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Tuesday 4 February 2014
Former Connecticut Resident Pleads Guilty to Mortgage Fraud ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GARI-MARK THOMAS, 38, of Michigan, formerly of Norwalk, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of conspiracy to defraud the Federal Housing Authority through a mortgage fraud scheme.
According to court documents and statements made in court, in March 2008, THOMAS, while serving as a loan officer for Suntrust Mortgage, assisted his girlfriend in obtaining a residential real estate loan to purchase a property at 510 E. Main Street in Stratford by submitting fraudulent information to the lender and the Federal Housing Authority (FHA). The fraudulent information included a false claim that his girlfriend was employed with a tax and accounting company, false paystubs, false IRS tax forms and phony bank statements to make it appear that she had a bank account with assets in it, when in fact she had no such assets.
Based on the fraudulent loan documentation, the loan was issued by the lender and insured by the FHA. THOMAS’ girlfriend ultimately defaulted on the loan, causing a loss of approximately $184,000 to the FHA.
THOMAS is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 23, 2014, at which time THOMAS faces a maximum term of imprisonment of five years.
This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.
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[email protected]Former Camden Town Manager Sentenced to 24 Months in PrisonRead the Press Release
WILMINGTON, Del. – James O. Plumley, the former Town Manager of Camden, Delaware, was sentenced today by United States District Court Judge Richard G. Andrews to 24 months of imprisonment for his role in a kickback scheme to unlawfully defraud the State of Delaware of over $200,000 dollars in years 2004 through 2008. In addition to the prison term, Judge Andrews ordered Plumley to repay over $204,000 to the State of Delaware.
Prior to his position as the Camden Town Manager, Plumley was employed at Roofing Resources, Inc., and was responsible for assisting the State of Delaware’s Division of Facilities Management select qualified contractors to repair and maintain roofs at state-owned facilities. Plumley used this position to steer roofing contracts to his co-defendant, contractor William P. Mahon. In return and at Plumley’s direction, Mahon inflated his project bids by a specified amount, which he later deposited into Plumley’s checking account as a kickback. Over the course of the scheme, the FBI was able to identify $204,000 in kickbacks that Plumley received from Mahon between 2004 and 2008.
This case was made possible through substantial cooperation by the Camden Police Department, including Chief of Police William E. Bryson and Captain Gary Melvin, who conducted the initial investigation of Plumley and provided the FBI with a strong foundation for its case here.
Charles M. Oberly, III, United States Attorney for the District of Delaware stated, “This is an example of our commitment to work tirelessly with our law enforcement partners to investigate and prosecute individuals who criminally exploit positions of trust within our community. This is especially true when individuals abuse the government’s trust for their own benefit. Hopefully, this prison sentence will serve as a deterrent to others who elevate their own benefit above the duty they owe to the citizens of Delaware.”
“Tax payers trust their tax money will be used wisely, and not stuffed into the pockets of corrupt people. The reason people who serve governments are held to a higher standard is because they have access to incredible power and influence. It can’t be abused, and the FBI and U.S. Attorney’s Office won’t let it be,” said FBI Baltimore Division Special Agent in Charge Stephen Vogt.
The case was prosecuted by Assistant United States Attorneys Shawn A. Weede and Jennifer L. Hall. For further information, please contact Public Information Officer Kim Reeves at (302) 573-6277, ext. 16287.
See Also: United States v. William P. Mahon, Criminal Action No. 13-33-RGA
Fenton Man Sentenced to Almost 30 Years on Child Exploitation ChargesRead the Press Release
A man who enticed a minor to engage in sexual activity and possessed child pornography was sentenced February 3, 2014, to almost 30 years in federal prison.
Timothy Koenck, age 54, of Fenton, Iowa, received the sentence after a September 26, 2013, guilty plea to one count of enticing a minor to engage in sexual activity, one count of committing a felony offense involving a minor by a person required to register as a sex offender, and two counts of possession of child pornography. Koenck previously had been convicted of enticement of a minor and possession of child pornography in 2001-2002.
Koenck was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Koenck was sentenced to 355 months’ imprisonment. A special assessment of $400 was imposed, and Koenck must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Kossuth County Sheriff’s Office, and the Mower County, Minnesota, Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3016.
Felon in Possession of Firearm Sentenced to 41 MonthsRead the Press Release
EUGENE, Ore. – On January 31, 2014, Scott Alan Gorman, 46 years old, was sentenced by U.S. District Chief Judge Ann Aiken to 41 months in federal prison for unlawful possession of a firearm. Upon his release from prison, Gorman will be on supervised release for three years.
On January 7, 2013, Gorman made threatening statements about having a firearm and an underground bomb shelter that scared employees at an adult care facility. The next morning, law enforcement responded to Gorman’s home and found in his bedroom a loaded Bushmaster .223 semi-automatic rifle and four loaded 30-round magazines. Gorman has a prior felony conviction for unlawful use of a weapon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eugene Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik. The Lane County District Attorney’s Office is also prosecuting Gorman based upon an unrelated alleged assault.
Expatriate American Sex Offender Sentenced to Thirty Years in Prison in Foreign Sexual Abuse and Child Pornography CaseRead the Press Release
PORTLAND, Ore. – A previously-convicted sex offender who moved to Ecuador, sexually abused young boys there, and produced and distributed images of the abuse was sentenced in federal court this morning to 30 years in prison followed by a life term of supervised release. U.S. District Judge Michael H. Simon imposed the sentence on Kenneth Robert McVicker III, 50, following McVicker’s plea of guilty to traveling in foreign commerce and engaging in illicit sexual conduct with minors. While on supervised release, McVicker will be subject to stringent conditions of supervision, including prohibitions on associating with minors and frequenting places where children congregate, and restrictions on his use of computers. McVicker will also be required to participate in sex offender treatment, and must register as a sex offender.
McVicker was convicted of a number of child molestation offenses in Maryland in the 1980s, for which he spent close to 15 years in prison. After his release, and after completing a term of post-prison supervision, McVicker moved to a small coastal village in Ecuador, where he taught English and worked as an artist and soccer coach. While in Ecuador, he sexually abused at least eight young boys between the ages of five and twelve, took photographs and made videos of the abuse, and distributed the images to child pornography traders and collectors in Canada, India, Thailand, and Mexico. McVicker used the images he created as currency to obtain images of child sexual abuse from others. Agents from the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) learned of McVicker’s activities after one of those collectors, a convicted American child pornographer living in Mexico, sent hundreds of McVicker’s self-produced images to an undercover HSI agent in Oregon posing as a child pornography collector. The collector in Mexico is presently serving a 15-year federal sentence following his conviction in Oregon for transportation of child pornography.
McVicker was indicted in Oregon and arrested in Belize after he travelled there to work on a commercial art project. Acting on information provided by HSI, authorities in Ecuador served an Ecuadoran search warrant at McVicker’s residence and seized his computer equipment. Forensic examinations of the equipment revealed a vast collection of over 360,000 images and more than 1,300 videos depicting the graphic sexual abuse of young children.
At the sentencing hearing, McVicker said that while he was born in the United States, he did not grow up here, and does not consider the United States his country. He believes that he should be facing charges in Ecuador, not in the United States. The government noted that McVicker’s conduct violated the laws of the United States, and was no less serious because his victims lived in Ecuador.
Judge Simon asked McVicker what “we, as a society” can do to prevent the sexual abuse of children in the future. McVicker replied, “Nothing at all.” He also apologized to “everyone who got hurt” by his conduct. Judge Simon urged McVicker to consider participating in scientific research geared toward better understanding and preventing future instances of child sexual abuse “in part, to repay for harms you’ve already caused.”
U.S. Attorney Amanda Marshall praised the sentence imposed on McVicker. “This sentence sends a strong message that there is no safe haven for predators who sexually abuse children – not in this country, and not abroad,” she said. McVicker’s conduct was “particularly egregious” because “he created images of the abuse, distributed the images, and used them to amass a horrific library of sexual abuse images and videos.” She also praised the “extraordinary efforts of the HSI agents, both here and abroad,” in identifying and locating McVicker. Because of those efforts, Marshall said, “Kenneth McVicker will never again be able to sexually abuse a child.”
HSI officials echoed Marshall’s comments. “Kenneth McVicker repeatedly abused young children to satisfy his sexual desires, and continued doing so even after moving to another country,” said Brad Bench, special agent in charge of HSI’s Seattle office, which oversees Oregon investigations. “Americans who travel overseas to abuse children are not beyond the reach of U.S. law. HSI special agents will go anywhere in the world to track down child predators and bring them to justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Homeland Security Investigations and was prosecuted by Assistant U. S. Attorneys Gary Sussman, Project Safe Childhood Coordinator for the U.S. Attorney’s Office in Oregon, and Kelly Zusman, Appellate Chief for the District of Oregon.
Dutchess County Woman Convicted in White Plains Federal Court of Wire Fraud, Filing False Claims, Bank Fraud, and Corruptly Interfering with the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELANIE FERREIRA, 61, was found guilty on all counts of a four-count Indictment today that charged her with engaging in a series of frauds, which included cheating the Internal Revenue Service (“IRS”) out of nearly half a million dollars, and perpetrating a bank fraud scheme. The verdict came following a seven-day jury trial in White Plains Federal Court before U.S. District Judge Cathy Seibel.
U.S. Attorney Preet Bharara stated: “Melanie Ferreira thought she could enjoy the fruits of law-abiding taxpayers’ money while evading the tax laws and defrauding the government. Through today’s jury verdict, she learned how wrong she was.”
According to the Indictment and the evidence at trial:
On October 15, 2009, FERREIRA filed a U.S. Individual Income Tax Return, Form 1040, for the year 2008 (“2008 Return”). In her 2008 Return, she falsely reported interest income of $661,600 from three different banks. She then falsely claimed that she had paid taxes in the amount of $661,536 to the IRS for Tax Year 2008. On that basis, she claimed a refund of $440,924. In reality, she actually earned only $17 in interest income in 2008. Further, contrary to her claim on her 2008 Return that she had already paid $661,536 in federal taxes, she actually paid only $236.
On October 23, 2009, the IRS wired $440,924 to FERREIRA’s bank account. That same day, FERREIRA wired $44,100 to the individual listed on her tax return as her “tax preparer” and $88,172 to the individual who introduced her to the “tax preparer.”
The following spring, on April 15, 2010, FERREIRA tried to carry out the same type of scheme – requesting of a refund of over $332,033 – when she filed her Form 1040 for the year 2009, but this time, the IRS rejected her refund request. Thereafter, when the IRS notified FERREIRA that she was required to pay back the $440,924 plus interest and penalties, FERREIRA sent the IRS a series of incomprehensible documents and a worthless check for $759,033.05 written on a closed account.
In addition, FERREIRA also perpetrated a bank fraud scheme against the Bank of America (“BOA”), which was the bank that held the mortgage for her house in Dutchess County, New York (“House 1”). In May 2010, she caused a forged cashier’s check for $316,966.05, purporting to be drawn on the Federal Reserve Bank of Cleveland, Ohio (“Check 1”), to be sent to BOA in satisfaction of the mortgage on House 1. Believing that Check 1 was legitimate, BOA filed a satisfaction of mortgage. BOA subsequently determined that Check 1 was fraudulent and filed suit in New York State Supreme Court in order to have the mortgage reinstated. On June 2, 2012, FERREIRA sent a personal check in the amount of $305,000 (“Check 2”) to BOA, purporting, again, to pay off the balance of her mortgage. On the memo line of Check 2, FERREIRA wrote, in red ink, “FOR DISCHARGE OF DEBT EFT ONLY.” Check 2 was written on a bank account that had been closed two years before.
As reflected in papers filed in Court: FERREIRA’s schemes – sometimes known as a 1099-OID scheme and an electronic funds transfer or “EFT” scheme – are schemes often used by adherents to the Sovereign Citizens Movement, a group comprised of individuals who, although they reside in the United States, assert the position that they do not have to answer to any government authority, including courts, taxing entities, motor vehicle departments or law enforcement.
FERREIRA faces a maximum sentence of 58 years in prison and a maximum fine of $1,000,000, or twice the gross gain or gross loss from the offense. Judge Seibel set a sentencing date of May 20, 2014 at 2 p.m.
FERREIRA lived in Lagrangeville, New York, until her conviction today. Judge Seibel remanded her following the conviction.
Mr. Bharara praised the outstanding investigative work of the law enforcement partners involved in the investigation, including the FBI’s Joint Terrorism Task Force and the IRS.
This prosecution is being handled jointly by the Office’s Terrorism and International Narcotics Unit and the White Plains Division. Assistant United States Attorneys Jason P.W. Halperin and Marcia S. Cohen are in charge of the prosecution.
U.S. v. Melanie Ferreira Superseding Indictment
District of Oregon Assistant United States Attorneys Chosen as Recipients of 30th Annual Director's AwardsRead the Press Release
PORTLAND, Ore. - Four Assistant United States Attorneys (AUSAs) in the District of Oregon have been selected as recipients of the 2014 Director’s Awards by the Executive Office for United States Attorneys in Washington, D.C. The Director’s Awards are awarded for distinguished service to the mission of the Department of Justice through extraordinary professional achievements and excellence.
AUSA Gary Sussman was awarded the Director’s Award for Superior Performance as a Criminal AUSA for his work as the Project Safe Childhood Coordinator (PSC). He has served in this capacity for over seven years. AUSA Sussman has worked with federal, state, and local law enforcement and prosecutors to investigate child sexual abuse and exploitation offenses with an eye towards federal prosecution for particularly serious offenders. PSC prosecutions doubled between 2011 and 2012. As a result of his efforts, many sexual predators are serving substantial federal prison sentences.
AUSAs Tim Simmons, Craig Gabriel, and Billy Williams received the Director’s Awards for Superior Performance in Indian Country. All three AUSAs serve as Tribal Liaisons to the nine federally recognized tribes in Oregon. They received this award for their achievements in promoting the safety of Indian Tribal communities, establishing trusted government-to-government relationships, prosecuting Indian Country cases, and their work on jurisdictional complexities. Their work has concentrated on fulfilling the United States’ trust responsibilities by helping to protect Indian treaty and ancestral rights, and facilitating partnerships between tribal officials and both federal and state law enforcement regulatory agencies. They have instituted concrete changes in Indian country in promoting partnerships necessary for effective Indian Country law enforcement. This has led to effective and aggressive prosecution strategies and a dramatic reduction in crimes and violence affecting tribal communities in Oregon.
“This recognition by the Executive Office of U.S. Attorneys is a huge honor for all of the employees of the United States Attorney’s Office in the District of Oregon. Nationwide, many Department of Justice employees are nominated for these prestigious awards”, said U.S. Attorney Amanda Marshall. “I am particularly proud to have our Indian Country and Project Safe Childhood prosecutors recognized in this way as it speaks to the hard work of our office, prioritization, and continued commitment in these areas. Having four of our AUSAs recognized for their significant contributions to the mission of the Department of Justice, and the citizens of Oregon is a testament to the commitment, dedication, and hard work of all our employees.”
District Man Sentenced to Six Years in Prison for Pair of December 2012 Bank Robberies- Defendant Robbed Two Banks Within 48 Hours -Read the Press Release
WASHINGTON – Scott Lee Feuer, 58, of Washington, D.C., was sentenced today to six years in prison for robbing two banks in December 2012, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Edwin D. Sloane, U.S. Marshal for the District Court of the District of Columbia.
Feuer pled guilty to two counts of bank robbery in October 2013 and was sentenced today by the Honorable Rosemary M. Collyer in the U.S. District Court for the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. He also was ordered to pay $698 in restitution.
According to a factual proffer of evidence presented at the time of the guilty plea, on the afternoon of Dec. 26, 2012, Feuer entered a SunTrust Bank in the 900 block of 17th Street NW, approached a bank employee, and handed over a note demanding money. Feuer stole $692 from the bank before fleeing the area. Less than 48 hours later, on the morning of Dec. 28, 2012, Feuer entered a SunTrust Bank in the 1300 block of Connecticut Avenue NW, approached a bank employee, announced a robbery, and demanded money. Feuer stole $2,350 from the bank.
Feuer was apprehended by officers with the Metropolitan Police Department (MPD) moments later inside the Dupont Circle Metro Station. Some stolen proceeds were recovered.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and U.S. Marshal Sloane commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case, the U.S. Marshals Service, and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Jessica Moffatt, and Assistant U.S. Attorneys Arvind K. Lal and Catherine K. Connelly, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crime and Narcotics Trafficking Section, who prosecuted the case.
14-031District Man Sentenced to Six Years in PrisonRead the Press Release
For Pair of December 2012 Bank Robberies
- Defendant Robbed Two Banks Within 48 Hours -WASHINGTON – Scott Lee Feuer, 58, of Washington, D.C., was sentenced today to six years in prison for robbing two banks in December 2012, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Edwin D. Sloane, U.S. Marshal for the District Court of the District of Columbia.
Feuer pled guilty to two counts of bank robbery in October 2013 and was sentenced today by the Honorable Rosemary M. Collyer in the U.S. District Court for the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. He also was ordered to pay $698 in restitution.
According to a factual proffer of evidence presented at the time of the guilty plea, on the afternoon of Dec. 26, 2012, Feuer entered a SunTrust Bank in the 900 block of 17th Street NW, approached a bank employee, and handed over a note demanding money. Feuer stole $692 from the bank before fleeing the area. Less than 48 hours later, on the morning of Dec. 28, 2012, Feuer entered a SunTrust Bank in the 1300 block of Connecticut Avenue NW, approached a bank employee, announced a robbery, and demanded money. Feuer stole $2,350 from the bank.
Feuer was apprehended by officers with the Metropolitan Police Department (MPD) moments later inside the Dupont Circle Metro Station. Some stolen proceeds were recovered.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and U.S. Marshal Sloane commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case, the U.S. Marshals Service, and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Jessica Moffatt, and Assistant U.S. Attorneys Arvind K. Lal and Catherine K. Connelly, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crime and Narcotics Trafficking Section, who prosecuted the case.
14-31
District Man Sentenced to Six Years in PrisonRead the Press Release
For Pair of December 2012 Bank Robberies
- Defendant Robbed Two Banks Within 48 Hours -WASHINGTON – Nicholas Hanlon, 28, of Stafford, Va., was sentenced today to eight years in prison on one count of traveling interstate to engage in illicit sexual conduct with a minor and two counts of receipt of child pornography.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Earl L. Cook, Chief of the Alexandria Police Department, Alexandria, Va.
Hanlon pled guilty to the charges in November 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Gladys Kessler. Upon completion of his prison term, Hanlon will be placed on 10 years of supervised release.
According to the government's evidence, on April 25, 2013, a member of the FBI's Child Exploitation Task Force, a detective from the Alexandria Police Department, was contacted by the parent of an under-aged female who was concerned that the child had been engaged in illicit text message conversations with Hanlon and others. The task force member, in an undercover capacity, began communicating with Hanlon, who believed the officer was the child.
Over the next few days, Hanlon engaged in text messaging with the undercover officer. During this period of time, Hanlon arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On April 25, 2013, Hanlon traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. Subsequent to his arrest, law enforcement searched Hanlon’s computer and cell phone. Pursuant to that search, law enforcement found evidence that Hanlon had been communicating via text message and email with multiple young girls. Specifically, law enforcement recovered evidence that Hanlon received explicit videos from a female child from Missouri and from a 15-year-old from Virginia.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and Chief Cook praised the work of the MPD and Alexandria Police Detectives and Special Agents of the FBI Child Exploitation Task Force. Finally, they commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-30Court Bars N.C. Tax Return Preparer from Preparing Returns for OthersRead the Press Release
Today, a federal court in the Eastern District of North Carolina permanently barred Sharon D. Rhodes and her businesses, R&S Freedom Tax Service and Changing Faces Annoited Tax Services, from preparing tax returns for others. Rhodes consented to the entry of the injunction without admitting she was guilty of the allegations against her.
According to the complaint, Rhodes prepared over 600 tax returns for the 2008 through 2010 tax years. The complaint alleges that Rhodes prepared returns claiming false charitable deductions and false credits such as the Earned Income Tax Credit and education credits. Rhodes also allegedly improperly understates her customers’ federal tax liabilities by creating phony businesses and then listing those fake businesses on returns and fabricating expenses and losses for them. The United States contended that the false items generated larger refunds for Rhodes’ customers than they were entitled to receive, and that the losses to the U.S. Treasury could amount to as much as $3 million.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2013, which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . The IRS has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm .
Related Materials:
United States v. Sharon D. Rhodes
Agreed Final Judgment of Permanent Injunction and Order Against Sharon D. RhodesClinton Woman Sentenced to Prison for Bank Fraud and Tax EvasionRead the Press Release
Jackson, Miss. -- Barbara Cummings, 60, of Clinton, Mississippi, was sentenced by U.S. District Judge David Bramlette to 23 months in federal prison followed by five years of supervised release for bank fraud and tax evasion, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Daniel McMullen, and Special Agent in Charge Gabriel Grchan with IRS Criminal Investigation - New Orleans Field Office. A restitution and forfeiture hearing in this case will be held on March 25, 2014, at 11:00 a.m.
From March 2007 through March 2009, Cummings was employed as the office manager at Mid-South Machinery in Jackson. During her employment, she systematically forged the signatures of the owners of Mid-South Machinery on numerous checks drawn on Mid-South Machinery’s accounts at First Commercial Bank, making such forged checks payable to herself and her husband and cashing and depositing such funds into her personal bank account. Cummings also altered the dollar amounts written on transaction tickets from Mid-South’s Regions Bank account that were made payable to “Petty Cash” or she would fraudulently create a transaction ticket, making it payable to “Barbara Cummings,” and keep some or all of the money. When interviewed by agents of the FBI and IRS, Cummings admitted to embezzling the funds from Mid-South by defrauding the banks. During 2008, she prepared her own income tax return, where she intentionally failed to report over $120,000 in income she had received that year through her fraudulent scheme in order to pay less tax on her income.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Mike Hurst.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Cleveland Man Indicted for Four Bank RobberiesRead the Press Release
A grand jury returned a four-count indictment charging Eddie J. Fletcher, 39, of Cleveland, with three counts of bank robbery and one count of attempted bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Fletcher robbed three banks: First Merit Bank of Streetsboro, Ohio, on January 10, 2013; Chase Bank of Cleveland, Ohio, on April 3, 2013; and, First Place Bank of Cleveland Heights, Ohio, on September 9, 2013. The indictment further alleges that Fletcher attempted to rob the same Chase Bank branch on November 25, 2013.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, the Streetsboro Police Department, and other local law enforcement agencies.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Campbellsville Man Sentenced to 15 Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
– Defendant had prior child pornography conviction in Massachusetts
LOUISVILLE, Ky. – A Campbellsville man who previously pled guilty to violating federal child exploitation laws, was sentenced to 15 years in prison, followed by 15 years of supervised release yesterday, by Chief United States District Court Judge Joseph H. McKinley, Jr., announced David J. Hale, United States Attorney for the Western District of Kentucky.
Michael William Bolter, age 42, pleaded guilty to a two-count Indictment on November 15, 2013. The Indictment charged him with distributing and possessing child pornography. Bolter had a 2001 child pornography conviction in Bristol Superior Court of Massachusetts.
While working online in an undercover capacity on December 19, 2012, a Deputy Sheriff in Taylor County observed an IP address for a computer that had been sharing images of child pornography. The Deputy Sheriff downloaded numerous files of child pornography from the computer with the previously-identified IP address. He obtained and executed a state search warrant (on January 29, 2013), at the physical address associated with the IP address during which law enforcement officials seized a Toshiba laptop.
Law enforcement officials identified Michael William Bolter as the person using the computer to trade child pornography. During an interview conducted simultaneously with execution of the search warrant, Bolter admitted that child pornography images would be on his computer. Subsequent forensic examination of the computer by the Federal Bureau of Investigation revealed approximately 3,000 still images and 50 movie files containing child pornography. Many of the files were recovered from a folder labeled AMy shared folder@ within a peer-to-peer file sharing program on the Toshiba laptop.
Assistant U. S. Attorney Jo E. Lawless prosecuted the case. The Taylor County Sheriff’s Department and Louisville Division of the Federal Bureau of Investigation (both members of the Kentucky Internet Crimes Against Children Task Force), conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices, 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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab.
Bluffton Man Sentenced to 15 Years in Prison for Conspiracy to Smuggle Firearms, Stolen Cars to BoliviaRead the Press Release
SAVANNAH, GA: ROBERTO BARRERO, 46, a naturalized American citizen originally from Bolivia, was sentenced last week by Senior Judge B. Avant Edenfield to 15 years in prison for his role in a far-reaching conspiracy whose goals included smuggling firearms and stolen cars to Bolivia, smuggling contraband cigarettes to New York, trafficking cocaine, and laundering millions of dollars of drug proceeds. The organization was investigated as part of Operation Pulaski, a long-term undercover operation that resulted in federal charges against 45 defendants and the seizure of 188 firearms, over 200 grams of heroin, over 3 kilograms of cocaine, and 9 stolen vehicles.
United States Attorney Edward J. Tarver stated, Operation Pulaski was an innovative effort to fight organized criminal activity that impacts not just South Georgia, but the entire east coast and foreign countries, as well. Smugglers, gun runners, drug traffickers, and other criminals should take this sentence as a warning signal that the Port of Savannah is not available to them as a gateway to commit their crimes within the United States of America. If they attempt to use our ports in this way, they will be prosecuted and punished.
“Yesterday’s sentence is a direct result of ATF and our law enforcement partners working on the frontline of preventing violent crime by leveraging technology and utilizing our expertise, resulting in a safer community for the citizens of Savannah and the surrounding area”, said ATF Special Agent in Charge Christopher Shaefer. “Removing firearms and the criminals who illegally use and traffic firearms from the street makes a positive impact and contributes to stabilizing those areas which are fraught with criminal activity.”
BARRERO was convicted of conspiracy to deal in firearms without a license, to transport stolen vehicles across state lines, to possess untaxed cigarettes, and to commit money laundering. He was also convicted of carrying a firearm during and in relation to drug trafficking. At sentencing, Judge Edenfield noted that BARRERO was responsible for trafficking over 50 firearms, 9 stolen vehicles, 2,370 cartons of untaxed cigarettes, and 935.15 grams of cocaine. He also conspired to launder between 2 and 18 million dollars in drug proceeds. He obliterated the serial numbers from 19 of the firearms, to avoid their detection by law enforcement. Finally, the Court noted that BARRERO traded 23 firearms for 2 stolen cars, attempted to convert some semiautomatic firearms to fully automatic machineguns, and recruited multiple individuals to participate in the conspiracy. BARRERRO was also ordered to pay $130,571.32 in restitution and a $200 special assessment. Once he is released from prison, he will serve five years of supervised release. Mr. Tarver noted that there is no parole in the federal system.
BARRERO and six of his codefendants were convicted after pleas of guilty to various counts of a 52-count Superseding Indictment returned by the Grand Jury of the Southern District of Georgia on July 10, 2013. Two additional codefendants were charged in the indictment but have not yet been apprehended.
The case was the result of a long-term undercover investigation conducted by the ATF, in cooperation with the Georgia Department of Revenue, Homeland Security Investigations, and United States Customs and Border Protection.
Assistant United States Attorney Cameron Heaps Ippolito prosecuted this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547 or [email protected].
Berkeley Psychologist Convicted of Theft of Government Property and Tax EvasionRead the Press Release
OAKLAND – Yesterday a federal jury convicted Hugh Leslie Baras, a psychologist and Berkeley resident, on five counts of tax evasion and one count of theft of government property, United States Attorney Melinda Haag, and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. . Martinez announced.
The evidence presented during the seven-day trial before the honorable Yvonne Gonzalez Rogers, United States District Court Judge, showed that Baras, who formerly worked as a psychologist at Kaiser Permanente, and as an Adjunct Clinical Assistant Professor in the Department of Psychiatry and Behavioral Sciences at Stanford University School of Medicine, started a solo, private practice in Palo Alto, Calif., in late 2002. At his private practice, the Baras provided clinical psychotherapy services to clients. During the years 2005 through 2009, the defendant’s private practice generated over $1,000,000 of income. Although he filed timely federal income tax returns for each of these years, Baras omitted all of the income produced by his private practice from those returns. In addition, although he was self-employed and earning substantial income, Baras continued to collect Disability Insurance Benefits from the Social Security Administration. Between 2006 and 2009, Baras received Disability Insurance Benefits payments totaling $80,615.80 to which he was not entitled.
Baras’ sentencing hearing is scheduled for May 22, 2014, at 2:00 p.m., before Judge Gonzalez Rogers in Oakland. The maximum statutory penalty for each count of tax evasion, in violation of Title 26, U.S.C § 7201 is five years in prison and a fine of $250,000. The maximum statutory penalty for each count of theft of government property, in violation of Title 18, U.S.C § 641 is ten years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Michael G. Pitman is the Assistant United States Attorney prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and the United States Social Security Administration, Office of Inspector General.
(Baras superseding indictment )
Bergen County, N.J., Woman Admits Role in $2 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. - A Bergen County, N.J., woman today admitted her role in a large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Klary Arcentales, 45, of Lyndhurst, N.J., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging her with one count of conspiracy to commit bank fraud and four counts of bank fraud.
According to the documents filed in this case and statements made in court:
Between 2007 and 2012, Arcentales engaged in a mortgage fraud conspiracy through a company called Premier Mortgage Services (Premier), where she worked as a loan officer. Arcentales provided false and fraudulent documents to financial institutions in connection with mortgage loan applications on behalf of “straw buyers” to induce those financial institutions to fund mortgage loans. Arcentales then profited illegally by receiving a commission from Premier for each mortgage loan that she closed and by diverting portions of the fraudulently obtained mortgage proceeds to herself.
Two other conspirators, Lester Soto, 57, of Freehold, N.J., and Linda Cohen, 56, of Orange, N.J., previously pleaded guilty in connection with their roles in the mortgage fraud scheme. Soto acted as a loan officer on certain Premier mortgage loan applications and took a percentage of Premier’s profits. Soto employed document makers to create false and fraudulent documents in furtherance of the scheme and put loan officers at Premier, including Arcentales, in contact with these document makers to create other false and fraudulent documents. Soto is scheduled to be sentenced on Feb. 10, 2014.
Cohen was a paralegal who served as the settlement agent on mortgage loans brokered by Arcentales for various properties. Cohen convened closings, received funds from lenders, and prepared “HUD-1” reports that claimed to reflect the sources and destinations of funds for mortgages on subject properties. However, the HUD-1s were neither true nor accurate. Cohen is scheduled to be sentenced Feb. 18, 2014.
Arcentales faces a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss caused by her offense. Sentencing is currently scheduled for May 19, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Zach Intrater of the Criminal Division in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
14-039Defense counsel: Michael Orozco Esq., Newark
Arcentales, Klary Indictment
Army Soldier Sentenced on Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
A former U.S. Army soldier was sentenced to serve 87 months in prison for her role in stealing fuel at Forward Operating Base (FOB) Fenty, Afghanistan, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced today.
Former U.S. Army Specialist Stephanie Charboneau, 35, of Colorado Springs, Colo., was sentenced on Feb. 3, 2014, by U.S. District Court Philip A. Brimmer. Charboneau pleaded guilty on Sept. 5, 2013.
According to court documents, from approximately February through May 2010, Charboneau was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. As part of this process, documents generally described as “transportation movement requests” (TMRs or mission sheets) were created to authorize the movement of fuel.
According to court documents, Charboneau conspired with others to steal and sell fuel. The essence of the scheme was that the conspirators would create fraudulent TMRs that purported to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation mission was required. After the trucks were filled with fuel, the fraudulent TMRs were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint to justify the trucks’ departures from FOB Fenty. In truth, the fuel was simply stolen, and the conspirators would receive money from the trucking company that stole the fuel.
Charboneau pleaded guilty to bribery and conspiracy to commit bribery for having received payments from a representative of the trucking company in exchange for facilitating the theft of approximately 70 truckloads of fuel. According to court documents, the loss to the United States as a result of the thefts was in excess of $1,225,000.
Charboneau’s plea was the fourth guilty plea arising from the investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Charboneau, pleaded guilty to similar charges. After cooperating with the government, he was sentenced to serve 24 months in prison on Oct. 28, 2013. On Oct.10, 2012, Christopher Weaver, who also conspired with Charboneau, pleaded guilty to fuel theft charges, and, after cooperating with the government, was sentenced to serve 37 months in prison on Oct. 28, 2013. Both Weaver and Hightower were prosecuted in the United States District Court for the District of Colorado. On Aug. 29, 2013, Sergeant Bilal Kevin Abduallah, who succeeded Charboneau at FOB Fenty, pleaded guilty in the United States District Court for the Western District of Kentucky to fuel theft-related charges. His sentencing is set for Feb. 12, 2014.
The cases were investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR); the Department of the Army, Criminal Investigations Division (CID); the Defense Criminal Investigative Service; and the Federal Bureau of Investigation.
These cases were handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, who is on detail from SIGAR.Armed Career Criminal Sentenced to 15 Years in Prison for Possessing a FirearmRead the Press Release
EUGENE, Ore. – On Tuesday, February 4, 2014, U.S. District Chief Judge Ann Aiken sentenced Michael Lee Fry, 38, of Douglas County, Oregon, to a prison term of 15 years for being a felon in possession of a firearm. Following his release from prison, the defendant will be on supervised release for five years.
On November 13, 2011, a Sutherlin Police Officer stopped the defendant’s vehicle for a traffic violation and for suspicion that the defendant was driving under the influence. A female passenger ran away from the vehicle and the defendant was detained for not having a driver’s license. A pat down of the defendant revealed a knife with crystal residue and he showed several signs of having used methamphetamine. The defendant’s vehicle was searched and a pistol was located in his backpack. The defendant’s felony convictions include unlawful use of a weapon, delivery of a controlled substance, attempt to elude and first degree burglary.
This case was investigated by the Sutherlin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Aracoma Contracting, Llc Sentenced for Hiding Millions in Cash Withdrawals from Bank of MingoRead the Press Release
Company that schemed to bilk BrickStreet out of millions in insurance premiums ordered to pay more than $4 million in restitution
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin announced that Williamson, W.Va.-based employee leasing firm, Aracoma Contracting, LLC (“Aracoma”), was sentenced to three years of probation and ordered to pay more than $4 million in restitution and forfeit another $405,000 in connection with a structuring scheme involving more than $2 million in cash withdrawals from the company’s bank accounts once held at a Mingo County bank. “Structuring” involves the breaking down of cash transactions in amounts of $10,000 or less for the purpose of avoiding a financial institution’s reporting requirements to the Internal Revenue Service (IRS).
Acting on behalf of Aracoma, its principals Jerome Edward Russell, 50, of Williamson and Frelin R. Workman, 58, of Belfrey, Kentucky formed a longstanding relationship with Bank of Mingo, and, particularly, one of its employees at the bank’s Williamson branch. From January of 2009 through April of 2012, Aracoma structured at least $2.2 million out of Bank of Mingo. Russell and Workman also enlisted the assistance of a number of individuals who agreed to appear at the Williamson branch and cash cashier’s checks. The cash from the bank withdrawals was later brought back to Aracoma’s office to be used to pay cash payroll.
During the scheme, Aracoma sent advance forms to the Williamson branch prior to the structured cash withdrawals, so the bank could prepare the cash ahead of time. Bank of Mingo would then prepare cashier’s checks in the names of the identified individual or individuals and pre-count the requested cash. When an individual or individuals from Aracoma appeared at a Bank of Mingo teller window, a bank representative presented them with the cashier’s check in the individual’s name. The check was immediately endorsed and the individual was given the pre-counted cash.
Despite numerous times when multiple individuals appeared at the same teller window to endorse cashier’s checks that exceeded $10,000 on Aracoma’s line of credit, Bank of Mingo routinely failed to file notifications, known as currency transaction reports, as required by law.
As part of its sentencing, Aracoma admitted that substantially all of the cash structured out of Bank of Mingo by Aracoma was used to pay the company’s payroll in cash, therefore avoiding the payment of required federal employment taxes and also to make bribe payments to a former BrickStreet field auditor, Arville Sargent.
Sargent, 52, of Chapmanville, previously pleaded guilty in March of 2013 to honest services mail fraud and tax evasion. As a field auditor, Sargent purposely allowed four “employee leasing” companies, including Aracoma, to falsify documents drastically understating their actual payroll. In exchange for saving those policyholders millions of dollars in insurance premiums rightfully owed to BrickStreeet, Sargent accepted hundreds of thousands of dollars in cash bribes and other things of value, including a Yamaha Rhino all-terrain vehicle. At today’s sentencing, the district court held Aracoma jointly and severally liable for the $4 million owed in restitution to BrickStreet and the State of West Virginia by Sargent, Russell and Workman.
Sargent was previously sentenced in October of 2013 to six years in federal prison. Russell and Workman each were sentenced to their thirty months of imprisonment for their role in bribery scheme.
The FBI, the IRS, the West Virginia State Police and the West Virginia Insurance Commission conducted the investigations. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
10 Defendants Sentenced in Central Louisiana Cocaine Distribution ConspiracyRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that 10 defendants were sentenced last week by U.S. District Judge Dee D. Drell, for their roles in a cocaine distribution network operating across the central Louisiana area.
The defendants were sentenced on Thursday and Friday to three years of supervised release in addition to the drug conspiracy charge. They are: Michael J. Wright, 27, of Houston, who received 70 months in prison; Dennis Wayne Bradford, 30, of Cottonport, La., who received 54 months; Falon S. Maricle, 31, who received 40 months and Brandon C. Thomas, 31, who received 152 months, both of Marksville, La.; Abraham Baylor III, 39, who received 45 months, Earnest G. Miles III, 25, who received 48 months, Leotis V. Perry, 36, who received 60 months, Sedrick D. Porter, 36, who received 60 months, Terrace D. Winchester, 34, who received 44 months, and Dontour D. Drakes, 37, who received 168 months, all of Alexandria, La. Drakes was also sentenced to five years in prison as part of his sentence for one count of possession of a firearm in furtherance of a drug trafficking crime.
According to evidence presented at the guilty plea, from January 2012 through March 2013, authorities in Avoyelles and Rapides parishes conducted an investigation into cocaine trafficking that resulted in the arrest of these 10 defendants. It was determined that this group was responsible for the sale and distribution of more than 10 kilos of cocaine. Law enforcement agents seized more than 5 kilograms of powder cocaine, 500 grams of crack cocaine, and approximately $70,000 in cash. The defendants obtained their cocaine from Houston and converted it into crack in the central Louisiana area to sell in Avoyelles and Rapides parishes.
The FBI Central Louisiana Safe Streets Task Force, the U.S. Marshals Service Task Force, the Louisiana State Police, Rapides Parish Sheriff’s Office, Avoyelles Parish Sheriff’s Office, Alexandria Police Department, and the Louisiana Probation and Parole Office conducted the investigation. Assistant U.S. Attorneys James G. Cowles and Seth Reeg prosecuted the case.
Monday 3 February 2014
Wichita Man Sentenced on Federal Gun ChargeRead the Press Release
KANSAS CITY, KAN. A Wichita man was sentenced Monday to 40 months in prison on a federal gun charge, U.S. Attorney Barry Grissom said.
Johnathan R. Rush, 29, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, he admitted that on July 17, 2103, he and Brittny Adams-Humphrey drove to Lawrence, Kan. While in Lawrence, Rush was involved in a fight with two men. During a struggle, one of the men fell to the ground with a single gunshot wound.
Rush and Adams-Humphrey then drove to Topeka in her Pontiac Grand Am. During the trip, Adams-Humphrey threw several items out the window of the car, including a .45 caliber gun. The Shawnee County Sheriff’s Office stopped their car near 6th and Rice streets in Topeka. A deputy recovered the .45 caliber handgun about 100 yards from where the car was stopped. The gun was purchased by Rush two weeks before the incident. At the time, he was prohibited by federal law from possessing a firearm because of a 2005 felony conviction in Shawnee County District Court.
U.S. Attorney Barry Grissom prosecuted the case. He commended the Lawrence Police Department, the Shawnee County Sheriff’s Department and Special Assistant U.S. Attorney Trent Krug for their work on the case.
Waterbury Man Admits Producing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESUS F. GONZALEZ, SR., 37, of Waterbury, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to one count of production of child pornography.
According to court documents and statements made in court, GONZALEZ had sexual intercourse with a minor female victim on several occasions between approximately February 2012 and August 2012. On approximately August 9, 2012, GONZALEZ used his cell phone to take multiple pictures of the victim, naked, in sexually explicit positions. GONZALEZ then maintained the pictures on his phone. The victim was approximately 14 years old at the time the sexually explicit pictures were taken.
Judge Bryant has scheduled sentencing for April 23, 2014, at which time GONZALEZ faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.
GONZALEZ has been detained in state custody since his arrest on August 11, 2012 on related state charges.
This matter is being investigated by the Waterbury Police Department, the Federal Bureau of Investigation, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State’s Attorney’s Office in Waterbury also provided critical assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Virginia Man Pleads Guilty to Lying to SBA About Loan DefaultRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Rene Michael Ward, 45, of Chantilly, Va., entered a guilty plea before U.S. Magistrate Judge Patrick Hanna, to submitting false documents and lying to the Small Business Administration (SBA).
According to evidence presented at the guilty plea, Ward submitted numerous false documents to the SBA in an attempt to have the SBA agree to an offer-in-compromise to settle an outstanding loan in the amount of approximately $511,400 for a $10,000 lump sum payment.
Rene Ward faces five years in prison and three years of supervised release for one count of filing false documents to a government agency and also faces two years in prison and one year of supervised release for one count of making false statements to the Small Business Administration. He also faces a $250,000 fine for both counts. A sentencing date of May 16, 2014 was set.
The Small Business Administration, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.Utah Sex Offender Convicted of Failure to RegisterRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A sex offender from Utah who moved to West Virginia last year and failed to register has been convicted in federal court.
JONAH L. BEGAY, age 38, of Wheeling, West Virginia, appeared before Judge Frederick P. Stamp, Jr., and entered a plea of guilty to "Failure to Register and Update Registration as a Sex Offender." According to U.S. Attorney William J. Ihlenfeld, II, BEGAY was previously convicted in Utah District Court of “Attempted Sexual Abuse of a Child” and as a result is required to register as a sex offender under both state and federal law. His conviction in Utah involved a 10 year old victim.
On November 11, 2013, police officers were advised that an individual later identified as Mr. BEGAY was being aggressive and appeared to be intoxicated in an area near Bridge Street Middle School. Officers responded and arrested BEGAY and then learned that he had moved to Wheeling in June, and in October began working at the McDonald’s restaurant in the Elm Grove section of Wheeling. At no point did BEGAY update his registration with the State of Utah nor did he register in the State of West Virginia. BEGAY, who is in presently in custody, faces up to 10 years in prison.
This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and was
investigated by the Wheeling Police Department, the United States Marshals Service and the West Virginia State Police.Used False Identity to Trick Boy Scouts into Sending Pornographic Photos over the InternetRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man who used a false identity as a woman to trick seven minor victims, whom he knew through his involvement in the Boy Scouts of America, pleaded guilty in federal court today to producing, receiving and distributing child pornography.
Ian Francis Burow, 24, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in a Nov. 7, 2012, federal indictment. Burow remains in federal custody without bond.
By pleading guilty today, Burow admitted that he used the alias “Sarah McGee” to communicate online (through Facebook, Skype and Yahoo) and via cell phone with several Boy Scouts, ranging in age from 14 to 17. Burow tricked the minor victims into sending him pornographic photos of themselves in inappropriate poses, or make videos or live broadcast themselves engaged in sexually explicit behavior over the Internet (through Skype or a Windows movie media attachment).
Burow sent the victims photos of a woman (claiming it was “Sarah McGee”) in various poses, including nudity, to encourage the victims to send similar photos. Once he received victims’ photos and movies, he frequently distributed some of them to one of the minor victims and to others.
Burow, who was also a Boy Scout, told persons asking about “Sarah McGee” that he knew her, that she was a good friend and that she lived in the same housing complex. In fact, she did not exist.
According to court documents, witnesses saw Burow carrying and displaying nude photos of young boys on his phone, and at least one caught him in an inappropriate communication over the Internet. When confronted by this person, Burow falsely claimed he was working for the Boone County Sheriff’s Department’s Cyber Crimes Task Force – the same agency that investigated and arrested him. He suggested to her that he was assisting law enforcement in its efforts to capture persons who were predators of young people.
Law enforcement investigators identified many persons (not all of whom were minors) who were solicited by Burow to produce photos and videos of themselves engaging in sexually explicit conduct and send them to “Sarah McGee.” Not all of these persons sent the requested materials, but many did.
Burow pleaded guilty to seven counts – involving six different victims, ages 14 through 17 – of receiving and distributing child pornography between Dec. 27, 2010, and Aug. 1, 2011. Burow also pleaded guilty to one count of producing child pornography on Oct. 14, 2011, when he used a 15-year-old victim to engage in sexually explicit conduct, which was transmitted live over the Internet by using Skype.
Burow must forfeit to the government any property used to commit the offenses, including an Apple iPad, a laptop computer, an Apple iTouch, a Blackberry Curve, two external hard drives and other items.
Under federal statutes, Burow is subject to a mandatory minimum sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."U.s. Attorney Polite Announces Personnel and Unit ChangesRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. announced that today, Richard W. Westling is rejoining the U.S. Attorney’s Office to serve as the First Assistant U.S. Attorney. Effectively immediately, the senior staff of the Office is as follows:
Richard W. Westling serves as the First Assistant United States Attorney. Between 2008 and 2014, Mr. Westling was a partner in Waller, Lansden, Dortch & Davis, LLP, in Nashville, TN, and a shareholder in Ober|Kaler, in Washington, D.C. At both firms, he represented clients in health care fraud cases and a variety of other government enforcement matters. Previously, Mr. Westling served as general counsel of a Louisiana-based physician-hospital organization which administered a Medicare Advantage HMO Plan with more than 35,000 members. From 1997-2006, he practiced with the Law Offices of Richard W. Westling, LLC in New Orleans, where he defended complex federal criminal matters involving allegations of public corruption, health care fraud, mail and wire fraud, tax and environmental crimes and narcotics violations. He served as an Assistant United States Attorney for the Eastern District of Louisiana from 1992 until 1997, prosecuting a variety of white collar crimes and serving as the Asset Forfeiture Chief for three years. From 1990 to 1992, Mr. Westling was trial attorney and special assistant to the Assistant Attorney General of the Tax Division of the U.S. Department of Justice in Washington D.C. He graduated with honors from the University of the South in Sewanee, TN and cum laude from Tulane University Law School in New Orleans, where he was a member of the Board of Editors of the Tulane Law Review.
Eileen Gleason serves as Executive Assistant United States Attorney. Prior to her current position, Ms. Gleason served as Senior Litigation Counsel. She first joined the United States Attorney’s Office in January 1988 as an Assistant United States Attorney assigned to the Civil Division. After transferring to the Criminal Division, she specialized in prosecuting white collar crimes, political corruption and environmental crimes and served as Chief of the Financial Crimes Unit. Previously, Ms. Gleason served with the Department of Justice in Washington, DC. as a trial attorney with the Public Integrity Section of the Criminal Division from 2005 until 2008, and as a senior trial attorney, assistant chief, principal assistant chief and acting chief of the Environmental Crimes Section of the Environment and Natural Resources Division from 1999 until 2005. Ms. Gleason also has served as Assistant Director of the Office of Legal Education, Executive Office for United States Attorneys, in Washington, DC. She served as a United States Magistrate for the Eastern District of Louisiana from 1981 until 1983. Ms. Gleason practiced law with two New Orleans firms, Phelps Dunbar, LLP and Gelpi, Sullivan, Carroll & Laborde, and served judicial clerkships with the Honorable Edward J. Boyle, Sr. and Morey L. Sear, United States District Judges for the Eastern District of Louisiana. She is a graduate of Tulane University and Loyola University College of Law, where she was a member of the Editorial Board of the Loyola Law Review.
Duane A. Evans serves as the Chief of the Criminal Division. He joined the United States Attorney’s Office in August 2000 as an Assistant United States Attorney assigned to the Criminal Division. During his tenure in the Firearms/Violent Crimes Unit, he specialized in prosecuting matters related to firearms, narcotics, and violent crime. In 2006, he became the Supervisor for the Violent Crimes/Project Safe Neighborhoods Unit. In 2010, he became Chief of the Strike Force and Anti-Gang Unit. Beginning in June 2012, he served as Senior Litigation Counsel until his promotion to the position of Criminal Chief. After graduating from Tulane University School of Engineering and Loyola University College of Law, Mr. Evans served a judicial clerkship for Virgin Islands Superior Court Judge Ishmael A. Meyers from 1995-1997. He later worked as an Assistant District Attorney for the Orleans Parish District Attorney’s Office. He is a native of St. Thomas, United States Virgin Islands.
Peter M. Mansfield serves as Chief of the Civil Division. Prior to his current position, Mr. Mansfield served as Deputy Chief of the Civil Division since 2008. Since 2007, Mr. Mansfield also has supervised the office’s Financial Litigation Unit which is responsible for the enforcement and collection of criminal fines, restitution, and civil judgments in the district. As a supervisory AUSA, Mr. Mansfield has been the lead editor and reviewer of the office’s civil appeals in the Fifth Circuit Court of Appeals since 2011. Mr. Mansfield joined the United States Attorney’s Office in 2005 and has handled both defensive and affirmative civil cases in district and appellate courts as lead counsel. After graduating from Franciscan University and Ave Maria School of Law, both magna cum laude, Mr. Mansfield began his legal career as a litigation associate at Adams and Reese, L.L.P. in its New Orleans office. Mr. Mansfield is a native of Metairie, Louisiana.
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In addition, U.S. Attorney Polite announced that he has reorganized the Office’s Criminal Division into the following units:
The Organized Crime Strike Force/Violent Crime Unit investigates and prosecutes violent crime and firearms offenses, with a particular focus on conduct by organized street gangs and criminal enterprises. Along with representatives from local, state, and federal law enforcement agencies, members of the Unit actively participate in the Multi-Agency Gang Unit, an initiative led by the New Orleans Police Department to combat gang-related shootings and murders in the New Orleans area.
The Public Integrity Unit investigates and prosecutes corruption by public officials and law enforcement officers. The Unit also handles criminal civil rights matters, such as hate crimes, police brutality and human trafficking.
The Narcotics Unit investigates and prosecutes cases involving the distribution of illegal narcotics. The Unit primarily seeks to disrupt large-scale drug-trafficking organizations that qualify for prosecution by the Organized Crime and Drug Enforcement Task Force (OCDETF).
The Fraud Unit investigates and prosecutes fraud offenses of all types, including financial institution crime, health care fraud, bank fraud, computer fraud, institutional insurance fraud, large scale mail and wire fraud, and criminal tax violations. The Unit also handles child pornography cases under the Project Safe Childhood initiative.
The National Security Unit investigates and prosecutes cases involving international and domestic terrorism, threats involving weapons of mass destruction, terrorism financing, immigration violations, environmental crimes, and other offenses that impact national and border security.
The Appeals Unit defends convictions and judgments obtained by the Office in the United States Court of Appeals for the Fifth Circuit, the federal appellate court overseeing cases in Mississippi, Louisiana, and Texas. Additionally, the Unit, in consultation with the Department of Justice, decides when to seek appellate review of trial level rulings adverse to the United States.
U.S. Attorney Polite stated, "Through these unit changes, I have reallocated our personnel into units that more accurately reflect our District’s prosecutorial priorities. In particular, I am increasing the number of prosecutors addressing violent crime and narcotics offenses, while at the same establishing the Office’s first stand-alone unit to address political corruption and civil rights violations. These changes, together with the appointment of new senior management, represent significant steps toward the goal of increasing the productivity and efficiency of our Office."
Two Ñetas Gang Members and A Gang Associate Plead Guilty in Connection with the Murders of Two 17-Year-Old Rival Gang MembersRead the Press Release
Earlier today, two members of the Ñetas street gang, Alvaro Cabral, also known as “Boobi,” and Jason Cabral, also known as “J-Live,” pleaded guilty to the 2004 murders of Anthony Marcano and Fabian Mestres. Stephanie DiCarlo-Cabral, an associate of the gang and at the time the girlfriend of Jason Cabral, pleaded guilty to robbery and using a firearm in connection with the robbery of Marcano and Mestres. Today’s pleas took place before United States District Judge Joanna Seybert. When sentenced, the defendants face life in prison.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“These were brutal, senseless gang murders. The defendants stuffed the victims into the trunk of a car in the dog days of August, and then drove them to their execution,” stated United States Attorney Lynch. “We hope the victims’ families can take some measure of solace in knowing that the individuals who are responsible for their sons’ murders have been brought to justice.” Ms. Lynch expressed her grateful appreciation to the Suffolk County Police Department, the Tampa Division of the FBI, and United States Attorney’s Office, Middle District of Florida, for their cooperation and assistance in the investigation.
The defendants targeted one of the victims, Anthony Marcano, because of his affiliation with a rival gang, the Latin Kings. On August 10, 2004, at the direction of Jason Cabral, the leader of gang, the defendants devised a plan to rob and kill 17-year-old Marcano. As part of the plan, the defendants lured Marcano to a house in Brentwood. Marcano arrived with 17-year-old Fabian Mestres, a fellow “Pee Wee” member of the Latin Kings street gang. Once inside the house, Marcano and Mestres were restrained with duct tape, and their drugs, money, and jewelry were stolen. The victims were stuffed into the trunk of a car and driven to a warehouse in Queens where Luis Benitez , with the assistance of Alvaro Cabral, shot them with a shotgun. Mestres was shot once in the head, and Marcano was shot once in the head and once in the back of the neck. Marcano’s and Mestres’s bodies were found behind a warehouse in Queens the following day.
The government’s case is being prosecuted by Assistant United States Attorneys Nicole Boeckmann and Christopher C. Caffarone.
The Defendants:
ALVARO CABRAL
Age: 28
Apollo Beach, Florida
JASON CABRAL
Age: 36
Riverview, Florida
STEPHANIE DICARLO-CABRAL
Age: 29
Riverview, Florida
1. Luis Benitez pleaded guilty to the murders of Marcano and Mestres on November 7, 2013.
Tilden Man Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Brian D. Benedict, age 33 of Tilden, Nebraska, was sentenced in federal court in Omaha for receiving child pornography. The Honorable Joseph F. Bataillon sentenced Benedict to a 60 month term of imprisonment. There is no parole in the federal system. After his release from prison Benedict will begin a five year term of supervised release and be required to register as a sex offender.
On January 23, 2013, an investigator with the Nebraska State Patrol was investigating individuals sharing child pornography on the internet. The investigator was successful in downloading a video of child pornography from Benedict’s computer. That same day an investigator from the Hastings Police Department successfully downloaded another video of child pornography from the same computer.
A warrant was issued for Benedict’s home in Tilden, Nebraska. Officers recovered 13 videos of child pornography and search terms designed to locate videos involving children as young as infants engaging in sexually explicit conduct. Benedict acknowledged searching for child pornography and downloading as many as 100 videos during the previous year.
U.S. Attorney Deborah R. Gilg acknowledged the work of the Nebraska State Patrol and the Internet Crimes Against Children Task Force in the investigation of this matter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Three Plead Guilty in Scheme to Smuggle Aliens via Private PlanesRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy announced that Philip Kubeck, Roselia Kubeck, and Earl Allen pleaded guilty Friday morning in federal court in San Diego to conspiracy to bring in illegal aliens for financial gain, harbor illegal aliens, and transport illegal aliens. All three entered their guilty pleas before U.S. Magistrate Judge David H. Bartick.
As described in their plea agreements, Philip Kubeck, Roselia Kubeck, and Earl Allen were involved in a smuggling scheme in which illegal aliens were smuggled into the United States through a hole in the International boundary fence, were harbored at a house located on North 8th Street, in El Centro, California, and then transported further into the United States via private airplane in order to bypass Border Patrol checkpoints.
According to his plea agreement, Earl Allen operated the alien stash house located on North 8th Street, where the aliens were taken after illegally entering the United States through the hole in the fence. Earl Allen also drove the aliens to the Imperial County airport.
Philip Kubeck admitted that he served as the pilot, and flew the aliens from El Centro, California, past all of the Border Patrol checkpoints, to the Los Angeles area. According to her plea agreement, Roselia Kubeck served as the communications link between Philip Kubeck and Earl Allen coordinating flight times for the illegal aliens staying at the stash house, and drop off times for those aliens at the airport. Illegal aliens involved in this scheme paid as much as $10,000 to be brought into the United States and transported in this way.
All three are set for sentencing on April 21, 2014 before U.S. District Judge Larry Alan Burns.
DEFENDANTS Criminal Case No. 13CR4226-LABPhilip Kubeck
SUMMARY OF CHARGES
Roselia Kubeck
Earl AllenConspiracy in violation of of Title 18, United States Code, Section 371- Maximum penalties per count: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCIESUnited States Border Patrol
Three Martinsburg Residents Arrested Pursuant to Federal IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Three Martinsburg residents were arrested on January 31, 2013, pursuant to Indictments returned by a Federal Grand Jury.
According to United States Attorney William J. Ihlenfeld, II, DANIEL WILLIAM JAMISON was named in a one-count Indictment charging him with “Felon in Possession of Ammunition.” The Indictment alleges that on December 23, 2013, JAMISON, who had previously been convicted on June 5, 2006, in the Circuit Court of Arlington County, Virginia, on the offense of failure to perform construction and on July 25, 2006, in the Circuit Court of Stafford County, Virginia, for construction fraud, possessed five rounds of Cascade Cartridge, Inc. .22 caliber Winchester Magnum Rimfire ammunition. The U.S. Attorney’s Office is seeking to forfeit ammunition which was seized from JAMISON on December 23, 2013. JAMISON faces up to 10 years in prison.
TIMICO CONSTINE JOHNSON a/k/a TC, age 43, and MISTY ANN TARMAN, age 41, of Martinsburg, were named in an eight-count Indictment charging them with “Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine.” JOHNSON is named in seven additional counts and TARMAN is named in five additional counts for “Distribution of Crack Cocaine.” JOHNSON and TARMAN each face up to twenty years in prison on each count.
These cases will be prosecuted by Assistant United States Attorney Jarod J. Douglas and were investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department, as well as uniformed officers of the West Virginia State Police.
Three KC Residents Sentenced for Armed Bank Robbery; Pretended to take Brother, Sister HostageRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Mo., residents were sentenced in federal court today for the armed robbery of a Brookside area bank in which they pretended that two of the accomplices, a brother and sister, were taken hostage.
Lashon M. Hudson, 42, her brother, Larry T. Hudson III, 39, and William L. Wheeler, Jr., 28, all of Kansas City, Mo., were sentenced in separate hearings before U.S. District Judge Dean Whipple. Lashon Hudson was sentenced to seven years and three months in federal prison without parole. Larry Hudson was sentenced to three years and six months in federal prison without parole. Wheeler was sentenced to two years in federal prison without parole.
Lashon Hudson, Larry Hudson and Wheeler each have pleaded guilty to aiding and abetting armed bank robbery. They admitted to working together to steal $2,872 from a branch of Bank Midwest, 6249 Brookside Blvd., Kansas City, Mo., on Dec. 10, 2011.
According to their plea agreements, Lashon Hudson and Wheeler drove together to the bank, while Larry Hudson drove separately. Lashon Hudson gave Wheeler a revolver. Then Lashon Hudson, and eventually Larry Hudson separately, entered the Bank Midwest to scout the location. When approached by a bank employee, Lashon Hudson claimed she was waiting for her sister to arrive at the bank to open an account. Lashon Hudson appeared to be talking on a cell phone while in the bank. When Larry Hudson entered the bank, he asked to use the restroom, but was told by a bank employee that there was no public restroom available. He briefly exited the bank, but eventually came back inside.
Wheeler then entered the bank with the handgun and demanded money from a bank teller, stating something to the effect of “I’ve got a gun and I’m not afraid to use it.” Wheeler told another bank employee, “Get your hands in the air! Don’t anyone move; I will shoot you.” The teller gave Wheeler the money from her drawer, which Wheeler started putting in a bag. Some of the money was accidently dropped on the floor, and Lashon Hudson helped place that money in the bag for Wheeler.
Larry Hudson remained in the bank lobby, and stated, “Oh my God, I don’t want to die.” As part of the plan, Wheeler pretended to take Lashon and Larry Hudson hostage. The three of them left the bank, got into the car driven by Larry Hudson, and drove away.
Larry Hudson drove Lashon Hudson and Wheeler several blocks away from the bank. Wheeler gave Lashon Hudson the bag containing the money and returned the revolver to her. Wheeler and Lashon Hudson exited the vehicle at a house, and Larry Hudson drove away. Lashon Hudson called for a cab, which she and Wheeler then took back to her house. Subsequently, Lashon and Larry Hudson divided up the money from the bank robbery.
Approximately five hours after the robbery, Lashon Hudson arrived at the Kansas City, Mo., Police Department headquarters. She told officers that she and her brother were taken hostages by the bank robber, whom she could not identify. Upon additional questioning, Lashon Hudson altered her story; she could not explain why it took her five hours to report the robbery and her being taken hostage but denied being involved in the bank robbery.
When officers returned Lashon Hudson to her home after the interview, they encountered Larry Hudson, who had failed to report his alleged kidnapping to the police. Larry Hudson also claimed that he and his sister were taken hostage by the bank robber, but in a subsequent interview altered his story.
Investigators later identified Wheeler as the armed bank robber.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Stratford Man Sentenced to 51 Months in Prison for Stealing More Than $600k Through Tax Refund SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BENJAMIN GREEN, III, 45, of Stratford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 51 months of imprisonment, followed by three years of supervised release, for stealing more than $600,000 through a corrupt tax refund scheme.
On November 12, 2013, after a three-day trial, GREEN was convicted of one count of making a false claim against the United States, and one count of attempting to obstruct the due administration of the internal revenue laws. According to the evidence presented at trial, in March 2009, GREEN filed an Individual Income Tax Return for the 2008 tax year with the IRS. On the return, GREEN asserted the fraudulent “Original Issue Discount” (“OID”) tax scheme, in which taxpayers falsely claim significant amounts of OID interest income and federal tax withholding on their federal tax returns. The object of the OID tax scheme is to obtain large tax refunds from the U.S. Treasury, which is done by fraudulently claiming significant federal tax withholdings that exceed the smaller amount of tax due on the falsely claimed income.
On his federal tax return, GREEN falsely claimed to have received $920,063 in taxable interest income, and to have $929,702 of federal income tax withholdings for the 2008 tax year. Based on this false information, GREEN claimed a refund from the IRS in the amount of $616,434. The IRS erroneously issued a $616,434 tax refund to GREEN based on his fraudulent tax return. After receiving the refund, GREEN spent or dispersed almost all of the funds within months by taking trips to Hawaii and other locations, shopping at high-end retail-stores, paying off his mortgage and other loans, making improvements to his home, and giving money to family members.
When the IRS tried to collect the erroneously issued refund, GREEN undertook a course of conduct to inhibit the IRS’s efforts to recover the money, including sending frivolous correspondence to the IRS, hiding real property in the name of a nominee entity to impede the IRS’s collection efforts, and falsely complaining that the IRS had commenced unauthorized collection and enforcement actions against him.
The IRS was eventually able to recover a portion of the erroneously issued refund through wage levies, levies on bank accounts, and seizure of GREEN’s personal property.
Today, Judge Bryant ordered GREEN to pay $582,074.50 in restitution, which reflects the remaining balance of the money GREEN stole, plus interest.
This matter was investigated by the Internal Revenue Service – Criminal Investigation, and was prosecuted by Tax Division Trial Attorney Sean Beaty and Assistant U.S. Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]San Ramon Divorce Attorney Sentenced to 24 Months in Prison for Unlawfully Intercepting Telephone Conversations and Tax EvasionRead the Press Release
SAN FRANCISCO – Mary Nolan, a divorce and family law attorney in San Ramon, Calif., was sentenced to 24 months in prison for unlawful interception of telephone communications and tax evasion, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
Nolan, 61, pleaded guilty on September 27, 2013, to five felony counts – one count of unlawful interception of communications and four counts of tax evasion. In pleading guilty to the charges, Nolan admitted causing her staff to illegally intercept telephone conversations by accessing a listening device that private investigator Christopher Butler had installed in a victim’s vehicle, willfully evading more than $400,000 in federal taxes between 2005 and 2009, and obstructing justice by submitting false contracts to the IRS during an audit.
The sentence was handed down by the Honorable Charles R. Breyer, Senior United States District Court Judge. Judge Breyer also included a three year period of supervised release, 240 hours community service, as well as $468,918.01 in restitution, $500.00 special assessment, and Nolan’s resignation of her bar license. The Court ordered Nolan to surrender to the United States Marshals Service to serve her term of imprisonment no later than March 6, 2014. At the time of sentencing, she had already paid the restitution and resigned her bar license.
Butler, who pleaded guilty to unlawful interception and several other offenses on May 4, 2012, admitted having installed approximately seventy-five to one hundred unlawful listening devices at the request of clients or their attorneys, including the listening device in Nolan’s victim’s vehicle in August 2007. Butler was sentenced to 60 months’ imprisonment on this charge, to be served concurrently with the 96-month sentence on his other counts of conviction.
“The defendant’s conduct was reprehensible and a dishonor to those who practice law with the utmost commitment and integrity. The sentence sends a strong message and confirms that the United States Attorney’s Office will prosecute those who abuse the public trust to the fullest extent of the law,” stated U.S. Attorney Melinda Haag.
“Attorneys and those trusted with the confidence of others are expected to uphold the law and pursue justice with integrity,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “The FBI will continue to partner with the U.S. Attorney’s Office to expel those who abuse their professional licenses and take advantage of the criminal justice system.”
“This sentence should send a clear message that no one is above the law,” said IRS-Criminal Investigation Special Agent in Charge José M. Martinez. “Ms. Nolan misused her position for personal gain while cheating the government out of hundreds of thousands of dollars. Those who intentionally evade taxes should know they will not go undetected and will be held accountable.”
Nolan was indicted on September 6, 2012, by a federal grand jury charging her with tax evasion for the years 2005 through 2009, in violation of 26 U.S.C. § 7201; unlawful interception of communication, in violation of 18 U.S.C. § 2511(1)(a) and (4)(a); and conspiracy to unlawfully intercept communications, in violation of 18 U.S.C. § 371.
Hartley M. K. West is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Alycee Lane. The prosecution is the result of a lengthy investigation by the FBI, the Internal Revenue Service – Criminal Investigation, and the Contra Costa County District Attorney’s Office.
(Nolan indictment )
Salina Man Pleads Guilty to Federal Gun ChargeRead the Press Release
TOPEKA, KAN. A Salina man pleaded guilty Monday to a federal firearms charge, U.S. Attorney Barry Grissom said.
Kalun James Purucker, 22, Salina, Kan., pleaded guilty to one count of unlawful possession of a firearm. In his plea, he admitted that the Salina Police Department stopped a car in which he was a passenger on April 9, 2012. Police recovered a .380 caliber handgun and ammunition. At the time, Purucker was prohibited by federal law from possessing a firearm because of a prior felony conviction.
Sentencing is set for April 28. Both parties have agreed to recommend a sentence of between 37 and 46 months in federal prison. Grissom commended the Salina Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.Rosebud Woman Charged with False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Letha Leroy, age 48, was indicted on January 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident that took place on January 23, 2013, when Leroy presented a forged prescription to a pharmacy to obtain Vicodin pills, knowing the prescription was falsified.
The charges are merely accusations and Leroy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of Inspector General, Department of Health and Human Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Leroy was released on bond pending trial. A trial date has been set for March 25, 2014.
Rosebud Woman Charged with False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Letha Leroy, age 48, was indicted on January 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident that took place on January 23, 2013, when Leroy presented a forged prescription to a pharmacy to obtain Vicodin pills, knowing the prescription was falsified.
The charges are merely accusations and Leroy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of Inspector General, Department of Health and Human Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Leroy was released on bond pending trial. A trial date has been set for March 25, 2014.
Potomac Man Sentenced in $13 Million Mortgage Fraud SchemeRead the Press Release
Deliberately Avoided Learning the Truth as to the Fraudulent Nature of the Mortgages
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Jared Fanning, age 35, of Potomac, Maryland, today to 22 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to fraudulently obtain mortgages worth approximately $13 million. Judge Messitte also entered an order that Fanning pay restitution and forfeiture of $108,355.21, the amount of loss attributable to him resulting from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Acting Inspector General Fred W. Gibson, Jr., Federal Deposit Insurance Corporation; and Special Agent in Charge Cary A. Rubenstein, U.S. Department of Housing and Urban Development.
According to his guilty plea, from June 2006 through June 2007, Fanning helped real estate agents Michael Abobor, Daniel Ofei and others obtain mortgages for the agents’ clients. During that time, Fanning learned that the information provided by the agents for mortgage applications was probably false. For example, on multiple occasions, Fanning calculated debt-to-income and reported to the agents that the client had insufficient income. The agents responded immediately with “forgotten” monthly income of hundreds of dollars or more, leading Fanning to suspect that the additional income information supplied by the real estate agents was false. Despite Fanning’s concerns, he helped the agents obtain 24 mortgages totaling approximately $13 million.
According to evidence presented at the hearing, as a result of the fraudulent scheme, financial institutions suffered over $4.5 million in actual losses as a result of the financial transactions in which Fanning played a part.
Michael Abobor, age 38, and Daniel Ofei, age 39, both of Bowie, Maryland previously pleaded guilty to their roles in the conspiracy. Judge Messitte sentenced Abobor to 51 months in prison and ordered him to forfeit $2,026,205 and pay restitution of $1,832,650. Judge Messitte sentenced Ofei to 37 months in prison and ordered Ofei to pay restitution of $5,950,000. Two other co-conspirators of Ofei and Ababor in the broader scheme, Emeka Udeze, age 38 of Bowie, a licensed mortgage broker, and Shola Risikat Balogun, age 47, of Upper Marlboro, Maryland, have also pleaded guilty and await sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
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.United States Attorney Rod J. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Oakland Woman Pleads Guilty to Stealing SSI BenefitsRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Laura
Mathieu, 50, of Oakland, Maine, pled guilty to stealing more than $1,000 in Supplemental
Security Income (“SSI”) benefits from the Social Security Administration (“SSA”). SSI benefits
are paid to, among others, people who are disabled and have low income and few resources.According to court records, Mathieu submitted a false statement to SSA that was used for
determining her eligibility for SSI benefits. Mathieu falsely stated her household was limited to
herself and her children and she denied receiving any other help or financial assistance. In fact,
she was living with her husband who was providing financial assistance. Mathieu knew that she
had to truthfully disclose her living arrangements and the income earned by any member of her
household. She confessed to investigators that she concealed that information because she
believed that the information would disqualify her from receiving SSI benefits.Mathieu faces up to 10 years in prison and a $250,000 fine, or both. She will be
sentenced after completion of a pre-sentence report by the United States Probation Office.The investigation was conducted by the Office of Inspector General of the Social
Security Administration.Northland Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been indicted by a federal grand jury for receiving and attempting to distribute child pornography over the Internet.
Steven H. Taylor, 23, of Kansas City-North, was charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Jan. 29, 2013. The indictment was unsealed and made public today upon Taylor’s arrest and initial court appearance.
The federal indictment charges Taylor with five counts of attempting to distribute child pornography over the Internet, two counts of receiving child pornography over the Internet and one count of possessing child pornography.
The indictment also contains a forfeiture allegation, which would require Taylor to forfeit to the government any property used to commit the alleged offenses, including two desktop computers.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Nixa, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."New Orleans Men Sentenced for Bank RobberiesRead the Press Release
MYRON SAUNDERS, 35, and LAMAR NERO, 24, both residents of New Orleans, were sentenced today by U. S. District Judge Nannette Jolivette Brown for bank robbery and attempted bank robbery, announced U.S. Attorney Kenneth Allen Polite, Jr. SAUNDERS and NERO were sentenced to imprisonment for 228 months and 180 months, respectively. Each will be placed on 5 years supervised release following incarceration and incur a $500 special assessment.
In July 2013, following a six-day trial, a federal jury found SAUNDERS and NERO guilty of the June 24, 2011, robbery and December 24, 2011, attempted robbery of a Chase Bank in New Orleans, Louisiana, as well as the November 5, 2011, robbery of a Fidelity Homestead Bank in Metairie, Louisiana. SAUNDERS and NERO were also found guilty of using a firearm during the robbery of the Chase Bank.
The case was investigated by special agents of the Federal Bureau of Investigation and officers and detectives of the New Orleans Police Department and Jefferson Parish Sheriff’s Office.
The prosecution was handled by Assistant U.S. Attorneys Nolan D. Paige, Harry W. McSherry and Special Assistant U.S. Attorney Brian C. Ebarb.
New Charge V. NYS Senator John Sampson - Superseding IndictmentRead the Press Release
Sampson Superseding Indictment
Nampa Man Admits to Theft of Rocks from BLM LandsRead the Press Release
BOISE – William Brian Kirkpatrick, 45, of Nampa, Idaho, pleaded guilty today to theft of government property, U.S. Attorney Wendy J. Olson announced. Kirkpatrick appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to the plea agreement, Kirkpatrick admitted that he drove his truck onto public lands administered by the Bureau of Land Management (BLM) and stole decorative sandstone rock to sell for use in landscaping projects. Kirkpatrick admitted that between November 2012 and June 2013, he stole more than 9,800 pounds of sandstone from BLM lands, which retailed for $1,472, and sold the rock commercially.
The charge of theft of government property is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Kirkpatrick is scheduled to be sentenced on April 21, 2014.
The indictment is the result of an investigation by criminal investigators of the Bureau of Land Management, United States Department of the Interior.
Multi-County Marijuana Cultivation Case UpdateRead the Press Release
FRESNO, Calif. — A marijuana cultivators was sentenced and two entered guilty pleas today for their involvement in separate large-scale marijuana cultivation cases involving private lands in Stanislaus, Mariposa, Fresno, and Kern Counties, U.S. Attorney Benjamin B. Wagner announced.
920 Marijuana Plants/Processed Marijuana/Assault Rifle Seized from Kern County Ranch (1:12-cr-299 LJO)
Jorge Alberto Torres, 28, of Bakersfield, was sentenced to three years and 10 months in prison for conspiring to cultivate, distribute and possess with intent to distribute 920 marijuana plants grown on a private ranch in Kern County without permission or knowledge of the landowner. According to court records, agents seized a loaded assault firearm and three pounds of processed marijuana. In sentencing Torres, U.S. District Judge Lawrence J. O’Neill also considered evidence that Torres had in the past been captured on trail cameras in the Sequoia National Forest making supply drops to another marijuana cultivation site in the Long Meadow Creek area in Tulare County. Upon completion of his prison term, Torres is subject to deportation to Mexico.
This case was the product of an investigation by the DEA, the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Kern County Sheriff’s Office.907 Marijuana Plants/Firearm Seized from Stanislaus County Riverside Grow
(Case No. 1:12-cr-342 AWI)Sengphachanh Boungnavong, 34, of Fresno, pleaded guilty to conspiring to cultivate, distribute and possess with intent to distribute 907 marijuana plants grown in rural Newman, beside the San Joaquin River. During the execution of a search warrant there, drug agents found Boungnavong at the cultivation site, and 907 marijuana plants, a handgun, respirators, motion detectors, chemicals, fertilizers, and purportedly medical marijuana recommendations from a doctor who has been charged in another federal case with the unlawful distribution of other controlled substances.
Boungnavong faces a maximum prison sentence of 20 years and a fine of up to $1 million. He is scheduled for sentencing on April 28, 2014. This case is the product of an investigation by the DEA and the Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
6,993 Marijuana Plants/Firearms Seized from Mariposa County Grow
(Case No. 1:13-cr-174 AWI-BAM)Salvador Gonzalez Farias (“Gonzalez”), 34, of Guerrero, Mexico, pleaded guilty to being an illegal alien in possession of a firearm seized from a rural residential parcel in Mariposa County where law enforcement officers located 6,993 marijuana plants. According to court documents, the grow site was located by Mariposa County Sheriff’s deputies responding to a call for suspected cockfighting. A follow-up search warrant resulted in the seizure of marijuana plants from indoor and outdoor locations on the property, along with two rifles.
Gonzalez is scheduled to be sentenced on April 14, 2014, by United States District Judge Anthony W. Ishii. He faces a maximum prison sentence of 10 years, a fine of up to $250,000, and deportation to Mexico upon completion of any prison term imposed. This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Mariposa County Sheriff’s Department.Both Gonzalez and Boungnavong’s actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Assistant U.S. Attorney Karen A. Escobar is handling the above marijuana prosecutions.
Michigan Felon Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
HUNTINGTON, W.Va. – A 23-year-old Michigan felon who illegally possessed a firearm was sentenced today to two years and six months in federal prison followed by three years of supervised release, announced U.S. Attorney Booth Goodwin. Deandrew Fizer III, of Romulus, Michigan, pleaded guilty in October of 2013 to being a felon in possession of a firearm. Fizer was previously convicted of felonious assault in Wayne County Michigan in June of 2010.
On June 7, 2013, officers with the Huntington Police Department responded to a burglary in progress at Sycamore Street in Huntington. Police entered the residence and found Fizer in a bedroom with a .45 caliber pistol lying within his reach. Fizer, who was arrested, waived his Miranda rights and told police that he had possessed the firearm for approximately a week.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams handled the prosecution.
The case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Members of Oxycodone Distribution Ring Convicted in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV - Five people were convicted in federal court this week for their roles in a cross-country prescription painkiller distribution ring.
DIANE SAVAGE, age 49, ALISHA LETTS, age 29, ROCQUE GARCIA, age 54, all of Moundsville, and JULIA JOSEPH, age 44, of Van Nuys, California, entered pleas of guilty this week to "Conspiracy to Distribute Oxycodone” before U.S. Magistrate Judge James Seibert. The acts in the conspiracy occurred over a period of three years and involved large quantities of pills being shipped from California to Moundsville via the U.S. Postal Service. The pills were then re-distributed in the Moundsville area by members of the conspiracy.
ROCCI WADE, 59, of Moundsville, was also part of the conspiracy and he was found guilty yesterday in federal court after a two-day jury trial. He was convicted of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone” and “Distribution of Oxycodone.”
SAVAGE, who is in custody, and LETTS, GARCIA and JOSEPH, who are on bond, pending sentencing face up to 20 years in prison. WADE is also in custody and he faces up to 40 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant.
The matter was investigated by the Marshall County Drug Task Force and was prosecuted by Assistant U.S. Attorneys Randolph Bernard and Robert McWilliams.
In other matters this week in federal court, SOLOMON SIMS, age 57 of Wheeling, was sentenced to 21 months in prison and three years of supervised release for "Maintaining a Drug-Involved Residence" from November of 2012 to January 18, 2013, for the purpose of distributing heroin, crack cocaine and marijuana. SIMS was sentenced by Judge Frederick P. Stamp, Jr., and was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CHARLES WILKES, age 28, of Wheeling, entered a plea of guilty before Judge Stamp to "Distribution of Crack Cocaine within 1,000 feet of the Heritage Port Playground." WILKES, who is in custody pending sentencing, faces up to 40 years in prison.
The SIMS and WILKES cases were prosecuted by Bernard and investigated by the Ohio Valley Drug Task Force, which is comprised of officers and agents from the West Virginia State Police-BCI, the Wheeling Police Department, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
Finally, DANIEL JOSEPH NASCEMBENI, 71, of Petersburg, WV, appeared before
Chief Judge John Preston Bailey and entered pleas of guilty to "Mail Fraud" and "False Statement of Material Fact in Application for Social Security Income Benefits." NASCEMBENI, who is on bond, faces up to 20 years imprisonment and a $250,000 fine on the mail fraud charge and up to 5 years imprisonment and a $250,000 fine on the false statement charge. This matter was prosecuted by Assistant U.S. Attorney Stephen D. Warner and was investigated by the Social Security Administration and the West Virginia Department of Health and Human Resources.Marysville Woman Sentenced to Nine Years in Prison for Gun TraffickingRead the Press Release
A Snohomish County woman who led a ring of gun and drug traffickers was sentenced today in U.S. District Court in Seattle to nine years in prison and four years of supervised release for conspiracy to illegally deal in firearms, being a felon in possession of a firearm and distribution of methamphetamine, announced U.S. Attorney Jenny A. Durkan. HEATHER CHANCEY, a/k/a HEATHER LEE SLATER, 34, of Marysville, Washington was indicted in July 2013 along with three other members of a firearms trafficking ring. At sentencing, U.S. District Judge James L. Robart said that “the delivery of 49 firearms is an extraordinarily serious offense.”
“This defendant sold dozens of high powered firearms with no sales record and no concern about where these guns would end up,” said U.S. Attorney Jenny A. Durkan. “The sales were made in crowded parking lots and other locations with no security, no background checks and no protection for the public. One of our top priorities is to stop the illegal flow of guns into our communities.”
According to records in the case, on multiple occasions between October 2012 and January 2013, HEATHER CHANCEY and her coconspirators sold guns to an undercover law enforcement agent. Most of the sales occurred in the parking lot of the Tulalip Resort Casino in Marysville, Washington. Some of the sales occurred in other parking lots of businesses in Marysville or Arlington, Washington or at a Marysville residence. CHANCEY was prohibited from possessing firearms because of a 2001 conviction for methamphetamine possession. Some of the guns she possessed and sold in this case include: two sawed off shotguns and 13 regular shotguns – some with no visible serial numbers; 21 rifles – some with obliterated serial numbers; and four handguns. CHANCEY also sold methamphetamine to the undercover officer.
Two other defendants have already pleaded guilty: James Michaels was sentenced to 10 months in prison for conspiracy to unlawfully sell firearms. Mark Jenkins is scheduled to be sentenced for conspiracy to unlawfully sell firearms on February 24, 2014. Curtis Van Putten is scheduled for trial next week for conspiracy to sell firearms and being a felon in possession of a firearm.
This investigation was conducted by the Snohomish Regional Gang and Drug Task Force, the Seattle Police Department, and the FBI. During the investigation, those agencies were assisted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Snohomish County Violent Offender Task Force and the United States Marshal’s Violent Offender Task Force. The case is being prosecuted by Assistant United States Attorney Kate Crisham.Long Island Man Found Guilty in Manhattan Federal Court of Scheme to Defraud Insurance Companies by Intentionally Causing Dozens of Car CrashesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that MAXO JEAN was found guilty on Friday, January 31, 2014, by a jury in Manhattan federal court of conspiracy to commit mail, wire, and health care fraud for orchestrating and carrying out a multi-year scheme to intentionally cause more than 30 car crashes, obtain unnecessary medical treatment, and file fraudulent claims for insurance benefits. JEAN was convicted after a one-week trial before U.S. Court of Appeals Judge Denny Chin, sitting by designation. After JEAN’s conviction, Judge Chin remarked that he was “appalled at the level of corruption” involved in the scheme, and remanded JEAN into the custody of the United States Marshals.
According to the Indictment and the evidence presented at JEAN’s trial:
From 2007 through 2011, JEAN engaged in a scheme to cause more than 30 intentional car crashes in order to fraudulently obtain insurance benefits. JEAN orchestrated the scheme by finding cars, recruiting crews of drivers and passengers, and then sending the crews out to hit cars driven by innocent victims. JEAN paid the drivers and passengers he recruited, and directed them to crash into cars driven by innocent people so that the supposed “accidents” would appear to be real accidents. Following the crashes, JEAN took his recruits to corrupt medical clinics and directed them to submit to unnecessary treatment, including unnecessary surgeries, for their non-existent injuries, so that the treatments could be billed to car insurance companies. JEAN encouraged his recruits to submit to treatments that he thought were likely to result in the largest payments from insurance companies, such as unnecessary back and shoulder surgeries. JEAN and his recruits then filed fraudulent no-fault insurance claims and insurance claims that fraudulently alleged pain and suffering. He profited from the scheme by collecting more than $150,000 in insurance company payouts and in kickbacks from the corrupt medical clinics.
JEAN, 52, of West Hempstead, New York, was convicted of one count of conspiracy to commit mail, wire, and health care fraud. He faces a maximum penalty of twenty years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. JEAN is scheduled to be sentenced by Judge Chin on May 29, 2014, at 10:00 a.m.
Mr. Bharara praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Sarah E. Paul and Alexander J. Wilson are in charge of the prosecution.
U.S. v. Maxo Jean S1 Indictment
Local Woman Sentenced on Sex Trafficking ConspiracyRead the Press Release
St. Louis, MO -St. Louis, MO - CARLA MATHEWS was sentenced to 10 years in prison involving a conspiracy to commit sex trafficking of two area women by force and intimidation.
According to court documents, between 2010 and the October 2012, Carla Mathews and her co-defendant recruited and maintained women, physically assaulted them and forced them to engage in prostitution in the St. Louis metropolitan area. Mathews took the women to various hotels for commercial sex dates and kept the money generated by the victims for herself. She confiscated their food-stamp identification (EBT) cards to control them and deprive them of food and drink as a method of control. Mathews also provided the victims with the drug MDMA and clothing in preparation for the commercial sex dates she arranged for them.
Mathews, Breckenridge Hills, MO, pled guilty last October to conspiracy to commit sex trafficking by force, fraud or coercion. She appeared today for sentencing before United States District Judge Henry Autrey.
Co-defendant Carl Mathews, also of Breckenridge Hills, was sentenced to 10 years in prison in July 2013.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Agriculture Office of Investigations and the Breckenridge Hills Police Department.
Leader of $28.3 Million Medicare Fraud Scheme Pleads GuiltyRead the Press Release
A Florida man who had been the owner and operator of multiple physical therapy rehabilitation facilities pleaded guilty today for his role in organizing and leading a $28.3 million Medicare fraud scheme involving physical and occupational therapy services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida made the announcement.
Luis Duluc, 53, formerly of southwest Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiracy to commit health care fraud and making a false statement relating to health care matters. His sentencing date will be set by the court. He faces a maximum penalty of 15 years in prison.
According to documents filed in the case, Duluc and his co-conspirators used various physical therapy clinics and other business entities throughout Florida and elsewhere to submit approximately $28,347,065 in fraudulent reimbursement claims to Medicare from 2005 through 2009. Medicare paid approximately $14,424,865 on those claims.
Duluc was chairman and president of a Delaware holding company known as Ulysses Acquisitions Inc. Duluc and his co-conspirators used Ulysses Acquisitions to purchase comprehensive outpatient rehabilitation facilities (CORFs) and outpatient physical therapy providers (OPTs) including West Coast Rehab Inc. in Fort Myers, Fla.; Rehab Dynamics Inc. in Venice, Fla.; Polk Rehabilitation Inc. in Lake Wales, Fla.; and Renew Therapy Center of Port St. Lucie LLC in Port St. Lucie, Fla., in order to gain control of these clinics’ Medicare provider numbers.
Working with co-conspirators in Miami and elsewhere, Duluc obtained identifying information of Medicare beneficiaries by paying kickbacks and stealing beneficiaries’ identifying information. Duluc and his co-conspirators also obtained unique identifying information of physicians. They then used this information to create and submit false claims to Medicare through the clinics Ulysses Acquisitions purchased. These claims sought reimbursement for therapy services that were not legitimately prescribed and not actually provided. The conspirators created and used false and forged patient records in an effort to conceal the fact that services had not actually been provided.
Part of the conspiracy included what came to be known as the 80/20 deal, which Duluc developed and marketed. The 80/20 deal involved extensive kickback arrangements with co-conspirators who owned other therapy clinics that were used to further the overall fraud scheme. For example, Duluc and co-conspirators used the clinics they controlled to submit false reimbursement claims to Medicare on behalf of Miami-based therapy clinics such as Hallandale Rehabilitation Inc., Tropical Physical Therapy Corporation, American Wellness Centers Inc., and West Regional Center Inc. Duluc and co-conspirators would retain approximately 20 percent of the money Medicare paid on these claims and pay the other 80 per cent of the fraud proceeds to the co-conspirator clinic owners.
When Duluc and his co-conspirators were done using the clinics they acquired through Ulysses Acquisitions, they engaged in sham sales of the clinics to nominee or straw owners, all of whom were recent immigrants to the United States who had no background or experience in the health care industry. Duluc did this in an effort to try to disassociate himself from the fraudulent operations of the rehabilitation facilities.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorneys Christopher J. Hunter and Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant United States Attorney Simon A. Gaugush of the U.S. Attorney’s Office for the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .