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Thursday 6 February 2014
Jury Finds Three New Haven Men Guilty of Narcotics Distribution OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in New Haven today found New Haven residents RICHARD ANDERSON, also known as “Mayut” and “Porter,” 27, PHILIP BRYANT, also known as “Phat Phil” and “Fizzy,” 27, and ROBERT SANTOS, also known as “Scoot,” 31, guilty of narcotics distribution offenses. The trial before Senior U.S. District Judge Ellen Bree Burns began on January 21.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
According to the evidence at trial, ANDERSON, BRYANT and SANTOS conspired with Kevin Wilson, also known as “Nature,” to distribute narcotics, primarily in the Dwight/Chapel area of New Haven.
ANDERSON supplied crack cocaine on multiple occasions to co-defendant Jesus Morales, also known as “Cano,” in deals that were brokered by Wilson. On several occasions, Anderson was intercepted on a wiretap threatening violence against Morales in an effort to collect a drug debt. At times, ANDERSON also obtained quantities of heroin from Wilson.
BRYANT was intercepted on multiple occasions arranging heroin and cocaine transactions with Wilson. In May 2011, BRYANT also provided Wilson with 26.3 grams of crack cocaine that Wilson, in turn, sold to two individuals who were working with law enforcement. In addition, trial testimony established that BRYANT, Wilson and other co-defendants shared a stash of firearms to use in furtherance of their drug trafficking activity.
SANTOS partnered with Wilson, pooling money to acquire large quantities of heroin from a New York-based supplier, and then distributing the drug in greater New Haven.
ANDERSON was convicted of one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack”), which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. BRYANT was convicted of one count of conspiracy to possess with intent to distribute, and to distribute, cocaine, cocaine base and heroin, which carries a maximum term of imprisonment of 20 years. SANTOS was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. Based on his criminal history, SANTOS faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Judge Burns scheduled sentencing for all three defendants for June 3, 2014.
Wilson and Morales previously pleaded guilty. On September 26, 2013, Morales was sentenced to 63 months of imprisonment. Wilson awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Jonesville Virginia Man Arrested for Impersonating A Deputy United States MarshalRead the Press Release
BIG STONE GAP, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Richard Wayne Parsons, 35,of Jonesville, Va., has been arrested in Lee County, Virginia on a federal criminal complaint charging him with impersonation of a Deputy United States Marshal. The United States Marshals Service and the Lee County Sheriff’s Department took Parsons into custody on February 5, 2014.
The investigation of the case was conducted by United States Marshals Service and the Lee County Sheriff’s Department. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
The criminal complaint for impersonation of a federal officer is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Anyone with additional information regarding similar incidents should contact the United States Marshals Service at 276-628-7940.
Jonesborough Man Sentenced to Serve Three Years in Prison for Synthetic Drugs and StructuringRead the Press Release
GREENEVILLE, Tenn. – Jason Glenn Catoe, 23, of Jonesborough, Tenn., was sentenced on Feb. 5, 2012, by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 36 months in federal prison.
Catoe pleaded guilty to an information in March 2013, charging him with possession with intent to distribute synthetic cannabinoids and structuring currency transactions to evade reporting requirements. In a statement of facts submitted in support of his guilty plea, Catoe admitted that beginning in March 2011 he opened a "head shop" called "Ultimate Smoke" in Kingsport, Tenn. The business sold synthetic drugs, "bath salts" and "incense," as well as drug paraphernalia for the ingestion of the drugs. Ultimate Smoke generated substantial cash income, with "Crystal Clean," a synthetic cathinone, being one of the business's best-selling products. Ultimate Smoke also sold large quantities of synthetic cannabinoids. Local law enforcement agencies made undercover purchases of the drugs beginning in August 2011.
A federal search warrant was executed at Catoe’s residence in Jonesborough, Tenn., in March 2012. Agents recovered $290,794.00 in cash from a safe at the residence. In addition to five firearms and two bullet-proof vests, agents recovered synthetic drugs labeled “Mary Joy,” “K2 Summit,” “Hammer Head,” “Wacked,” “Outer Limits,” “Zombie,” “Happy Hour Passion Fruit,” “Mad Hatter,” Mystery Machine,” and “Da Bomb.” Bank records reflected that Catoe, assisted by his half-brother, structured over $400,000 in cash deposits to a local financial institution.
The cash seized from Catoe’s residence, along with approximately $80,000 seized from bank accounts and a commercial building in Kingsport, were forfeited to the United States.
Agencies involved in this investigation included the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Sullivan County Sheriff’s Office, Kingsport Police Department, and Second Judicial District Drug Task Force. Assistant U.S. Attorney Neil Smith represented the United States.
Husband and Wife Ordered to Prison for Falsifying Client Tax ReturnsRead the Press Release
HOUSTON – Tax return preparers Marlin Jermaine Beckett and Gia Cooper Beckett have sent to prison for making up deductions that resulted in approximately $360,000 in fraudulent client refunds, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Both pleaded guilty in April 2013.
Today, U.S. District Judge Nancy F. Atlas, who accepted the guilty pleas, handed Marlin Beckett a 36-month sentence to be followed by a one-year-term of supervised release. He was also ordered to pay $196,923 in restitution to the IRS. Gia Beckett will be on probation for three years and must pay another $163,441 in restitution. The court further ordered neither person prepare any more tax returns except their own.
“One of the IRS’s main objectives is to ensure that all tax practitioners and preparers adhere to professional standards and follow the law,” said Cruz. “CI’s efforts to deter refund fraud are critical to overall tax compliance; our special agents play a valuable role by identifying, investigating and recommending prosecution of abusive return preparers. As we approach tax filing season, we remind taxpayers to be very diligent when deciding who they select to prepare their returns.”
The Becketts are husband and wife tax return preparers and were charged in separate, but related cases. According to the factual basis in support of their respective pleas, they each admitted they claimed false business mileage deductions for local clients that fraudulently increased tax refunds by approximately $360,000 for tax years 2006 through 2009.
Originally released on bond, Marlin Beckett was recently taken into custody when further investigation of his activities revealed he continued to prepare tax returns in violation of his bond conditions. At least one of those tax returns had the same kind of false deductions that had led to his conviction.
Further investigation of Marlin Beckett’s activities also led to the successful prosecution of Yevette Lauren Walton and Lakisha Lashell Rodgers for their role in a local stolen identity refund scheme. Rodgers and Walton pleaded guilty, admitting they used dozens of identities over a two-year period that caused about $60,000 in actual losses during the 2012 tax filing season. The scheme could have caused another $540,000 had it not been detected early in the 2013 tax filing season.
Stolen identity refund frauds typically involve the use of stolen identities to obtain fraudulent tax refunds wired to debit cards in the victims’ names so the refunds can be harvested anonymously by the perpetrators. Walton and Rodgers were also sentenced today to 24-month-terms of imprisonment before Judge Lee Rosenthal.
The investigation leading to these charges was conducted by IRS-CI with assistance from the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting both cases.
Husband and Wife Ordered to Prison for Falsifying Client Tax ReturnsRead the Press Release
HOUSTON – Tax return preparers Marlin Jermaine Beckett and Gia Cooper Beckett have sent to prison for making up deductions that resulted in approximately $360,000 in fraudulent client refunds, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Both pleaded guilty in April 2013.
Today, U.S. District Judge Nancy F. Atlas, who accepted the guilty pleas, handed Marlin Beckett a 36-month sentence to be followed by a one-year-term of supervised release. He was also ordered to pay $196,923 in restitution to the IRS. Gia Beckett will be on probation for three years and must pay another $163,441 in restitution. The court further ordered neither person prepare any more tax returns except their own.
“One of the IRS’s main objectives is to ensure that all tax practitioners and preparers adhere to professional standards and follow the law,” said Cruz. “CI’s efforts to deter refund fraud are critical to overall tax compliance; our special agents play a valuable role by identifying, investigating and recommending prosecution of abusive return preparers. As we approach tax filing season, we remind taxpayers to be very diligent when deciding who they select to prepare their returns.”
The Becketts are husband and wife tax return preparers and were charged in separate, but related cases. According to the factual basis in support of their respective pleas, they each admitted they claimed false business mileage deductions for local clients that fraudulently increased tax refunds by approximately $360,000 for tax years 2006 through 2009.
Originally released on bond, Marlin Beckett was recently taken into custody when further investigation of his activities revealed he continued to prepare tax returns in violation of his bond conditions. At least one of those tax returns had the same kind of false deductions that had led to his conviction.
Further investigation of Marlin Beckett’s activities also led to the successful prosecution of Yevette Lauren Walton and Lakisha Lashell Rodgers for their role in a local stolen identity refund scheme. Rodgers and Walton pleaded guilty, admitting they used dozens of identities over a two-year period that caused about $60,000 in actual losses during the 2012 tax filing season. The scheme could have caused another $540,000 had it not been detected early in the 2013 tax filing season.
Stolen identity refund frauds typically involve the use of stolen identities to obtain fraudulent tax refunds wired to debit cards in the victims’ names so the refunds can be harvested anonymously by the perpetrators. Walton and Rodgers were also sentenced today to 24-month-terms of imprisonment before Judge Lee Rosenthal.
The investigation leading to these charges was conducted by IRS-CI with assistance from the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting both cases.
Houston Man Sentenced in Multi-State Health Care Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 55-year-old Houston man has been sentenced to federal prison for his role in a multi-state health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Peter Pedro Egede pleaded guilty on Apr. 4, 2013, to health care fraud and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia A. Crone. Egede was also ordered to pay restitution in the amount of $1,635,447.60 to the Medicare and Medicaid programs and a fine of $12,500.
According to the indictment, from May 2002 to June 2003, Egede conspired with others to defraud Medicare and Medicaid through the mass marketing of motorized wheelchairs. As part of the scheme, the defendant and his co-conspirators recruited Medicare and Medicaid beneficiaries by representing that the government was “giving away” motorized wheelchairs. The recruiters would secure the beneficiaries protected health information, including names, dates of birth, and Medicare numbers from mostly elderly individuals. Egede and his co-conspirators created false medical necessity certificates for each beneficiary by drafting, without authorization, prescriptions from doctors who had never examined those beneficiaries. Often, Egede billed Medicare for motorized wheelchairs, but instead delivered less expensive scooters to the beneficiaries. In other instances, Egede did not deliver anything even though Medicare had paid for a motorized wheelchair. Claims were submitted by the defendant for over 500 beneficiaries located in Texas, Oklahoma, Arkansas, Louisiana, and Mississippi. A great portion of the beneficiaries resided in counties within the Eastern District of Texas, including Smith, Bowie, Denton and Lamar counties. Egede submitted false and fraudulent claims to Medicare of more than $4.1 million and obtained more than $1.6 million in claims paid. Egede was indicted by a federal grand jury on June 15, 2006.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigations and the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU). This case was prosecuted by Special Assistant U.S. Attorney Alma Hernandez.
Homar Renova-Castillo Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 5, 2014, before U.S. District Judge Susan P. Watters, HOMAR RENOVA-CASTILLO, a 37 year-old resident of Tucson, Arizona, was sentenced to a term of:
Prison: 135 months
Special Assessment: $ 200
Restitution: N/A
Supervised Release: 5 years
Renova-Castillo was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine and illegal re-entry of deported alien.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan McCarthy, the government stated it would have proved at trial the following:
Homar Renova-Castillo, an alien and citizen of Mexico, was previously convicted in 2000 in Yellowstone County, Montana, for felony criminal endangerment. Renova-Castillo was then deported from the United States on January 31, 2002, and left through El Paso, Texas. Renova-Castillo was subsequently found in the United States. Specifically, on November 19, 2012, Renova-Castillo was pulled over in a motor vehicle near Park City, Montana by a Yellowstone County Deputy Sheriff. Renova-Castillo was never granted permission by the Attorney General or the Secretary of the Department of Homeland Security to enter the United States.
In August of 2012, agents with the EMHIDTA began investigating the sale of methamphetamine in Billings by J.S. and Homar Renova-Castillo. On August 22, 2012, agents spoke with co-conspirator who stated that he had made two trips to Idaho with Homar Renova to pick up methamphetamine. The co-conspirator estimated that they picked up two pounds of methamphetamine each time. The co-conspirator stated that the methamphetamine was provided to Renova's distributor in Billings, J.S.
A confidential informant then made purchases of methamphetamine from J.S. on eight separate occasions from September of 2012 through April of 2013. Each purchase was for approximately 1/4 grams of methamphetamine. J.S. indicated to the confidential informant that Renova was her source of supply.
Hallettsville Man Gets 28 Years for Receiving Child PornographyRead the Press Release
VICTORIA, Texas – Hallettsville resident James Leland Copeland, 42, has been sentenced to a significant term of federal imprisonment for receiving child pornography, announced United States Attorney Kenneth Magidson. Copeland pleaded guilty on May 10, 2013.
U.S. District Judge Gregg Costa, who accepted the guilty plea, sentenced Copeland to the 28-year-term taking into consideration the need to protect the public and deter future criminal behavior in the defendant and others. He was further ordered to serve the rest of his life on supervised release following completion of the prison term. In handing down the sentence, Judge Costa noted Copeland’s recidivism and substantially greater role in the offense than the average child pornography recipient. Judge Costa determined that Copeland, while not directly producing the child pornography he received himself, he nonetheless played a significant role in causing it to be produced. Copeland will also be required to register as a sex offender.
Copeland was a wanted person from Tennessee for failure to register as a sex offender. He had been previously convicted of possession of child pornography in the Eastern District of Tennessee in 2004 and sentenced to 51 months in the Bureau of Prisons. The U.S. Marshals Service (USMS) determined Copeland was living in Hallettsville and had failed to register within the state of Texas.
As a result of a federal arrest and search warrant, authorities searched Copeland’s residence on Dec. 18, 2012, at which time several electronic storage devices and other written media were seized from the home. The Corpus Christi Police Department’s Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a forensic examination of the electronic storage devices which led to the discovery of several images of child pornography. An examination of the written media revealed it to be the transcription of emails and other Internet-based communications between Copeland and various persons on the Internet.
Some of that correspondence was with a person calling herself “Ms. Majesty,” later identified as Desiree Lee Padilla, of Brownsville. The communications between the two were primarily sexual in nature and discussed their mutual sexual attraction to children. Padilla sent several pictures of child pornography wherein she sexually assaulted an infant female relative.
Padilla was prosecuted by state authorities for aggravated sexual assault of a child and subsequently sentenced to 25 years imprisonment on Sept. 11, 2013.
Copeland will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI, CCPS-ICAC investigated with the assistance of USMS.
This case, prosecuted by Assistant United States Attorney Lance Duke, 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."
Hallettsville Man Gets 28 Years for Receiving Child PornographyRead the Press Release
VICTORIA, Texas – Hallettsville resident James Leland Copeland, 42, has been sentenced to a significant term of federal imprisonment for receiving child pornography, announced United States Attorney Kenneth Magidson. Copeland pleaded guilty on May 10, 2013.
U.S. District Judge Gregg Costa, who accepted the guilty plea, sentenced Copeland to the 28-year-term taking into consideration the need to protect the public and deter future criminal behavior in the defendant and others. He was further ordered to serve the rest of his life on supervised release following completion of the prison term. In handing down the sentence, Judge Costa noted Copeland’s recidivism and substantially greater role in the offense than the average child pornography recipient. Judge Costa determined that Copeland, while not directly producing the child pornography he received himself, he nonetheless played a significant role in causing it to be produced. Copeland will also be required to register as a sex offender.
Copeland was a wanted person from Tennessee for failure to register as a sex offender. He had been previously convicted of possession of child pornography in the Eastern District of Tennessee in 2004 and sentenced to 51 months in the Bureau of Prisons. The U.S. Marshals Service (USMS) determined Copeland was living in Hallettsville and had failed to register within the state of Texas.
As a result of a federal arrest and search warrant, authorities searched Copeland’s residence on Dec. 18, 2012, at which time several electronic storage devices and other written media were seized from the home. The Corpus Christi Police Department’s Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a forensic examination of the electronic storage devices which led to the discovery of several images of child pornography. An examination of the written media revealed it to be the transcription of emails and other Internet-based communications between Copeland and various persons on the Internet.
Some of that correspondence was with a person calling herself “Ms. Majesty,” later identified as Desiree Lee Padilla, of Brownsville. The communications between the two were primarily sexual in nature and discussed their mutual sexual attraction to children. Padilla sent several pictures of child pornography wherein she sexually assaulted an infant female relative.
Padilla was prosecuted by state authorities for aggravated sexual assault of a child and subsequently sentenced to 25 years imprisonment on Sept. 11, 2013.
Copeland will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI, CCPS-ICAC investigated with the assistance of USMS.
This case, prosecuted by Assistant United States Attorney Lance Duke, 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."
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in St. Paul, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Delfino Guadarrama-Miranda, age 57, a citizen of Mexico, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for a felony.
If convicted, Gutierrez-Garcia faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Three people charged with conspiracy to distribute marijuana
Alexander Edward Heying, age 31, and Peter Gregory Heying, age 27, both of Minnetonka; and Acacia Lauren Ruiz, age 33, of Ukiah, California, are each charged with one count of conspiracy to distribute marijuana and one count of conspiracy to commit money laundering.
If convicted, the defendants face a potential maximum penalty of life in prison on the marijuana count and 20 years on the money laundering count. This case is the result of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigations, the West Metro Drug Task Force, the Hennepin County Sheriff’s Office, the West Hennepin Public Safety Department, and the police departments of Medina and Orono. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.Hastings felon charged with possessing firearms and ammunition
Samuel David Shoen, age 35, of Hastings, was charged with three counts of being a felon in possession of a firearm, two counts of being a felon in possession of ammunition, one count of possession with intent to distribute methamphetamine, and one count of possession of a firearm during and in relation to a drug-trafficking crime.
If convicted, Shoen faces a potential maximum penalty of 20 years in prison on the methamphetamine count, a consecutive five years on the possession of a firearm during and in relation of a drug-trafficking crime count, and ten years on each of the remaining counts. This case is the result of an investigation by the St. Paul Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Bradley M. Endicott.Ginseng Root Poacher Sentenced to Jail TimeRead the Press Release
The Public Is Reminded Gathering Ginseng On The Nantahala National Forest Without A Permit Is Illegal
ASHEVILLE, N.C. – U.S. Magistrate Judge Dennis L. Howell sentenced Charles R. Nash, of Whittier, N.C. to serve 10 days in jail for the illegal possession or harvesting of American ginseng from the Nantahala National Forest, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina and Kristin Bail, Forest Supervisor of the U.S. Forest Service National Forests in North Carolina.
According to the January 30, 2014 sentencing hearing and other documents, on October 12, 2013, Nash admitted to illegally possessing 24 American ginseng roots he had dug from the Mosses Creek and Wayehutta Off-Road Vehicle areas in Jackson County. He pleaded guilty to the poaching charge. Staff of the Forest Service replanted the recovered viable roots.
American ginseng is on the list of the Convention of International Trade of Endangered Species. The U.S. Attorney’s Office reminds the public that gathering ginseng on the Nantahala National Forest without a permit is illegal. U.S. Forest Service lands have been severely impacted by ginseng poachers in western North Carolina. American ginseng was formerly abundant throughout the eastern mountains, but due to repeated poaching, populations have been reduced to a point that they can barely reproduce. The roots poached in this park are usually young, between the ages of 5 and 10 years, and have not yet reached their full reproductive capacity. In time, the plant’s populations could recover if poaching ceased.
The Division of Scientific Authority, U.S. Fish & Wildlife Service is the regulatory agency that evaluates the biological and management status of wild American ginseng throughout its native range. The Division issues an annual or biennial report detailing if any harvest conditions need to be modified to ensure the sustainable harvest of wild native ginseng. Permits to collect ginseng root in National Forests are issued through the U.S. Forest Service in early September. Permits are not available in National Park lands such as the Blue Ridge Parkway and the Great Smoky Mountains National Park, where even the possession of American Ginseng is prohibited.
The investigation of the case was handled by the U.S. Forest Service. The U.S. Attorney’s Office in Asheville handled the prosecution.
To report illegal harvesting activities of American ginseng, please call 828-257-4200.
Georgia Dentist Pleads Guilty to Tax EvasionRead the Press Release
Dr. Dayo Obebe of Muscogee County, Ga., pleaded guilty today in federal court in Columbus, Ga., to one count of tax evasion, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
According to court documents, Obebe is a dentist licensed in Georgia and Alabama, where he operated the Moon Road Cosmetic & Family Dentistry in Columbus, Ga., and the Brent Dental Dentistry in Brent, Ala. In 2004, Obebe began intentionally concealing money he earned from patients who paid with credit cards from his accountants and the IRS by placing credit card payments into a separate bank account from other cash and check receipts. Consequently, Obebe intentionally underreported his total income from the dental practice on his 2004, 2005 and 2006 federal income tax returns by more than $500,000 and falsely claimed a tax refund.
In 2007, the IRS audited Obebe’s tax return. In 2008 Obebe lied during an audit when he stated that he accurately reported his income on his tax return, when he knew that he had earned substantially more income over the three-year period than he had reported to the IRS. In total, Obebe evaded paying over $185,000 in tax to the IRS on his 2004, 2005 and 2006 federal income tax returns.
Obebe faces a statutory maximum sentence of five years in prison, three years of supervised release and a $250,000 fine. In addition, according to the plea agreement, he has agreed to pay restitution to the IRS in the amount of $189,661. Sentencing has not been scheduled.
The case was investigated by special agents of the IRS - Criminal Investigation, and Trial Attorneys Charles Edgar and Justin Gelfand for the Tax Division are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Georgia Dentist Pleads Guilty to Tax EvasionRead the Press Release
WASHINGTON – Dr. Dayo Obebe of Muscogee County, Ga., pleaded guilty today in federal court in Columbus, Ga., to one count of tax evasion, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.According to court documents, Obebe is a dentist licensed in Georgia and Alabama, where he operated the Moon Road Cosmetic & Family Dentistry in Columbus, Ga., and the Brent Dental Dentistry in Brent, Ala. In 2004, Obebe began intentionally concealing money he earned from patients who paid with credit cards from his accountants and the IRS by placing credit card payments into a separate bank account from other cash and check receipts. Consequently, Obebe intentionally underreported his total income from the dental practice on his 2004, 2005 and 2006 federal income tax returns by more than $500,000 and falsely claimed a tax refund.
In 2007, the IRS audited Obebe’s tax return. In 2008 Obebe lied during an audit when he stated that he accurately reported his income on his tax return, when he knew that he had earned substantially more income over the three-year period than he had reported to the IRS. In total, Obebe evaded paying over $185,000 in tax to the IRS on his 2004, 2005 and 2006 federal income tax returns.
Obebe faces a statutory maximum sentence of five years in prison, three years of supervised release and a $250,000 fine. In addition, according to the plea agreement, he has agreed to pay restitution to the IRS in the amount of $189,661. Sentencing has not been scheduled.
The case was investigated by special agents of the IRS - Criminal Investigation, and Trial Attorneys Charles Edgar and Justin Gelfand for the Tax Division are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Former Tennessee Police Officer Sentenced for Assaulting an ArresteeRead the Press Release
Jackson, TN – Christopher Eugene Reynolds, 39, a former police officer of the Selmer, Tenn., Police Department, was sentenced yesterday by Chief U.S. District Judge J. Daniel Breen to serve one year and one day in prison following his conviction for violating the civil rights of an arrestee, announced United States Attorney Edward L. Stanton III.
Reynolds pleaded guilty on November 6, 2013. Judge Breen also sentenced Reynolds to a period of two years supervised release and a $100 special assessment. Reynolds admitted that on April 28, 2011, while using his authority as a SPD officer, he slammed a handcuffed arrestee to the floor of the McNairy Regional Hospital and struck him once in the face. According to information presented in court, Reynolds acknowledged that this assault was unreasonable, did not serve a legitimate law enforcement purpose and was not made by accident, mistake or inadvertence.
“Law enforcement officers must abide by and adhere to the same laws they take an oath to enforce,” said U.S. Attorney Stanton. “Instead of serving and protecting the public, this officer used physical force to violate the civil rights of an individual and will now serve prison time, vividly illustrating that no one is above the law.”
This case was investigated by FBI Special Agent Christopher Miller with the assistance of the Tennessee Bureau of Investigation. The case was prosecuted by Trial Attorney Ryan J. Murguía for the Civil Rights Division and Special Litigation Counsel Gerard V. Hogan, with the assistance of Assistant U.S. Attorney Victor L. Ivy for the Western District of Tennessee.Former State Treasurer Martha Shoffner Charged with Mail FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation announced that new charges were handed down by a federal grand jury charging Martha Anne Shoffner, age 69, of Newport with ten counts of mail fraud.
The Second Superseding Indictment alleges that Shoffner used $9,800 of campaign funds from her re-election campaign for Treasurer of the State of Arkansas for personal expenses. According to the Indictment, campaign checks were mailed for payments to a personal Wells Fargo credit card from November 5, 2010 through October 9, 2011. Individual checks ranged from $200 to $5,000. The charges to the credit card included clothing, cosmetics and other personal expenses.
The new counts of mail fraud against Shoffner are in addition to the previous six counts of extortion under color of official right, one count of attempted extortion and seven counts of receipt of a bribe by an agent of a state government receiving federal funds. Trial is set for March 3, 2014, before United States District Judge J. Leon Holmes.
The charges stem from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force. The ArkTrust Public Corruption Task Force is comprised of FBI Agents, and Task Force Officers from the Arkansas State Police Department, Pulaski County Sheriff’s Office, and the Little Rock Police Department. If you think you see public corruption contact the public corruption hotline at (501)221-8200.
Mail fraud carries a possible sentence of not more than 20 years’ imprisonment and/or not more than a $250,000 fine with not more than three years of supervised release.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former Rosedale Resident Sentenced to 27 Years in Prison for Armed Robbery of A Business Resulting in the Owner’s DeathRead the Press Release
Robbers Stole $11,000 and Left Victim Bound and in Obvious Pain
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Pedro Rodriguez Garcia, age 35, formerly of Rosedale, Maryland, to 27 years in prison followed by three years of supervised release for conspiring to commit, and committing, an armed commercial robbery, and brandishing a gun during the robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore City Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Maryland Attorney General Douglas F. Gansler.
“Superb law enforcement coordination brought the defendant to justice for the armed robbery that resulted in the tragic death of Constantine Frank,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at the five day bench trial, Garcia participated in a robbery planned by co-defendant Nikolaos Mamalis. Mamalis recruited Garcia, Daniel Chase and others to rob Constantine Frank, the owner of Precision Vending located on S. Lakewood Avenue in Baltimore. Mamalis knew the owner socially and from prior business dealings, and he was familiar with the physical layout and security at Precision Vending from previous visits with Mr. Frank. On July 29, 2009, after Mamalis advised his co-conspirators that Mr. Frank was alone inside, Garcia and Chase entered the business disguised as package delivery men. Chase took out a gun from a false package they had brought inside, brandished the weapon and then gave it to Garcia who used the gun to hold Mr. Frank captive. The two robbers also used zip-ties and duct tape to restrain the victim while Chase searched the business for cash, stealing over $11,000. Knowing that Mr. Frank would recognize him, Mamalis waited outside the building and received periodic reports from Chase using prepaid wireless phones which Mamalis and Garcia had previously purchased.
The robbers left Mr. Frank bound, knowing that he was sweating profusely and in obvious discomfort. Shortly after leaving, Chase called one of Mr. Frank’s other businesses and said: “Your boss is in his office, and he is not doing so good.” Mr. Frank had suffered a stroke by the time officers found him conscious, but still in physical restraints and unable to speak. Mr. Frank was listed in critical condition when he arrived at the hospital and died less than two weeks later on August 11, 2009. The autopsy concluded that the cause of death was an intra-cerebral hemorrhage associated with stress resulting from the robbery and ruled the death a homicide.
After Mr. Frank’s death, Garcia fled the country and was captured by agents from the U.S. Border Patrol two years later.
Nikolaos Mamalis, age 56, of Edgewood, Maryland, was sentenced to 77 years in prison for conspiracy, three counts of commercial robbery and three corresponding firearms charges in connection with the Precision Vending robbery and two home invasion robberies in Maryland. Mamalis was convicted by a federal jury on February 3, 2011. Daniel Chase, age 67, of Browns Mill, New Jersey; pleaded guilty to his participation in a series of robberies planned by Mamalis and was sentenced to 141 months in prison.
United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation; Baltimore City and County Police Departments; New Jersey State Police; Baltimore City and County State’s Attorney’s Offices; U.S. Department of State’s Diplomatic Security Service and Maryland Attorney General’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorney Debra L. Dwyer and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Former President of Bennington School Sentenced to 18 Months in Federal Prison for Tax and Health Care Fraud ConvictionsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on February 5, 2014, Matthew Merritt, Jr., 82, of West Stockbridge, Massachusetts was sentenced to 18 months in federal prison after his guilty plea to charges that he engaged in a scheme to defraud a health care program and commit tax fraud. United States District Judge William K. Sessions III, sitting in Burlington, also ordered that Merritt, Jr. serve one year of supervised release following his prison term.
Merritt, Jr. is the founder and former President of Bennington School, Inc. (BSI). According to court records, the Office of the United States Attorney for the District of Vermont and the Office of the Vermont Attorney General previously entered into a global resolution of criminal and civil investigative matters concerning alleged tax and health care fraud by former officers of Bennington School, Inc. (BSI). Pursuant to that resolution agreement, Merritt, Jr., along with his son, Defendant Matthew Merritt III, BSI’s Plant Manager, and his son-in-law, Defendant Ray Crowley, who served as CFO of BSI, plead guilty to one charge each of federal tax fraud, which is a felony. In addition, Matthew Merritt, Jr., pled guilty to a federal felony charge of engaging in a scheme to defraud a health care program. To resolve potential civil health care fraud liability, the three Merritt family members have paid a total of $3,000,000.00 to the United States and the State of Vermont. Defendant Jeff LaBonte, the Executive Director of BSI also pled guilty to a federal tax fraud charge and paid $1,300,000.00 to resolve his potential civil health care fraud liability. Of the total $4.3M recovery, the State of Vermont has received $2,113,708.00 and the United States has received $2,186,292.00.
Until 2013, BSI, a for-profit, closely-held corporation, operated a residential program in Bennington, Vermont that offered therapeutic and educational services for socially and emotionally challenged boys and girls. Over the course of the last two decades, the State of Vermont placed many students at BSI, and was responsible for their tuition and other expenses. The funding for these placements came from the Vermont Medicaid program (approximately 60% federal funding and 40% state funding) and from several Vermont state agencies, including the Department of Education, the Department of Mental Health, and the Department of Children and Families. This funding was based on a per diem rate for each student, determined on an annual basis by the Division of Rate Setting (DRS), within the Vermont Agency of Human Services. The annual rate set by DRS was determined upon a review of BSI’s application materials, including various accounting reports and budgets. In particular, the formula for the rate calculated by DRS for Medicaid and Education payments to BSI was based upon the school’s reported allowable expenses. The higher the allowed expenses, the higher the per diem rate for each student.
BSI President, Matthew Merritt, Jr. and Executive Director Jeff LaBonte, with the assistance of CFO Ray Crowley and Plant Manager Matthew Merritt III, implemented a system of compensating certain employees of BSI by providing personal benefits, such as cars, gasoline, oil for personal residences, payments of personal expenses on credit card accounts, salaries for family members who did not work at BSI, and reimbursements for various personal expenses. These forms of compensation were never reported on the individual’s tax returns. In addition, these unallowable expenses were embedded in the books and records of BSI, which were used to create the reports, budgets and other financial documents that BSI presented to DRS as accurate and allowable for rate setting.
The Government=s investigation arose in 2011 following a request by BSI for a rate change due to reduced enrollment. In processing that request, DRS auditors took a close look at some of the financial information submitted and determined an audit should be performed. The audit, completed in 2012, resulted in a recalculation of the rate BSI received during the years 2003-2012. DRS calculated the total amount of overpayment by the State during those years to be over $3.6 Million. Under the False Claims Act, 31 U.S.C. § 3729, and potential state law remedies, should the Government prevail at a trial, the defendants would be liable for treble damages as well as mandatory penalties up to $11,000 per claim. The defendants dispute DRS’s calculation, and the parties have settled to avoid further investigation and litigation.
For his federal health care fraud conviction, Matthew Merritt, Jr. faced a maximum term of imprisonment of ten years under 18 U.S.C. § 1347. For his federal tax fraud conviction, he faced a maximum prison term of three years under 26 U.S.C. § 7206. Pursuant to a written plea agreement, the parties agreed that Matthew Merritt Jr.’s total term of imprisonment should not exceed 24 months. At sentencing, Merritt, Jr. asked that Judge Sessions impose no prison sentence, while the United States argued that Merritt, Jr. should serve the full 24 months in prison. In determining the 18-month sentence, Judge Sessions noted, among other factors, the gravity of Merritt, Jr.’s crimes, the fact that he engaged in the fraudulent conduct over the course of many years, and the harm Merritt, Jr.’s crimes cause the community.
For their federal tax fraud convictions, Matthew Merritt III and Raymond Crowley each faced a maximum prison term of three years under 26 U.S.C. § 7206. Pursuant to a written plea agreement, the parties agreed that Matthew Merritt III and Raymond Crowley’s prison terms should not exceed 18 months. In a sentencing hearing held on December 23, 2013, Judge Sessions sentenced Crowley to one year of probation, which includes six months of home confinement, and 200 hours of community service.
The same day, Judge Sessions sentenced Merritt III to one year of probation, which includes six months of home confinement and 200 hours of community service. Judge Sessions also ordered Merritt III to pay an additional $30,000 fine.
For his federal tax fraud conviction, Jeffrey Labonte faced a maximum prison term of three years under 26 U.S.C. § 7206. Pursuant to a written plea agreement, the government agreed to make the nature and extent of Jeffrey Labonte’s cooperation known to the federal court and, as a result of his cooperation, request that the court sentence Jeffrey Labonte to a term of imprisonment below that recommended by the advisory sentencing guidelines. In a November 18, 2013 sentencing hearing, Judge Sessions sentenced Labonte to a one-year term of probation, which includes four months of home confinement and 100 hours of community service. Judge Sessions also ordered Labonte to pay an additional $30,000 fine.
The school continues to operate as a fully-licensed residential treatment program. However, as of January 1, 2013, management and ownership of the programs at Bennington School were transferred to Vermont Permanency Initiative Inc., which is part of the Becket Family of Services. Matthew Merritt, Jr., has resigned as President and Trustee of BSI, and Jeff LaBonte, Matthew Merritt III and Raymond Crowley have left the school’s employ.This matter was investigated by the United States Attorney=s Office, the Medicaid Fraud and Abuse Unit of the Vermont Attorney General’s Office, the Internal Revenue Service, the Federal Bureau of Investigation, and the Office of Inspector General, U.S. Department of Health and Human Services. United States Attorney Coffin commends the investigative agencies for their hard work on this criminal and civil investigation.
On the criminal matters, the United States is represented by First Assistant U.S. Attorney Paul Van de Graaf and Assistant United States Attorney Timothy C. Doherty, Jr. The civil investigation was handled by Civil Chief, Carol L. Shea and Assistant United States Attorney, Nikolas Kerest. The State of Vermont was represented by Assistant Attorney General Edward Baker.
Matthew Merritt, Jr. is represented by David V. Kirby of O’Connor and Kirby in Burlington, Vermont. Jeffrey LaBonte is represented by John Pucci of Buckley Richardson in Springfield, Massachusetts. Matthew Merritt III is represented by Richard Berne in Portland, Maine. Raymond Crowley is represented by Maryanne E. Kampmann of Stetler, Allen & Kampmann in Burlington, Vermont.
Former Hospital CFO Charged with Health Care FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – The former Chief Financial Officer for Dr. Tariq Mahmood’s Texas hospitals has been charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joe White, 66, of Cameron, Texas, was indicted by a federal grand jury on Jan. 22, 2014, and charged with making false statements to the Centers for Medicare and Medicaid Services (CMS) and aggravated identity theft. White appeared for an arraignment hearing today before U.S. Magistrate Judge John D. Love.
The American Recovery and Reinvestment Act of 2009 established incentive payments under the Medicare and Medicaid programs for eligible professionals and eligible hospitals that meaningfully use Certified Electronic Health Record Technology. The incentive programs were created to promote the adoption of health information technology and encourage the electronic exchange of health information in order to improve the quality and lower the cost of health care in the United States. Upon meeting certain conditions, an eligible hospital could qualify for incentive payments from CMS if the hospital attested that it had meaningfully used Certified Electronic Health Record Technology for the prior fiscal year.
According to the indictment, on Nov. 20, 2012, White falsely attested to CMS that Shelby Regional Medical Center (Shelby Regional) met the meaningful use requirements for the 2012 fiscal year. However, Shelby Regional relied on paper records throughout the fiscal year and only minimally used electronic health records. To give the false appearance that the hospital was actually using Certified Electronic Health Record Technology, White directed its software vendor and hospital employees to manually input data from paper records into the electronic health record (EHR) software, often times months after the patient was discharged and after the end of the fiscal year.
The indictment further alleges that White falsely attested to the hospital’s meaningful use by using another person’s name and information without that individual’s consent or authorization. As a result of the false attestation, CMS paid Shelby Regional $785,655.00. In total, hospitals operated by Dr. Mahmood, including Shelby Regional, were paid $16,794,462.66 by the Medicaid and Medicare EHR incentive programs for fiscal years 2011 and 2012.
“As more and more federal dollars are made available to providers to adopt Electronic Health Record systems, our office is expecting to see more cases like this one,” said Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General's (OIG) Dallas Regional Office. “The Office of Inspector General is committed to protecting the millions of taxpayer dollars used to pay providers to adopt Electronic Health Record systems.”
If convicted, White faces up to five years in federal prison for making a false statement and up to two years in federal prison for aggravated identity theft.
This case is being investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation. Assistant U.S. Attorney Nathaniel C. Kummerfeld and Special Assistant U.S. Attorney Kenneth C. McGurk are prosecuting this case.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former East Windsor Resident Charged with Federal Firearms, Explosives and Obstruction OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned a six-count indictment charging PAUL GOTTA, 55, formerly of East Windsor, with firearms, explosives and obstruction offenses. The indictment was returned on January 30, 2014, and unsealed today during GOTTA’s arraignment before U.S. Magistrate Judge Donna F. Martinez in Hartford. GOTTA entered a plea of not guilty.
According to the indictment and statements made in court, between July and December 2012, GOTTA is alleged to have assisted a juvenile in acquiring a handgun, thousands of rounds of ammunition and explosive material, and also assisted in the manufacture of a pipe bomb. It is further alleged that in May and June 2013, GOTTA attempted to obstruct the investigation of his involvement in this matter by making false statements to ATF special agents.
The indictment charges GOTTA with one count of aiding and abetting the unlawful transport of a firearm in interstate commerce, which carries a maximum term of imprisonment of five years; one count of aiding and abetting the possession of a handgun by a juvenile, which carries a maximum term of imprisonment of one year; one count of aiding and abetting the possession of ammunition by a juvenile, which carries a maximum term of imprisonment of one year; one count of distribution of explosive material to an individual under the age of 21, which carries a maximum term of imprisonment of 10 years; one count of aiding and abetting the attempted manufacture of a pipe bomb, which carries a maximum term of imprisonment of 10 years and one count of obstruction of justice, which carries a maximum term of imprisonment of five years.
GOTTA was arrested on a federal criminal complaint on July 19, 2013, and is currently confined to his home in Bridgeport while released on bond.
This matter is assigned to U.S. District Judge Robert N. Chatigny in Hartford.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Windsor Police Department, and is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Baltimore Police Officer Sentenced to 5 Years in Prison for Protecting A Heroin Dealer and Illegally Accessing Police Databases in Fraudulent Tax Refund SchemeRead the Press Release
Police Officer Heads to Federal Prison for “Disgraceful Violation of Public Trust”
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced former Baltimore Police officer Ashley Roane, age 26, of Pikesville, Maryland, today to five years in prison for extortion and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.“Ashley Roane sold her police powers for a few thousand dollars, in a disgraceful violation of the public trust,” said U.S. Attorney Rod J. Rosenstein. “Ms. Roane agreed to provide armed security for drug deals while in uniform in her patrol car, and to check a police database to identify informants. She also used a police database to obtain names, birth dates, and Social Security numbers of arrestees that could be used in a scheme to obtain fraudulent tax refunds from the IRS.”
According to her plea agreement, beginning in the fall of 2012, Roane and her roommate Erica Hughes engaged in a scheme whereby they provided the names and social security numbers of persons arrested by the Baltimore Police to an individual who could file false tax returns to obtain fraudulent tax refunds. Roane obtained the personal information of more than 30 people from law enforcement databases through her position as a Baltimore Police officer. Roane and Hughes provided the information to the individual, who they believed worked as a tax preparer, in addition to being a large scale heroin trafficker in Baltimore.On April 4, 2013, FBI agents watched as Roane arrived in her marked police patrol car for a meeting with the individual to obtain a fraudulent tax refund payment. As directed by the individual, Roane retrieved an envelope containing $2,500 from the source’s vehicle. At a recorded meeting on April 24, 2013, the individual went to Roane’s house and gave Roane an additional $1,500 that the FBI had provided to the individual, purported to be a fraudulent tax refund.
Roane admitted that she also provided protection for the individual’s purported drug trafficking. For example, on March 31, 2013, Roane told the individual that she had performed an unauthorized criminal check of one of the individual’s alleged associates, to determine if the associate was a police informant, and the individual was “clean.” After Roane agreed to provide protection during drug transactions, on April 30, 2013, the FBI set up a controlled purchase by the individual of white powder which resembled a kilogram of heroin. The FBI watched while Roane, in uniform, armed with her service gun, and in a marked police car, provided protection while the individual purportedly retrieved heroin from a vehicle provided by the FBI. Shortly thereafter, at a prearranged meeting, the individual paid Roane $500 for her protection. Roane agreed to provide such protection again in a future transaction involving multiple kilograms of heroin.
During the course of the schemes, Roane and Hughes received $5,250 from the individual in what Roane believed was proceeds of fraudulent tax refunds. Roane also received a total of $1,000 in exchange for providing protection to the individual during what Roane believed were kilogram-level heroin transactions.
Co-defendant Erica Hughes, age 26, of Pikesville, previously pleaded guilty to aggravated identity theft and was sentenced to two years in prison.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter M. Nothstein, who prosecuted the case.
Florida Man Charged in Federal Counterfeit Case for Trafficking Bogus Automotive Devices ‘Reverse Engineered’ in ChinaRead the Press Release
LOS ANGELES – A Florida man was charged today with trafficking in counterfeit electronic engine control devices manufactured and marketed by a Southern California company for use in modified Honda and Acura vehicles.
Marc Heera, 24, of Sunrise, Florida, was charged with one count of trafficking in counterfeit goods, an offense that carries a statutory maximum penalty of 10 years in federal prison. The charge is contained in a criminal information filed this morning in United States District Court.
Federal prosecutors today also filed a plea agreement in which Heera agreed to plead guilty to the felony offense of selling counterfeit circuit boards that are installed in engine control units to boost performance. In the plea agreement, Heera admits that he reverse-engineered, manufactured, advertised and sold approximately 86 counterfeit Hondata “K-Pro” and “S300” devices, which are aftermarket devices manufactured and sold by the Torrance-based Hondata, Inc.
In the plea agreement, Heera admits that, beginning in 2009, he arranged for Hondata’s K-Pro and S300 devices to be reverse-engineered. Investigators believe that Heera had the devices reverse engineered in China and he then paid an unknown Chinese company to build some of the devices. Heera also manufactured counterfeit circuit boards at his workplace, which contained Hondata’s proprietary software. The counterfeit devices bore Hondata’s trademarked name, as well as counterfeit serial numbers. Heera also admitted creating counterfeit packaging, labels, instructions and compact discs for the devices.
Heera, using the online screen name “Maddman7887,” then advertised and sold the counterfeit K-Pro and S300 devices over the Internet, he admitted in the plea agreement. To avoid detection, Heera installed the counterfeit K-Pro devices into used ECUs or instructed the customers to send their ECU’s to him for installation. Heera specifically admitted selling 62 counterfeit K-Pro devices and 24 counterfeit S300 devices, generating approximately $58,000 in income. If the products had been genuine, they would have had a retail value of approximately $74,000.
Heera has agreed to appear in federal court in Los Angeles for an arraignment on March 24.
The investigation in this matter was conducted by the Federal Bureau of Investigation.
Release No. 14-015
Final Defendant in Tax Fraud Scheme Sentenced to PrisonRead the Press Release
PANAMA CITY, FLORIDA — United States Attorney Pamela C. Marsh announced today that Angel Done, 54, of New York, New York, was sentenced by United States District Judge Richard Smoak to 78 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32.
Done is the fifth and final defendant sentenced to federal prison as a result of charges brought against him and four other co-defendants by the U.S. Attorney’s Office, alleging various federal tax violations. On December 19, 2013, Judge Smoak imposed the following sentences on the other defendants:
- Wilson Calle, 55, of New York, New York, was sentenced to 78 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32;
- Blaine Johnston, 62, of Marianna, Florida, was sentenced to 78 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32;
- Wilfredo Rodriguez, 53, of Miami, Florida, was sentenced to 27 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $160,490.93; and
- Diana Gonzalez, 63, of Miami, Florida, was sentenced to 63 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32.
U.S. Attorney Marsh praised the investigators and prosecutors for bringing this case to a successful conclusion and said, “As the number of greedy offenders willing to steal identities and tax dollars has grown, so has our ability to track, investigate, arrest, and prosecute these cases, effectively and cooperatively. We are pursuing those engaged in these schemes, with intensity, and we are ready for tax season.”
During the federal trial in September, prosecutors presented evidence that between 2008 and 2009, the defendants prepared and filed fraudulent tax returns seeking more than $19 million in refunds. The defendants falsely reported that creditors of the defendants and their clients had withheld large amounts of federal income taxes and asserted that the creditors had paid those amounts over to the IRS. As a result of the fraudulently overstated income tax withholding, the tax returns filed on behalf of the defendants or their clients claimed large refunds, to which they were not entitled.
Following the trial, Done, Calle, and Johnston were found guilty by a federal jury of conspiring to defraud the United States by filing, or assisting others in filing, false federal income tax returns and of multiple counts of filing false federal income tax returns. Rodriguez was found guilty by the jury of filing a false federal income tax return seeking a false and fraudulent refund. Gonzalez had previously entered a guilty plea to the charge of conspiracy to defraud the United States by filing, or assisting others in filing, false federal income tax returns seeking false and fraudulent refunds.
This case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorneys J. Ryan Love and Randall J. Hensel.
Federal Grand Jury in El Paso Charges Former Army Physician, Former El Paso Physician, Two Other Individuals and Two Businesses in Connection with an Estimated $7.3 Million Health Care Fraud SchemeRead the Press Release
In El Paso, a federal grand jury has returned a 65-count indictment charging four individuals and two companies in connection with an estimated $7.3 million Health Care related fraud scheme announced United States Attorney Robert Pitman; Janice M. Flores, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office, Arlington, TX; Special Agent in Charge Scott Wilk of the Southwest Fraud Field Office of the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit, Arlington, TX; and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Charged in the indictment, which was returned yesterday afternoon, include: 44-year-old former William Beaumont Army Medical Center (WBAMC) physician Richard Craig Rooney of Medina, WA; his 46-year-old wife and former El Paso Otolaryngology (Ear, Nose and Throat) physician and cosmetic surgeon Angie Unchi Song; 44 year-old Julia Lynn Eller, President and Chief Executive Officer of Allure Spine, LLC (Allure) in Charlotte, North Carolina; 71-year-old Charlie Takhyun Song of Grapeview, WA, father of Angie Unchi Song and independent sales representative; Spondylos Consulting, LLC (Spondylos), a company owned by Angie Unchi Song; and, Allure Spine, LLC, a company owned by Julia Eller.
Rooney, Angie Song, Eller, Charlie Song, Spondylos and Allure are all charged with one count of conspiracy to commit illegal remuneration in regard to Federal Health Care programs; two counts of aiding and abetting illegal remuneration in regard to Federal Health Care programs; one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Rooney, Angie Song, Eller and the two companies are charged in 39 substantive counts of wire fraud. Also, Rooney, Eller and Allure are charged with 17 substantive money laundering counts; and Angie Song, Charlie Song and Spondylos, with one substantive money laundering count. In addition, the indictment also charges Rooney and Eller with two counts each of making material false statements to federal authorities.
The indictment alleges that between September 2002 and August 2010, the defendants participated in an illegal scheme whereby Eller funneled money and other things of value, including firearms, to Rooney, Angie Song and Charlie Song so that Rooney would request the use of Allure Spine surgical implant devices and other medical related equipment in surgeries he performed at WBAMC and at Darnall Army Medical Center at Ft. Hood, TX (DAMC).
The indictment also includes a notice of criminal forfeiture wherein the Government is seeking proceeds derived from the fraudulent scheme as well as funds totaling more than $4.25 million seized from financial institutions and two residential real estate properties located in the State of Washington.
“Today’s indictment demonstrates that the FBI and our partners at the U.S. Attorney’s Office; U.S. Department of Defense, Criminal Investigative Service; U.S. Army Criminal Investigative Command, Major Procurement Fraud Unit; and, the U.S. Postal Inspector Service are committed to thoroughly investigate Health Care Fraud in our community, including Ft. Bliss, whenever health care professionals engage in activity to defraud our health care system for the sole purpose of self-enrichment,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Upon conviction: conspiracy to commit illegal remuneration carries a penalty of up to five years in federal prison; aiding and abetting illegal remuneration in regard to Federal Health Care Programs carries a penalty of up to five years in federal prison; conspiracy to commit money laundering and money laundering carry a penalty of up to 20 years in federal prison; conspiracy to commit wire fraud and wire fraud carry penalties up to 20 years in federal prison; and false statement to federal authorities carries a penalty of up to five years in federal prison.
This indictment resulted from an investigation conducted by agents with the Defense Criminal Investigative Service (DCIS); agents of the Criminal Investigation Command Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command; and agents of the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Debra Kanof and Anna Arreola are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Criminal Complaint Charges PSU-Altoona Student from Russia with Making Unregistered Destructive DevicesRead the Press Release
JOHNSTOWN, Pa. – A college student from Russia has been charged in the Western District Pennsylvania for allegedly making two destructive devices that were found in a suitcase in his rented apartment on the Penn State Altoona campus.
U.S. Attorney David J. Hickton of the Western District of Pennsylvania made the announcement.
Vladislav Miftakhov, 18, a legal permanent resident of the United States, was charged in federal court in Johnstown, Pa., with possessing and making an unregistered destructive device.
According to accusations contained in the criminal complaint, Miftakhov constructed the devices using Magnesium, Potassium perchlorate and an aluminum container, which he purchased and had shipped to his residence. The two devices found in Miftakhov’s apartment on Jan. 24, 2014, qualify as destructive devices as defined by federal law and therefore are required to be registered in the National Firearms Registration and Transfer Record (NFRTR). The defendant does not have any firearms registered to him in the NFRTR.
The investigation is continuing.
The law provides for a maximum penalty of 10 years in prison, a $10,000 fine or both.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Pennsylvania State Police, the Blair County District Attorney’s Office and the Altoona Police Department, conducted the investigation leading to the federal charges against Miftakhov. Assistant U.S. Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Elma Man Indicted on Gun Charges and Making False StatementsRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Bernard T. Grucza, 38, of Elma, N.Y., with making false statements during a firearm purchase, possession of a firearm by a person subject to as domestic violence order of protection and making false statements. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment, the defendant made false oral and written statements to South Georgia Outdoors in an effort to obtain a Beretta 9mm pistol. In addition Grucza made false written statements to Big Daddy Guns in order to obtain a Ruger .380 caliber pistol.
The indictment also states that between July 13, 2013 and October 16, 2013, the defendant possessed a Ruger .380 caliber pistol despite being the subject of a restraining order issued by Elma Town Court. The indictment further states that Grucza made false statements to Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had destroyed the Ruger .380 caliber pistol and thrown out the parts when in fact he had not.
The defendant will be arraigned on February 10, 2014 at 2:00 p.m. before U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Hamburg Police Department, under the direction of Michael Williams.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Dubuque Woman Sentenced for Trying to Hire Someone to Commit MurderRead the Press Release
A woman who used Craigslist to try to hire someone to commit murder was sentenced on February 5, 2014, to more than seven years in federal prison.
Megan Schmidt, 23, from Dubuque, Iowa, received the prison term after a November 20, 2013, guilty plea to one count of using interstate commerce facilities in the commission of murder for hire.
In a plea agreement, Schmidt admitted that two advertisements were posted on the website “Craigslist” from her Apple iPhone, soliciting for someone to do a “one time job.” In response to the advertisements, multiple individuals contacted defendant by email, including an individual also from Dubuque. During an exchange of emails between Schmidt and this individual, Schmidt stated that she wanted a man killed. Eventually, using her cell phone, Schmidt called and spoke to a man in she thought was the individual she had emailed. However, Schmidt was actually talking to an undercover deputy from the Dubuque County Sheriff’s office. During this phone call, Schmidt agreed to pay $10,000 to have a man killed. The undercover deputy then arranged to meet Schmidt at a location in Dubuque in order to see a picture of the man Schmidt wanted killed. Following this meeting, Schmidt was arrested.
Schmidt was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Schmidt was sentenced to 87 months’ imprisonment. A special assessment of $100 was imposed. Schmidt must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Dubuque County Sheriff’s Office and the Dubuque Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 13-CR-1013.
Dorchester Man Sentenced in Murder-For-Hire CaseRead the Press Release
BOSTON - A Dorchester man was sentenced today in U.S. District Court in Worcester for a murder-for-hire plot against an Assistant District Attorney in Worcester County.
Pernell Powell, 76, was sentenced by U.S. District Court Judge Timothy S. Hillman to nine years in prison and two years of supervised release. In August 2013, Powell was convicted following a jury trial of using interstate commerce facilities in the commission of a murder-for-hire.
Powell tried to hire his cellmate at the Worcester County House of Correction to murder an Assistant District Attorney who he believed was involved in the prosecution of his pending OUI multiple offender case. Evidence against Powell included recorded conversations which contained explicit threats against the ADA.
U.S. Attorney Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Sheriff Lewis G. Evangelidis of the Worcester County Sheriff's Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Cory S. Flashner and Michelle L. Dineen Jerrett of Ortiz's Worcester Branch Office.
Confederated Tribes of the Umatilla Indian Reservation to Prosecute Domestic Violence Cases Under VAWA 2013Read the Press Release
Pilot Project Allows Tribal Prosecution of Non-Indian Abusers For the First Time in More Than Three DecadesMISSION, Ore. – The Confederated Tribes of the Umatilla Indian Reservation (“CTUIR”) will be one of three American Indian tribes to be the first in the nation to exercise special criminal jurisdiction over crimes of domestic and dating violence, regardless of the defendant’s Indian or non-Indian status, under a pilot project authorized by the Violence Against Women Reauthorization Act of 2013 (“VAWA 2013”). Besides the CTUIR, two other tribes, the Pascua Yaqui Tribe of Arizona and the Tulalip Tribes of Washington, will also begin exercising special criminal jurisdiction under VAWA 2013.
“Umatilla has once again shown that it is a national leader in criminal justice reform,” said Amanda Marshall, United States Attorney for the District of Oregon. “This expanded jurisdiction will give Umatilla tribal court the authority it needs to protect victims of domestic violence and hold offenders accountable.”
The Reauthorization of the Violence Against Women Act of 2013 expands the inherent jurisdiction of tribes that meet certain conditions to prosecute non-Indian domestic violence offenses perpetrated against Indian victims. It also permits those tribes to prosecute non-Indian
protection order violations when the protected person is an Indian. Such authority is limited to non-Indians who reside, go to school, or work on a tribe’s reservation. To exercise this enhanced authority, a tribe must guarantee certain rights to defendants similar to those guaranteed by the United States Constitution, such as the right to a public defender and effective assistance of counsel. Tribes must also include non-Indians in jury pools. The CTUIR meets these requirements.From February 20, 2014 forward, any non-Indian who commits a qualifying crime in the Indian country of the CTUIR will be subject to prosecution in tribal court. A copy of the Criminal Code is available on the CTUIR’s website. Since this is an exercise of the CTUIR’s inherent sovereignty, any tribal prosecution would not preclude the United States Attorney’s Office from also prosecuting the non-Indian defendant in federal court for the same offense.
"This is important not only for the CTUIR in exercising and expanding our sovereignty, but for the sovereignty of all tribes,” said Umatilla Board of Trustees Chair Gary Burke. “I am proud of the work and dedication of staff, the Court, the Law and Order Committee, and the General Counsel to support and push this effort forward. Once again, CTUIR is blazing a path forward for the good of all tribes.”
For over thirty years, tribes have been prohibited from exercising criminal jurisdiction over non-Indian defendants. Even a violent crime committed by a non-Indian husband against his Indian wife, in the presence of her Indian children, in their home on the Indian reservation, could not be prosecuted by the tribe. In granting the pilot-project requests of the Umatilla, Pascua Yaqui, and Tulalip tribes today, the United States is recognizing and affirming the tribes’ inherent power to exercise “special domestic violence criminal jurisdiction” over all persons, regardless of their Indian or non-Indian status.
The Department of Justice is posting notices of the pilot-project designation on the Tribal Justice and Safety Web site (www.justice.gov/tribal/) and in the Federal Register. In addition, each tribe’s application questionnaire and related tribal laws, rules, and policies will be posted on the Web site. These materials will serve as a resource for those tribes that may also wish to participate in the pilot project or to commence exercising “special domestic violence criminal jurisdiction” in the future.
For more information on VAWA 2013, please visit www.justice.gov/tribal/vawa-tribal.html.
Columbus Woman Pleads Guilty to Embezzling Hud Program Funds, Filing False Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Wendy Harper, 44, Columbus, Ohio pleaded guilty in U.S. District Court to embezzling HUD program funds from her employer, Harvest Management Group, Inc, which manages more than 900 units for elderly and disabled people who qualify for HUD assistance. She also pleaded guilty to filing a false income tax return.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General (HUD), and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the pleas entered today before U.S. District Judge Gregory L. Frost.
According to court documents, Harper was responsible for managing payroll and payment functions for the agency. Harper manipulated the system to give herself unauthorized salary increases and unauthorized mileage reimbursements between 2009 and 2012.
Testimony presented during the plea hearing revealed that, according to calculations made by criminal investigators in this case, Harper would have had to have driven more than 1,200,000 miles in order for the mileage reimbursements to have been legitimate.
In a plea agreement, Harper acknowledged that the U.S. showed the amount of money she embezzled was $588,121.46 and that she concealed her crime by filing false income tax returns for 2009, 2010 and 2011 on which she failed to report the embezzled funds. The tax loss to the government was $126,019.36. Harper’s theft of these HUD program funds contributed to Harvest Management Group having difficulties maintaining the properties to minimum HUD standards and paying its property taxes.
Theft of federal program funds is punishable by up to ten years in prison, a fine of $250,000 and three years of supervised release. Filing false income tax returns is punishable by up to three years in prison, a $250,000 fine, the costs of prosecution and one year of supervised release. Judge Frost could also order her to pay restitution in an amount determined by the court. She will be required to file corrected tax returns for the three years and pay any due taxes and penalties.
Judge Frost will schedule a sentencing hearing following a pre-sentence investigation by the court.
U.S. Attorney Stewart commended the investigation by HUD and the IRS, the Reynoldsburg Police who referred the case for federal investigation, and Assistant U.S. Attorney Dale E. Williams Jr., who is representing the United States in this case.
Collin County Man Sentenced in Mortgage Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 46-year-old Frisco, Texas man has been sentenced for his role in a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Burnham pleaded guilty in July 2013 to conspiracy to commit bank fraud in connection with a FHA insured home loan and was sentenced to 51 months in federal prison today by U.S. District Judge Marcia Crone. Burnham was also ordered to pay restitution in the amount of $1.3 million.
According to court documents, between March and August 2010, Burnham conspired with another individual, Michael Battista, to defraud Flagstar Bank, a federally insured bank. Burnham agreed with Battista that Burnham would recruit buyers to purchase houses that Battista owned. As an incentive to purchase the house, Burnham would promise the buyer a cash payment following the closing of the sale. Battista and Burnham fraudulently overstated the true purchase price of the houses in sales contracts and closing documents. This caused the buyers’ mortgage lenders, such as Flagstar Bank, to unknowingly fund purchase loans that generated more sales proceeds to Battista than what Battista was purportedly demanding for the houses. Battista then used the excess sales proceeds to pay a kickback to Burnham for recruiting the buyer, and Burnham would make the cash incentive payment to the buyer out of his kickback funds. The scheme caused a loss to mortgage lenders of more than $1.3 million. Burnham was ordered to make restitution in that amount to the victims of his scheme. Battista previously pleaded guilty and has been sentenced for his participation in the scheme.
This law enforcement action is part of 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.
The case was investigated by the Federal Housing Finance Agency Office of Inspector General and the Department of Housing and Urban Development Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Andy Williams.
Cape May County, N.J., Man Admits Transporting Minor Across State Lines for SexRead the Press Release
CAMDEN, N.J. – A Cape May County, N.J. man today admitted transporting an underage girl across state lines for the purpose of engaging in sexual activity, U.S. Attorney Paul J. Fishman announced.
Michael Kulick, 46, of Dennis Township, N.J., pleaded guilty before U.S. District Court Judge Joseph E. Irenas to an information charging him with one count of transportation of a minor over state lines in order to engage in sexual activity.
According to documents filed in this case and statements made in court:
In August 2012, Kulick and his family went on a vacation to Lancaster, Pa., accompanied by his daughter’s friend, a 15-year-old girl. Kulick engaged in sexual contact with the minor girl while staying at a hotel in Pennsylvania. Kulick admitted that after returning to New Jersey, he continued to have a sexual relationship with the minor girl for approximately two months. Kulick also admitted that at the time that he transported the minor girl to and from Pennsylvania, he knew that it was illegal in both New Jersey and Pennsylvania to commit statutory rape.
The count to which Kulick pleaded guilty is punishable by a maximum potential penalty of 10 years in prison, a $250,000 fine and restitution for the victim. He will also be required to serve at least five years of supervised release. Sentencing is scheduled for May 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI Atlantic City resident agency, under the direction of Special Agent In Charge Aaron T. Ford; in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent of the state police, and investigators with the Cape May County Prosecutor’s office, under the direction of Prosecutor Robert L. Taylor, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
14-042
Defense counsel: Edwin J. Jacobs Jr. Esq., of Atlantic City, N.J.
Kulick Information
California Woman Sentenced in Fraudulent Tax Refund SchemeRead the Press Release
U.S. District Judge D. Lowell Jensen sentenced Noemi Rubio Baez, of Salinas, Calif., to serve 30 months in prison for her involvement in a stolen identity tax refund fraud scheme, Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division and U.S. Attorney Melinda Haag for the Northern District of California announced that today. Baez was also ordered to serve three years supervised release and to pay $703,536.86 in restitution to the Internal Revenue Service (IRS). Baez pleaded guilty on Oct. 31, 2013, to conspiring to file false claims for tax refunds with the IRS and to aggravated identity theft.
According to the plea agreement, beginning around Feb. 28, 2008, and continuing through April 16, 2012, Baez and a co-conspirator participated in a scheme to obtain and help others to obtain false claims from the IRS by electronically filing false federal income tax returns in her own name and in the names of others. Baez and her co-conspirator created false income information in the names and Social Security numbers of multiple individuals, and filed materially false tax returns with the IRS that claimed refunds derived from tax credits including the Earned Income Credit, the Additional Child Tax Credit and the Making Work Pay Credit.
According to court documents, in some instances, the taxpayers requested the returns be prepared, but in others, the taxpayers did not provide Baez or her co-conspirator with their personal identification information and were unaware that the returns had been filed in their names. Baez and her co-conspirator filed more than 150 false and fraudulent returns with false claims totaling more than $400,000.
Assistant Attorney General Keneally and U.S. Attorney Haag thanked special agents of the IRS - Criminal Investigation who investigated the case, and Trial Attorneys Charles O’Reilly, Erin S. Mellen and Sonia M. Owens for the Tax Division, who prosecuted the case.
Businesswoman Sentenced for Role in Securities Fraud SchemeRead the Press Release
BOSTON – The principal of two companies was sentenced yesterday for her role in a fraudulent scheme in which executives agreed to pay secret kickbacks to an investment fund representative.
Kelly Black-White, 52, of Mesa, Ariz., was sentenced by U.S. District Court Judge Denise J. Casper to one year and one day in prison, two years of supervised release, a $7,500 fine and forfeiture of the illegal earnings. In September 2013, Black-White pleaded guilty to conspiracy to commit securities fraud and wire fraud.
Black-White, the principal of Premier Funding, Inc. and Premier Services, Inc., provides investor and public relations services to publicly traded companies. Black-White was sentenced for her role in a fraudulent scheme in which highly-placed executives agreed to pay secret kickbacks to an investment fund representative who had offered to steer his investment fund to buy stock in their companies. Black-White’s role involved referring such executives to the investment fund representative so that those executives could enter into the kickback arrangement. In exchange, Black-White accepted a portion of the kickbacks paid by the executives. Unbeknownst to Black-White, the purported investment fund representative was actually an undercover federal agent.Black-White’s conviction and sentence followed a year-long investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly-traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities Exchange Commission.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges, as well as charges against other defendants who participated in the kickback scheme. To date, 14 other individuals have been charged and convicted for their participation in the scheme.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 was prosecuted by Assistant U.S. Attorneys Vassili Thomadakis, Eric P. Christofferson, and Sarah E. Walters of Ortiz’s Economic Crimes Unit.
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.
Brooklyn Man Sentenced to Three Years in Prison for Stealing Copper from SubstationsRead the Press Release
A Brooklyn, Ohio, man was sentenced to three years in prison for his role in a conspiracy to steal copper from two dozen substations in Northeast Ohio owned by First Energy or Cleveland Public Power, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Michael T. Butts, 33, was also ordered to pay more than $242,626 in restitution to First Energy Corp. by U.S. District Judge Benita Pearson.
Butts and six other men previously pleaded guilty to conspiracy to damage energy facilities. Previously sentenced are:
William Bertini, 26, of Olmsted Falls, to two years in prison.
Christopher M. Butts, 27, of Cleveland, to four years and seven months in prison.
Jason B. Kauffman, 35, of Cleveland, to three years and one month in prison.
Julio Torres, 46, of Cleveland, to two year and three months in prison.
Jon T. Lefort, 26, of Cleveland, to one year and three months in prison
Keven Wenson, 22, of Lakewood, to two years of supervised release.
“These sentences should send a message that the theft of copper and other scrap metal is a serious problem in our region, and the targeting of energy facilities additionally poses a significant threat to our national security infrastructure,” Dettelbach said."This is the last of a group of seven that chose to enrich themselves while risking lives and posing serious threats to our community,” Anthony said. “The FBI and our law enforcement partners will continue to bring to justice those individuals who place our community in harm’s way.”
The thefts took place between January and May 2013 and included substations in Brooklyn, Parma, Brecksville, Fairlawn, Medina, Cleveland, Wadsworth, Lakewood, Cuyahoga Heights, Independence, Vermillion, Lorain, Avon Lake, Westlake and Valley View, according to court documents.
The 24 substations listed in the indictment have copper material around their bases that facilitated the transmission of electricity. Removal of the copper material from a substation causes a substantial risk of electrical blackouts as well as possible injury or death to utility company employees responsible for maintaining, servicing and repairing the substations, according to court documents.
Christopher and Michael Butts instructed Lefort, Bertini, Kauffman, Wenson and Torres how to remove the copper material from the substation in a way that would minimize the risk of physical harm to the person cutting the wire or cable. The defendants used bolt cutters to cut fencing and/or locks protecting the substations, according to court records.
The defendants then unlawfully extracted the copper wire and materials from the substations, manually carrying it in garbage cans, duffel bags, contractor bags and other containers to “staging areas.” From there, the copper material was transported to scrap yards, where it was sold for cash, according to court documents.
Court documents detail 25 copper thefts and five attempted thefts. It also lists 53 instances where at least some of the defendants sold stolen copper to area scrap yards between January and April 2013.
The defendants collectively sold the stolen copper for more than $15,000. They have collectively been ordered to pay $242,626 to First Energy Corp. for the cost of repairs to the substations.
This case is being prosecuted by Assistant U.S. Attorneys Thomas E. Getz and M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Avon Lake Police Department, Brecksville Police Department, Medina County Sheriff’s Office, Middleburgh Heights Police Department, Valley View Police Department and Northeast Ohio Regional Fusion Center, and assistance from the Medina County Prosecutor’s Office.
Bristol Man Indicted for Distributing Synthetic Drugs and Money LaunderingRead the Press Release
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on Jan. 14, 2014 against Daniel Guy Bickley, 55, of Bristol, Va., for conspiracy to distribute and the distribution of controlled substance analogues as well as conspiracy to engage in monetary transactions in criminally derived property and engaging in such transactions.
Bickley appeared in court on Feb. 6, 2014 before U.S. Magistrate Judge Dennis H. Inman and pleaded not guilty. He was released pending trial, which has been set for Apr. 15, 2014, in U.S. District Court, in Greeneville.
According to the indictment on file with the U.S. District Court, Bickley began selling synthetic stimulants (“bath salts”) and synthetic cannabinoids (“spice” or “incense”) in 2010 from his business Exotic Illusions in Bristol, Virginia. When the Commonwealth of Virginia enacted legislation prohibiting certain synthetic drugs in March 2011, Bickley opened a business in Bristol, Tennessee called Cloud 9 Emporium from which he sold synthetic drugs. The indictment alleges Bickley obtained synthetic drugs from distributors in Florida, Arizona, New Mexico, and elsewhere and that Bickley stated he was making $10,000 a day from the sale of synthetic drugs. Bickley opened a second store, also called Cloud 9 Emporium, in Johnson City, Tenn., in October 2011 and opened a third location in December 2011 in Mountain City, Tenn. The indictment also alleges that Bickley and others opened a business in August 2011 in Kingsport, Tenn., called White Cloud Emporium for the purpose of selling synthetic drugs.
The indictment further alleges that Bickley conspired with others to engage in monetary transactions involving the proceeds of the drugs sales and charges fifty-one separate transactions involving $10,000 or more in cash totaling approximately $1.2 million.
If convicted, Bickley faces a term of up to 20 years in prison and fines of up to $1 million on each of the drug charges and up to 10 years in prison and fines of up to $250,000 on each of the money laundering charges.
This indictment is the result of an investigation by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Sullivan County Sheriff’s Office, Bristol, Tennessee Police Department, Bristol, Virginia Police Department, Johnson City Police Department, and Second Judicial District Drug Task Force. Assistant U.S. Attorney Neil Smith will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Bank Robbers SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Tony Scott Key, aged 45, of Albany, Georgia, was sentenced on Friday, January 22, 2014, to serve nearly 26 years (309 months) in Federal prison for two counts of possession of a firearm during the commission of a crime of violence. Anthony Jerome Facon, aged 48, also of Albany, Georgia, was sentenced on Thursday, February 6, 2014 to 37 years (444 months) imprisonment for armed bank robbery and two counts of possession of a firearm during the commission of a crime of violence. The sentences were handed down by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia. The Court also ordered Mr. Key and Mr. Facon to pay restitution to repay the money stolen and repay costs associated with vehicle repair for vehicles stolen by them or damaged while apprehending them and medical costs of persons affected by their crimes.
Mr. Key entered a plea of guilty to the charges on October 1, 2013. Mr. Facon entered his guilty plea on October 10, 2013. As a part of their plea agreements, Mr. Key and Mr. Facon admitted that on February 28, 2013, they entered the PeoplesSouth Bank located on Tennille Avenue in Donalsonville, Georgia and robbed tellers of approximately $31,113. During the robbery, Mr. Facon was armed with a .22 revolver and Mr. Key with a .38 revolver. Mr. Key and Mr. Facon then fled the bank in a vehicle belonging to one of the bank tellers. The pair was apprehended by the officers from Donalsonville Police Department, Miller County Sheriff’s Office and Seminole County Sheriff’s Office following a vehicle chase and foot chase.Mr. Key and Mr. Facon also admitted to robbing the Trust Bank located at 607 W. 4th Street in Adel Georgia of approximately $9,279 and preparing to rob the Citizen’s Bank in Ray City, Georgia on February 7, 2013.
U.S. Attorney Michael Moore said, “Mr. Key and Mr. Facon are violent criminals who have earned a place in federal prison. When they robbed banks, they terrorized bank employees and endangered the lives of the law enforcement officers who had to chase them. People in Middle Georgia need to know that if they commit violent crimes with a gun, they are headed straight to federal prison”.
Ricky Maxwell, Acting Special Agent In Charge, FBI Atlanta Field Office, stated: “While we are thankful that these dangerous individuals are no longer a threat to the public, we cannot underestimate the impact of what their violence did to the bank tellers, customers and community. They may not have physically harmed anyone, but the psychological harm that these victims have undergone because of these subjects is immeasurable. We will continue to pursue these violent offenders in cooperation and collaboration with our law enforcement partners to protect the citizens of our community”.
The case was investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Donalsonville Police Department, Miller County Sheriff’s Office and Seminole County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Leah E. McEwen.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Award Winning Documentary on Heroin Abuse Available for Free DownloadRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that the award-winning documentary, “The Opiate Effect”, has been made available for viewing and free download. This powerful film features the story of Will Gates, a University of Vermont student who tragically overdosed on heroin and the impact that experience has had on his family. It also seeks to educate young people and their parents about the dangers of opiate prescription drug and heroin use by drawing on the experiences of Will’s father, Skip Gates, and a number of heroin addicts in recovery. The film is aimed at preventing people from getting involved with opiate drugs and is geared especially toward high school and college age students and their parents.
The film was produced by the U.S. Attorney’s Office for the District of Vermont. It was filmed and directed by Derek Hallquist of Green River Pictures and has won several awards including two Telly awards. It was nominated for a New England Emmy.
The video is available for viewing or download at the following link:
https://vimeo.com/41741770
Armed Drug Trafficker Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Anthony Joseph Harlow, age 30, of Dundalk, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute cocaine base and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on December 20, 2012, Baltimore County Police officers stopped a car in which Harlow was traveling. The officers executed a warrant to search Harlow and seized a loaded pistol and 55 plastic baggies containing 20.4 grams of crack cocaine.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore County Police Department and Baltimore County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter J. Martinez, who prosecuted the case.
Apopka Man Convicted of Armed Bank RobberyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that a federal jury today found Dale Matthews Clar (46, Apopka) guilty of two counts of bank robbery with assault and two counts of using and carrying a firearm during and in relation to a crime of violence. Clar faces a maximum penalty of 25 years in federal prison for the bank robbery convictions, followed by a mandatory minimum consecutive penalty of 32 years’ imprisonment on the firearms offenses. His sentencing hearing is scheduled for April 28, 2013.
Clar was indicted on September 25, 2013.
According to testimony and evidence presented at trial, on January 4, 2013, April 3, 2013, and September 6, 2013, Clar robbed the Chase Bank in Apopka, at gunpoint. He stole a total of approximately $18,000 during the three robberies. During each robbery, Clar rushed into the bank wearing a full ski mask. He pointed his gun at bank employees and customers and demanded cash from the tellers. When Clar fled the bank, he covered his license plate to avoid being caught.
On September 6, 2013, he covered his license plate with a temporary registration tag associated with his vehicle. He also attempted to further avoid suspicion, by placing a Domino’s Pizza delivery sign on the top of his car. Police located Clar and arrested him near his home. A subsequent search of Clar’s vehicle revealed Clar’s disguise, a Glock 9mm handgun, and thousands of dollars in cash that he had just stolen from the bank.
This case was investigated by the Federal Bureau of Investigation and the Apopka Police Department. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
Accountant from Jal, N.M., Sentenced to Sixty-One Months in Federal Prison for Fraud and Identity Theft ConvictionRead the Press Release
ALBUQUERQUE – Roger L. Baeza, 32, of Jal, N.M., was sentenced earlier today to sixty-one months in federal prison followed by three years of supervised release for his conviction on securities fraud, access device fraud and aggravated identity theft charges. Baeza also was ordered to pay $501,927.10 in restitution to the victims of his crimes.
Baeza’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and New Mexico State Police Chief Pete N. Kassetas.
In Oct. 2012, Baeza was charged in an 81-count indictment which alleged 78 counts of securities fraud, one count of access device fraud and two counts of aggravated identity theft. According to the indictment, Baeza defrauded two Jal-based businesses, Lea Energy Services, LLC, and Fulfer Oil & Cattle Company, LCC, of more than $500,000 between June 2010 and Feb. 2012, while he was employed as the in-house accountant by the owners of the two businesses.
In June 2013, Baeza pled guilty to all but one count of the indictment, an aggravated identity theft charge. In his plea agreement, Baeza admitted from June 2010 to Feb. 2012, he embezzled approximately $311,960.08 from his employers’ companies by issuing checks on company accounts for cash or for goods and services for his personal use. Baeza also admitted that he covered up his fraudulent conduct by modifying the companies’ accounting records to indicate that the checks had been issued for legitimate purposes.
Baeza also admitted that from June 2010 to Feb. 2012, he used a company credit card issued in the names of his employers to receive payments and items of value in the aggregate amount of $189,267.02. Finally, Baeza admitted using his employer’s name and identity in Feb. 2011, to issue and sign a check on a company account in the amount of $5000.00 and using the money for his personal use.
This case was investigated by the Roswell office of the FBI and the New Mexico State Police, and was prosecuted by Assistant U.S. Attorney Norman Cairns.
14 Years Jail for Local Repeat Drug DealerRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Stephen R. Bedell, age 51, of Burlington, Vermont, was sentenced to 14 years in jail yesterday by Judge William K. Sessions III of the United States District Court in Burlington.
Bedell was arrested by the Burlington Police Department in October, 2012. He had two prior Vermont felony convictions for drug dealing, in 2002 and 2004. Bedell was arrested while selling crack cocaine to a customer, after multiple prior undercover crack and heroin deals during the preceding months. Burlington Police officers recovered $154,000 that Bedell had hidden in area storage units, and $2,720 that he had when arrested. They also recovered commercial quantities of heroin and many other types of drugs, multiple cell phones, and several cars, including a red 2004 Mazda RX8, and a red Pontiac Grand Prix. Christa Maynard was also arrested and charged as Bedell's conspirator. She previously was sentenced to 36 months.
At yesterdays hearing, Judge Sessions heard evidence that Bedell=s drug customers included 10 area female addicts whom he coerced into performing sexual acts to compensate for drug debts. Photos and videos of the females were found in Bedell's seized iPhones. He also had addict customers steal items and swap them to him for drugs, and had them transfer to him personal belongings such as cameras, jewelry and electronics in exchange for drugs and as collateral for drug debts.
Judge Sessions observed that Bedell's conduct was Aappalling, and his continued drug dealing after prior convictions aggravating. The Court imposed a term of imprisonment of 168 months, followed by a term of supervised release.
The U.S. Attorney expressed gratitude for a superb investigation by the Burlington Police Department. Bedell was represented by David McColgin of the Federal Public Defender. The United States was represented by Assistant U.S. Attorney William Darrow.
Wednesday 5 February 2014
West Virginia Man Sentenced to Six Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
WASHINGTON - Troy Shane Young, 41, of Elkview, W. Va., was sentenced today to six years in prison for distribution and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Young pled guilty to the charges in December 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. Upon completion of his prison term, Young will be placed on 15 years of supervised release.
According to the government's evidence, on Aug. 24, 2012, Young contacted a man he believed to be the father of an underage girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Young engaged in electronic communications with the undercover officer. During this period of time, Young sent the undercover officer approximately 10 videos and 22 still images of child pornography. Upon execution of a search warrant on Young’s residence, members of the FBI’s Child Exploitation Task Force recovered various computers, external storage devices and other electronic equipment containing child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier praised the MPD Detectives and the Special Agents of the FBI Child Exploitation Task Force, who investigated the case, and the Special Agents of the FBI’s Pittsburgh Field Office, who assisted in the execution of the search warrant. They also commended the work of Assistant U.S. Attorneys Lisa Johnston and Jennifer Rada, of the Southern District of West Virginia, who assisted in the prosecution. Finally they expressed appreciation to Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-032West Virginia Man Sentenced to Six Years in PrisonRead the Press Release
For Distribution and Possession of Child PornographyWASHINGTON - Troy Shane Young, 41, of Elkview, W. Va., was sentenced today to six years in prison for distribution and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Young pled guilty to the charges in December 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. Upon completion of his prison term, Young will be placed on 15 years of supervised release.
According to the government's evidence, on Aug. 24, 2012, Young contacted a man he believed to be the father of an underage girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Young engaged in electronic communications with the undercover officer. During this period of time, Young sent the undercover officer approximately 10 videos and 22 still images of child pornography. Upon execution of a search warrant on Young’s residence, members of the FBI’s Child Exploitation Task Force recovered various computers, external storage devices and other electronic equipment containing child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier praised the MPD Detectives and the Special Agents of the FBI Child Exploitation Task Force, who investigated the case, and the Special Agents of the FBI’s Pittsburgh Field Office, who assisted in the execution of the search warrant. They also commended the work of Assistant U.S. Attorneys Lisa Johnston and Jennifer Rada, of the Southern District of West Virginia, who assisted in the prosecution. Finally they expressed appreciation to Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-32
W.R. Grace Pays over $63 Million Toward Cleanup and Restoration of Hazardous Waste Sites in Communities Across the CountryRead the Press Release
W.R. Grace & Co, based in Columbia, Md., paid over $63 million to the U.S. government under its bankruptcy plan of reorganization to resolve claims for environmental cleanups at approximately 39 sites in 21states, the U.S. Department of Justice and U.S. Environmental Protection Agency (EPA) announced today.
“Communities across the United States will benefit from this payment of present and future cleanup costs,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “The Justice Department is committed to holding polluters responsible for their environmental legacy, and won’t just walk away leaving taxpayers to pick up the tab.”
“Cleaning up toxic pollution in communities is the responsibility of the company that created it, not the American taxpayer,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “This money will be used to clean up contaminated sites and to make a tangible difference for local communities across the country.”
W.R. Grace’s payment includes approximately $54 million for the EPA. The company agreed to pay another $9 million to other federal agencies, including the U.S. Department of Interior and the U.S. Army.
W.R. Grace, a global supplier of specialty chemicals, and 61 affiliated companies filed for bankruptcy in April 2001. In 2003, EPA filed claims against the company to recover past and future cleanup costs at sites contaminated by asbestos and other hazardous substances.
Numerous agreements to resolve the agency’s environmental liability claims against the company and its affiliates were negotiated as part of the company’s bankruptcy proceedings between April 2008 and February 2013. The company continues to be responsible for all of the sites it owns or operates and for any additional sites that were not known or resolved under the earlier settlements.
W.R. Grace’s liability for asbestos contamination in the town of Libby, Mont., was addressed in a separate June 2008 settlement that resulted in a payment of $250 million to EPA. W.R. Grace continues to be responsible for addressing cleanup at the Libby Mine.
The approximately $54 million payment to EPA will reimburse the agency for cleanup costs or provide funds for future cleanup at the following Superfund sites:Acton Plant - Acton, Mass.
Amber Oil - Milwaukee, Wis.
Aqua Tech - Greer, S.C.
Big Tex Site - San Antonio, Texas
Blackburn and Union Privileges - Walpole, Mass.
Cambridge,Plant, Cambridge, Mass.
Casmalia Resources - Santa Barbara, Calif.
Central Chemical - Hagerstown, Md.
Galaxy/Spectron - Elkton, Md.
Green River - Maceo, Ky.
Harrington Tools - Glendale, Calif.
Intermountain Insulation - Salt Lake City, Utah
IWI Site - Summit, Ill.
Li Tungsten - Glen Cove, N.Y.
Malone Services Co. - Texas County, Texas
Massachusetts Military Reservation (MMR) – Barnstable County, Mass.
N-Forcer Site - Dearborn, Mich.
Operating Industries, Inc. - Monterey Park, Calif.
R & H Oil/Tropicana - San Antonio, Texas
RAMP Industries - Denver, Colo.
Reclamation Oil - Detroit, Mich.
Robinson Insulation - Minot, N.D.
Solvents Recovery Service of NE - Southington, Conn.
Vermiculite Exfoliation Site – Nashville, Tenn.
Vermiculite Expansion Site – High Point, N.C.
Vermiculite Intermountain - Salt Lake City, Utah
Vermiculite Northwest - Spokane, Wash.
Watson Johnson LF - Richland Township, Pa.
Wells G & H (Source & Central Areas) - Woburn, Mass.
Western Minerals Processing - Denver, Colo.
Western Minerals Products - Minneapolis, Minn.
W.R. Grace – Weedsport, N.Y.
Zonolite - Wilder, Ky.
Zonolite/W.R. Grace – Easthampton, Mass.
Zonolite - Prince George’s Co., Md.
Zonolite - Hamilton Township, N.J.
Zonolite - Ellwood City, Pa.
Zonolite - New Castle, Pa.
Zonolite Road – Atlanta, Ga.
More information on W.R. Grace’s payments to EPA under their plan of reorganization : http://www2.epa.gov/enforcement/case-summary-epa-receives-over-54-million-wr-grace-bankruptcy .
More information on Cleanup Enforcement : http://www2.epa.gov/enforcement/waste-chemical-and-cleanup-enforcement#cleanup .W.R. Grace Pays over $63 Million Toward Cleanup and Restoration of Hazardous Waste Sites in Communities Across the CountryRead the Press Release
– Settlement includes two Kentucky Superfund sites
WASHINGTON – W.R. Grace & Co, based in Columbia, Md., paid over $63 million to the U.S. government under its bankruptcy plan of reorganization to resolve claims for environmental cleanups at approximately 39 sites in 21 states, the U.S. Department of Justice and U.S. Environmental Protection Agency (EPA) announced today.
“Communities across the United States will benefit from this payment of present and future cleanup costs,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “The Justice Department is committed to holding polluters responsible for their environmental legacy, and won’t just walk away leaving taxpayers to pick up the tab.”
“Cleaning up toxic pollution in communities is the responsibility of the company that created it, not the American taxpayer,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “This money will be used to clean up contaminated sites and to make a tangible difference for local communities across the country.”
W.R. Grace’s payment includes approximately $54 million for the EPA. The company agreed to pay another $9 million to other federal agencies, including the U.S. Department of Interior and the U.S. Army.
W.R. Grace, a global supplier of specialty chemicals, and 61 affiliated companies filed for bankruptcy in April 2001. In 2003, EPA filed claims against the company to recover past and future cleanup costs at sites contaminated by asbestos and other hazardous substances.
Numerous agreements to resolve the agency’s environmental liability claims against the company and its affiliates were negotiated as part of the company’s bankruptcy proceedings between April 2008 and February 2013. The company continues to be responsible for all of the sites it owns or operates and for any additional sites that were not known or resolved under the earlier settlements.
W.R. Grace’s liability for asbestos contamination in the town of Libby, Mont., was addressed in a separate June 2008 settlement that resulted in a payment of $250 million to EPA. W.R. Grace continues to be responsible for addressing cleanup at the Libby Mine.
The approximately $54 million payment to EPA will reimburse the agency for cleanup costs or provide funds for future cleanup at the following Superfund sites:
Acton Plant - Acton, Mass.
Amber Oil - Milwaukee, Wis.
Aqua Tech - Greer, S.C.
Big Tex Site - San Antonio, Texas
Blackburn and Union Privileges - Walpole, Mass.
Cambridge, Plant, Cambridge, Mass.
Casmalia Resources - Santa Barbara, Calif.
Central Chemical - Hagerstown, Md.
Galaxy/Spectron - Elkton, Md.
Green River - Maceo, Ky.
Harrington Tools - Glendale, Calif.
Intermountain Insulation - Salt Lake City, Utah
IWI Site - Summit, Ill.
Li Tungsten - Glen Cove, N.Y.
Malone Services Co. - Texas County, Texas
Massachusetts Military Reservation (MMR) – Barnstable County, Mass.
N-Forcer Site - Dearborn, Mich.
Operating Industries, Inc. - Monterey Park, Calif.
R & H Oil/Tropicana - San Antonio, Texas
RAMP Industries - Denver, Colo.
Reclamation Oil - Detroit, Mich.
Robinson Insulation - Minot, N.D.
Solvents Recovery Service of NE - Southington, Conn.
Vermiculite Exfoliation Site – Nashville, Tenn.
Vermiculite Expansion Site – High Point, N.C.
Vermiculite Intermountain - Salt Lake City, Utah
Vermiculite Northwest - Spokane, Wash.
Watson Johnson LF - Richland Township, Pa.
Wells G & H (Source & Central Areas) - Woburn, Mass.
Western Minerals Processing - Denver, Colo.
Western Minerals Products - Minneapolis, Minn.
W.R. Grace – Weedsport, N.Y.
Zonolite - Wilder, Ky.
Zonolite/W.R. Grace – Easthampton, Mass.
Zonolite - Prince George’s Co., Md.
Zonolite - Hamilton Township, N.J.
Zonolite - Ellwood City, Pa.
Zonolite - New Castle, Pa.
Zonolite Road – Atlanta, Ga.More information on W.R. Grace’s payments to EPA under their plan of reorganization: http://www2.epa.gov/enforcement/case-summary-epa-receives-over-54-million-wr-grace-bankruptcy.
More information on Cleanup Enforcement: http://www2.epa.gov/enforcement/waste-chemical-and-cleanup-enforcement#cleanup.
Two Men Convicted of Federal Charges in Killing of Coast Guard Officer During Operation Targeting Drug Smuggling BoatRead the Press Release
LOS ANGELES -- Two Mexican nationals were found guilty today of federal charges related to the death of a Coast Guard officer who was fatally injured in late 2012 when he was thrown from a Coast Guard vessel that was rammed by a “panga” boat operated by defendants.
Following a seven-day trial, a federal jury convicted one of the defendants of second-degree murder in the death of Chief Petty Officer Terrell Horne III, who died while his boat was attempting to interdict the panga boat near Santa Cruz Island in the Channel Islands National Park.
The two men found guilty today are:
Jose Meija-Leyva, 42, of Ensenada, who was found guilty of murder, as well as two counts of failure to heave to and four counts of assaulting federal officers with a deadly and dangerous weapon; and
Manuel Beltran-Higuera, 44, of Ensenada, who also was convicted in the two counts of failure to heave to (as an accessory after the fact in one count and as an aider and abettor in the second count) and in the four counts of assault (as an accessory after the fact).
Both defendants are scheduled to be sentenced by United States District Judge Gary A. Feess on May 12.
When he is sentenced, Meija-Leyva will face a statutory maximum sentence of life in federal prison. At sentencing,
Beltran-Higuera will face a statutory maximum sentence of 60 years.Chief Petty Officer Horne, a 34-year-old Redondo Beach resident, was the first Coast Guard officer murdered while on duty since 1927.
“We are pleased with the verdict and that those responsible for Senior Chief Horne’s death will be held accountable,” said Admiral Robert J. Papp, Jr., Commandant of the Coast Guard. “While the conviction of Senior Chief Horne’s killers cannot make up for the loss of a family member, friend and shipmate, we do hope that the conclusion of this case provides some level of comfort and closure to his loved ones. The Coast Guard will continue to honor the legacy Senior Chief Horne and his selfless service to our nation.”
Chief Petty Officer Horne was killed during a law enforcement operation that began late on December 1, 2012 when a Coast Guard airplane identified a suspicious boat about one mile off Santa Cruz Island. After Coast Guard personnel on the Coast Guard cutter Halibut boarded the boat, the airplane identified another suspicious vessel nearby in Smuggler’s Cove on Santa Cruz Island, The airplane reported that the suspicious vessel in Smuggler’s Cove was an approximately 30-foot-long open bowed fishing vessel, commonly referred to as a panga boat.
Coast Guard officers aboard the Halibut launched the Halibut’s small, inflatable boat with four officers aboard. The Coast Guard small boat crew located the panga boat approximately 200 yards from the eastern shore of Santa Cruz Island at approximately 1:20 a.m. on December 2. As the Coast Guard’s small boat approached the panga boat, the officers activated the boat’s police lights and identified themselves as law enforcement. The crew members of the panga boat then throttled the engines and steered the panga boat toward the small boat. As the panga boat rapidly approached the Coast Guard’s small boat, the officer at the helm attempted to avoid a collision by steering the small boat out of the path of the panga boat.
Despite these efforts, the panga boat rammed into the Coast Guard’s small boat, ejecting Chief Petty Officer Horne and another officer into the water. Chief Petty Officer Horne was struck by a propeller in the head and sustained a fatal injury. The other officer sustained a laceration to his knee.After striking the Coast Guard’s small boat, the panga boat crew fled the scene.
Coast Guard aircraft followed the panga boat until it was intercepted by a Coast Guard vessel about four hours later approximately 20 miles north of the Mexico-United States border. Meija and Beltran were arrested at this point.
The investigation in this case was being conducted by the Coast Guard Investigative Service (CGIS) with the assistance of the Los Angeles Border Enforcement Security Task Force (LA BEST) in San Pedro.
Release No. 14-014
Two Indicted in Investigation Involving Smuggling Heroin into Attica Correctional Facility; Two Others Facing Heroin ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury returned an indictment charging Elizabeth Camue Martinez, 33, of Buffalo, N.Y., and her husband, Andres Martinez, 28, an inmate at the Attica Correctional Facility, with possession with intent to distribute, and to distribute, heroin and marijuana. Jerome J. Tallington, 25, of Buffalo, N.Y., has also been indicted and charged with possession with intent to distribute and distribution of heroin. Davon Banks, 35, of Buffalo, N.Y., is charged in a complaint with possession with intent to distribute a mixture and substance containing Fentanyl and prohibited person in possession of a firearm. All charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
“This past June, we warned of the potentially lethal consequences of heroin and fentanyl,” said U.S. Attorney Hochul. “As demonstrated by the recent fatalities in Western New York and elsewhere, that message went unheeded. Let today’s developments be fully understood. Whether rich or poor, suburban resident or prison inmate, no one is immune from the effects of this addiction. As for the traffickers, because delivery of these substances is akin to handing a person a loaded gun, they will be prosecuted to the fullest extent of the law.”
According to state documents filed in Wyoming County, on December 5, 2013, Elizabeth Camue Martinez smuggled heroin into the Attica Correctional Facility to give to her husband, Andres Martinez, an inmate at the facility. On December 8, 2013, defendant Jerome Tallington sold approximately three grams of heroin to a New York State Police investigator.According to the complaint charging Davon Banks, on January 14, 2014, law enforcement officers executed a search warrant at the defendant’s residence at 359 Sherman Street in Buffalo. Officers seized approximately 163 plastic bags containing a powdery substance, a 12 gauge shotgun, and a digital scale. Subsequent analysis on the powdery substance determined that it contained Fentanyl. The complaint further states that Banks was subject to a protective order preventing him from possessing a firearm.
Drug Enforcement Administration Acting Special Agent in Charge James J. Hunt stated, “Heroin overdose rates have increased 45% nationwide. The spread of heroin abuse has even reached a place we put drug dealers for their crimes – jail. Numerous heroin overdose deaths have been attributed to heroin laced with fentanyl throughout the northeast and in this case, the victim was given pure fentanyl which led to lethal consequences. Every time you use an illicit drug it’s a life or death risk. The DEA, the Western District of New York, and the Wyoming County District Attorney’s Office have investigated these deaths which resulted in the arrests of Andres Martinez, Elizabeth Camue-Martinez and Jerome Tallington for their role in this conspiracy.”
Troop A Commander, Major Michael J. Cerretto said, "Heroin addiction destroys lives. The number of overdose deaths that law enforcement agencies investigate is just staggering. I am very pleased that the New York State Police Community Narcotics Enforcement Team was able to be a part of this very important investigation."
NYS Department of Corrections and Community Supervision Acting Commissioner Anthony J. Annucci said, "Illegal drugs are a danger to our communities and our prisons. I applaud the teamwork that brought about these arrests, and I am proud that DOCCS staff played a role in taking these people and their drugs off the streets."
The indictment and complaint are the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police, under the direction of Major Michael Cerretto, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Wyoming Country District Attorney’s Office, under the direction of Donald O’Geen, the Erie County District Attorney’s Office, under the direction of Frank Sedita, and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony Annucci.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Tax Preparer Indicted in SYAM Tax Service SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A Dallas tax preparer has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shannon Tecoko Mays, 36, of Dallas, was indicted today by a federal grand jury charging him with conspiracy to commit wire fraud.
According to prosecutors, an investigation began in August 2012 in response to numerous complaints to state and federal authorities from citizens in Port Arthur, Anahuac, Nacogdoches and Lufkin, Texas regarding income tax returns that were being fraudulently prepared on their behalf. During the investigation, it was discovered that Mays was operating numerous offices across the United States under the name “Syam Tax Services, L.L.C.” and “Baby Momma Tax.” Although the principal office was located in Dallas, Mays also operated or sought to operate satellite offices in numerous other locations, including Fort Worth, Houston, New Orleans, Memphis, Atlanta, Chicago and Los Angeles.
The indictment alleges that Mays targeted individuals who were generally exempt from having to file income tax returns because they would be less likely to discover a fraudulent tax return had been filed on their behalf. To further facilitate the scheme, Mays employed “recruiters,” paying them from $50-100 for every client they successfully brought into Syam Tax. In order to avoid detection, Mays altered the taxpayer’s address and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayer. The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer.
For the tax year 2011, Mays filed 4,226 tax returns claiming approximately $3,150,406. If convicted, Mays faces up to 20 years in federal prison.This case is being investigated by Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, the Port Arthur Police Department, the Texas Attorney General’s Office – Consumer Protection Division, and the Treasury Inspector General for Tax Administration. This case is being prosecuted by Assistant U.S. Attorney Baylor Wortham.
It is important to note that a grand jury indictment is not evidence of guilt.
Sulphur Men Sentenced for Making and Distributing Counterfeit MoneyRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Shaun Daigle, 35, and Patrick Murray, 45, both of Sulphur, La., were sentenced by U.S. District Judge Donald E. Walter for conspiring to counterfeit U.S. currency. Daigle received 41 months in prison and Murray received 24 months in prison. They were also sentenced to serve two years of supervised release. They pleaded guilty November 14, 2013.
According to evidence presented at the guilty plea, from May 1, 2013 to May 25, 2013, Daigle and Murray conspired to manufacture and distribute counterfeit U.S. currency in the Sulphur, Lake Charles, and Westlake, La. areas.
The U.S. Secret Service and Sulphur Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.Staten Island Man Convicted of Scheme to Defraud Investors of $5 MillionRead the Press Release
Peter Liounis, a resident of Staten Island, was convicted today by a federal jury in Brooklyn on all nine counts of the indictment for defrauding investors of millions of dollars through Grayson Hewitt, a purported lawsuit funding investment firm. Liounis lied to potential investors and promised them a fixed rate of return on their investments. Rather than make investments as promised, Liounis and his coconspirators stole the investors’ money to purchase gold for their own use. Through the scheme, Liounis defrauded investors of approximately five million dollars. The jury’s verdict followed a two-week trial in United States District Court before the Hon. I. Leo Glasser. Liounis was convicted of six counts of wire fraud, one count of mail fraud, one count of wire and mail fraud conspiracy, and one count of securities fraud.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Philip R. Bartlett, Postal Inspector in Charge, U.S. Postal Inspection Service, New York Division; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York; and Steven G. Hughes, Special Agent-in-Charge, United States Secret Service.
"As the evidence at trial showed, Liounis lied to his victims over and over again, and went on to steal the savings of hard-working individuals. His victims’ needs meant nothing to him, as they were just the means he used to the end of filling his own pockets," stated United States Attorney Lynch. "We will tirelessly pursue individuals who seek to profit through this type of fraud." Ms. Lynch extended her appreciation to the Postal Inspection Service, New York Division; Department of Homeland Security, Homeland Security Investigations; and the United States Secret Service for their assistance in the investigation.
The evidence at trial established that from May 2010 through April 2012, Liounis used the alias "Mark Anderson," to solicit potential investors for Grayson Hewitt. Liounis told potential investors that Grayson Hewitt purchased plaintiffs’ rights to future recoveries in personal injury and other lawsuits, and promised them a return of fifteen percent or more. To perpetrate the scheme, Liounis and his coconspirators sent the victims bogus account statements. In a series of calls captured by a court-ordered wiretap, the son of an investor sought the return of his father's money so that the son could place his father, who had suffered a heart attack, into assisted living. Although the father had some $23,000 left in his Grayson Hewitt account, Liounis falsely told the son that his father had been depleting the account and had only $3,000 remaining. Liounis then sent the father and son a "get well fruit basket." In another call, a Grayson Hewitt investor expressed skepticism about the company, noting "I see this as a Bernie Madoff deal." Liounis responded, "this is no way, no how, a Bernie Madoff...believe that!...You gotta understand, the amount of money we handle here, uh, we'd go away for a hell of a lot longer than Bernie did."
Liounis faces a maximum sentence of 20 years on each of the nine counts of conviction.
The government’s case was prosecuted by Assistant United States Attorneys Michael Yaeger and Justin Lerer, with assistance from Assistant United States Attorney Daniel Spector.
This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency 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.
The Defendant:
PETER LIOUNIS
Age: 42
Staten Island, New York