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Friday 7 February 2014
New Indictment Stemming from Civil Rights Investigation into L.A. County Sheriff’s Department Alleges Two Deputies Abused InmateRead the Press Release
LOS ANGELES – Two Los Angeles Sheriff’s deputies who were assigned to the Men’s Central Jail have been indicted on federal civil rights charges that accuse them of illegally using force against an inmate, and then attempting to cover up the incident with false reports that formed the basis of a false prosecution initiated against the victim.
A federal grand jury late yesterday returned a four-count indictment against two deputies who were assigned to the 3000 floor of the jail.
The indictment charges Joey Aguiar, 26, and Mariano Ramirez, 38. Both men will be issued summonses directing them appear in federal court for arraignments on March 6.
According to the indictment, Aguiar and Ramirez illegally used force against the victim – who is identified in the indictment as “BP” – during an incident in the jail on February 11, 2009. While the victim was handcuffed and secured with a “waist chain,” the deputies allegedly punched and kicked the victim before using pepper spray on him. The defendants also are accused of striking him with flashlight.
Soon after the attack, the deputies allegedly wrote false reports designed to cover up the illegal use of force. Those bogus reports formed the basis of a referral to the Los Angeles County District Attorney’s Office for potential criminal prosecution of the victim.
The indictment charges both defendants with conspiring to violate civil rights and with deprivation of rights under color of law that caused bodily injury. Each of these charges carry a statutory maximum penalty of 10 years in federal prison.
The indictment also charges Aguiar with one count of falsification of records for submitted a report that allegedly “falsely stated, among other things, that victim-inmate BP had attempted to head butt deputy Aguiar’s face and that victim-inmate BP violently kicked at deputy Aguiar” when the victim had done neither. Ramirez is also charged with falsification of records for submitting a report that falsely stated the victim had “viciously kicked his legs at deputies.” The charge of falsification of records carries a statutory maximum penalty of 20 years in prison.
Previously in this investigation, 18 current and former Los Angeles County Sheriff’s Deputies were indicted on various corruption and civil rights offenses (see: http://www.justice.gov/usao/cac/Pressroom/2013/143.html). All of those previously charged have pleaded not guilty and are scheduled for trial later this year.
The investigation into the Los Angeles County Sheriff’s Department, which is ongoing, is being conducted by the Federal Bureau of Investigation.
Release No. 14-017
New Hampshire Man Sentenced for Gun TrafickingRead the Press Release
BOSTON - A New Hampshire male was sentenced today for being a previously convicted felon in possession of firearms.
Sean Meola, 42, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 70 months in prison and three years of supervised release. In October 2013, Meola pleaded guilty to being a previously convicted felon in possession of firearms.
On January 14, 2013, Meola negotiated with an undercover federal agent for the sale of a number of firearms. Meola and another individual arrived at a prearranged location and sold the undercover agent three semi-automatic handguns and two shotguns for which Meola received $1,200. Further investigation revealed that the weapons had been recently stolen from a home in New Hampshire.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Moore County Residents, Company Indicted for Conspiracy to Defraud the United States GovernmentRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that Craig Stanford Eury, Jr., Sarah Elizabeth Farrell, and International Labor Management Corporation (ILMC) were indicted by a federal grand jury in Greensboro, North Carolina, for allegedly (1) obtaining Visas by fraud, (2) encouraging and inducing aliens to enter and reside in the United States for commercial advantage or private financial gain, and (3) performing monetary transactions with criminal proceeds. Eury and Farrell served as officers of ILMC.
The indictment alleges that Eury, Farrell, and ILMC engaged in fraudulent practices in obtaining H-2B Visas and H-2A Agricultural Visas. The H-2B Visa Program includes a statutory numerical limit, or "cap," which provides that a maximum number of 66,000 aliens may be issued a visa or otherwise provided H-2B status (including through a change of status) during any fiscal year. ILMC allegedly avoided the operation of the cap by obtaining extra visas. These extra visas were allegedly used to provide H-2B workers to employers who were barred by the cap from employing alien workers. As set forth in the Indictment, ILMC profited by charging clients both for obtaining the visas for the original employer and then “transferring” the visas to a new, cap-barred employer. By acquiring extra visas, ILMC allegedly gained an unfair market advantage on H-2B Visas, as those visas were then not available for employers who complied with the law.
“This Indictment against International Labor Management Corporation founder and owner Craig Stanford Eury, Jr., and President Sarah Elizabeth Farrell sends a strong message to those who would attempt to commit these types of crimes. Diplomatic Security is firmly committed to working with the U.S. Attorney’s Office, the Department of Labor, the Internal Revenue Service, as well as other law enforcement agencies, to investigate and bring those who commit these crimes to justice,” said Niall Meehan, Special Agent in Charge of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.
The case is being investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of State’s Diplomatic Security Service, and the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Frank Chut.
An Indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monroe Woman Convicted of Federal Drug and Firearms ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Darlene
Ford, 58, of Monroe, was found guilty in U.S. District Court yesterday after a 3 day jury trial of
conspiracy to manufacture marijuana, maintaining a drug involved premises, and aiding and
abetting a felon in possession of a firearm.Court proceedings revealed that in November 2011 a search warrant was executed at the
defendant’s home in Monroe where agents found a large and sophisticated indoor marijuana
growing operation and two rifles. Trial evidence revealed that defendant and other family
members conspired to grow hundreds of marijuana plants at the residence. The defendant also
aided and abetted her husband’s illegal possession of a firearm.Ford faces 40 years in prison and a $5,000,000 fine, or both, on the conspiracy charge;
20 years and a $500,000 fine, or both, on the drug premises charge; and 10 years and a $250,000
fine, or both, on the firearms charge. She also faces forfeiture of her residence. She will be
sentenced after the completion of a presentence investigation report by the United States
Probation Office.The investigation was conducted by the Maine Drug Enforcement Agency, the Bureau of
Alcohol, Tobacco, Firearms and Explosives, the Waldo County Sheriff’s Office and the Maine
State Police.Mobile County Man Sentenced to 48 Months for Robbery of BBVA BankRead the Press Release
The United States Attorney Kenyen Brown announces that Leslie Todd, Jr., a 52 year old, Mobile, Alabama resident, was sentenced today to 48 months incarceration for robbing the BBVA Compass bank On Royal Street Downtown Mobile, Alabama
In detail, on August 6, 2013, Todd entered the bank and handed the teller a note asking for all of the money in her drawer. The teller complied and Todd fled the bank. Based on a tip, officers located and arrested Todd while he was hiding at a local hotel. Todd was ordered to pay restitution in the amount of $1846.00.
The Mobile Police Department and the Federal Bureau of Investigation investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Massachusetts Man Arrested for On-line Activity with Albany County ChildRead the Press Release
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew W. Vale of the Federal Bureau of Investigation, Albany Division, and Colonie New York Police Chief Steven Heider announced the arrest today of a Massachusetts man charged with enticing a 10 year old Albany County child to produce sexually explicit videos of himself and to then send those videos to him by email.
A criminal complaint unsealed in United States District Court this afternoon alleges that Brian Belanger, 21, of Worcester, Massachusetts, using the nickname “zombieshadow,” met the child on-line through Playstation 3. While talking through the game’s headset feature, Belanger told the child that someone was trying to kill Belanger, and that the child could help him by providing sexually explicit videos of himself that Belanger could in turn give to the other person. It is alleged that Belanger directed the child what to do in the videos, and that over the course of approximately three months the child emailed Belanger numerous times, attaching video files to the emails that depict the child engaged in sexually explicit conduct.1
Law enforcement was alerted on January 25, 2014, when the child’s father found the emails and videos on the child’s iPad. The investigation culminated with Belanger’s arrest today at his Worcester, Massachusetts residence. He made his initial appearance this afternoon in United States District Court in Albany before United States Magistrate Judge Hon. Randolph F. Treece, and was ordered detained pending a detention hearing scheduled for 2PM, Monday February 10, 2014. Belanger faces a mandatory minimum penalty of 15 years imprisonment, with a maximum penalty of 30 years, potential fines of up to $250,000, and a required term supervised release of at least 5 years, and up to life. A conviction would also require Belanger to register as a sex offender. Members of the community in the Worcester, Massachusetts area who have concerns or information regarding this case should call (508)-792-0214. Those in the Albany, New York area with information or concerns should call either (518) 431-0247, or 1-(888) 539-4535.
The investigation and arrest of Belanger is the result of an investigation by the Colonie New York Police Department, the Federal Bureau of Investigation, Albany Division, the New York State Police, the Worcester Massachusetts Police Department and the Federal Bureau of Investigation, Boston Field Division 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, and led by United States Attorneys' Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
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1The charges are merely accusations and Belanger is presumed innocent until and unless proven guilty.
Maryland Man Pleads Guilty to Voluntary Manslaughter in Traffic Fatality, Admits Striking Pedestrian in Crosswalk-Driver Was Under Influence of PCP-Read the Press Release
WASHINGTON – Woodrow R. Johnson, Jr, 52, of Capitol Heights, Md., pled guilty today to a charge of voluntary manslaughter stemming from a recent traffic fatality in which he struck a pedestrian while he was on PCP, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson entered the plea in the Superior Court of the District of Columbia. The Honorable Rhonda Reid Winston scheduled sentencing for May 15, 2014. Under the plea agreement, contingent upon the Court’s approval, Johnson faces seven years in prison.
According to the government’s evidence, on Friday, Nov. 8, 2013, at about 6:10 p.m., Johnson drove his employer’s van northbound on Benning Road SE. Johnson drove at a high rate of speed and without using his headlights, although night had fallen. Johnson collided with two other cars, causing damage to those cars and injuries to their occupants, but he did not stop.
Instead, Johnson continued to speed toward the intersection of East Capitol Street. As he approached the intersection, traffic in front of Johnson waited at the red light. Johnson swerved into the opposite lanes of traffic, that is, into the southbound lanes of Benning Road, and ran the red light at East Capitol Street. As he did this, he struck and killed Shamika Smith, 24, who was a pedestrian in a crosswalk of Benning Road, crossing from east to west. Ms. Smith suffered severe blunt impact trauma and was pronounced dead on the scene.
Johnson did not slow or stop to avoid striking Ms. Smith, or after striking her. He continued to speed northbound on Benning Road, colliding with an additional three vehicles, causing damages and injuries to their occupants.
With officers from the Metropolitan Police Department following Johnson, he left the roadway and crashed through the fence of a church’s parking lot, colliding with and damaging the church’s parked van. Officers apprehended Johnson, who was still behind the steering wheel. He was disoriented and appeared to veteran officers to be under the influence of PCP. Johnson was taken to a hospital, where he admitted that he had smoked PCP before driving.
In announcing the plea, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the Sixth District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jennifer Clark. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who is prosecuting the matter.
14-037Man Arrested for Defrauding the United States Army ReserveRead the Press Release
SAN JUAN, Puerto Rico – On February 5, a federal grand jury in the District of Puerto Rico returned a seven count indictment against Pedro A. Rodríguez-Colondres for wire fraud, false statement in application and use of passport, identity theft, aggravated identity theft, and false statement to a Department or Agency of the United States, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
Beginning in or about May 1984 and continuing through in or about October 2011 the defendant devised a scheme and artifice to defraud and for obtaining money by means of false and fraudulent pretenses and representations, that is by knowingly enlisting in the United States Army Reserve under the assumed name of Pedro Colondres-Rosa and then being discharged under this name; and then applying for and receiving benefits granted under the assumed name.
Rodríguez-Colondres received veteran’s benefits from the Veteran’s Administration from 1984; until 2011 under an assumed identity. The defendant enlisted in the US Army Reserve on April 26, 1974, and was discharged from the US Army Reserve on November 20, 1974. His discharge letter dated November 20, 1974 states, “You lack the motivation to become a productive soldier. You speak no English and have a great deal of trouble adapting to the Army. You lack the stamina to complete road marches. You are requesting this discharge and this would be to your and the Army’s advantage.” The letter also informed him that he would be ineligible for reenlistment.
On September 14, 1977, the defendant fraudulently enlisted using the name Pedro Colondres-Rosa. He was subsequently medically discharged for temporary disability on May 17, 1978. On May 22, 1978, the defendant completed a VA FORM 21526E applying for disability benefits from the Veterans Administration.
Rodríguez-Colondres devised a scheme to defraud the Department of Veterans Affairs by claiming to be entitled to benefits that he was in fact not entitled to. The defendant claimed to be Pedro Colondres-Rosa, when in truth and in fact, he was Pedro A. Rodriguez-Colondres. He then enlisted in the United States Army under this assumed identity and completed eight months and two days of active service. After the defendant was medically discharged, he and his wife applied for veteran’s benefits listing his service under the assumed identity of Pedro Colondres-Rosa.
The indictment lists 169 payments, a portion of the benefits he received illegally between the years 1997 to 2011 totaling $424,281.36. Also, the indictment shows the medical benefits the defendant received illegally between the years 2000-2011 totaling $81,984.00, and dependent educational benefits totaling $44,584.56.
The defendant was arrested today by agents from the US Department of State, Bureau of Diplomatic Security, and the Veteran’s Administration, who are in charge of the investigation. Rodríguez-Colondres appeared before US Magistrate Judge Camille L. Vélez-Rivé and was granted bail until the arraignment.
If convicted, the defendant faces up to 20 years imprisonment, two consecutive years for the aggravated identity theft charge, three years of supervised release, and a $250,000 fine. The case is being prosecuted by Assistant U.S. Attorney Michael C. Baggé.Local Dentist Pleads Guilty to Charges Involving Fraudulent Oxycodone PrescriptionsRead the Press Release
St. Louis, MO – DR. KURT MORGESTER pled guilty to fraudulently obtaining prescriptions for Oxycondone. According to court documents, on multiple occasions in December 2012 and January 2013, Dr. Morgester wrote and picked up prescriptions for his dental patients. The patients had no knowledge of these prescriptions.
Morgester, Fenton, MO, pled guilty to one felony count of possession of a controlled substance by subterfuge before United States District Judge Rodney W. Sippel. Sentencing has been set for May 8, 2014.
He now faces a maximum penalty of four years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney John T Davis is handling the case for the U.S. Attorney's Office.
Life Sentences for Former Gallatin County Sheriff Will Stand Says Federal Court of AppealsRead the Press Release
In an Order released yesterday, the Seventh Circuit Court of Appeals has affirmed the federal life sentences for former Gallatin County Sheriff Raymond M. Martin, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Martin, 52, was convicted in September 2010, following an eight day jury trial, of all 15 counts brought against him by a Federal Grand Jury stemming from his distribution of marijuana in office, carrying of a firearm during his drug trafficking offenses, and trying to have 2 witnesses against him in the drug case killed after he was arrested and was being held without bond in the Jackson County Jail. Martin, who remained sheriff while being held in federal custody because he refused to resign, was removed from office by the Gallatin County Board immediately following his convictions.
“Obviously, Martin failed to learn the most basic lesson of those holding office – that public service is a public trust.” said United States Attorney Wigginton. “The people of Gallatin County deserved better, and Martin, for all his corruption, deserves what he must face.”
Martin was originally sentenced in January 2011 to two consecutive life terms plus 10 years. He appealed the conviction and sentence. In August 2012, the Seventh Circuit Court of Appeals affirmed his conviction but vacated his sentence after it determined that an error in calculating his advisory sentencing range under the Federal Sentencing Guidelines had been committed. The appellate court remanded the case to the district court for resentencing.
At resentencing, the Court adopted and reiterated its statements and findings from the original sentencing hearing and also considered new information regarding the then-recent discovery that Martin had illegally obtained and smuggled prescription medication into the Williamson County Jail where he had been returned to await his resentencing. The Court again imposed the same two life sentences plus 10 years that it had previously given. The life sentences were imposed consecutively to each other and to the 10 year sentence.
In addition to the sentences of imprisonment, Martin was again ordered to forfeit his Junction, Illinois, residence (valued at over $200,000) and $76,090 in cash to the United States. He was also again ordered to pay the United States fines and special assessments totaling $51,500.
In their Order, the Seventh Circuit rejected any argument that the life sentences were unreasonable, noting that the district court offered an “exhaustive explanation for the . . . need to impose harsh punishment.” The Court further noted that the district court found in reimposing the life sentences that “Martin’s case was one of the ‘most severe’ it had ever seen and explained that, as a sheriff, Martin’s ‘betrayal of the public trust and the people that [he] was elected to serve . . . was unforgivable.” The Court also found significant that Martin’s “lack of remorse and refusal to accept responsibility for his crimes, as evidenced by his plotting to have witnesses murdered,” extended even to his post-sentencing efforts to smuggle illegal drugs into the Williamson County Jail. In light of all of this, the Court found that any argument that the sentences were unjustified would be “frivolous.”
Investigation into the drug aspect of the case was led by the Carmi office of the Illinois State Police/Southern Illinois Drug Task Force and the United States Attorney's Office with the assistance of the United States Drug Enforcement Administration, the Criminal Investigations Division of the Internal Revenue Service, the Mt. Vernon, Illinois Police Department, and the White County State's Attorney's Office.
Investigation into the witness tampering and financial structuring aspects of the case was led by the Jackson County Sheriff's Department and the United States Attorney's Office with the assistance of the Illinois State Police/Southern Illinois Drug Task Force, the IRS/CID, DEA, the Jackson County State's Attorney's Office, and the White County State's Attorney's Office.
Investigation into Martin's smuggling of prescription medication into the Williamson County Jail was conducted by the United States Marshals Service, the Illinois State Police, and the Williamson County Sheriff's Department.
The case was originally prosecuted by Assistant United States Attorneys James M. Cutchin and Michael C. Carr, who has since retired and is now the Jackson County States' Attorney. AUSA Cutchin handled the resentencing and Martin’s appeals.
Last of Armored Car Robbery Crew Pleads GuiltyRead the Press Release
ATLANTA - Quentin Booker who participated in five robberies of armored car couriers in the Metro Atlanta area, pleaded guilty today to the charges of aiding and abetting the armed robberies, and aiding and abetting the carrying and use of a firearm during the commission of those crimes of violence.
“These violent robberies terrorized the community,” said United States Attorney Sally Quillian Yates. “This is not the Wild West where robbers ride off into glory after a heist. This is reality. Violent criminals like these will be caught, and prosecuted, even the lookouts.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea brings some degree of closure to those many local, state and federal investigators and prosecutors who worked many long hours on this matter but the victims left in the wake of this violent robbery crew will live the rest of their lives with the scars inflicted by these robbers. The FBI will continue to work with its various law enforcement partners in ensuring that our streets are rid of such callous criminals.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant, Quentin Booker, was part of a group who robbed armored car couriers between October 7, 2010, and March 30, 2011. During the robberies, one or two gunmen would approach a courier after the courier made a cash pick-up from a location or as the courier was about to restock an ATM machine with cash. Other members of the robbery crew would act as lookouts during the robberies, with one being the designated getaway driver. Altogether, members of this crew were responsible for six robberies in which over $470,000 in cash was taken.
The evidence established that Booker specifically acted as a lookout during five robberies:
- The robbery of a Dunbar Armored courier just after he made a cash pick-up on October 7, 2010, at the Mex America Latino Services located in Marietta, Ga.
- The robbery of a Dunbar Armored courier who was restocking cash in an ATM machine on November 11, 2010, at a Bank of America located in Buford, Ga.
- The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on November 29, 2010, at a Wells Fargo Bank located in Snellville, Ga.
- The robbery of a Dunbar Armored courier who was heading to an ATM machine to restock it with cash inside the Mall of Georgia on December 7, 2010.
- The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on January 21, 2011, at a Wells Fargo Bank located in Stone Mountain, Ga. This courier was shot and seriously injured during the robbery.
In addition to these robberies, members of this robbery group, Stacey Dooley and Ashley Henderson, along with Ronnie Little committed a sixth armed robbery on March 15, 2011, outside the Kroger’s Grocery Store located on LaVista Road in DeKalb County, Ga. During the commission of that robbery, Garda Cash Logistics courier Gary Castillo was fatally shot after making a cash pick-up of $11,000.
Booker, 36, of Douglasville, Ga., pleaded guilty to five counts of Hobbs Act robbery (armed robbery of the couriers), and two counts of carrying and using a firearm during the commission of a violent crime.
In addition to Booker, the following persons have also entered guilty pleas as a result of their role in the robberies:
- Ashley Henderson, 29, of Snellville, Ga., pleaded guilty to six counts of Hobbs Act Robbery, two counts of carrying and using a firearm during the commission of a violent crime, and one count of causing the death of another through the use of a firearm.
- Stacey Dooley, 37, of Snellville, Ga., pleaded guilty to six counts of Hobbs Act robbery, one count of carrying and using a firearm during the commission of a violent crime, and one count of causing the death of another through the use of a firearm.
- Edwin Thornton, 31, of Atlanta, Ga., pleaded guilty to three counts of Hobbs Act robbery and one count of carrying and using of a firearm during the commission of a violent crime.
- Derrick Powell, 26, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Michael Johnson, 31, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Ronnie Little, 22, of Stone Mountain, Ga., pleaded guilty to one count of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Veronica Bullard, 35, of Lithia Springs, Ga., pleaded guilty to one count of Hobbs Act robbery.
- Desiree Jones, 29, of Snellville, Ga., pleaded guilty to two counts of unlawfully transferring a firearm knowing it would be used in a crime of violence.
Booker’s sentencing is scheduled for May 19, 2014, before United States District Judge Thomas W. Thrash.This case is being investigated by the Federal Bureau of Investigation with significant assistance and resources provided by the Gwinnett Police Department. Other departments providing invaluable assistance were the Gwinnett County District Attorney's Office, DeKalb County Police Department, the DeKalb County District Attorney's Office, Marietta Police Department, and the Cobb County District Attorney's Office.
Assistant United States Attorneys Tracia M. King and Jill E. Steinberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Justice Department Sues to Shut Down Chicago Tax PreparerRead the Press Release
The United States filed a lawsuit today to bar Barbara L. Garrett, a Chicago tax return preparer, from preparing federal tax returns for others, the Justice Department announced. The civil injunction suit alleges that Garrett, while working at multiple Chicago-area tax preparation businesses including Instant Tax Service, Preferred Financial and Income Tax Solutions, claimed fraudulent deductions and credits on her customers’ federal tax returns.
According to the complaint, Garrett prepared tax returns that falsely claimed deductions from fake businesses. In one case, the complaint alleges that Garrett prepared two tax returns for a Chicago Transit Authority bus driver that reported over $25,000 in combined losses from a non-existent transportation company Garrett asserted her customer owned. The customer did not own a transportation business, according to the complaint, or in fact any business, during the years Garrett prepared these returns.
Garrett also allegedly prepared tax returns for clients that included a number of other false or improper deductions for unreimbursed employee expenses, charitable contributions, medical expenses, childcare expenses, property taxes and education expenses. One example cited in the complaint includes a fake claim for childcare expenses which falsely identified Garrett as the childcare provider. In another example, Garrett allegedly claimed over $13,000 in fictitious medical expenses and over $2,200 in bogus property tax deductions on the same return.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2013. The IRS has tips for choosing a tax preparer on their website. In the past decade, the department's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Barbara L. Garrett
Complaint for Permanent Injunction and Other ReliefJustice Department Seeks to Shut Down Utah Tax PreparerRead the Press Release
The United States has asked a federal court in Salt Lake City to bar Rulon Sandoval, Andrea R. Acosta Hernandez and Latinos Office LLC from preparing tax returns for others, the Justice Department announced today. According to the complaint, the defendants have repeatedly prepared federal tax returns that understate their clients’ federal tax liabilities. The suit alleges that Sandoval, Acosta and persons working with them under the business name “Latinos Office” falsely claimed or inflated tax credits or fabricated deductions. The suit also alleges that the defendants submitted returns using false preparer identification numbers or otherwise improperly identified the returns’ preparers.
According to the complaint, the IRS has completed examinations of 47 returns prepared by Sandoval and his associates and that nearly all of those returns understated the filing taxpayer’s liability. The lawsuit alleges that the harm to the U.S. Treasury as a result of their conduct could be as much as $1 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Rulon Sandoval, et al.
Complaint for Permanent Injunction and Other ReliefJustice Department Files Lawsuit to Stop Delaware Woman from Preparing Tax ReturnsRead the Press Release
The Department of Justice filed a civil lawsuit in the federal court in Delaware today to enjoin Carmen J. Martinez and her business, CJM Bookkeeping and Taxes LLC, from preparing federal tax returns. According to the complaint, Martinez and her business, which is located in Wilmington, Del., have prepared more than 7,800 tax returns since 2010.
The complaint, filed with the U.S. District Court for the District of Delaware, alleges that Martinez understates her customers’ federal tax liabilities by preparing returns that contain false deductions, including unqualified dependents, the Child Tax Credit, the Additional Child Tax Credit and tax rate benefits derived from improper filing status as Head of Household or Married Filing Jointly. As a result, Martinez’s customers improperly received tax refunds of $5,000 each year on average. The complaint alleges that Martinez’s activities between 2010 and 2013 have cost the U.S. Treasury as much as $25 million in lost income tax revenue.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Carmen J. Martinez, et al.
Complaint for Preliminary and Permanent InjunctionJury Trial Cancelled as the Last of 39 Defendants Plead Guilty in Investigations of the Nuestra Familia Drug Trafficking OrganizationRead the Press Release
FRESNO, Calif. — The last five pending defendants in a series of huge cases targeting the Nuestra Familia organization pleaded guilty in U.S. District Court this week, U.S. Attorney Benjamin B. Wagner announced. Calixtro Israel Sanchez, aka Cali Killa, aka Cali, 26, of Hanford, pleaded guilty today to a drug trafficking offense. Jose Velez, aka Cisco, 31, of Delano; Felipe Ramirez, aka Casper, 33, of Visalia; Christopher Medrano, aka Bob, 32, of Hanford; and Florentino Acosta, of Mexico, all pleaded guilty earlier this week to drug trafficking offenses.
These five defendants are the last of 39 defendants to plead guilty to federal offenses in these coordinated cases. A jury trial that had been scheduled for March 11, 2014, has been vacated. All defendants were members or associates of the Nuestra Familia (NF). NF is a violent Hispanic prison gang based within the California prison system whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime throughout the Central Valley.
According to court documents, during 2009 and 2010, the NF trafficked in methamphetamine, distributing the drugs and collecting debts in Kings, Tulare, Kern, Stanislaus, Merced, Madera and Fresno Counties. The NF obtained large shipments of methamphetamine from Mexico and distributed it among NF regiments throughout California and elsewhere. Some of the profits of the trafficking funded NF members in prison in order to maintain the NF’s power structure within the prison system.
“Numerous federal, state and local law enforcement agencies in this region came together to take on one of the most dangerous gangs in California,” said U.S. Attorney Wagner. “That battle will continue, but the guilty pleas taken this week are a major step forward in protecting the communities of the Central Valley from the violent drug traffickers of the Nuestra Familia.”
“Organized prison gangs and other criminals who traffic drugs are responsible for increased violence in our communities,” stated Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “This investigation is a prime example of teamwork and superior collaboration among many law enforcement agencies with a successful investigative conclusion and prosecution.”
Twenty-six of the defendants who have pleaded guilty have already been sentenced to prison. Nine of them received sentences of between 10 and 16 years in prison, while the remaining 17 have received sentences of between four and 10 years in prison. Parole has been abolished in the federal system, and all defendants will be required to serve at least 85 percent of the prison time imposed.
This case is the product of an extensive series of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the DEA; Kings County Narcotic Task Force; the California Department of Justice; and the California Department of Corrections and Rehabilitation. Numerous local law enforcement agencies played key roles in the investigations, including the Police Departments of Hanford, Lemoore, Visalia, Los Banos, and Corcoran, the Kings County Sheriff’s Office, the California Highway Patrol, and the U.S. Marshals Service. Assistant United States Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, and Melanie L. Alsworth are prosecuting the cases.
Calixtro Sanchez is scheduled to be sentenced by Judge O’Neill on April 21, 2014. Jose Velez is scheduled to be sentenced by Judge O’Neill on April 28, 2014. Felipe Ramirez, Christopher Medrano, and Florentino Acosta are scheduled to be sentenced by Judge O’Neill on April 21, 2014. The defendants face a maximum statutory penalty of life in prison and a mandatory minimum of 10 years in prison and a $4 million fine. The actual sentences, however, will 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.
Juicio Por Jurado Es Cancelado Pues El Ultimo De Los 39 Acusados Se Declara Culpable En Las Investigaciones De La Organizacion De Trafico De Drogas Nuestra FamiliaRead the Press Release
FRESNO, Calif. — Los últimos cinco acusados con juicio pendiente en una serie de casos importantísimos dirigidos a la organización Nuestra Familia se declararon culpables esta semana en el Tribunal Federal de Distrito de los EE.UU., anunció el procurador federal del distrito oriental de los EE.UU. Benjamín B. Wagner. Calixtro Israel Sanchez, alias Cali Killa, alias Cali, 26, de Hanford, se declaró culpable hoy de un delito de tràfico de drogas. Jose Velez, alias Cisco, 31, de Delano; Felipe Ramirez, alias Casper, 33, de Visalia; Christopher Medrano, alias Bob, 32, de Hanford y Florentino Acosta, de Mexico, todos se declararon culpables a principios de esta semana de delitos de tràfico de drogas.
Estos cinco acusados son los últimos entre 39 acusados que se han declarado culpables de delitos federales en estos casos coordinados. El juicio por jurado que estaba programado para el 11 de marzo de 2014 ha sido cancelado. Todos los acusados eran miembros o asociados de Nuestra Familia (NF). NF es una violenta ganga carcelaria hispana con base dentro del sistema de prisiones de California y cuyos miembros ejercen el control sobre los miembros de la ganga callejera Norteño que participan en el tràfico de drogas y crímenes violentos en toda la región de Central Valley.
De acuerdo con los documentos judiciales, durante el 2009 y 2010 la NF traficó metanfetamina por medio de la distribución de la droga y cobrando deudas en los condados de Kings, Tulare, Kern, Stanislaus, Merced, Madera y Fresno. La NF obtuvo grandes cargamentos de metanfetamina provenientes de México y los distribuyó entre los grupos de la NF en California y otros lugares. Algunas de las ganancias de este tràfico sirvieron de financiamiento para los miembros presos para poder mantener la estructura de poder dentro del sistema de prisiones.
“Muchas agencias federales, estatales y locales en esta región colaboraron para hacerle frente a una de las gangas màs peligrosas de California”, dijo Wagner, el procurador federal del distrito oriental de California. “Esa batalla continuarà, pero las declaraciones de culpabilidad tomadas esta semana son un paso importante para proteger a las comunidades del Central Valley de los violentos traficantes de la organización Nuestra Familia.”
“Las gangas carcelarias organizadas y otros criminales que trafican drogas son responsables por el aumento en la violencia en nuestras comunidades”, dijo Joseph M. Riehl, agente encargado especial de la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos. “Esta investigación es un ejemplo excelente del trabajo en equipo y colaboración superior entre muchas agencias del orden público con una conclusión exitosa de investigación y enjuiciamientos.”
Veintiséis de los acusados que se declararon culpables ya han sido sentenciados a prisión. Nueve de ellos recibieron sentencias de entre 10 y 16 años en prisión, mientras que los 17 restantes han recibido sentencias de entre cuatro y 10 años en prisión. En el sistema federal se ha abolido la libertad condicional, y todos los acusados tendràn que servir por lo menos el 85 por ciento del tiempo de prisión que se les ha impuesto.
Este caso es producto de una serie extensa de investigaciones de la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos; el FBI, la DEA; el Grupo de Trabajo de Narcóticos del condado de Kings; el Departamento de Justicia de California y el Departamento de Corrección y Rehabilitación de California. Muchas agencias del orden público locales tuvieron una función importante en las investigaciones, incluyendo los Departamentos de Policía de Hanford, Lemoore, Visalia, Los Banos, y Corcoran, la oficina del Alguacil del condado de Kings, la Patrulla de Carreteras de California y el Servicio de Alguaciles Federales de los EE.UU. Las ayudantes del procurador federal del distrito oriental de California, Kimberly A. Sanchez, Kathleen A. Servatius y Melanie L. Alsworth estàn procesando los casos.
La sentencia de Calixtro Sanchez està programada ante el Juez O’Neill quien lo sentenciarà el 21 de abril de 2014. La sentencia de Jose Velez està programada ante el Juez O’Neill quien lo sentenciarà el 28 de abril de 2014. Las sentencias de Felipe Ramirez, Christopher Medrano y Florentino Acosta estàn programadas ante el Juez O’Neill quien los sentenciarà el 21 de abril de 2014. Los acusados se enfrentan a una pena mandada por estatuto de un màximo de prisión de por vida y un mínimo obligatorio de 10 años en prisión y una multa de $4 millones. Sin embargo, las sentencias realmente impuestas se determinaràn a discreción del tribunal después de considerar los factores de sentencia mandados por estatuto que apliquen y las Guías Federales de Sentencia, que toman en cuenta ciertas variables.
Honduran Man Sentenced to 27 Years in Prison for Sex Offenses Against Two Native American FemalesRead the Press Release
TUCSON, Ariz – On Feb. 7, 2014, Hernan Ramirez-Ortega, 39, of Honduras was sentenced by U.S. District Judge Cindy K. Jorgensonto 27 years in prison as the result of his guilty pleas to one count each of aggravated sexual abuse and abusive sexual contact. Ramirez-Ortega admitted sexually assaulting an 11-year-old Tohono O’odham girl in March of 2010 while he was living on the Tohono O’odham Nation, and sexually abusing another adult female who is a member of, and was living on, the Gila River Indian Reservation in August of 2010.
“The United States takes very seriously the victimization of Native American women. The nearly three year effort to bring Mr. Ramirez-Ortega to justice is a reflection of that resolute commitment,” said U.S. Attorney John S. Leonardo.
After Ramirez-Ortega completes his 27 year prison sentence, he will be immediately deported to Honduras. He will also be placed on 20 years of federal supervision, which includes a prohibition against his return to the United States.
The investigation in this case was conducted by the Tohono O’Odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-2307-TUC-CKJ; CR-12-1295-TUC-CKJ
RELEASE NUMBER: 2014-010_Ramirez-OrtegaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Hillsborough County Man Charged in Federal Court for Transportation and Receipt of Child PornographyRead the Press Release
Tampa, FL –United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Jonathan Newhall (28, Brandon) with transportation and receipt of child pornography. If convicted, Newhall faces a mandatory minimum penalty of 5 years, up to a maximum penalty of 20 years in federal prison on each count.
According to the indictment, between May 2013 and January 2014, Newhall transported and received child pornography over the Internet. On January 10, 2014, a federal search warrant was executed at Newhall’s residence. Numerous images and videos of child pornography were found in his e-mail account, on his iPhone, and on his computer.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation, Hillsborough County Sheriff’s Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Herndon Man Charged with Theft of Insurance FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that criminal charges have been filed in U.S. District Court in Williamsport against Derl Knarr of Herndon, Pennsylvania.
According to United States Attorney Peter J. Smith, Knarr, age 55, is charged in a one-count felony Information with stealing insurance funds while he worked for Allstate Financial Services. The thefts are alleged to have occurred between 2006 and 2012, and total over $630,000.
The investigation was conducted by the Federal Bureau of Investigation, State College Resident Office. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine of over $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Hartford Woman Sentenced to 20 Months in Prison for Role in Heroin Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NORMA TORRES, 56, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 20 months of imprisonment, followed by three years of supervised release, for her role in a heroin trafficking ring.
According to court documents and statements made in court, this matter stems from “Operation Solid Sweep,” a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a drug trafficking organization headed by Angel Rosa, also known as “Little” and “Daddy, who is a member of the Los Solidos street gang. Rosa’s cousin, Angel Rosa, also known as “Mo Betta” and “Fab,” supervised the daily operations of the organization, which distributed heroin and other narcotics in the Zion Street area.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that TORRES assisted the conspiracy by allowing her apartment, located at 592 Zion Street, to be used as a “stash house,” storing five to 15 stacks of heroin at her residence every day. A stack of heroin consists of 100 dose bags, with each bag containing approximately .025 grams of heroin.
TORRES was arrested on April 11, 2013. On November 14, 2013, she pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute heroin.
Angel Rosa, aka “Little” and “Daddy,” and Angel Rosa, aka “Mo Betta” and “Fab,” have each pleaded guilty and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Hartford Crack Dealer Sentenced to Eight Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUSTIN POWELL, also known as “Jus,” 32, of Hartford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 96 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, one of the main targets of the investigation was Dementrius Nave, a member of the AVE street gang with a lengthy criminal history. POWELL, who is not believed to be a member of the AVE, conspired with Nave and others to distribute crack cocaine and other narcotics in Hartford’s Northeast neighborhood. POWELL and Nave would pool money to acquire narcotics and would serve customers for each other.
POWELL has been detained since his arrest on February 10, 2012. On that date, investigators conducted a traffic stop of a vehicle in which POWELL was a passenger after they observed what appeared to be a narcotics exchange. POWELL was on state parole at the time and was wearing a monitoring bracelet. A subsequent search of POWELL’s residence revealed 63 bags of heroin, which were stamped “Super Bowl XLVI,” and a scale with white-powder residue that tested positive for the presence of cocaine.
On November 4, 2013, POWELL pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
POWELL’s criminal history includes multiple convictions for sale of narcotics, violation of probation, violation of protective order and assault.
Nave has pleaded guilty and awaits sentencing.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Harrisburg Man Sentenced to 108 Months in Federal Firearms CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl E. Murphy, Jr., a 33 year old resident of Harrisburg, PA, was sentenced yesterday by Senior U.S. District Court Judge Sylvia H. Rambo, following Murphy’s guilty plea to Possession of a Firearm by a Convicted Felon.
On August 29, 2013, Murphy pled guilty to possessing a loaded firearm in Harrisburg on March 7, 2012 and on October 13, 2012. Murphy has multiple prior felony convictions making him ineligible to possess a firearm.
According to United States Attorney Peter J. Smith, Judge Rambo sentenced Murphy to 108 months (9 years) incarceration to be followed by three years of supervised release and a fine of $500 for the firearms conviction.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Police Bureau and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
****Harrisburg Doctor Charged with Distribution of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that child pornography distribution charges were filed against David H. Scanlan III. Scanlan, 38, of Harrisburg, was charged with one count of distribution of child pornography in a criminal Information filed today in U.S. District Court in Harrisburg.
According to U.S. Attorney Peter Smith, Scanlan is charged with distributing child pornography over the internet between May and June 2011. The charges stem from an investigation by the Internet Crimes Against Children Task Force, Pennsylvania State Police, and U.S. Department of Homeland Security, Homeland Security Investigations. At the time of the offense, Scanlan was a physician specializing in pediatric oncology. He has surrendered his medical license.
Along with the Information, a plea agreement was filed in which Scanlan agrees to plead guilty to the child pornography distribution charge. The plea agreement must be approved by the court. Scanlan faces a minimum of five and a maximum of 20 years in prison and a $250,000 fine, Smith said.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigation by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Greenwich Nail Salon Owner Sentenced for Currency Structuring and Immigration OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAE HEE YANG, formerly known as Jae Hee Yang Kim, 58, of Englewood, N.J., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to three years of probation for currency structuring and immigration offenses. YANG was also ordered to forfeit $100,000 and perform 150 hours of community service.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, YANG is the sole owner of Tip Top Nails, Inc., a nail salon located in Old Greenwich, Conn. Between May and September 2009, YANG made 15 cash withdrawals in increments ranging from $4,000 to $8,000 and totaling $100,000, from a bank in New Jersey where she maintained a business checking account. The currency was generated from the operation of Tip Top Nails. At the time, YANG knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting her financial transactions in amounts less than $10,001, she intended to evade the transaction reporting requirements.
In addition, Tip Top Nails employed individuals who were unauthorized aliens not permitted to work in the U.S., paid the aliens in cash rather than by check as it did with legal employees, and transported the aliens between New York and Greenwich daily.
On August 28, 2012, YANG pleaded guilty to one count of structuring currency transactions to evade reporting requirements and one count of employing an unauthorized alien.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Government Contractor Pays $229,060 to Resolve Allegations of Improper ClaimsRead the Press Release
HONOLULU – J.M. Waller Associates, Inc. (“JMWA”), a corporation headquartered in Fairfax, Virginia, will pay $229,060 to settle certain civil claims under the federal False Claims Act in an agreement signed on February 5, 2014. The United States had alleged that JMWA submitted false or fraudulent claims for payment to the United States Air Force in connection with a professional services contract which required JMWA to provide design architect-engineering services and inspection services in connection with various construction projects located on Joint Base Pearl Harbor-Hickam in Honolulu.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the settlement agreement, the United States alleged that during the period from October 1, 2008, through November 30, 2010, JMWA submitted false or fraudulent claims for payment that included (1) JMWA’s alleged use of inappropriate labor categories and billing rates for certain tasks; (2) JMWA’s alleged billing for inspection services on days when no construction had been performed; and (3) JMWA’s billing of time charged to a particular task order for work that allegedly was outside the scope of that task order. While JMWA agreed to the settlement, it did not admit that the allegations were correct.
USA Nakakuni noted that under the federal False Claims Act, the United States can seek up to triple damages, plus penalties, for false and fraudulent claims for payment that are submitted in connection with all government contracts: She stated: “As the Air Force and our other military services enter into thousands of contracts for goods and services in support of our military efforts both at home and abroad, we will work tirelessly with our military law enforcement partners to protect the taxpayers’ money and combat procurement fraud.”
This civil investigation was initiated after the Air Force contracting office identified billing discrepancies while processing claims submitted by JMWA. The investigation, conducted by the Air Force Office of Special Investigations, included a review of thousands of pages of documents and numerous witness interviews during the course of the three-year investigation. The Defense Contract Audit Agency auditors and Air Force contracting officers shared their expertise and provided critical support to the investigation. The case was handled by Assistant U.S. Attorney Rachel Moriyama.
Geneva Man Convicted of Transporting and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that, following a jury trial, JOSEPH VINCENT JENKINS, (43, of Geneva, New York) was found guilty in U.S. District Court in Syracuse, N.Y. of the felony offenses of Transportation of Child Pornography, in violation of Title 18, United States Code, Section 2252A(a)(1) and 2256(8)(A), and Possession of Child Pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B) and 2256(8)(A). JENKINS is facing a statutory mandatory minimum sentence of 5 years and a maximum sentence of twenty years imprisonment for the Transportation of Child Pornography offense, for the Possession of Child Pornography charge a maximum sentence of imprisonment of ten years; a term of supervised release of at least five years and up to lifetime supervision, a maximum fine of $250,000.00 and mandatory registration as a sex offender. JENKINS is scheduled to be sentenced on June 17, 2014, before Judge Glenn T. Suddaby, in Syracuse, New York.
“Consumers of child pornography re-victimize the children abused by these horrific crimes and create demand for more of this material”, said Nicholas DiNicola, assistant special agent in charge of HSI Albany. “HSI special agents will continue to work with our partners on both sides of the border to identify these criminals and ensure they are brought to justice.”
United States Attorney Richard S. Hartunian said “This case should serve as a warning to those who download child pornography over the internet with the belief that they will never be caught. We will continue to pursue these offenders and prosecute them in the courts of the United States.”
JENKINS was arrested on May 24, 2009, at the Port of Lansdowne in Ontario, Canada, when he crossed the United States-Canadian border with a laptop and two thumb drives containing images and videos of child pornography. JENKINS was charged in Canada and failed to appear at his trial. A bench warrant was issued for his arrest by the Ontario Court of Justice. Federal Agents with Homeland Security Investigations took the case after a referral from the Ontario Provincial Police as the defendant entered the Port of Lansdowne from Jefferson County, New York, and had transported and possessed child pornography in the Northern District of New York before entering Canada.
This prosecution resulted from an investigation conducted by Homeland Security Investigations, Canada Border Services Agency, and Ontario Provincial Police. The case was prosecuted by Assistant United States Attorneys Tamara B. Thomson and Gwendolyn Carroll. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Gallatin County Woman Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
Angela Seavers, 35, of Ridgeway, Illinois, was sentenced today in United States District Court in Benton to a term of 37 months in prison for conspiring with others to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Seavers pled guilty on October 24, 2013, to conspiring with Dustin J. Lowe, 25, also of Ridgeway, and others, between February 2012 and March 2013 to illegally manufacture the drug.
Lowe also pled guilty to the conspiracy charge on December 13, 2013, and is currently scheduled for sentencing on April 3rd at 10:00 a.m. at the United States District Courthouse in Benton.
In addition to the 37 month term, Seavers was ordered to pay fines and special assessments totaling $200 and was placed on a 3 year term of supervised release to follow her incarceration. Under federal law, parole has been abolished, meaning that Seavers will be required to serve a minimum of 85% of her sentence.
Seavers has been held in the custody of the United States Marshal since her bond was revoked in September. She was again remanded to the custody of the Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Fort Worth Man Sentenced to Nearly 22 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — Dwight L. Looney, 62, was sentenced today by U.S. District Judge John McBryde to 262 months in federal prison following his guilty plea in October 2013 to one count of production of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, in May 2010, Looney knowingly used, persuaded and enticed “Jane Doe” to engage in sexually explicit conduct, and Looney used a digital camera to take a still image of that conduct. Jane Doe was younger than 16 years old at the time.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Aisha Saleem prosecuted.
Former Usps Facilities Project Manager Pleads Guilty to Bribery, Fraud and Tax ChargesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Tom Frost, Special Agent in Charge of the United States Postal Service Office of Inspector General, Major Fraud Investigations Division, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and John Collins, Acting Special Agent in Charge, Internal Revenue Service – Criminal Investigation, announced that former U.S. Postal Service employee ROBERT GIULIETTI, 57, of Cheshire, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to bribery, fraud and tax offenses.
According to court documents and statements made in court, GIULIETTI was a Facilities Project Manager for the U.S. Postal Service (USPS) at the USPS Northeast Facilities Office in Windsor, Conn. GIULIETTI’s duties included recommending and selecting facilities improvement contractors, reviewing and approving bids received from those contractors for USPS work, certifying the completion of work by contractors and approving payment authorizations. In pleading guilty, GIULIETTI admitted that he accepted approximately $89,000 from two contractors to direct inflated USPS facilities construction contracts to them.
Also, in approximately September 2009, GIULIETTI formed MGC LLC to do business with the USPS on projects on which he worked. MGC was owned in name by GIULIETTI’s wife, and its business address was his home address in Cheshire. Operating MGC from his USPS office in Windsor, GIULIETTI used his position to direct USPS contracts to MGC, to approve MGC’s work and to authorize payment to MGC for work. After GIULIETTI directed USPS contracts to MGC, he engaged other contractors to perform the actual work involved with the project. GIULIETTI generated almost a million dollars in profit by having MGC charge USPS more than MGC had to pay the contractors who performed the actual work.
Between November 2009 and November 2011, GIULIETTI directed more than 150 USPS facility projects to MGC, causing a loss to the USPS of approximately $982,064.68.
GIULIETTI also filed false federal income tax returns for the 2008 through 2011 tax years by fraudulently deducting payments from MGC to members of his family, and by not reporting the corrupt payments that he received.
“This defendant was a corrupt federal employee who perpetrated a multifaceted and brazen scheme that defrauded the Postal Service of nearly a million dollars,” stated U.S. Attorney Daly. “I commend the USPS Office of Inspector General, the Connecticut FBI and IRS-Criminal Investigation for their excellent work in this investigation, which included the seizure of significant assets of approximately $740,000 in cash and a house in Cheshire.”
“The Office of Inspector General will continue to pursue instances in which contractors and employees attempt to take advantage of the Postal Service and commit fraud,” stated Special Agent in Charge Frost. “This should serve notice to all contractors and employees that such conduct, as perpetrated by Mr. Giulietti in this case, will be fully investigated.”
GIULIETTI was arrested on December 13, 2012. Today, he pleaded guilty to one count of bribery of a public official, one count of wire fraud and one count of filing a false tax return.
Judge Underhill scheduled sentencing for May 2, 2014, at which time GIULIETTI faces a maximum term of imprisonment of 38 years.
GIULIETTI has agreed to pay restitution in the amount of $882,064.68, and back taxes penalties and interest in the amount of $291,026.82. The government is seeking the forfeiture of a residence GIULIETTI owns on South Pond Circle in Cheshire, and approximately $740,000 that has been seized from bank accounts.
U.S. Attorney Daly noted that the investigation is ongoing.
This case is being investigated by the U.S. Postal Service, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Mayor of Manalapan, N.J., Arrested for Mortgage Fraud, Identity Theft, and Obstruction of JusticeRead the Press Release
Indictment Alleges Former Mayor Defrauded Investment Client of $250,000 and Submitted Falsified Tax Returns in Order to Purchase Farm in Manalapan
TRENTON, N.J. – The former mayor of Manalapan, N.J., was arrested today on charges that he falsified his 2007 and 2008 tax returns in order to purchase a farm property in Manalapan and that he provided federal investigators and a federal grand jury with a fabricated document in 2013, U.S. Attorney Paul J. Fishman announced.
Andrew Lucas, 36, was arrested as a result of an 11-count indictment charging him with wire fraud, illegal monetary transaction, loan application fraud, false statements to the IRS, aggravated identity theft, obstruction of a grand jury investigation and falsification of records in a federal investigation. Lucas is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to the indictment unsealed today:
On Dec.15, 2009, Lucas submitted a loan application to a New Jersey bank requesting $525,000 to finance his purchase of the Burke Farm property in Manalapan. Lucas provided the bank with falsified versions of his 2007 and 2008 tax returns, as well as a falsified version of a 2007 tax return for a relative whose name was also on the loan application. Lucas also falsely reported that he had a total of $210,000 in cash.
Lucas owned and operated Lucas Capital Advisors LLC (Lucas Capital), through which he served as an investment advisor and manager to multiple individuals. To obtain the $250,000 down payment for the property, Lucas approached “Victim 1,” who was a client of Lucas Capital, to pitch an investment in an entity called VLM Investments LLC (VLM). On Feb. 15, 2010, Lucas presented a written note to Victim 1, which stated that the $250,000 investment was to be secured by “…interest in the equipment, fixtures, inventory and accounts receivable” of VLM. However, Lucas failed to inform Victim 1 that at the time the note was signed, VLM did not exist. Lucas also failed to disclose to Victim 1 that Lucas intended to make personal use of the funds. It was not until three days later, on Feb. 18, 2010, that Lucas created VLM by registering it with the State of New Jersey and the IRS, using the name and Social Security number of Lucas’s out-of-state relative, “Victim 2,” without Victim 2’s knowledge or permission.
On Feb. 22, 2010, Lucas wired $250,000 from Victim 1’s Lucas Capital investment account to a VLM bank account that had Lucas as the only authorized signer. On March 1, 2010, Lucas withdrew this money in the form of a bank check, which he provided the next day to the closing attorney for the purchase of the Burke Farm property.
Lucas also filed tax returns for VLM for tax years 2011 and 2012, both times listing Victim 2’s name and Social Security number without Victim 2’s knowledge or permission.
Federal investigators served Lucas with subpoenas on Feb. 7, 2013, for the records of VLM and Lucas Capital Advisors. In response, Lucas provided federal authorities with a fabricated and back-dated letter purporting to be from Victim 2 concerning a transaction for the purchase of the Burke Farm property.
The counts of wire fraud and falsification of records in a federal investigation are each punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Loan application fraud is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Illegal monetary transaction and obstruction of a grand jury investigation are each punishable by a maximum potential penalty of 10 years. Each of the charges of false statements to the IRS is punishable by a maximum potential penalty of five years in prison. Aggravated identity theft is punishable by a mandatory prison term of two years, to be run consecutive to any other sentence.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and investigators with the U.S. Attorney’s Office, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton and Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Special Prosecutions Division in Newark.The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Mario F. Gallucci Esq., Staten Island, N.Y.
Lucas Indictment
Former Jarrell Police Chief Pleads Guilty to Federal Bribery ChargeRead the Press Release
Former Jarrell (TX) Police Chief Andres Tomas Gutierrez, age 51, faces up to 20 years in federal prison after pleading guilty this morning to a wire fraud/theft of honest services charge announced United States Attorney Robert Pitman; Homeland Security Investigations (HSI) Special Agent In Charge Janice Ayala in San Antonio; Department of Homeland Security Office of Inspector General–Investigations Special Agent In Charge J. Kirk Beauchamp in Houston; and Federal Bureau of Investigation Acting Special Agent In Charge John Boles, San Antonio Division.
Appearing before United States Magistrate Judge Mark Lane in Austin this morning, Gutierrez admitted that from the Fall of 2011 to November 2013, he devised a scheme to defraud and deprive the citizens of Jarrell of their right to his honest services through bribery and concealment of information.
“Gutierrez solicited and accepted cash bribes—between $10,000 and $40,000—from several undocumented aliens in return for requesting and obtaining for the aliens limited immigration benefits that the U.S. government intended and designed for law enforcement purposes,” stated U.S. Attorney Robert Pitman. “Gutierrez falsely represented to the U.S. government that the undocumented aliens were assisting the Jarrell Police Department with ongoing investigations into narcotics trafficking and human trafficking,” Pitman added.
According to court records, individuals unconnected to the City of Jarrell and its Police Department introduced Gutierrez to undocumented aliens who had money to pay for immigration benefits. Gutierrez or the individuals who made the introductions, or both, then met with the aliens and explained the benefits they could receive if they paid certain amounts of money. They lied to the aliens, telling them that the Jarrell Police Department would receive the money and use it to pay for law enforcement operations. They also told the aliens that they would provide information or assistance to the Jarrell Police Department, for use in criminal investigations, in return for the immigration benefits. That was also a lie. Gutierrez never asked the aliens to provide assistance or information in connection with criminal investigations. What Gutierrez asked for and received from the aliens was money.
Furthermore, with the help of the individuals who introduced him to the aliens, Gutierrez simply sold the aliens the benefits. After an alien paid his or her money, Gutierrez would submit to the U.S. government an application for the alien to receive what is known as a Significant Public Benefit Parole, which is a type of immigration status that federal immigration laws make available to aliens who actually assist federal, state and local law enforcement agencies. The Paroles authorize an alien to reside and work in the United States for up to a year, and they can be renewed. The applications that Gutierrez submitted said the aliens were providing assistance with ongoing criminal investigations by the Jarrell Police Department, which was false. Also, the Defendant never disclosed to the United States government that he was selling the Paroles.
“Today’s guilty plea serves as a stern and sobering reminder that no one is above the law especially those who hold a position of public trust,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “HSI will continue to work with its law enforcement partners to root out public corruption wherever it exists.”
“Acts of corruption within law enforcement threaten our nation’s system of justice and undermine the honest and hardworking law enforcement personnel who consistently strive to keep that system the best in the world. The Department of Homeland Security will not tolerate corruption, and we will aggressively pursue those who choose to break the law,” stated DHS OIG SAC J. Kirk Beauchamp,
“Gutierrez abused his authority and repeatedly broke the law he was sworn to uphold. He tarnished the badge he wore and violated the trust of the people of Jarrell. This case demonstrates the FBI's commitment to enforce the law and hold individuals accountable, regardless of rank, position, or status,” stated FBI Acting Special Agent In Charge John Boles.
Gutierrez is out on bond pending sentencing. No sentencing date has been scheduled.
This investigation was conducted by agents with Homeland Security Investigations, Department of Homeland Security Office of Inspector General--Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Alan M. Buie and Gregg N. Sofer are prosecuting this case on behalf of the Government.
The government’s investigation into the bribery scheme is ongoing. Anyone who has pertinent information should call one of the following: the FBI at (512) 506-2136; HSI at (512) 801-1862; or, the DHS Office of Inspector General at (713) 212-4305.
Former Employee of Federal Contractor Pleads GuiltyTo Disclosing National Defense InformationRead the Press Release
WASHINGTON – Stephen Jin-Woo Kim, a former Lawrence Livermore National Laboratory (LLNL) employee, pleaded guilty today in the District of Columbia in connection with his unauthorized disclosure of national defense information.
At a hearing before U.S. District Judge Colleen Kollar-Kotelly, Kim pleaded guilty to one count of making an unauthorized disclosure of national defense information. The plea agreement, which is contingent upon the Court’s approval, calls for Kim to be sentenced to 13 months in prison, to be followed by a year of supervised release. If the plea is accepted, Kim is to be sentenced on April 2, 2014.
The guilty plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Kim, 46, worked as an LNLL employee on detail to the State Department’s Bureau of Verification, Compliance and Implementation (VCI) at the time of the disclosure. At the time, Kim worked as a Senior Advisor for Intelligence to the Assistant Secretary of State for VCI. According to court documents, on June 11, 2009, Kim knowingly and willfully disclosed TOP SECRET/SENSITIVE COMPARTMENTED INFORMATION (TS/SCI) national defense information to a reporter.
The information concerned the military capabilities and preparedness of North Korea and was contained in an intelligence report classified at the TS/SCI level that Kim accessed on a classified computer database. Within hours of the disclosure, the news organization published an article on the Internet that included the TS/SCI national defense information that Kim had disclosed.
“Today Stephen Kim admitted to violating his oath to protect our country by disclosing highly classified intelligence about North Korea’s military capabilities,” said U.S. Attorney Machen. “Stephen Kim admits that he wasn’t a whistleblower. He admits that his actions could put America at risk. Within hours of the dissemination of a top secret intelligence report about North Korea, he exposed its secrets, which were then broadcast to the world. As this prosecution demonstrates, we will not waver in our commitment to pursuing and holding accountable government officials who blatantly disregard their obligations to protect our nation’s most highly guarded secrets.”
“Mr. Kim was entrusted with a Top Secret security clearance, which included a responsibility to protect classified national defense information. Instead, he knowingly disclosed that material to someone not authorized to receive it,” said Assistant Director in Charge Parlave. “Today, as the result of the hard work of dedicated Special Agents, analysts and prosecutors, Mr. Kim has taken responsibility for his illegal action.”
Kim was indicted in August 2010. According to the court documents that were filed today, Kim admitted that he did not believe that he was exposing government waste, fraud, abuse, or any other kind of government malfeasance or misfeasance. Further, Kim admitted that he had reason to believe that his unauthorized disclosure could be used to the injury of the United States or to the advantage of a foreign nation. Finally, he acknowledged that he was never authorized, directly or indirectly, by the United States Government to communicate any national defense information to the media.
This investigation was conducted by the FBI’s Washington Field Office. The prosecution was handled by Assistant U.S. Attorneys G. Michael Harvey, Jonathan M. Malis, and Thomas A. Bednar of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Deborah A. Curtis and Julie A. Edelstein of the Counterespionage Section of the Justice Department’s National Security Division.
14-035Former City of Miami Police Officer Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Manuel Orosa, Chief, City of Miami Police Department (MPD), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Malinsky Bazile, 28, of North Miami Beach, was sentenced today for his participation in a stolen identity tax refund scheme. Bazile was sentenced to 144 months in prison, to be followed by three years of supervised release and ordered to pay restitution in the amount of $140,000.
Bazile was convicted by a jury of one count of fraudulent use of unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(2), four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of exceeding authorized access to a protected computer, in violation of Title 18, United States Code, Section 1030(a)(4), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).
According to testimony and evidence presented at trial, the defendant operated an identity theft tax refund scheme from January 2012 to October 2012. During that period, the defendant, while employed as a City of Miami Police Officer, used his access to the Florida driver's license database to steal the personal identity information of approximately seven hundred middle-aged women with common last names throughout the State of Florida. Using those identities, the defendant filed false and fraudulent tax returns with the Internal Revenue Service seeking refunds payable to pre-paid debit cards. The defendant was captured on multiple bank ATM videos withdrawing money from pre-paid debit cards loaded with fraudulent tax refund proceeds. FBI and MPD conducted a search at the defendant's residence and found ledgers in a safe filled with hundreds of people’s identities and several pre-paid debit card containers. The defendant admitted to FBI and MPD that he made between $130,000 to $140,000 from the fraud scheme in 2011 and 2012.
Mr. Ferrer commended the FBI, MPD, and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Peter Forand.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Chiropractor Convicted of Tax FraudRead the Press Release
Last night, following a trial that began on Jan. 29, 2014, a federal jury convicted David Moleski, formerly of Neptune, N.J., of 14 counts of mail fraud, one count of wire fraud, one count of corruptly endeavoring to obstruct and impede Internal Revenue laws and three counts of submitting false claims for tax refunds, the Justice Department and Internal Revenue Service (IRS) announced.
According to the evidence introduced at trial, Moleski, a former chiropractor, submitted three false tax returns in 2009 for the tax years 2006 through 2008 that collectively requested over $1.3 million in income tax refunds to which he was not entitled. Prior to filing these returns, Moleski failed to file tax returns from 1999 through 2005, even though he was legally required to file. When the IRS assessed taxes for those years and began collecting, Moleski obstructed the collection efforts and demanded that a third-party financial institution not comply with the IRS levy. In addition, Moleski attempted to pay credit card bills and other debts with fake financial instruments that claimed to draw on an account at the U.S. Treasury that did not actually exist. For instance, Moleski sent a fake financial instrument for $500,000 in alleged payment of a mortgage debt.
U.S. District Judge Freda L. Wolfson of the District of New Jersey scheduled sentencing for May 21, 2014. David Moleski faces more than 30 years in prison and fines of $250,000 per count of conviction.
Assistant Attorney General Kathryn Keneally of the department’s Tax Division commended the special agents of IRS - Criminal Investigation who investigated the case, as well as Trial Attorneys Tino M. Lisella and Yael Epstein for the Tax Division who prosecuted the case. Assistant Attorney General Keneally also thanked U.S. Attorney Paul J. Fishman for the District of New Jersey and his entire office for their assistance.
Fifteen People Arrested and Charged in Drug ConspiracyRead the Press Release
St. Louis, MO – Five local men and ten out-of-state associates have been arrested on charges involving a conspiracy to distribute large amounts of cocaine and methamphetamine in the St. Louis area and New Mexico, along with money laundering of the proceeds of the illegal activity.
According to the indictment, ALPHONSO EDUARDO GONZALES of Albuquerque, New Mexico, is charged with engaging in a Continuing Criminal Enterprise between 2009 and November 2013. The indictment alleges that Gonzales committed a series of violations of federal drug statutes by transporting large quantities of cocaine, methamphetamine and marijuana from Albuquerque to other cities, including St. Louis. Fourteen associates are charged on multiple drug conspiracy and money laundering charges as part of the Gonzales criminal enterprise.
Charged locally are Floyd Huntley, Jr. of St. Ann; Jonathan Arnez Spencer of Ferguson; Orlando James Allen of St. Louis; Dallas Wayne Lane of St. Louis; and David Michael Young of St. Louis. The defendants were arrested Thursday and are expected to appear in federal court on Monday, February 10.If convicted, defendant Alphonso Gonzales is subject to a minimum mandatory term of imprisonment of 20 years for the Continuing Criminal Enterprise. Other charges carry penalties ranging from10 years to life in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration – St. Louis Division, with the cooperation of the St. Ann Police Department.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Family Members Who Were Convicted in Mail Fraud Conspiracy Involving A Local Travel Agency Are SentencedRead the Press Release
DALLAS — A Dallas resident and his wife, along with her son, who were arrested by U.S. Postal Inspectors in January 2013 in Amityville, New York, on charges outlined in a federal indictment returned in the Northern District of Texas, have been convicted and sentenced for their respective roles in a mail fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Roxana Flores, 43, also of Dallas, was sentenced today, by Chief U.S. District Judge Sidney A. Fitzwater, to 24 months in federal prison. Her husband, Jorge Armando Flores, 45, was sentenced in October 2013 to 46 months in federal prison. Her son, Julio C. Funes-Alas, 27, also of Dallas, was sentenced in December 2013 to 24 months in federal prison. Jorge and Roxana Flores were ordered to pay $2,056,162 in restitution, jointly and severally. Julio Fuenes-Alas was ordered to pay $511,865 in restitution.
Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to retail travel agencies, known as “subagents,” who would in turn sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.
According to documents filed in the case, from at least March 2007 until approximately August 2011, the defendants conspired with each other, and others, to commit mail fraud. Defendants obtained subagents’ checks that had been mailed to Gateway and diverted them to bank accounts they had established for their joint use and financial benefit. These accounts were opened in names similar to Gateway and the defendants would write checks and make ATM withdrawals on these accounts for their personal benefit and use.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes prosecuted.
Family Members Who Were Convicted in Mail Fraud Conspiracy Involving A Local Travel Agency Are SentencedRead the Press Release
DALLAS — A Dallas resident and his wife, along with her son, who were arrested by U.S. Postal Inspectors in January 2013 in Amityville, New York, on charges outlined in a federal indictment returned in the Northern District of Texas, have been convicted and sentenced for their respective roles in a mail fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Roxana Flores, 43, also of Dallas, was sentenced today, by Chief U.S. District Judge Sidney A. Fitzwater, to 24 months in federal prison. Her husband, Jorge Armando Flores, 45, was sentenced in October 2013 to 46 months in federal prison. Her son, Julio C. Funes-Alas, 27, also of Dallas, was sentenced in December 2013 to 24 months in federal prison. Jorge and Roxana Flores were ordered to pay $2,056,162 in restitution, jointly and severally. Julio Fuenes-Alas was ordered to pay $511,865 in restitution.
Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to retail travel agencies, known as “subagents,” who would in turn sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.
According to documents filed in the case, from at least March 2007 until approximately August 2011, the defendants conspired with each other, and others, to commit mail fraud. Defendants obtained subagents’ checks that had been mailed to Gateway and diverted them to bank accounts they had established for their joint use and financial benefit. These accounts were opened in names similar to Gateway and the defendants would write checks and make ATM withdrawals on these accounts for their personal benefit and use.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes prosecuted.
Evansville Man Sentenced to Ten Years in Prison as Part of “operation Community Watch”Read the Press Release
More local results as federal law enforcement cracks down on child exploitation in Indiana
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Benjamin David Thomas, age 58, of Evansville, has been sentenced to 120 months in prison by U.S. District Judge Richard L. Young after admitting that he accessed and intended to view sexually-explicit material involving. This case was the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force and the Evansville Police Department as part of the U.S. Attorney’s ongoing Operation Community Watch initiative.
“The great tragedy is that every time these horrific images and videos are viewed, the child victims are exploited all over again,” Hogsett said. “That’s why we’ve teamed up with our federal and local partners with Operation Community Watch to impose a zero-tolerance policy on this type of criminal behavior.”
After his arrest, Thomas admitted to law enforcement that he viewed images depicting actual minors engaging in sexually explicit conduct using his home computer. Forensic analysis revealed that the computer had been used to browse various web sites that displayed images of minors engaged in sexually explicit conduct. The defendant is a registered sex offender with a 1997 multi-count conviction for child molestation against a female child.
According to Assistant U.S. Attorney, Todd Shellenbarger, who prosecuted the case for the government, Judge Young also imposed a lifetime term of federally-supervised release, to be served at the end of the defendant’s prison term. During the period of supervised release, the defendant must register as a sex offender, participate in a sex offender treatment program, and cannot have any unsupervised contact with minors. Thomas also consented to the forfeiture of computer equipment used in the offenses he committed.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana known as "Operation Community Watch," which allows prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 65 cases, a dramatic increase over prior years. These are all-time records for the Office.
Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Elderly California Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
PITTSBURGH - A California man has been sentenced in federal court to time served (2 ½ months imprisonment), 12 months home detention, and five years of supervised release, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Dominick Spickle, 80, of Sacramento, Calif.
According to information presented to the court, Spickle was involved in a conspiracy to distribute more than 50 grams of methamphetamine.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Spickle.
Eighty-Four, Pa., Man Sentenced to 5 Years in Prison for Structuring Financial TransactionsRead the Press Release
PITTSBURGH – Daniel Young has been sentenced in federal court to 63 months imprisonment, to be followed by three years of supervised release on his conviction of conspiracy and structuring financial transactions, United States Attorney David J. Hickton announced today. Young was also ordered to forfeit $440,000 in money and equipment.
United States District Judge David S. Cercone imposed the sentence on Young, 42, of Eighty- Four, Pa.
According to information presented to the court, Daniel Young and his co-defendants, Kimberly Ostrander and Dennis Young, participated in a conspiracy in which they structured financial transactions with financial institutions and businesses to avoid the filing of Currency Transaction Reports. Currency Transactions Reports are required to be filed when financial institutions and businesses receive in excess of $10,000 in cash. Young, who is serving a 12- to 24-year sentence for drug trafficking, structured approximately $260,000 in cash from his drug trafficking proceeds to purchase his home, heavy equipment, and a vehicle. Young and his co-conspirators used a variety of bank accounts and individuals to structure the cash payments.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Daniel Young.
District Man Sentenced to 20 Years in Prison for Murder of Girlfriend’s Four-Year-Old Son-Defendant Beat Child While Babysitting-Read the Press Release
WASHINGTON – Peter I. Hendy, II, 33, of Washington, D.C., was sentenced today to 20 years in prison on a charge of second-degree murder in the death of his girlfriend’s four-year-old son, U.S. Attorney Ronald C. Machen Jr. announced.
Hendy pled guilty in September 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Hendy will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 5, 2013, Hendy was babysitting his girlfriend’s son, Kamari Zavon Taylor, at an apartment in Northeast Washington while she went to work. Sometime around noon, he called his girlfriend and reported that he had disciplined the boy. He told her that he had given Kamari a “body shot” and that the child’s legs were wobbly.
According to Hendy’s own admissions, he became upset when Kamari disobeyed his restriction about how far he could ride his scooter. According to Hendy, when he admonished the child, Kamari responded that he did not have to listen to him. Hendy admitted to punching Kamari in the mid-section four to five times, including one direct punch to the stomach.
Once back inside, according to Hendy, the child fell to the floor and could not stand. When offered food or water, Kamari declined the food but drank the water. Hendy carried the child to bed and then went outside to sell marijuana.
After an hour, he returned to the apartment. He noted that Kamari had a “blank look” on his face and appeared “spent.” Hendy then went outside again for another hour to sell marijuana. When he returned, Kamari was not breathing. Hendy called 911 at about 2:05 p.m. and reported that his girlfriend’s son was unconscious and not breathing. The 911 operator advised Hendy to give the child cardiopulmonary resuscitation, and he did.
When they arrived, members of the District of Columbia Fire and Emergency Medical Services Department found Kamari to be unconscious and unresponsive. The child was taken to Children’s National Medical Center and pronounced dead.
The District of Columbia Office of the Medical Examiner determined that Kamari died from multiple injuries to the torso. The forcefulness of the defendant’s punches caused the child’s liver to lacerate in three places. There was also bruising on his stomach, consistent with multiple fist prints. Finally, Kamari had a couple of broken ribs.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the D.C. Office of the Medical Examiner for its assistance. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocate Marcia Rinker, Intern Brian Edgerton, and Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
14-036Disbarred Somerset Attorney Charged with FraudRead the Press Release
BOSTON – A disbarred Somerset attorney was arrested this morning on fraud charges arising out of his promotion of a variety of investment opportunities.
John Silvia, 64, was charged in a complaint with mail and wire fraud. Silva, purportedly the “Managing Member” of Richardson Consulting, LLC, was charged for his promotion of various investments, including investments in real estate and a “performance bond.” According to the complaint, Silvia represented that the investments were “risk-free” and promised to return the principal, along with substantial interest, within approximately 90 days. Silvia did not invest the funds and did not make the promised payments. Silvia, who was licensed to practice law in Massachusetts in 1975, has been disbarred since 2003.
The statutory maximum penalties for the mail and wire fraud charges are 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gain to the defendant or loss to the victim.
The Massachusetts Securities Division, which filed an administrative complaint today charging Silvia with violation of Massachusetts securities laws, referred this case to the U.S. Attorney’s Office and cooperated with the criminal investigation.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters of Ortiz’s Economic Crimes Unit.The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Concord Man Pleads Guilty to Possession of Child PornographyRead the Press Release
OAKLAND – Scott Alan Seidlitz pleaded guilty in federal court in Oakland today to possessing child pornography, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Seidlitz admitted that starting in 2010, he copied child pornography images from another person’s email account over the Internet using his laptop computer and stored them on his external hard drive. Seidlitz admitted to possessing more than 4,000 images of child pornography, including images depicting bondage and bestiality.
Seidlitz, 29, of Concord, was arrested on August 30, 2013, by local law enforcement on separate charges. Seidlitz was charged by federal complaint on September 1, 2013. He made his initial appearance in federal custody on September 4, 2013, and has since remained in federal custody. Seidlitz was indicted on September 12, 2013.
Seidlitz’s sentencing hearing is scheduled for April 29, 2014, before the Honorable Jeffrey S. White, United States District Court Judge in Oakland. The maximum statutory penalty for possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2), is a maximum term of 10 years in prison, a fine of $250,000, a minimum of 5 years of supervised release and a maximum of a life term of supervised release. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI and the Concord Police Department.
(Seidlitz indictment )
Chattanooga Resident Pleads Guilty to Preparing Fraudulent Tax ReturnRead the Press Release
CHATTANOGA, Tenn. – On Feb. 6, 2014, Dedric Landrum, 40, of Chattanooga, Tenn., was sentenced by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 18 months in prison, for preparing a false and fraudulent income tax return. Upon his release from prison, he will be subject to one year of supervised release. He was also ordered to pay $148,678 in restitution to the Internal Revenue Service (IRS).
Landrum pleaded guilty to a one count information charging him with these offenses. According to supporting documentation for the plea agreement, Landrum fraudulently obtained tax refunds by fraudulently inflating deductions and credits on tax returns prepared by him.
The investigation leading to the charges, guilty plea and sentencing was conducted by the IRS. Assistant U.S. Attorneys John P. MacCoon and James Brooks represented the United States.
Car Repair Shop Owner and His Son Admit to Drug Trafficking and Armed Commercial BurglariesRead the Press Release
Sold Drugs from Paschall Auto Body Shop in Baltimore, and Robbed Businesses and Homes in Maryland, Virginia, West Virginia and Pennsylvania
Baltimore, Maryland –Chad Paschall, age 28, of Baltimore, pleaded guilty today to conspiring to distribute oxycodone and two counts of conspiring to commit bank burglary. His father, David Paschall, age 54, of Catonsville, Maryland, pleaded guilty yesterday to the drug and burglary conspiracies.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“This case dismantled an organization responsible for a wide range of criminal activity,” said U.S. Attorney Rod J. Rosenstein.
David Paschall operated Paschall’s Auto Body Shop, formerly located at 801 Desoto Road in Baltimore. According to their plea agreements, it was widely known that the car shop served as a marketplace for an assortment of illegal narcotics, including oxycodone, cocaine and heroin. David Paschall used more than five drug “brokers” to buy drugs almost every day at his shop which he would then either consume or sell for profit. As a leader in the drug conspiracy, he supervised others in the distribution of the drugs. In order to protect the drug conspiracy, David Paschall maintained many guns at the shop and sometimes carried a gun. It was reasonably foreseeable to David Paschall that this conspiracy distributed more than 59.70 grams of oxycodone, 200 grams of cocaine, and 80 grams of heroin from no later than 2010 to July 2013.
Chad Paschall was at the shop most every day, knew that the shop operated as a hub for drug sales and helped his father in brokering drug sales.
The defendants also admitted to committing commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. The defendants conspired to steal cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments. The conspirators often stole or attempted to steal cash from ATMs.
The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business. They used vise grips, sledgehammers, chopsaws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items. David Paschall admitted that he committed, or attempted to commit, dozens of commercial burglaries with one or more coconspirators. For example, David and Chad Paschall used a forklift at a salvage or junk yard located on Hawkins Point Road in Baltimore to pile several junk cars next to a rear upstairs balcony. They climbed up the cars and broke into the office off the balcony. They used the forklift to transport a safe from the office to the ground, where it was broken open and approximately $48,000 was stolen.
At their sentencing David and Chad Paschall face a maximum sentence of 20 years in prison and a $1 million fine for the drug conspiracy, and five years in prison for the bank larceny conspiracy.
David Paschall has agreed to forfeit $500,000, his ownership interest in Paschall’s Auto Body Shop and his residence, three firearms and his vehicle. Chad Paschall has agreed to forfeit $250,000, his interest in his residence, four firearms and ammunition.
To date, a total of 10 defendants charged in the drug and burglary conspiracies have pleaded guilty to their participation in the criminal activities. Charges remain pending against six other defendants.
United States Attorney Rod J. Rosenstein commended the DEA, Howard County Police Department, Baltimore County Police Department; Anne Arundel County Department, ATF, Department of Health and Human Services - Office of Inspector General; Coast Guard Investigative Service and Baltimore Police Department for their work in the investigation. Mr. Rosenstein also praised the many local and state agencies in Virginia, West Virginia and Pennsylvania for their assistance in the investigation.
Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Canadian Man Sentenced for Smuggling More Than $5 Million Worth of “molly” into the United StatesRead the Press Release
Received Fourteen Years in Prison
ALBANY, NEW YORK – JOEL CUNNINGHAM, age 30, of Ottawa, Canada, was sentenced today to fourteen years in prison by United States District Court Judge Glenn T. Suddaby, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent-in-Charge Nick DiNicola. The sentence follows CUNNINGHAM’s September 20, 2013 guilty plea to one count of possession with intent to distribute a controlled substance.
On April 9, 2013, CUNNINGHAM was observed entering the United States from Canada through an unmanned border crossing in the Akwesasne Mohawk Reservation. Members of the Border Enforcement Security Task Force in Massena, New York followed CUNNINGHAM and later stopped him. Law enforcement officers searched the sport utility vehicle driven by CUNNINGHAM and found 58,183 grams of 3,4-Methylenedioxymethamphetamine Hydrochloride (commonly known as “Molly”), as well as over $140K in U.S. currency, in hidden compartments and duffel bags. The street value of the substance is over $5 million. CUNNINGHAM helped load the sport utility vehicle earlier that day.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
California Man Sentenced to Prison for Drug ConspiracyRead the Press Release
Jackson, Miss - Salvador Gonzales Elias, 46, of Los Angeles, California, was sentenced in U.S. District Court today to 115 months in federal prison for his role in a conspiracy to possess with intent to distribute methamphetamine. Elias was charged following an extensive investigation, dubbed “Operation Brusha” targeting illegal narcotics distribution in Scott County, Mississippi. He entered a guilty plea before U.S. District Judge Henry T. Wingate on August 29, 2013.
"The U.S. Attorney’s Office is committed to the elimination of criminal enterprises that peddle drugs in our communities,” said U.S. Attorney Gregory K. Davis. “The success of this investigation and prosecution makes clear that law enforcement agencies are united and determined to dismantle the networks that try to profit by selling methamphetamine, an extremely addictive drug that ruins lives.”
“Methamphetamine is a cancer on countless communities that drug traffickers exploit without any regard for the violence and damage they leave in their wake,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “This case highlights the added value that a solid partnership between state and federal law enforcement brings to bear in combating multi-jurisdictional criminal organizations. Working with the Miss. Bureau of Narcotics, ATF, and the other agencies involved with this investigation to identify and bring criminals like these to justice remains among HSI's top priorities.” Parmer oversees a five-state area of responsibility including Mississippi, Alabama, Arkansas, Louisiana and Tennessee.
“Operation Brusha” was conducted by Homeland Security Investigations, Mississippi Bureau of Narcotics and the Bureau of Alcohol, Tobacco Firearms and Explosives. Assisting agencies included the Mississippi Highway Patrol, Mississippi Bureau of Investigation, Forest Police Department, and Scott County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Erin O. Chalk.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Butler Arson Homicide Charge Dismissed Without PrejudiceRead the Press Release
ALBANY, NEW YORK – The federal criminal complaint charging Robert A. Butler with arson resulting in personal injury and death, in violation of Title 18, United States Code, Section 844(i), was dismissed today without prejudice, announced United States Attorney Richard S. Hartunian.
The complaint was filed on June 4, 2013, based on an affidavit alleging that on or about May 2, 2013, Butler used gasoline to start a fire at 438 Hulett Street, Schenectady, New York, resulting in the deaths of four people and the destruction of the building and its contents. The dismissal of the charge results in the release of Butler from federal custody.
The basis for the dismissal was set forth in the filed order as follows:
This case involves unusual and complex facts, with the complaint based upon allegations (in the affidavit in support of the complaint) that the defendant used gasoline to start a fire at a residential rental property in Schenectady, New York that resulted in the destruction of the building and its contents and the deaths of a father and three young children and very serious burn injuries for another child. The gravity of the crime and the potential punishments, the unusual and complex facts, including information regarding the involvement of others, and the circumstances regarding eyewitnesses necessitate further investigation.
U.S. Attorney Hartunian said, “We are completely committed to continuing this investigation until justice is done. We are grateful for the dedication of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and the Schenectady Fire Department to this case, and for the assistance of other federal agencies and police departments in the region. The victims of this horrific crime deserve and will continue to get our best efforts to secure justice.”
Questions may be addressed to First Assistant U.S. Attorney Grant C. Jaquith at 518-431-0247.
Burns, Wyoming Man Convicted for Felon in Possession of A FirearmRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that 47 year old Burns, Wyoming resident James Keith Beierle has been convicted in federal court. On February 6, 2014, a jury found Beierle guilty of being a felon in possession of a firearm after a three-day jury trial in the U.S. District Court in Cheyenne. Beierle is scheduled to be sentenced by Chief Federal District Court Judge Freudenthal on April 17, 2014.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Broward County Resident Sentenced in $2 Million Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Lee Ervin Dale, 31, of Fort Lauderdale, was sentenced today for his participation in a tax refund scheme using stolen identities. United States District Judge Kathleen M. Williams sentenced Dale to 120 months in prison, followed by three years of supervised release, and ordered restitution in the amount of $275,740. A jury previously convicted Dale of two counts of converting government funds to his own use, six counts of making and presenting false claims to the IRS, and two counts of aggravated identity theft.
According to testimony and evidence presented at trial and sentencing, Dale filed approximately 291 handwritten tax returns claiming more than $2 million in refunds between 2006 and 2009 using stolen identities and listing his P.O. Box address. Although the IRS was able to prevent refund checks from being issued on most of these claims, approximately $275,000 in refund checks were mailed to his P.O. Box. Several of these checks were deposited directly into bank accounts bearing both Dale’s name and the identity theft victim’s name. Other checks were cashed at a check cashing store in Oakland Park, Florida, in exchange for cash and money orders that Dale then deposited into his own accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Jared M. Strauss and now-former Assistant U.S. Attorney Laurie E. Rucoba.
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.