional Computer Crimes Education and Enforcement Group and the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bodenhausen handled the case for the U.S. Attorney’s Office.
Littleton Man Is Sentenced to Two Years in Prison for Running A Ponzi SchemeRead the Press Release
DENVER – Michael B. Gale, age 66, of Littleton, Colorado, was sentenced today by U.S. District Court Judge Robert E. Blackburn to serve 24 months in federal prison for wire fraud and money laundering the U.S. Attorney’s Office, Internal Revenue Service Criminal Investigation (IRS CI) and the Federal Bureau of Investigation (FBI) announced. Following his prison sentence he was ordered to serve 3 years on supervised release. Gale was also ordered by Judge Blackburn to pay $425,878.71 in restitution to his victims. After the hearing, Gale was released on bond. He will report to a Bureau of Prison facility once one is designated.
Gale was charged by an information on October 22, 2013 and pled guilty on December 19, 2013 to the charges. According to the information and plea agreement, beginning in February 2009 Gale individually and as Capital Management Group ("CMG"), fraudulently solicited and accepted at least $893,346 from nine individuals for the purpose of operating a commodity pool to trade commodity futures contracts on the Pool's behalf. Gale did not register as a commodity pool operator ("CPO") with the Commodity Futures Trading Commission, but held himself out as a CPO to investors. Gale maintained two futures trading account and represented on both accounting documents that the funds on deposit were his and did not belong to any other investors or pools when in fact they were investor funds.
To further the scheme, Gale lied about his past trading successes telling some investors they could expect a 100% return on their investment while telling others that they could not lose on their investment. He also provided investors false documents to encourage them to invest or stay invested. Specifically he provided two investors with false tax documents that falsely represented the investors' profits in the Pool and to another investor he provided a false trading account statement that falsely represented that the value of the pool exceeded 3.5 million dollars. He also sent numerous emails to investors in which he lied about the Pool's profits.
Instead of investing the funds as promised, Gale took the investor funds and commingled them with his personal money and spent some of it on personal expenses. On one occasion, Gale transferred investment funds to his personal bank and subsequently transferred $100,000 of that money to the trading account to make it appear that the funds in that account were his personal money and not investor money. The investments Gale made actually lost money. He sometimes used later investors' funds to make partial payments to previous investors and returned approximately $447,477 to investors during the course of his scheme.
“The prison sentence handed down in this case is appropriate given the defendant’s criminal conduct,” said U.S. Attorney John Walsh. “Thanks to the work of the prosecuting Assistant U.S. Attorney, Suneeta Hazra, and the investigation conducted by special agents from the IRS Criminal Investigation and the FBI, another con man has been held accountable for taking people’s hard earned money.”
“Investors should always be wary and cautioned of investment proposals that promise high returns on their investment. 'If it seems too good to be true', it is probably an investment scheme,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
“The FBI is fully committed to protecting innocent victims by aggressively investigating those who perpetrate investment fraud schemes,” said FBI Denver Division Special Agent in Charge Thomas Ravenelle said.
This case was investigated by agents with IRS-Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Suneeta Hazra.
Lehigh Valley Doctor Indicted on Tax ChargesRead the Press Release
Dennis Erik Fluck Von Kiel, 57, of Macungie and New Tripoli, PA, the former medical director of Lehigh County Prison (“LCP”) was formally indicted today on one count of conspiracy to defraud the United States and five counts of attempting to evade or defeat federal taxes, announced United States Attorney Zane David Memeger. Von Kiel has been held without bail at the Federal Detention Center since his arrest on February 28, 2014, on a federal criminal complaint.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. According to the indictment, Von Kiel earned wages of more than $200,000 a year from 2008 through 2012 and paid no federal taxes during any of those years. Von Kiel had represented that he was exempt from federal taxes because he was a minister of a religious institution called the “International Academy of Lymphology” (and its successors, the “International Academy of Life” and the “Christian Forum Assembly Church”) and had taken a “vow of poverty.”
It is further alleged that Von Kiel directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church,” and once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then allegedly used that money to pay for all of his family’s day-to-day living expenses and to buy some unusual items such as a batting cage for his sons, all while purportedly living under his “vow of poverty.”
If convicted, Von Kiel faces a maximum possible sentence of 30 years in prison, up to three years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
This case was investigated by Internal Revenue Service Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
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, 215-861-8525Leaders of Counterfeiting Ring Sentenced to Federal PrisonRead the Press Release
ATLANTA – Heath J. Kellogg and Stacy P. Smith have been sentenced to federal prison for counterfeiting offenses.
“These defendants--who referred to their counterfeit money as ‘Monopoly,’ as if it were some kind of game--effectively stole from thousands of businesses, nonprofit organizations, and citizens throughout Georgia and the United States,” said United States Attorney Sally Quillian Yates. “Counterfeiting is far from a victimless crime because the person who unknowingly accepts the counterfeit bill usually absorbs the full amount of the loss. In this case, the victims included citizens, churches, and family-run businesses, as well as banks and large retail stores.”
“Every person, business or organization that receives a counterfeit note is a victim, and as such experiences a real economic loss. The United States Secret Service will continue to take an aggressive approach to arrest criminals like Smith and Kellogg. These sentences should be a warning to other like-minded criminals that manipulating and stealing from the American people will not go unpunished,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: From approximately February 1, 2011 until November 15, 2012, the defendants conspired to manufacture and distribute counterfeit U.S currency. The defendants focused on $50 bills, but also manufactured $20 bills. Heath Kellogg, a self-taught graphic artist, developed a manufacturing process for counterfeit currency. Smith helped Heath Kellogg manufacture the counterfeit currency, and both men purchased supplies on various occasions.
Smith distributed the counterfeit currency through a network of individuals, which ultimately spread the bills throughout the United States. Smith and Heath Kellogg used feedback from their ultimate customers, who victimized businesses, individuals and banks by passing the counterfeit currency in the community, to refine and improve their manufacturing process over time. The defendants sold the counterfeit currency to customers in exchange for genuine U.S currency, at various discounted rates.
On November 15, 2012, Secret Service agents executed search warrants yielding a wide variety of physical evidence, including completed and partially completed counterfeit currency, a large roll of special paper of the sort used in commercial printing presses, numerous printers, and a flash drive containing encrypted digital files with high definition images of various features of the counterfeit bills.
The counterfeiting operation was extensive. The Secret Service reports that counterfeit currency matching the distinctive characteristics of those produced by the defendants totaling over $1.4 million in face value has been returned to it by local police departments, banks, merchants and individuals victimized when the counterfeit currency was passed. The counterfeit currency was returned to the Secret Service from victims across the United States and internationally.
Heath J. Kellogg was sentenced on Friday, March 24, 2014 to twelve years in federal prison, to be followed by three years of supervised release. Heath Kellogg was convicted on November 5, 2013 of one count of conspiracy to counterfeit and deal in counterfeit obligations of the United States in violation of 18 U.S.C. § 371, two counts of counterfeiting currency in violation of 18 U.S.C. § 471, and two counts of dealing in counterfeit obligations in violation of 18 U.S.C. § 473, after pleading guilty to the Indictment. At sentencing, the court found Kellogg responsible for manufacturing counterfeit currency with a face value of over $1 million.
Smith was sentenced on Wednesday, March 26, 2014, to three years in federal prison, to be followed by three years of supervised release. Smith was convicted, on his plea of guilty on June 11, 2013, of one count of counterfeiting obligations or securities of the United States in violation of 18 U.S.C. § 471. At sentencing, the court found Smith responsible for manufacturing counterfeit currency with a face value of over $1 million.
Four co-defendants in the same case were previously sentenced after pleading guilty:
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Kenyada Barrion, 37, of Lithonia, Ga., was sentenced on August 28, 2013, to eighteen months in federal prison, to be followed by three years of supervised release. Barrion was convicted on March 27, 2013, of dealing in counterfeit obligations of the United States.
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Cameron Longshore, 31, of Atlanta, Ga., was sentenced on October 10, 2013, to one year and one day in federal prison, to be followed by three years of supervised release. He was convicted August 1, 2013, of a single count of dealing in counterfeit obligations.
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Ian Longshore, 28, of Atlanta, Ga., was also sentenced on October 10, 2013, to one year and one day in federal prison, to be followed by three years of supervised release. He was convicted on August 1, 2013, of a single count of dealing in counterfeit obligations.
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James Kellogg, 63, of Marietta, Ga., was sentenced on December 2, 2013, to five years of probation, including six months of home confinement. James Kellogg was convicted on June 11, 2013, of conspiracy to counterfeit and deal in counterfeit obligations of the United States.
This case was investigated by the United States Secret Service.
Assistant United States Attorney Alana R. Black prosecuted the case.
Anyone can become the victim of currency counterfeiters. To learn more about how to detect counterfeit currency and guard against forgery loss, visit the Know Your Money websites maintained by the United States Secret Service at: http://www.secretservice.gov/know_your_money.shtml and http://www.newmoney.gov/.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Laredo Resident Arrested for Threatening to Blow up Federal BuildingRead the Press Release
LAREDO, Texas – Cristina Lara, 43, has been charged with threatening to blow up the building that houses the Drug Enforcement Administration (DEA) in Laredo, announced United States Attorney Kenneth Magidson.
The criminal complaint, filed under seal March 17, 2014, was unsealed this morning as she was taken into custody by federal authorities. Lara is expected to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga tomorrow morning.
According to the charges, the DEA received a voicemail message on the morning of Feb. 21, 2014, from an anonymous caller threatening to blow up the building. The entire building, which houses the DEA offices as well as other federal agencies, was evacuated immediately.
The FBI traced the message to a phone number located within the Laredo Medical Center which is allegedly attached to a particular phone located in the reception area of the building. Video surveillance allegedly shows Lara using the phone at the same time the call was made.
If convicted, Lara faces up to 10 years in federal prison.
The case is being investigated by FBI is being prosecuted by Assistant U.S. Attorney Sonah Lee.
A defendant is presumed innocent unless convicted through due process of law.Justice Department Files Lawsuit Against Sairam Enterprises Inc. for Discriminating Against Disabled Veteran with Service AnimalRead the Press Release
The Justice Department filed a lawsuit today against Sairam Enterprises Inc. LLC alleging that it discriminated against Jeffrey Crockett and his family on the basis of disability in violation of Title III of the Americans with Disabilities Act (ADA). Sairam Enterprises owns and operates the Days Inn and Conference Center Tulsa, a hotel in Tulsa, Okla.
The complaint, filed in the U.S. District Court for the Northern District of Oklahoma, alleges that Days Inn Tulsa maintained a “no pet” policy that was enforced against Crockett to prohibit him, his service animal and his family from staying at the hotel on Aug. 31, 2010, while they were traveling through Oklahoma. Crockett is a veteran of the U.S. Air Force and U.S. Marine Corps who has a degenerative disc disease, a demyelinating disease, post-traumatic stress disorder, depression and panic disorder. Crockett’s service animal is a German shepherd named Phineas that is trained to perform tasks directly related to his disabilities, and Days Inn Tulsa allegedly made no effort to modify its policy even after Crockett notified the hotel that Phineas is a service animal.
“The men and women who have given so much to our country through their military service cannot be denied accommodations because they need a service animal,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to enforce the ADA so that they, and others with disabilities, do not need to face such discrimination.”
“It is vital for the Justice Department to protect every citizen’s right to equal treatment and opportunity, especially for our Nation’s veterans,” said U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. “Under the American with Disabilities Act, no citizen with the need for a service animal should be discriminated against and denied accommodation.”
In the lawsuit, the United States is seeking a court order declaring that Days Inn Tulsa violated the ADA, prohibiting future discrimination by the hotel, and requiring the hotel to adopt a nondiscrimination policy and to train its staff on nondiscrimination. The lawsuit also seeks an award of monetary damages to the Crocketts who were allegedly harmed by the discrimination and a civil penalty.
To read the complaint and for more information on the ADA, visit the ADA website. Those interested in finding out more about this lawsuit or the obligations of private entities to accommodate people with service animals under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website. ADA complaints may be filed by email.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Justice Department Files Lawsuit Against Sairam Enterprises Inc. for Discriminating Against Disabled Veteran with Service AnimalRead the Press Release
WASHINGTON - The Justice Department filed a lawsuit today against Sairam Enterprises Inc. LLC alleging that it discriminated against Jeffrey Crockett and his family on the basis of disability in violation of Title III of the Americans with Disabilities Act (ADA). Sairam Enterprises owns and operates the Days Inn and Conference Center Tulsa, a hotel in Tulsa, Okla.
The complaint, filed in the U.S. District Court for the Northern District of Oklahoma, alleges that Days Inn Tulsa maintained a “no pet” policy that was enforced against Crockett to prohibit him, his service animal and his family from staying at the hotel on Aug. 31, 2010, while they were traveling through Oklahoma. Crockett is a veteran of the U.S. Air Force and U.S. Marine Corps who has a degenerative disc disease, a demyelinating disease, post-traumatic stress disorder, depression and panic disorder. Crockett’s service animal is a German shepherd named Phineas that is trained to perform tasks directly related to his disabilities, and Days Inn Tulsa allegedly made no effort to modify its policy even after Crockett notified the hotel that Phineas is a service animal.
“The men and women who have given so much to our country through their military service cannot be denied accommodations because they need a service animal,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to enforce the ADA so that they, and others with disabilities, do not need to face such discrimination.”
“It is vital for the Justice Department to protect every citizen’s right to equal treatment and opportunity, especially for our Nation’s veterans,” said U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. “Under the American with Disabilities Act, no citizen with the need for a service animal should be discriminated against and denied accommodation.”
In the lawsuit, the United States is seeking a court order declaring that Days Inn Tulsa violated the ADA, prohibiting future discrimination by the hotel, and requiring the hotel to adopt a nondiscrimination policy and to train its staff on nondiscrimination. The lawsuit also seeks an award of monetary damages to the Crocketts who were allegedly harmed by the discrimination and a civil penalty.
To read the complaint and for more information on the ADA, visit the ADA website. Those interested in finding out more about this lawsuit or the obligations of private entities to accommodate people with service animals under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website. ADA complaints may be filed by email.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Judge Sends Advance Pay Schemer to Prison for 18 YearsRead the Press Release
Case Involved Multi-Million Dollar Fraud Of Entrepreneurs
PHILADELPHIA - Andrew Bogdanoff, 67, of Scottsdale, Arizona, was sentenced today to 220 months in prison for defrauding 1,900 victims out of more than $26 million in a financial scheme involving Remington Financial Group and Remington Capital (collectively “Remington”). The advance fee scheme defrauded victims searching for commercial financing. Bogdanoff pleaded guilty on August 29, 2013 to conspiracy to commit mail and wire fraud, mail fraud, wire fraud, money laundering, conspiracy to defraud the United States, and filing false tax returns. In addition to the prison term, U.S. District Court Judge William H. Yohn, Jr. ordered full restitution to Bogdanoff’s victims in the amount of $26,049,893 and to the IRS in the amount of $962,820, a $2,100 special assessment, and three years of supervised release.
Charged with Bogdanoff were Matthew McManus, 44, of Glenside, Pennsylvania, Shayne Fowler, 28, of Scottsdale, Arizona, Joel Nathanson, 26, of San Diego, California, Frank Vogel, 48, of Rochester Hills, Michigan, and Aaron Bogdanoff, 25, of Scottsdale, Arizona.
Andrew Bogdanoff was the founder and chairman of Remington Financial Group (later renamed Remington Capital) and ran the company with defendant Matthew McManus until 2008 in Arizona and Pennsylvania. After McManus left the company in 2008, defendant Fowler replaced McManus as Bogdanoff’s right-hand man. Defendant Joel Nathanson was one of Remington’s most proficient employees and helped Remington defraud many victims. Defendant Frank Vogel was a Michigan-based broker who referred numerous victims to Remington in exchange for large kickbacks.
Between 2005 and 2011, the defendants fraudulently induced hundreds of people to pay Remington fees in excess of $10,000 a piece, based on false representations that Remington had lenders and/or investors ready to provide financing for the victims’ projects. To facilitate this fraud the defendants issued each victim a “letter of interest,” commonly referred to as an LOI. Almost every LOI Remington issues stated that Remington had a lender or investor interested in financing the victim’s project. Remington issued an LOI to every victim even though no Remington employee had spoken to any funding source and Remington knew that it was unlikely to find funding for the project.
The LOI was written to fraudulently lead victims to believe that Remington was either a lender or had spoken to lenders that had already expressed interest in the customer's project when neither was true. Additionally, the financing terms Remington included in the LOI were unrealistic and were used solely to induce customers to pay Remington's advance fees. In addition to the false representations in the LOI, the defendants and other Remington employees allegedly also told victims the following lies to further induce victims to pay Remington’s fees: a) Remington had five investors or lenders interested in their project; b) Remington was the actual lender for the project; c) Remington funded or “closed” 80 percent of its deals; d) the victim would get funding for the project once the advance fee was paid and/or; e) Remington would provide funding through its funding source Northbridge.
After a customer paid Remington’s fee, McManus and Andrew Bogdanoff instructed Remington employees to find problems with the projects so that Remington could blame its failure to provide financing on the victim. The defendants did this to help protect Remington from civil and criminal complaints.
Some of the defendants used sophisticated means to perpetuate the fraud. For instance, in 2010, defendants Fowler and Andrew Bogdanoff used Remington’s website to advertise an anti-fraud policy and stated falsely that Remington had recently provided information to the Federal Bureau of Investigation and local law enforcement authorities about a suspected email scam. Remington posted this information to ensure that if potential customers used an internet search engine to search for allegations about Remington's fraud they would be directed to Remington's website, rather than third-party internet sources that contained negative information about Remington.
McManus was convicted at trial and will be sentenced on May 21, 2014. A plea hearing for Vogel is scheduled for April 15, 2014, in U.S. District Court in the Eastern District of Michigan. The remaining defendants have already pleaded guilty. A sentencing hearing for Aaron Bogdanoff is scheduled for April 11, 2014. Sentencing hearings for Fowler and Nathanson are scheduled for May 20, 2014.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division with assistance from the Pennsylvania Securities Commission. It is being prosecuted by Assistant United States Attorney David Axelrod.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Jordan Linn Graham Sentenced to 30 Years in PrisonRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 27, 2014, JORDAN LINN GRAHAM, 22, of Kalispell, was sentenced to 360 months in prison, followed by 5 years supervised release by Senior U.S. District Judge Donald Molloy. The sentence follows Graham's mid-trial guilty plea to second degree murder. Jordan Linn Graham filed a motion to withdraw her guilty plea on March 26, 2014. The motion was denied today by the trial judge.
Cody Johnson married Jordan Graham in Kalispell on June 29, 2013. The day after the wedding, Graham began to tell a friend that she "totally had a meltdown" and was having second thoughts concerning her marriage to Cody and wondered "what the heck I just did this all for."
At trial, several witnesses testified that on July 7, 2013 Cody said Graham had a surprise planned for him later that day. Graham lured Cody to Glacier National Park with the promise of a big surprise and pushed him from a cliff to his death. After providing several false statements to law enforcement officers and impeding the investigation by providing false information, Graham ultimately admitted pushing Cody from behind with both hands.
On July 8, 2013, multiple people reported Cody missing to the Kalispell Police Department, but the defendant was not one of them. During the next few days the defendant continued to communicate with numerous people in the Kalispell community, often via text message, about what had happened to Cody. As demonstrated at trial through witness testimony and admitted exhibits, the defendant continued to impress upon friends and family that Cody had left with friends. She continued to tell this story via text messages, including with Cody's mother.
Convincing evidence at trial established that on the morning of July 10, 2013, the defendant created an email account entitled "carmontony607" using Google from her parent's residence in Kalispell. A few minutes after that account was established, the defendant emailed herself the following message:
Hello Jordan, My name is Tony. There is no bother in looking for Cody anymore. He is gone. I saw your post on twitter and thought I would email you. He had come with some buddies and met up with me on Sunday night in Columbia Falls. He was saying he needed to be with buddies for a bit and take them for a joy ride before they had to go. So he said bye to me and they took off in a black car for a ride. 3 of the other guys came back saying they had gone for a ride in the woods somewhere and Cody got out of the car and went for a little hike and they are positive he fell and he is dead Jordan. I don't know who the guys were but they took off. So call off the missing person report. Cody is for sure gone. -Tony."
Because the defendant did not identify the location of Cody's body until the evening of July 11, 2013, law enforcement were not able to recover Cody's body until the next day, on July 12, 2013. The recovery of Cody's body was a substantial undertaking, requiring National Park staff overtime and the retention of specialized equipment. As testified by a number of law enforcement at trial, Cody's body was located at the bottom of an approximately 300-foot cliff and located, face-down, in a shallow creek. Cody's body was ultimately lifted from the bottom of the ravine by a special-lift helicopter that had to be retained for this specific purpose.
The investigation was a cooperative effort between the Federal Bureau of Investigation, National Park Service, Kalispell Police Department, Flathead County Sheriff's Office and Parks Canada. "These agencies worked as one and are to be commended for their tireless efforts to bring justice to this case, to Cody Johnson and to his family and friends.
The conviction of Graham happened because of the incredible investigative team and a hard-working and talented trial team which worked tirelessly to propel this case to a right and just conclusion.
The US Department of Justice and the Montana United States Attorney's Office extend our profound appreciation and thank you to the agents and officers involved in this investigation." --United States Attorney Michael Cotter.
Jackson Postal Worker Charged for Role in Planning Conley Postal RobberyRead the Press Release
ATLANTA - LaTonya Evans has been indicted by a federal grand jury on conspiracy and armed robbery charges for her role in planning a postal robbery in Conley, Ga., on December 20, 2013—a robbery that resulted in the near-fatal shooting of a postal truck driver by two other defendants charged with Evans in the same indictment.
“Evans is charged with exploiting her inside knowledge of the Postal Service for personal profit,” said United States Attorney Sally Quillian Yates. “The conspiracy she is charged with participating in resulted in the near-death of a fellow postal worker whom Evans knew. The indictment charges that he was shot, bound, and left for dead by Evans’ co-defendants. We will always aggressively prosecute anyone who commits this kind of horrendous act.”
“The U.S. Postal Inspection Service’s mission and priority is the protection of postal employees,” said Keith Fixel, Postal Inspector in Charge, Charlotte Division. “Acts of violence are crimes of unspeakable consequences which Postal Inspectors will investigate with rigorous tenacity. While the investigation included a postal employee, Evans’ actions do not represent the vast majority of postal employees committed to doing their jobs.”
According to United States Attorney Yates, the indictment, and other information presented in court: LaTonya Evans helped to develop the scheme to rob a postal truck, and worked with co-defendants Kendrick Watkins and Charles Jackson to carry out the plan. Evans met with Watkins and Jackson to plan the robbery of the postal truck driver. On December 20, 2013, during a routine pick-up in Conley, Ga., Jackson and Watkins approached the U.S. Postal employee who was driving the truck and demanded the keys to the postal truck. When the victim did not immediately comply, the men shot him in the torso, nearly taking his life. The robbers then bound the victim’s feet and took his cell phone so that he could not run or call for help. Jackson and Watkins drove away with the stolen truck and all its contents and met with Evans afterwards to discuss the robbery. The victim was forced to crawl several hundred feet to the nearest road where he flagged down a passerby for help.
LaTonya Evans, 44, of Jackson, Ga., has been charged along with Kendrick Watkins, 39, of Rex, Ga., and Charles Jackson, 55, of Griffin, Ga. Watkins and Jackson are accused of carrying out the armed robbery and shooting.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the United States Postal Inspection Service.
Assistant United States Attorneys Mary Kruger and John Ghose are prosecuting this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Indictment Charges Five Hartford Area Men with Heroin Trafficking OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration in New England, and Hartford Police Chief James C. Rovella, today announced that a federal grand jury sitting in New Haven has returned an indictment charging five men with narcotics offenses in connection with their alleged involvement in a Hartford area heroin trafficking conspiracy. The indictment was returned on March 25.
The 12-count indictment alleges that from approximately November 2013 through March 2014, the following individuals conspired to distribute various quantities of heroin:
FRANCISCO BIGIO, also known as “Flaco,” 34, of East Hartford
CHARLES JACKSON, also known as “Doo Doo,” 44, of Manchester
CARLOS CARDONA, also known as “Los,” 29, of Hartford
CHRISTOPHER CARDONA, also known as “Tito,” 27, of Hartford
ANTONIO BAEZ, also known as “Pete,” 39, of HartfordThe five defendants were arrested earlier this month on criminal complaints and are currently detained.
According to court documents filed as part of this case, this joint investigation focused on the distribution of heroin that is believed to have been laced with Fentanyl and may have contributed to several recent heroin overdoses in the Hartford area.
Fentanyl is a powerful opioid analgesic used to treat moderate to severe chronic pain that cannot be controlled with other medicines. It is approximately 100 times more potent than morphine.
U.S. Attorney Daly noted that the investigation is ongoing and investigators are in the process of determining if the heroin involved in this conspiracy contained Fentanyl, and if a connection to the reported overdoses exists.
In addition to being charged with conspiracy, BIGIO is charged with multiple counts of possession with intent to distribute, and distribution of, cocaine. It is alleged that BIGIO was found in possession of two kilograms of cocaine at the time of his arrest.
CARLOS CARDONA, CHRISTOPHER CARDONA and BAEZ are also charged with multiple counts of possession with intent to distribute, and distribution of, heroin.
If convicted of the charge of conspiring to distribute heroin, BIGIO faces a maximum term of imprisonment of life, JACKSON, CARLOS CARDONA and CHRISTOPHER CARDONA face a maximum term of imprisonment of 40 years, and BAEZ faces a maximum term of imprisonment of 20 years.
BIGIO and JACKSON are both serving terms of federal supervised release and face additional penalties if convicted of the charges contained in the indictment.
This matter is being investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Houston Man Indicted for Threatening to Bomb SynagoguesRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a six-count indictment against Dante Phearse, 33, for calling in bomb threats to two Houston synagogues, a municipal courthouse and a private business. The announcement is being made jointly by the U.S. Attorney’s Office for the Southern District of Texas and the Department of Justice’s Civil Rights Division.
Phearse, of Houston, is charged with two civil rights violations for threats called into two synagogues. Specifically, Phearse allegedly obstructed, by threat of force with an explosive device, members of the synagogues from enjoying the free exercise of their religious beliefs. Phearse is also charged with four counts of using an instrument of interstate commerce to communicate a threat to kill and injure people and destroy a building by means of an explosive device.
The indictment alleges that on April 30, 2013, Phearse telephoned two different synagogues in Houston - Congregation Beth Israel and Congregation Or Ami - and left voicemails threatening to bomb the buildings and cause other harm to the members. Also on that day, Phearse allegedly called in and threatened to bomb the City of Houston Municipal Courts building and a private business.
If convicted, Phearse faces a maximum penalty of 20 years in federal prison for each civil rights violation and up to 10 years for making bomb threats over the telephone.
Phearse has been in custody since his arrest. He is expected to make an initial appearance on the indictment in the near future, at which time the U.S. expects to request his continued detention pending trial.
This case is being investigated by the FBI in cooperation with the Houston Police Department.
Assistant United States Attorneys Ruben Perez and Joe Magliolo of the Southern District of Texas are prosecuting the case along with Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division in cooperation with the Harris County District Attorney’s Office.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Man Charged with Threatening to Bomb SynagoguesRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Texas announced today that a federal grand jury in Houston returned a six count indictment charging Dante Phearse, 33, with calling in bomb threats to two Houston synagogues, a municipal courthouse and a private business.
Phearse, of Houston, has been charged with two civil rights violations for threat of force with an explosive device against two synagogues, which allegedly obstructed members of the synagogues from enjoying the free exercise of their religious beliefs. Phearse is also charged with four counts of using an instrument of interstate commerce to communicate a threat to kill and injure people and destroy a building by means of an explosive device.
The indictment alleges that on April 30, 2013, Phearse telephoned two different synagogues in Houston, Congregation Beth Israel and Congregation Or Ami, and left voicemails threatening to bomb the buildings and cause other harms to the members. According to the indictment, on the same day, Phearse also called in and threatened to bomb the City of Houston Municipal Courts building and a private business.
If convicted, Phearse faces a statutory maximum penalty of 20 years in prison for each civil rights violation, and a statutory maximum penalty of 10 years in prison for each count of making bomb threats over the phone. Phearse has been in custody since his arrest. He is expected to make an initial appearance on the indictment in the near future, at which time the U.S. expects to request his continued detention pending trial.
This case is being investigated by the Houston Division of the FBI in cooperation with the Houston Police Department. It is being prosecuted by Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division and Assistant U.S. Attorneys Ruben Perez and Joe Magliolo of the Southern District of Texas, in cooperation with the Harris County District Attorney’s Office.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty through due process of law.
Hamden Man Sentenced to 57 Months in Federal Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM HINES, also known as “Gunz,” 30, of Hamden, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
HINES was arrested on May 30, 2012. He has been detained since December 12, 2013, when he was arrested in Maine on state charges while released on bond. On September 4, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
HINES’s criminal history includes five prior convictions, including convictions for larceny, possession of narcotics, carrying a pistol without a permit and criminal possession of a firearm.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Halfway House Escapee Sentenced to Additional Prison TimeRead the Press Release
PITTSBURGH - A resident of Washington, Pa., was sentenced in federal court on Wednesday, March 26, 2014, to 15 months imprisonment followed by three years supervised release on his conviction of escaping from federal custody, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Zack James Sadler, 28, after considering that he had run from house arrest and other facilities several times in the past and that Sadler was likely to serve an additional five months due to the loss of his “good-time” credits.
According to information presented to the court, on Aug. 9, 2013, Sadler, who was nearing the end of a 60-month prison sentence on a federal conviction for felon in possession of a firearm, escaped from a halfway house located in Pittsburgh. The United States Marshal Service Fugitive Task Force arrested Sadler on Aug. 20, 2013. According to information presented to the court, Sadler's previous convictions included offenses related to illegal firearm possession, assaults, drugs, burglary and shooting at civilians.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the quick apprehension and successful prosecution of Sadler.
Guilty Plea in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Rance Hunter, 29, of Atlanta, has been convicted in a scheme in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority, announced United States Attorney Kenneth Magidson.
According to court records, Hunter was employed at the Fulton County, Ga., Superior Court Clerk’s Office. There, he had access to the Sheriff’s Office Database and personal identifying information (PII), including names, birth dates and Social Security (SS) numbers, of arrestees, inmates and employees. Hunter would print out the PII from the database and sell the information when requested by his co-conspirators. From 2010 through 2013, those co-conspirators would use the PII to file thousands of fraudulent tax returns claiming more than $12 million in refunds.
At the time of his arrest, Hunter was in possession of another 10,000 names, SS numbers and dates of birth.
According to Internal Revenue Service (IRS) records, the National Treasury paid out more than $6 million before the scheme was discovered. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under control of the conspirators.
Eight people, including three U.S. Postal Service workers, are charged with conspiring together and participating in the scheme in a separate, but related, indictment.
U.S. District Judge Keith P. Ellison, who accepted the guilty plea, has set sentencing for June 17, 2014. At that time, Hunter faces up to 20 years imprisonment for conspiracy to commit mail fraud as well as a mandatory two-year-term which must be served consecutively to any other sentence imposed. Both conviction also carry a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The matter was investigated by the U.S. Postal Inspection Service and IRS - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Fresno Police Department Detective and Fresno Marijuana Trafficker Indicted in Bribery SchemeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Derik Carson Kumagai, 40, resident of Clovis, California, and Saykham Somphoune, a/k/a, “Oat,” 40, resident of Fresno, California, charging them with conspiracy, bribery, and extortion, United States Attorney Benjamin B. Wagner announced.
According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking. In return for the bribe payment, Kumagai and co-conspirator Somphoune (who is not a law enforcement officer) promised the person under investigation that he would be signed up as a confidential informant for the Fresno Police Department. On November 6, 2013, the person under investigation paid Kumagai approximately $20,000 cash. A few hours later, the person under investigation completed purported documents regarding work as a confidential informant for the Fresno Police Department.
This case was the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, and Internal Revenue Service, Criminal Investigation Division. The Department of Homeland Security - Homeland Security Investigations, and the United States Postal Inspection Service also provided investigative assistance in this case. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
Derik Kumagai was released from pretrial custody on March 19, 2014. Saykham Somphoune is currently detained as a flight risk.
If convicted of conspiracy, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of bribery, they face a maximum statutory penalty of 10 years in prison and a $500,000 fine. If convicted of extortion or conspiracy to commit extortion, they face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Sacramento Area Man Sentenced to 30 Months in Mortgage Fraud SchemeRead the Press Release
Defendant's Bid to Be Released Before Completing His Sentence Denied
SACRAMENTO, Calif. — Alexander A. Romaniolis, 48, of Irvine, was sentenced today by United States District Judge Troy L. Nunley to 30 months in prison and a $17,500 fine, and forfeiture of over $400,000 for mortgage fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Romaniolis recruited five straw buyers to purchase eight California residential properties in Rocklin, Roseville and San Clemente. Romaniolis assisted the straw buyers in providing false information to lenders about their employment, income, assets, and intent to occupy properties as primary residences. In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. He was responsible for the origination of more than $5 million in residential mortgage loans in the scheme. All of the properties were foreclosed on, resulting in a total loss of more than $2 million.
At sentencing, Romaniolis asked to be released for a short period so he could see his family before completing his sentence. Judge Nunley denied that request.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Attorney General’s Mortgage Fraud Task Force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorneys Jean M. Hobler and Jeff Spivak prosecuted the case.
Former Owner/President of Tennessee Guns International, Inc. Sentenced in U.S. District CourtRead the Press Release
KNOXVILLE, Tenn. – On Thursday, Mar. 27, 2014, Charles M. Jones III, former owner and president of Tennessee Guns International, Inc. (TGI), was sentenced in U.S. District Court to serve one year of probation and 100 hours of community service as a result of his felony conviction for importation of goods (firearms) by false statements.
Jones pleaded guilty to the offense pursuant to a plea agreement last December. The plea agreement also resulted in TGI forfeiting and relinquishing several thousand firearms and firearms parts that were seized from TGI. Significantly, Jones can no longer possess a firearm, since he is now a convicted felon.
“It is extremely important that firearms dealers abide by the law in conducting their business, in order to prevent those who are not authorized under law to possess firearms, from obtaining guns and weapons,” said U.S. Attorney William C. Killian.
Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey Fulton stated, “This conviction and sentence is a reminder that smuggling firearms by a Federal Firearms Licensee into the U.S. is a serious matter and will be vigorously investigated and prosecuted.”
“Firearms regulations exist to ensure weapons crossing international borders are properly accounted for to preserve public safety,” said Special Agent in Charge of Homeland Security Investigations (HSI) New Orleans Raymond R. Parmer Jr. “This case shows the significant consequences awaiting individuals who attempt to illegally import weapons and who make false claims while attempting to do so.” Parmer oversees a five-state area of operations to include Tennessee, Alabama, Arkansas, Louisiana and Mississippi.
The conviction was the result of a long-term investigation conducted by ATF, and HSI. Special Assistant U.S. Attorney Todd Martin, as well as Assistant U.S. Attorneys Jeff Theodore and Frank Dale, represented the United States.
Former Owner of T&T Realty Sentenced to Twenty-Four Months in Prison for Mortgage FraudRead the Press Release
Oklahoma City, Oklahoma – TRINA TAHIR, 58, of Oklahoma City, has been sentenced to twenty-four months in federal prison and ordered to pay $382,290.82 in restitution for her role in obtaining mortgage loans fraudulently, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
A grand jury indicted Tahir along with two co-defendants, Derrick Reuben Smith and Michael Gipson, in July of 2010. According to the indictment, Smith recruited two individuals to buy two new homes in Edmond in mid-2006 and early 2007 for $425,000 and $435,000 respectively. The builder of both homes agreed that Tahir’s real estate brokerage, T&T Realty, would receive large commissions and bonuses totaling $51,950 and $77,950 respectively. The indictment alleged that after the closings, Tahir caused T&T Realty to write checks to Gipson, an agent at T&T Realty, for $27,059.86 and $58,000 respectively. Gipson then bought cashier’s checks in those same amounts payable to “MP Services,” a business that Smith operated. Smith paid $20,000 to the person who served as the buyer of the first house and used the rest of the money for his own purposes. In short, the defendants were charged with inducing lenders to fund mortgages based on inflated real estate prices and misrepresenting the distribution of excessive loan proceeds to Smith as commissions and bonuses paid to Tahir.
The indictment also charged Gipson and Tahir with fraudulently misrepresenting the source of funds used as a down payment on a house that Gipson bought in Oklahoma City and charged Tahir with fraudulently disguising the payment of $9,295.52 to a buyer of a house in Midwest City as a real estate bonus.
In addition to a conspiracy count and four wire-fraud counts, the indictment included nine counts of money laundering. In each of these, one of the defendants was charged with engaging in a financial transaction designed to conceal and disguise the nature, source, and ownership of the proceeds of the mortgages.
On April 6, 2011, Tahir pled guilty to laundering the proceeds of a fraudulent mortgage on the house purchased by Gipson. A jury convicted Smith of conspiracy on April 14, 2011; on August 30, 2011, he was sentenced to 40 months in prison and ordered to pay $369,355.54. Gipson pled guilty on March 30, 2011, to conspiracy and money laundering. He was sentenced to 4 months and ordered to pay $335,070.55 in restitution.
On March 26, 2014, U.S. District Judge Timothy D. DeGiusti heard evidence concerning Tahir’s fraudulent conduct and concluded that she was culpable in connection with six residential properties. He also found that she had obstructed justice by attempting to manipulate the judicial process through meritless motions in which she contended that she was incompetent and that she should be allowed to withdraw her guilty plea because of alleged coercion by her former counsel. Based in part on these findings, he ordered her to serve 24 months in the custody of the Federal Bureau of Prisons and to pay $382,290.82 in restitution to financial institutions. After her incarceration, she will be on supervised release for three years.
This sentence is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Chris M. Stephens.
Reference is made to public filings for further information.
Former Newton County Deputy Sheriff SentencedRead the Press Release
ATLANTA - Darrell Mathis has been sentenced to five years in federal prison for possessing a firearm during a drug transaction.
“Mathis abandoned his oath as a deputy sheriff, and chose the life of a drug dealer,” said United States Attorney Sally Quillian Yates. “His decision to violate the law also violated the trust the public places in law enforcement. Mathis will have the next five years in prison to consider his conduct.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of former Deputy Mathis should serve notice that, while noting that the vast majority of those who serve within the criminal justice system are faithful to their oaths, the FBI will make those individuals who do violate their sworn oaths as law enforcement officers a priority for investigation and prosecution.”
According to United States Attorney Yates, the charges and other information presented in court: In April 2013, it came to the attention of the FBI that Darrell Mathis, a deputy sheriff with the Newton County Sheriff’s Office, was distributing marijuana. From May through September 2013, Mathis sold various quantities of marijuana to a confidential source who was working with the FBI, as well as to an undercover FBI agent. On at least two occasions, Mathis sold marijuana from his marked patrol vehicle while wearing his Newton County Sheriff’s Office uniform.
On August 8, 2013, Mathis sold one pound of marijuana to an undercover FBI agent. Following that sale, Mathis and the undercover FBI agent went to meet with another undercover FBI agent to discuss the sale of additional quantities of marijuana. Mathis brought his NCSO badge and his firearm to the meeting. Mathis told the undercover agent that he was bringing his firearm to the meeting “just in case.” During the meeting, Mathis told the second undercover FBI agent, who Mathis believed to be a marijuana and cocaine trafficker, that he was a police officer, pulled out his badge, and stated, “Don't worry, I'm on your side.” Mathis was arrested on September 19, 2013, when he met with the undercover FBI agent while in possession of one pound of marijuana.
Mathis, 41, of Lithonia, Ga., has been sentenced to five years in prison to be followed by two years of supervised release. Mathis was convicted on the charge on December 6, 2013, after he pleaded guilty.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jamie L. Mickelson prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Florida Man Sentenced on Child Sex ChargeRead the Press Release
HARRISONBURG, VIRGINIA – A Florida man who pled guilty last year to charges related to his illicit sexual conduct with a minor, was sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.
James Christopher Clement, 33, of St. Petersburg, Fla., previously pled guilty to one count of traveling in interstate commerce for the purpose of engaging in illicit sexual conduct with a person under the age of 18. Yesterday in District Court, Clement was sentenced to spend 96 months in federal prison to be followed by a lifetime of supervised release.
“Mr. Clement and others who travel across state lines to exploit children cause severe and lasting harm to their victims," United States Attorney Timothy J. Heaphy said today. “The punishment imposed in this case reflects the significance of that harm and demonstrates our commitment to holding child predators accountable.”
“Mr. Clement’s sentence sends a strong message to those who victimize children; the FBI and our law enforcement partners will find these predators and deliver them to justice. Cases involving child victims are a high priority for the FBI. The outcome of this case demonstrates our commitment to the fight against child exploitation,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division.
According to evidence presented at a previous hearing by Assistant United States Attorney Ronald Huber, Clement was a carnival worker who began dating the victim’s mother in 2010. Soon after the two began dating, Clement moved into the family’s Rockingham County home. Shortly thereafter, Clement established an inappropriate relationship with the victim. In November 2010, Clement convinced the victim to take a trip with Clement to West Virginia and Kentucky. Clement has admitted that his purpose in taking the victim out of state was to have illicit sexual contact with her. Clement was arrested in Kentucky and returned to Virginia for prosecution.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Rockingham County Sheriff’s Office. Assistant United States Attorney Ronald Huber prosecuted the case for the United States.
Five Individuals Charged with Conspiring <br /> to Fraudulently Obtain Union Job for Organized Crime UnderbossRead the Press Release
Five men have been charged in the Eastern District of New York with conspiring to defraud the Newspaper and Mail Deliverers’ Union (NMDU) and Hudson News newsstands to obtain a union card and employment at Hudson News newsstands for the son of the alleged underboss of the Colombo family of La Cosa Nostra.
A criminal complaint was unsealed today charging Benjamin Castellazzo Jr., Rocco Giangregorio, Glenn LaChance, Rocco Miraglia, aka “Irving,” and Anthony Turzio, aka “the Irish Guy,” with mail fraud conspiracy. The five men were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn.
In addition, a three-count indictment was unsealed today charging Thomas Leonessa, aka “Tommy Stacks,” with wire fraud, wire fraud conspiracy and theft and embezzlement from employee benefit plans in an unrelated scheme. The indictment was returned by a federal grand jury sitting in Brooklyn, N.Y., on March 6, 2014, and relates to Leonessa’s alleged “no show” job as a delivery driver for the New York Post.
The charges were announced by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, United States Attorney Loretta E. Lynch of the Eastern District of New York Acting Special Agent in Charge Cheryl Garcia of the New York region of the U.S. Department of Labor’s Office of Labor Racketeering and Fraud Investigations and Assistant Director in Charge George C. Venizelos of the FBI’s New York Field Office.
As alleged in the complaint, the NMDU is an independent union that represents approximately 1,500 employees involved in the newspaper industry in New York, New Jersey and Connecticut. NMDU members deliver newspapers for The New York Times, The Wall Street Journal, the New York Daily News, the New York Post and El Diario. Hudson News, which also employs members of the NMDU, is a retail chain of newsstands mainly located in major transportation hubs, including airports and train stations.
Between June 2009 and October 2009, Miraglia, who was a foreman at the New York Daily News – as well as an associate of the Colombo organized crime family and the son of a deceased soldier in the Colombo family – conspired with officials of the NMDU and with Turzio, an employee of El Diario, to get an NMDU union card for Castellazzo Jr. and place him in a job at Hudson News. Castellazzo Jr. is the son of Benjamin Castellazzo, the alleged underboss of the Colombo family. Giangregorio and LaChance, who are business agents for the NMDU, also participated on this scheme.
As alleged in the indictment, Leonessa was employed by the New York Post to deliver newspapers by truck from a New York Post warehouse in the Bronx, N.Y., to New Jersey. He was also a member of the NMDU, which maintained offices, including offices for its welfare and pension funds, in Queens, N.Y. From about December 2010 to about September 2011, Leonessa had a “no show job” – a job for which he was paid wages and benefits for services he did not perform – at the New York Post. When Leonessa did not complete his required deliveries, he was nevertheless, based on his fraudulent representations, paid wages by the New York Post and accorded benefits from employee pension and welfare funds managed by the NMDU.
Leonessa is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levyat the federal courthouse in Brooklyn, N.Y.
The charges in the complaint and indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the U.S. Department of Labor’s Office of Labor Racketeering and Fraud Investigations and the FBI, with assistance from the New York City Police Department, the New York County District Attorney’s Office and Waterfront Commission of New York Harbor.
The government’s case is being prosecuted by Trial Attorney Joseph Wheatley of the Department of Justice’s Organized Crime and Gangs Section and Assistant U.S. Attorneys Elizabeth A. Geddes and Allon Lifshitz.Final Defendant Pleads Guilty to RICO Conspiracy and Gun Charge on Eve of Schedule TrialRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Tony Peebles, 27, of Buffalo, N.Y., pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) and discharging a firearm during a crime of violence before U.S. District Judge Richard J. Arcara. The charges carry a minimum penalty of 10 years in prison, a maximum of life, a $250,000 fine or both.
“For the past several years, this office has been relentless in its pursuit of violent gang members and narcotics traffickers,” said U.S. Attorney Hochul. “The results speak for themselves with more than a hundred fifty predators behind bars, dozens of violent crimes solved and ever declining violent crime rates across the District. Let today's developments and likely sentence be heard loud and clear by any remaining gang members- your days are numbered.”Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant participated in seven shootings during which eight victims were struck by bullets, some suffering life threatening injuries. Between 2000 and 2010, Peebles was a member of the 10th Street Gang. As a part of their involvement in the gang, the defendants, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo. The violent acts by members of the 10th Street Gang included two murders.
Sentencing is scheduled for July 30, 2014 at 1:00 p.m. before Judge Arcara.
The defendant is among 44 10th Street Gang members and associates charged in this case. A total of 38 have been convicted. Charges are pending against the six remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.