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11 March 2014
Broward County Tax Preparer Pleads Guilty to Contempt of CourtRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Dianelys Armengol Guevara, 28, of Pembroke Pines and Dallas, Texas, pled guilty today before U.S. District Judge James I. Cohn to a one-count Information charging her with contempt of court for violating a court order forbidding her from acting as a tax preparer.
According to the factual proffer filed in court, Guevara had worked as a professional tax preparer at Liberty Tax Services, in Hollywood, from 2005-2009. In 2010, the Department of Justice’s Tax Division filed a civil complaint against Guevara, based on a civil IRS investigation, alleging that Guevara had filed tax returns improperly claiming First Time Homebuyer Credits, various education credits, deductions, and expenses. In January 2011, U.S. District Judge Cecilia M. Altonaga entered a judgment which permanently barred Guevara from acting as a federal tax return preparer. However, on or about January 13, 2011, Guevara began willfully disobeying that judgment by continuing to prepare, and assist in preparing, federal tax returns, from her home in Pembroke Pines. Guevara admitted to preparing approximately 130 federal tax returns after the Court had entered its order. Audits by the IRS found that many of these returns prepared by Guevara also made illegitimate claims to education credits and other deductions, resulting in an average under-payment of approximately $3,358 per return.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn, N.Y., Brothers Admit Traveling to New Jersey to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - A pair of Brooklyn brothers have admitted on consecutive days to crossing state lines as part of a plan to violently coerce an unwilling husband to grant his wife a religious divorce, U.S. Attorney Paul J. Fishman announced.
Avrohom Goldstein, 34, pleaded guilty today to an information charging him with traveling in interstate commerce to commit extortion. Moshe Goldstein, 31, entered his guilty plea March 10, 2014, to the same charge. Both brothers entered their guilty pleas before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Moshe Goldstein, Avrohom Goldstein and a group of conspirators – including David Hellman, 31, their father, Jay Goldstein, 59, Simcha Bulmash, 30, Ariel Potash, 40, Binyamin Stimler, 38, and Sholom Shuchat, 29 – traveled from New York to a warehouse in Edison, N.J., with the intent of forcing a Jewish husband to give his wife a "get," a document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
During their guilty plea proceedings, Moshe and Avrohom admitted that when they arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the “husband’s” brother in law. The brothers admitted that they discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 68, and Martin Wolmark, 55 – in connection with the scheme. All of the defendants reside in Brooklyn, except Potash and Wolmark, who live in Monsey, N.Y.
Hellman, the first defendant to plead guilty, admitted the same conduct in Trenton federal court on March 6, 2014; the charges against the alleged conspirators remain pending.
Moshe and Avrohom Goldstein also admitted that on Aug. 22, 2011, they and others went to a residence in Brooklyn where they restrained, assaulted and injured a man in an attempt to extort a divorce from him. That conduct will be considered by the court during sentencing, currently scheduled for June 16, 2014, for Moshe Goldstein and June 20, 2014, for Avrohom Goldstein. Each brother is bailed on a $500,000 bond and subject to GPS monitoring.
The brothers each face a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to the guilty pleas. He also thanked the Lakewood, N.J., Police Department for their role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
14-082
Defense counsel: Moshe Goldstein: Roger Stavis Esq., New York
Avrohom Goldstein: Charles Waldron Esq., Lawrenceville, N.J.Goldstein, Avrohom Information
Goldstein, Moshe InformationBellevue Man Attempted to Possess Controlled SubstanceRead the Press Release
PITTSBURGH – An Allegheny County resident guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Lee Michael, 25, waived prosecution by indictment and pleaded guilty to a one-count information before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on or about March 6, 2013, Michael attempted to possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methylone, a Schedule I controlled substance.
Judge Hornak scheduled sentencing for July 30, 2014, at 9:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Katherine A. King and Troy Rivetti are prosecuting this case on behalf of the government.
Homeland Security Investigations, the United States Postal Inspection Service, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Lee Michael.
Barksdale Resident Pleads Guilty to Receiving Child PornographyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Isaac Boger, 22, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks to receiving child pornography.
According to evidence presented at the guilty plea, law enforcement authorities detected multiple files containing child pornography being downloaded at a residence on Barksdale Air Force Base. Boger’s home and computer were searched on January 10, 2013 and more than 9,000 files of child pornography, many containing hard core sex involving children, were found on his computer. Boger was an active duty member of the U.S. Air Force when arrested.
Boger faces five to 20 years in prison, a lifetime of supervised release, and up to a $250,000 fine for one count of receiving child pornography. A sentencing date of June 26, 2014 was set. Immigrations and Customs Enforcement-Homeland Security Investigations, U.S. Air Force – Office of Special Investigations, Louisiana State Police, and Bossier City Marshals Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Armored Car Employee Charged with Theft and Tax EvasionRead the Press Release
Tanika Victoria Little, 35, of Philadelphia, PA, was charged today in a superseding indictment with two counts of bank theft and one count of tax evasion. Little was an employee of Brink’s, Inc., a national armored truck company which delivered cash to banks, among other businesses. On February 15, 2011 and on March 1, 2011, Little came into possession of incorrectly routed bags of cash totaling approximately $110,000 in $20 denominations. The indictment alleges that Little failed to deliver the bags of cash to Bank of America's Drexel Hill branch and began making deposits into her personal bank accounts in $20 denominations. It is further alleged that Little, whose annual income from Brink=s was approximately $41,000 at the time, deposited approximately $41,840 in cash in $20 denominations into three different bank accounts between March 2, 2011 and June 1, 2011. On June 29, 2011, within an eight-hour period of time, Little allegedly purchased 27 money orders, totaling approximately $13,000, with cash from eight different retail establishments in South Philadelphia, PA. In addition, in 2011, Little allegedly reported that she had paid approximately $25,000 for exterior and interior home improvements in cash, including $2,000 for a remodeled bathroom, $4,300 for a remodeled kitchen, $8,500 for a remodeled basement, and $9,000 for rebricking of her home’s exterior.
The indictment alleges that when Little’s 2011 federal income tax return was filed, she evaded taxes by falsely reporting that her total gross income was $28,870, when her true gross income was approximately $138,870, as demonstrated by her alleged acquisition of the missing money, her deposits and expenditures.
If convicted, Little faces a maximum possible sentence of 65 years imprisonment, a five-year term of supervised release, a fine of up to $2.1 million, and a $300 special assessment.
The case was investigated by United States Secret Service and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525
10 March 2014
Wichita Store Owner SentencedFor Trafficking Counterfeit Designer GoodsRead the Press Release
WICHITA, KAN. - A woman who owns a retail store in Wichita was ordered to pay $25,000 and placed on five years federal probation for trafficking in counterfeit designer goods, U.S. Attorney Barry Grissom said. She also forfeited all the counterfeit goods that investigators seized from her store.
Glenda Sue Morgan, 55, Wichita, Kan., pleaded guilty to one count of trafficking in goods bearing counterfeit trademarks. In her plea, she admitted selling the counterfeit goods as “replicas” at her business, The Fabulous Store at 9131 E. 37th North in Wichita. On April 2, 2013, undercover law enforcement officers bought about $500 worth of such items including a “Chanel” bracelet and sunglasses, a “Michael Kors” purse and a “Prada” purse. When investigators served a search warrant they seized 400 replica items with a retail value of about $14,000.
In June 2009, more than $1 million in counterfeit goods was seized by Homeland Security Investigations from the same location. At the time, Morgan forfeited ownership of the items and they were destroyed, but she was not charged criminally.
Grissom commended Homeland Security Investigations, the Wichita Police Department and Assistant U.S. Attorney Brent Anderson for their work on the case.Wichita Man Sentenced for Distributing Child PornRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to five years in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Amel Kevin Loop, 54, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that in November 2012 an FBI agent used the Internet to download images of child pornography from Loop’s computer. The images were transferred using an encrypted peer-to-peer network. The images included sexually explicit photos of a child no more than two years old.
Grissom commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.U.S. Attorney's Office Announces A Federal Forfeiture Action Against A Marijuana Warehouse and Related Marijuana FundsRead the Press Release
DENVER -- Colorado U.S. Attorney John Walsh announced today that his office has filed in United States District Court in Denver a civil forfeiture complaint seeking forfeiture of a Denver area marijuana warehouse and illegally connected funds. The forfeiture case stems from a criminal case indicted by a state-wide grand jury that returned indictments that were ultimately prosecuted in Jefferson County.
As revealed by the Verified Complaint, in the Summer of 2012, the Criminal Tax Enforcement Section of the Colorado Department of Revenue, subsequently joined by the Drug Enforcement Administration (DEA), initiated an investigation into an illegal marijuana growing and distribution operation based in a warehouse at 5105 East 39th Avenue in Denver. Investigators determined that the Warehouse produced hundreds of pounds of processed marijuana, and then illegally distributed the drugs to several retail marijuana stores in the metropolitan area in violation of Colorado and Federal law.
The investigation resulted in a Colorado State Grand Jury Indictment charging numerous individuals and entities with 71 counts of drug, tax, and fraud violations of Colorado state law; 8 guilty pleas have been entered, and several cases remain pending in the Jefferson County, Colorado District Court. The individuals involved in the Drug Trafficking Organization utilized various Limited Liability Companies to hold ownership of the assets, and utilized various bank accounts to buy and equip the Warehouse, fund the operations, and receive the illegal proceeds. In addition to the warehouse, the Complaint seeks forfeiture of over $850,000 in seized funds that are the proceeds of the illegal operation, which were used to promote the illegal operation, and which were involved in money laundering.
According to the indictment referred to above, and other information from state authorities, the underlying case involves out of state diversion of marijuana, fraud on investors, false reporting to state law enforcement and regulatory authorities, filing of false and incomplete tax returns, and other broad-scale criminal activity that necessitated action to protect and enforce federal priorities as outlined in the Department of Justice’s marijuana enforcement guidance published on August 29, 2013.
“The U.S. Attorney’s Office continues to engage in focused enforcement of violations of federal law as it pertains to marijuana, and to work closely with our local and state law enforcement partners,” said U.S. Attorney John Walsh. “In this case, the warehouse and money that is the subject of this forfeiture action were proceeds of an illegal scheme perpetrated by certain individuals who were not only violating federal law, they were violating Colorado state law, as is demonstrated by the guilty pleas obtained in Jefferson County.”
Click here for the Verified Complaint for Forfeiture.
Two Former Officers at Roxbury Correctional Institution Sentenced for Conspiring to Assault an InmateRead the Press Release
Lanny Harris, a former sergeant at Roxbury Correctional Institution (RCI) in Hagerstown, Md., and Philip Mayo, a former correctional officer at RCI, were sentenced today for conspiring with other RCI officers on March 8-9, 2008, to assault an inmate at the prison, identified as K.D.
Both Mayo and Harris previously pleaded guilty to conspiring to assault K.D. during the midnight shift (11 p.m. to 7 a.m.). Mayo and Harris cooperated with authorities during the federal investigation and testified for the prosecution at the trial of former RCI officer James Kalbflesh, who was convicted for his role in the assaults on K.D. and the subsequent coverup. U.S. District Judge James K. Bredar sentenced Harris and Mayo to each serve 30 months in prison.
During their testimony at Kalbflesh’s trial and in court documents filed in connection with their respective guilty pleas, Harris and Mayo each admitted that they met with other officers at RCI during the midnight shift and agreed to assault K.D. in retaliation for a prior incident involving K.D. and another officer. Harris, Mayo and two other correctional officers entered K.D.’s cell in order to assault the inmate, and the officers then went through with their plan and assaulted K.D.
“Every person in America has the right to be free from cruel and unusual punishment,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “To ensure that this right is protected, the Justice Department will continue to vigorously prosecute correctional officers who violate the rights of inmates.”
To date, 16 current or former officers at RCI have been convicted in connection with a series of assaults that K.D. suffered on March 8-9, 2008. There are 12 former RCI officers still awaiting sentencing before Judge Bredar, and two who were convicted in state court have already been sentenced.
The case was investigated by the FBI’s Frederick Resident Agency and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the help of Assistant U.S. Attorney Michael Cunningham for the District of Maryland.
Two District Men Sentenced to More Than 20 Years in Prison for Armed Kidnapping and Other Charges in Attack-Defendants Bound Victim and His Friend, Held Them for Hours-Read the Press Release
WASHINGTON - Aaron Thorpe, 33, and Melvin Knight, 36, both of Washington, D.C., were sentenced today to more than two decades in prison on armed kidnapping and other charges stemming from an attack in which they held a man and woman for hours while searching a house for illegal drugs and cash, U.S. Attorney Ronald C. Machen Jr. announced.
The defendants were found guilty in July 2013, following a trial in the U.S. District Court for the District of Columbia, of armed kidnapping, armed burglary, a weapons offense, and related charges. They were sentenced by the Honorable Richard J. Leon.
Thorpe was sentenced to 25 years in prison, and Knight was sentenced to more than 22 years of incarceration.
According to the government’s evidence, early Jan. 28, 2013, Thorpe and Knight lay in wait outside the home of the victim, who lived in the 6400 block of Kansas Avenue NW. They were armed with handguns and wearing ski masks and dark clothing. When the victim and his female friend approached the home, Thorpe and Knight emerged from behind a car, forced the victim and his friend against the wall of the home at gunpoint, and handcuffed them.
In the course of trying to handcuff the victim, who was resisting restraint, Knight discharged his firearm. A neighbor, hearing the gunshot, looked out a window and saw three men – the victim, Thorpe, and Knight. The neighbor described Thorpe and Knight as two men in masks and in all black, one with a shirt that had the word “POLICE” written across it. The neighbor saw the men force the victim into his home and clearly saw one of them holding a gun.
After the neighbor’s call to police, the Metropolitan Police Department (MPD) arrived on the scene and knocked on the door; no one responded. More units responded over the next few hours, including the department’s Emergency Response Team.
Meanwhile, once inside, Thorpe and Knight had forced the victim and his friend to the floor. The two defendants then bound their legs and mouths with duct tape, and began searching through the home for illegal narcotics and cash. They demanded that the victim tell them where to look, and threatened him and his friend, stating, “We’re not leaving any witnesses.”
While lying face down on the floor, fearing for his life and that of his friend, the victim saw one of the defendants’ guns on the floor. He was able to break his hands free and attempted to reach for the gun. At that point, one of the assailants jumped on him, beat him severely in the head and face with another gun, and threatened to kill the victim’s friend if he did not relent. The male victim complied and the two defendants bound his hands with flexi-cuffs again.
The defendants later hid and/or attempted to destroy evidence of their crimes, unbound the victims, and threatened them to tell a false story to police about what had happened inside the home. Finally, at about 3:40 a.m., Thorpe and both victims walked out of the home; police officers then went in and located Knight upstairs. Both defendants were placed under arrest.
In announcing the sentences, U.S. Attorney Machen commended the actions of the Metropolitan Police Department officers, detectives, and others who worked on the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle and Debra McPherson, Legal Assistant Tammy Scott, Intelligence Specialists Francis Morgan and Sharon Johnson, and intern Christopher Kaltsas. Finally, he commended the efforts of Assistant U.S. Attorneys Emory V. Cole and Brittain Shaw, who investigated and prosecuted the case.
14-060Tacoma, Wash. Man Pleads Guilty to Trafficking Oxycodone and Making Illegal Cash DepositsRead the Press Release
FRESNO, Calif. —David Ruem, 32, of Tacoma, Wash., pleaded guilty today to one count of conspiring to distribute oxycodone and hydrocodone, one count of conspiring to structure cash deposits, and one count of aggravated structuring, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ruem’s co-conspirators obtained prescriptions for oxycodone and hydrocodone from a doctor in Visalia, Calif., filled those prescriptions at pharmacies in Modesto, and then transported and mailed the pills to Washington for distribution on the black market. Ruem illegally sold the oxycodone and hydrocodone and then deposited the cash proceeds of those sales into bank accounts held by co-conspirators in California. He made the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transactions Reports from being filed by the banks on his cash deposits. Currency Transactions Reports are reports prepared by financial institutions for any transaction involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.
Ruem is scheduled to be sentenced by Judge Anthony W. Ishii on June 2, 2014. Ruem faces up to 20 years in prison and a $1 million fine for conspiring to distribute oxycodone, up to five years in prison and a $250,000 fine for conspiring to structure, and up to 10 years in prison and a $500,000 fine for aggravated structuring. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act. This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multijurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Squaw Valley Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — Bounseuth Thourakhone, 54, of Laos, was sentenced to three years and three months in prison and Bounhome Singharath, 63, of Las Vegas, entered a guilty plea today for their involvement in a marijuana cultivation operation in Squaw Valley in eastern Fresno County, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement officers found 1,429 marijuana plants at a grow site on Ripple Lane in Squaw Valley. Singharath was leaving the grow site in knee high rubber boots and camouflage pants and Thourakhone was hiding in the bathroom of a trailer on the property. Singharath said he is a resident of Las Vegas and had been living at the grow site for approximately two months for the purpose of growing marijuana. Thourakhone also admitted to growing marijuana there.
Singharath is scheduled for sentencing on May 19, 2014. He faces a mandatory minimum prison term of 10 years, a maximum prison term of life and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Drug Enforcement Administration and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
San Joaquin County Law Enforcement Dog Trainer Sentenced to 15 Months in Prison for Perjury and Making False Statements to Law EnforcementRead the Press Release
FRESNO, Calif. — Stephen J. Johnson, 66, of Linden, was sentenced today by United States District Judge Lawrence J. O'Neill to 15 months in prison for committing perjury before a federal grand jury and making false statements to the FBI United States Attorney Benjamin B. Wagner announced.
According to court documents, Johnson, a law enforcement dog trainer who worked in the Central Valley, was charged with conspiring to obstruct an FBI investigation into Bob Holloway, former owner of Road Dog Cycle in Denair, along with Holloway, retired Stanislaus County Deputy Sheriff Dave Swanson, and Gary Ermoian, a private investigator from Stanislaus County. Johnson was also charged with two counts of making false statements to the FBI and six counts of perjury before a federal grand jury.
At trial, the wiretap evidence revealed that in September 2007, Ermoian, acting on confidential law enforcement information received from Swanson, alerted Holloway that search warrants might be executed at Holloway's residence and business. Thereafter, Ermoian and Holloway discussed how to hide evidence from law enforcement, and, along with Johnson, discussed possible law enforcement surveillance activity at Road Dog Cycle. However, when interviewed by the FBI in 2008, Johnson denied assisting Holloway in hiding evidence and informing Holloway about law enforcement surveillance. Johnson then testified under oath before a federal grand jury later in 2008 and further denied assisting Holloway.
Ermoian and Johnson were convicted at trial on all charges, but Swanson was acquitted. Holloway had pleaded guilty to racketeering charges prior to trial. Last year, the Ninth Circuit Court of Appeals reversed the obstruction of justice count against Ermoian and Johnson. Johnson therefore had to be re-sentenced on the perjury and false statement counts of which he was convicted.
This case was the product of an investigation by the Central Valley Gang Impact Task Force, a task force composed of state and federal law enforcement agencies, including the Modesto Police Department, the Stanislaus County Sheriff's Department, the Stanislaus County District Attorney's Office and the FBI. Assistant United States Attorneys Mark E. Cullers and Laurel J. Montoya prosecuted the case.Owner of Cosmetology Schools Reaches $50,000 Settlement Regarding Submission of False Department of Education Tuition ClaimsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma and the Department of Education announce the settlement of a civil lawsuit brought by the United States of America, acting on behalf of the U.S. Department of Education, against Shirley Zey Smith, a cosmetology school owner.
Ms. Smith was the owner, manager and operator of cosmetology schools located in Oklahoma, Arkansas, and Texas, including the School of Hair Design, Poteau Beauty College, Texarkana Cosmetology Careers, Sherman Cosmetology College, and Mena Cosmetology College. Both School of Hair Design and Poteau Beauty College were approved by the Department of Education to participate in the “Title IV Funding” program, which provides assistance to students for their tuition and fees through grant money and student loans. The other three schools were not approved to participate in “Title IV Funding”.
The lawsuit alleged Shirley Zey Smith and her staff caused students attending her three unapproved schools to submit false claims to the Department of Education, by applying for federal financial aid using the federal school code assigned to the two approved schools.
Pursuant to the settlement agreement, Smith will pay $50,000.00 in penalties and damages.
The case was investigated by the United States Department of Education Regional Inspector General’s Office located in Dallas, Texas. Assistant United States Attorney Robert Gay Guthrie represented the United States in the United States District Court for the Eastern District of Oklahoma, located in Muskogee, Oklahoma.
Ohio Couple Sentenced for Attempting to Defraud Creditors and Fraudulently Obtaining Tax Refund MoneyRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced Stephen Richnafsky (38, North Royalton, OH) to 20 months in federal prison for mail fraud and obstruction of Internal Revenue laws. The court also ordered Richnafsky to make full restitution to the Internal Revenue Service (IRS) in the amount of $42,021.88. Additionally, Richnafsky's domestic partner, Scylina Spikes (40, North Royalton, Ohio), was sentenced to two years of probation for her role in the mail fraud scheme. Richnafsky and Spikes both pleaded guilty on November 19, 2013.
According to court documents, between July 2009 and August 2010, Richnafsky and Spikes conspired to evade their debts by mailing fraudulent documents, through the U.S. Mail, to their creditors. These documents included letters disguised as official documents, fraudulent promissory notes, and other documents directing creditors to collect funds from fictitious "treasury accounts." The documents also included bills and account statements which were stamped or handwritten with statements such as "accepted for value and returned for value," and IRS Forms that were fraudulently presented as forms of payment. When creditors refused to accept these documents in satisfaction of Richnafsky’s and Spikes's debts, Richnafsky and Spikes would attempt to file personal liens against the employees, executives, and attorneys of the creditors. Richnafsky also filed four fraudulent tax returns, which falsely claimed taxes withheld from interest income from financial institutions. For tax years 2005-2008, Richnafsky claimed that the IRS had withheld more than $181,000 in interest income, when in fact no such income had ever been withheld. As a result of these filings, the IRS issued a refund of $42,021.88 to Richnafsky.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Nampa Man Sentenced for His Role in Drug and Gun CaseRead the Press Release
BOISE –Nearia “Nick” William Pinnell, 42, of Nampa, Idaho, was sentenced today to thirty-three months in prison for conspiracy to distribute methamphetamine and possession of a fully-automatic machine gun, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Pinnell to serve three years of supervised release. He pleaded guilty to the charges on December 17, 2013.
According to court documents and Pinnell’s admission in court, he entered into a conspiracy with others to distribute methamphetamine. Other co-conspirators were already distributing methamphetamine when Pinnell became involved in approximately February 2013. Pinnell continued to sell small amounts of methamphetamine until approximately April 2013. Judge Lodge recognized that Pinnell was less involved in the drug conspiracy than the many of the other co-conspirators. In June 2013, law enforcement agents recovered a firearm from Pinnell. Approximately one month later, in July 2013, agents executed a search warrant at Pinnell’s residence and recovered additional firearms, including a fully-automatic machine gun. Pinnell had not registered the automatic firearm as required under the National Firearms Act.
Pinnell is one of eleven defendants indicted on July 9, 2013, in a case including charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and unlawful possession of firearms. All eleven defendants have pleaded guilty, including defendant Jeramie Mahler, who pleaded guilty last week to conspiracy to distribute methamphetamine and discharging a firearm in furtherance of a drug trafficking crime. Pinnell is the third defendant to be sentenced; co-defendants Wendy Harrison and Bobbi Eileen Woolsey were both sentenced previously to 84 months in prison.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, with assistance from the Nampa Police Department. The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Monessen Woman Pleads Guilty in Credit Card SchemeRead the Press Release
PITTSBURGH - A Westmoreland County resident has pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Lashara Martia Holmes, 28, of Monessen, Pa., pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, Holmes conspired with other persons to use an unauthorized credit card at a retail store in Pittsburgh, Pa.
Judge Diamond scheduled sentencing for July 8, 2014, at 12 p.m. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Holmes. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Man Sentenced to Almost Five Years in Prison for Las Vegas, Nev. Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man has been sentenced to 57 months in prison and ordered to pay $834,000 in restitution for his role in a mortgage fraud scheme that caused over $1 million in losses to federally insured financial institutions, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Lance Kellow, 37, was sentenced on Friday, March 7, 2014, by U.S. District Judge Gloria M. Navarro. Kellow was convicted by a jury in March 2013 of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and one count of bank fraud.
“Hundreds of persons have now been convicted and sentenced to prison for committing fraud in the lending and housing industries in southern Nevada,” said U.S. Attorney Bogden. “Since 2008, we have worked diligently with our federal, state and local law enforcement partners to prosecute federally the most egregious cases of this type of fraud.”
Lance Kellow, an experienced loan officer and licensed mortgage broker in southern Nevada, used his experience and knowledge to commit mortgage fraud for profit. On four different occasions, Lance Kellow and his brothers, Jason and Vince Kellow, lied to mortgage lenders in order to get real estate and money for their own use.
Beginning in January 2007, the brothers conspired to sell their houses to their cousin, who was not qualified to buy them, for a significant profit. The brothers placed false information about their cousin’s employment and finances in mortgage loan applications, and helped him qualify for the loans by depositing cash in his bank account and omitting and paying down his debt, all without informing the lenders. As a result of the false statements in the loan applications, the lenders made loans to the cousin that they would not have otherwise made. Using this scheme, the Kellow brothers received over $500,000 in cash from these sales. The cousin then defaulted on the mortgages, causing losses to the banks in excess of $1 million.
Lance Kellow was permitted to self-report to federal prison by June 5, 2014.
Jason Kellow pleaded guilty to conspiracy to commit bank fraud, and was sentenced in March 2013 to 33 months in prison and ordered to pay $1 million in restitution. Vinson Kellow pleaded guilty to wire fraud and was sentenced in April 2013 to seven months in prison.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Christina Brown.
This case was handled in connection with the President'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.
Man Charged with Murder on the Meskwaki Nation SettlementRead the Press Release
Gordon Lasley, Jr., 25, from the Meskwaki Nation Settlement, Iowa, has been charged with murder in “Indian country.” The charge is contained in a Complaint filed on March 7, 2014, in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about February 5, 2014, Lasley murdered two people at their home on the Meskwaki Nation Settlement near Tama, Iowa.If convicted, Lasley faces a possible maximum sentence of life imprisonment, a $250,000 fine, and a $100 special assessment.
Lasley appeared today in federal court in Cedar Rapids and was held without bond. Lasley’s next appearance for preliminary and detention hearings is set for March 13, 2014, at 12:00 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
In 2010, the Department of Justice launched an initiative making public safety in tribal communities a top priority. The goal of the initiative is to help tribes build and sustain safe and secure communities across the country. Information about the initiative is available at http://www.justice.gov/tribal.
The case is being prosecuted by Assistant United States Attorneys C.J. Williams and Anthony Morfitt and was investigated by the Meskwaki Nation Tribal Police, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-mj-00065.Local Businessman Sentenced on Fraud, Bankruptcy ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A local businessman and former commercial real estate agent, who pled guilty last year to a variety of federal fraud charges, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville.
Michael Wayne Harding, 59, of Keswick, Va., previously waived his right to be indicted and entered a plea of guilty to one count of wire fraud and one count of bankruptcy fraud. Today in District Court, Harding was sentenced to 30 months of federal incarceration. In addition, the defendant was ordered to pay more than $2,019,403 million in restitution.
According to a statement of facts agreed to by the defendant and admitted to the Court at a previous hearing, Harding was the president and sole employee of a company called HMC Holdings. On numerous occasions, Harding attempted to secure mortgages for properties HMC Holdings owned based on improvements that had been made to those properties. However, in order to secure the mortgages, Harding was required to provide the mortgage companies with proof that work had been done to the properties. Harding is alleged to have created fake invoices in order to secure the mortgages.
Harding also admitted that after being issued checks by the mortgage companies intended for the contractors, Harding took those checks to local businesses and had the funds converted for his own personal use.
In April 2011, Harding filed bankruptcy. The defendant admitted today that during his bankruptcy proceedings he filed false Monthly Operating Reports, failed to deposit all income into his Debtor-in-Possession account, which is required by the Court, and lied about forging signatures on releases, liens and deeds of trust. The defendant also admitted to lying about his relationship with a business partner in connection with a proposed sale of property during his corporate bankruptcy.
The investigation of the case was conducted by the Albemarle County Commonwealth Attorney's Office, the Virginia State Police, the Federal Bureau of Investigation, IRS Criminal Investigation and the Office of the United States Trustee. Special Assistant United States Attorneys Matt Quatrara, Elliott Casey and Assistant United States Attorney Ronald Huber are prosecuted the case for the United States.
Lawsuit Recovers $15,000 in Damages to Chickasaw National Recreation AreaRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma and the National Park Service announce the settlement of a civil lawsuit brought by the United States of America, acting on behalf of the National Park Service, against William T. Jester, a previous owner of land which is adjacent to Chickasaw National Recreation Area.
William T. Jester owned a vacant lot adjacent to the Chickasaw National Recreation Area overlooking the lake. The lawsuit alleged that Mr. Jester destroyed mature trees on government land adjacent to his property to improve his view of the lake.
The Government and Defendant have settled the case. Mr. Jester has paid $15,000.00 in damages to compensate the United States. The National Park Service reminds the public, that any modification to vegetation, or the terrain in general, on government property without a proper permit issued by the National Park Service, is a violation of the law.
Assistant United States Attorney Robert Gay Guthrie represented the United States.
Lawsuit Recovers $10,000 in Damages to Eufaula Lake AreaRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma and the Tulsa District United States Army Corps of Engineers announce the settlement of a civil lawsuit between the United States of America, acting on behalf of the U.S. Army Corps of Engineers, and a landowner of River Oaks Estates at Eufaula Lake in Pittsburg County, Oklahoma.
The lawsuit alleged that Jeromy Hudson, of Edmond, Oklahoma trespassed, destroyed trees and installed a building on government lakefront property adjoining his property at Eufaula Lake without authorization.
Pursuant to the settlement agreement, Hudson will pay $10,000.00 in damages. The Corps of Engineers reminds the public that any modification to vegetation or the terrain itself on government property without a proper permit issued by the Corps of Engineers is a violation of the law.
Although tree cutting is not permitted, the modification of vegetation may be permitted, by written permit issued by the United States Army Corps of Engineers on a case-by-case basis, in accordance with Eufaula Lake's Shoreline Management Plan and applicable regulations. Any person desiring such a permit should contact the United States Army Corps of Engineers Office at Eufaula Lake before altering government property.
Assistant United States Attorney Robert Gay Guthrie represented the United States.
Laser Striker Sentenced to 14 Years in Prison, Believed to Be the Longest Sentence in A Laser-Strike CaseRead the Press Release
FRESNO, Calif. — Sergio Patrick Rodriguez, 26, of Clovis, Calif., was sentenced today to 14 years in prison for aiming a laser pointer at Fresno police helicopter Air 1, and attempting to interfere with its operation, United States Attorney Benjamin B. Wagner announced. Calling him a “walking crime spree,” United States District Judge Lawrence J. O'Neill said the crime was serious with potentially deadly consequences.
Rodriguez and his girlfriend, Jennifer Lorraine Coleman, 23, were both convicted by a federal jury after a three–day trial in Fresno in December 2013.
According to evidence presented at trial, Rodriguez and Coleman used a high-powered green laser pointer to repeatedly strike the cockpit of Air 1 during a clear summer night in 2012. Air 1 had responded to the apartment complex where Rodriguez and Coleman resided near the Fresno Yosemite International Airport to investigate the report of laser strikes on Air George, an emergency transport helicopter for Children’s Hospital of Central California. The laser pointer that Rodriguez and Coleman used was 13 times more powerful than the permissible power emission level for hand-held laser devices. The crew members of both Air 1 and Air George testified that the laser strikes caused significant visual interference.
In imposing the sentence, Judge O’Neill considered not only the severity of the offenses but Rodriguez’s significant criminal history, numerous probation violations, and Bulldog gang affiliation. In addition, Dr. Leon McLin, a Senior Research Optometrist for the Air Force Research Laboratory who testified at trial, indicated at sentencing that the laser pointer that Rodriguez used was an instrument capable of inflicting serious bodily injury and, indirectly, death due to a high potential for crash caused by visual interference.
“We in federal law enforcement understand the dangers posed by laser strikes on aircraft,” U.S. Attorney Wagner stated. “This is not a game. It is dangerous, and it is a felony. Those who aim lasers at aircraft should know that we will seek to convict them, and we will seek to send them to prison. The safety of aircraft and the people in them demands no less.”
“Lasing aircraft is not a joke or a casual prank. It is reckless behavior that can have fatal consequences for air crew, passengers and the public on the ground,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “Rodriguez’s sentence clearly demonstrates the seriousness of his actions and that the FBI will work with its law enforcement partners to locate and arrest those who engage in dangerous, improper use of hand-held lasers that puts us all at risk.”
“Deliberately pointing a laser at an aircraft is a criminal act with serious safety repercussions,” said FAA Administrator Michael Huerta. “We applaud law enforcement agencies and the U.S. Attorney's Office for their efforts to combat this serious problem.”
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Clovis and Fresno Police Departments, the Federal Aviation Administration, and the National Institute of Standards and Technology of the U.S. Department of Commerce. Assistant United States Attorneys Karen A. Escobar and Michael G. Tierney are prosecuting the case.
Sentencing for co-defendant Coleman is set for May 12, 2014. She faces a maximum statutory penalty of five years in prison and a $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
According to the FAA, there were 3,960 reports of people shining lasers at aircraft in the United States in 2013. The Eastern District of California, which encompasses 34 counties in the eastern portion of California, reported 94 laser strikes, with the largest number of laser incidents reported by the Fresno Yosemite International Airport and Bakersfield Meadows Field Airport. Law enforcement and emergency transport helicopters are particularly vulnerable, since they typically fly at lower altitudes. Their convex-shaped windows also cause greater refraction and visual interference when the beam of a laser strikes. Night-vision goggles can also amplify the beam and pose a greater threat of visual interference.
On February 11, 2014, in 12 cities, the FBI, in collaboration with the Air Line Pilots Association International and the FAA, announced the Laser Threat Awareness campaign, a nationwide effort to alert the public to the threat that aircraft laser illumination poses and the penalties for such activity. The FBI will offer up to $10,000 for information leading to the arrest of any individual who intentionally aims a laser at an aircraft. If you have information about a laser strike, contact your local FBI office. Tips can also be submitted online at https://tips.fbi.gov. If you see someone pointing a laser at an aircraft, call 911.
Lakeland Couple Charged with Bank FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Jovanna Deshawan Forte (39) and William Boyd Burns (44), both of Lakeland, with one count of conspiracy to commit bank fraud and fifteen separate counts of bank fraud. If convicted, Forte and Burns each face a maximum penalty of 30 years in federal prison on each count. The indictment also notifies the individuals that the United States is seeking a money judgment in the amount of the proceeds of the bank fraud. Forte and Burns were arrested and made their respective initial appearances on March 6, 2014 and March 7, 2014, before U.S. Magistrate Judge Thomas G. Wilson. They were both detained.
According to the indictment, Forte and Burns used other peoples’ accounts at local banks to deposit third party checks that were written to the account holders. The amounts of the checks ranged from $1,500 to $3,600, which are under the limits set by the Federal Deposit Insurance Corporation (FDIC) regulations, providing a lesser delay in the availability of the funds. These third party checks were fraudulent and false when they were deposited by Forte and Burns, because the checks were written on closed accounts and accounts that did not have sufficient funds to pay the amount of the checks. The fraudulent checks were deposited into these accounts by ATM, after the financial institution was closed. Forte and Burns then withdrew or attempted to withdraw funds, both in cash and through debit card purchases, which had been credited to the account from the fraudulent check deposit. They used the money for personal expenditures.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Postal Investigation Service, Florida Department of Law Enforcement and the Polk County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Justice Department Files Lawsuit to Shut Down Chicago Tax Preparation BusinessRead the Press Release
The United States has sued The Tax Helper Corp, a tax preparation business with a store located in Chicago, and seeks to permanently bar the company and its alleged co-owner, Johnnie Pernell Jr., from preparing federal tax returns for others, the Justice Department announced today.
According to the complaint, Pernell Jr. prepared tax returns that falsely claimed deductions for fake business expenses and phony education expenses. One example described in the complaint details how Pernell Jr. allegedly prepared a tax return that improperly claimed a fake electrical business for one customer – reporting no income from the electrical business, but more than $24,000 in bogus losses. The customer, according to the complaint, informed the Internal Revenue Service (IRS) that he did not own an electrical business, had not provided any documents to Pernell Jr. to support the expenses that were claimed and had no idea how Pernell Jr. had determined the amount of expenses reported on his return.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Convicts Irondequoit Man of Possessing and Distributing Child Pornography, Making False StatementsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert Cavigliano, 56, of Irondequoit, N.Y., was convicted following a jury trial before U.S. District Judge Frank P. Geraci, Jr. of five counts of distributing child pornography, one count of possessing child pornography and one count of making a false statement to federal agents. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a fine of $250,000.
Assistant U.S. Attorneys Marisa J. Miller and Tiffany H. Lee, who handled the prosecution of the case, stated that in October and November 2011, undercover agents in both Rochester, N.Y. and Montana received child pornography from the defendant, through a peer-to-peer software program. Testimony at trial established that agents executed a search warrant at Cavigliano’s residence in January 2012, at which time they located items of digital media, including a laptop computer. That computer was later discovered to contain images and videos of child pornography. The defendant was also convicted of making a false statement to federal agents when he stated to members of the FBI that he did not own or possess any laptop computers, during an interview with agents prior to the execution of the warrant.
This case was brought as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' 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.
The is the culmination of an investigation on the part of the Federal Bureau of Investigation’s Cyber Task Force, consisting of Special Agents of the Federal Bureau of Investigation, Deputies with the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, and Investigators with the Rochester Police Department, under the Direction of Chief Michael Ciminelli.
Sentencing is scheduled for June 10, 2014, at 3:00 p.m. before Judge Geraci.Jeffrey E. Thompson Pleads Guilty to Conspiring to Violate District of Columbia and Federal Campaign Finance and Tax LawsBusinessman Admits Secretly Spending More Than $3.3 Million in Support of at Least Two Dozen CandidatesRead the Press Release
WASHINGTON - Jeffrey E. Thompson pled guilty today to felony charges stemming from a scheme in which he and his companies secretly channeled more than $3.3 million in illegal contributions to at least 28 political candidates and their campaigns, including people running for the offices of President of the United States and Mayor of the District of Columbia.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Thompson, 58, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia, to two conspiracy charges. One is a federal offense: conspiring to violate federal campaign finance laws and to submit false filings to the Internal Revenue Service. The other is a District of Columbia offense: conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance.
The guilty plea calls for Thompson to cooperate fully in an ongoing investigation. The plea is contingent upon the approval of the Honorable Colleen Kollar-Kotelly. A sentencing date has not yet been set.
In his guilty plea, Thompson admitted, among other things, to secretly channeling more than $668,800 to pay for campaign activities for a person identified in court documents as “Mayoral Candidate A,” a candidate in the 2010 mayoral race in the District of Columbia. He also admitted secretly channeling $608,750 to pay for efforts on behalf of a candidate in the 2008 presidential primary. In addition, he admitted secretly supporting others through illegal corporate contributions, excessive and unreported contributions, and conduit contributions.
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“Election after election, Jeff Thompson huddled behind closed doors with corrupt candidates, political operatives, and businessmen, devising schemes to funnel millions of dollars of corporate money into local and federal elections,” said U.S. Attorney Machen. “Today's guilty plea pulls back the curtain on years of widespread corruption. With Mr. Thompson's cooperation, we have the opportunity to hold many wrongdoers accountable and to usher in a new era of honesty, integrity, and transparency in D.C. politics.”
“Today, Mr. Thompson took responsibility for organizing a lengthy conspiracy that illegally channeled more than $3 million into federal and local campaigns dating back to the 2006 election cycle,” said Assistant Director in Charge Parlave. “The message we are sending today is clear. While the temptation to undermine the election process may be strong, you will not get away with it. Together with our law enforcement partners, the FBI will be unwavering in combating corruption in the District of Columbia.”
“Jeffrey Thompson engaged in behavior that blatantly ignored and directly circumvented clearly established campaign financing laws, but his egregious behavior did not stop there. Thompson then directed TCBA, a company under his control, to file false corporate income tax returns and submit false documents to the IRS to cover his misdeeds” said IRS-CI Chief Weber. “Today's actions involving Mr. Thompson serve as a strong reminder of the commitment of IRS Criminal Investigation and our law enforcement partners to aggressively pursue those attempting to undermine the public's trust.”
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Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. In his guilty plea today, he admitted using funds from those corporations to secretly finance campaign contributions and activities from at least 2006 until 2012.
TCBA received millions of dollars under contracts with District of Columbia and federal government entities. DCHSI owned D.C. Chartered Health Plan, Inc. (Chartered), a corporation that contracted with the District of Columbia government to provide managed care services to a substantial number of District of Columbia residents. Chartered’s contract with the District of Columbia, paid primarily by the federal government, totaled about $300 million each year.
Five others have pled guilty since 2012 to charges involving Thompson’s illegal spending. They include Eugenia C. Harris, the owner of two businesses in the District of Columbia; Lee A. Calhoun, an executive for TCBA; Stanley Straughter, the owner of a business based in Philadelphia; Vernon Hawkins, who was a volunteer advisor in 2010 for “Mayoral Candidate A; and Troy White, the owner of a marketing company based in New York.
Two others have pled guilty in a related investigation involving the 2010 mayoral election: Howard L. Brooks and Thomas W. Gore. Both worked on “Mayoral Candidate A’s” campaign.
If accepted by the Court, Thompson’s plea calls for a sentence of up to 18 months in prison on the federal offense and a sentence of up to six months of incarceration for the District of Columbia offense. If the government determines at the time of sentencing that Thompson has complied with his obligations under the plea agreement, the U.S. Attorney’s Office will request that the Court dismiss the federal charge, leaving Thompson subject to up to six months in prison on the District of Columbia offense, to be followed by up to three years of supervised release.
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According to a statement of offense signed by the government as well as the defendant, Thompson and others carried out a scheme to use TCBA and DCHSI to disburse excessive and unreported contributions to pay for campaign services and campaign materials in coordination with and in support of political candidates, such as get-out-the-vote efforts. The nature of these coordinated, or in-kind, contributions, also known as “shadow campaigns,” took several forms, including the distribution and dissemination of campaign materials in support of political candidates and their campaign committees.
Additionally, Thompson solicited individuals, including relatives, friends, employees, independent contractors, and the senior management of TCBA, to make conduit contributions in their names and the names of their relatives to campaign committees for federal and District of Columbia candidates, as well as a political action committee. He assured these individuals that he would arrange to pay for and otherwise reimburse the contributions. Thompson used personal and corporate money to advance funds and reimburse individuals for the political contributions that they made in their names and the names of their relatives.
In some cases, he authorized and directed TCBA to make payments variously designated as salary, bonus payments, advances on bonuses, and consultant fees, all designed to disguise the fact that the funds were actually reimbursements for contributions.
According to the statement of offense, Thompson and others took actions that caused TCBA to file false corporate income tax returns and submit false documents to the IRS. Thompson and a TCBA controller caused TCBA to wrongfully deduct TCBA's reimbursements to conduit contributors on tax returns for the years 2007 through 2010. Also, he and two TCBA officers knowingly executed false promissory notes to conceal TCBA's activities, and caused the false documents to be submitted to the IRS during an audit of the company.
District of Columbia Campaigns: More than $2.29 million
According to the statement of offense, from 2006 until 2011, Thompson secretly provided more than $1.3 million for the off-the-books, or “shadow campaigns,” on behalf of seven candidates seeking office in the District of Columbia. He also secretly spent more than $130,000 for a voter registration drive on behalf of one candidate and agreed to pay another candidate $200,000 - along with other benefits - to withdraw from the 2006 mayoral race.
The largest such shadow campaign financed “Mayoral Candidate A” in the 2010 mayoral election. During the primary election cycle for Mayor of the District of Columbia, from May 2010 through September 2010, Thompson used TCBA and DCHSI to funnel over $668,800 to pay for campaign services and materials in support of a shadow campaign for “Mayoral Candidate A,” who was challenging the incumbent mayor. The money was channeled through Details International, Inc., and Belle International, Inc., companies owned by Eugenia C. Harris.
Most of this money went for a get-out-the-vote effort for the primary. For example, using funds provided by Thompson, and in consultation with Vernon Hawkins, individuals were paid to manage field operations and transportation related to the shadow campaign. Among other things, these individuals worked directly with, shared canvassing information with, shared workspace with, and coordinated operations with employees and agents of the official campaign for “Mayoral Candidate A,” including those managing get-out-the-vote efforts.
The money also paid for expenses such as the hiring of the candidate’s official campaign driver; the leasing of a luxury sport utility vehicle to take the candidate to campaign-related and other events; and the purchase of posters, yard signs, T-shirts, and other campaign materials.
In addition to the 2010 mayoral race, the statement of offense says that Thompson funded shadow campaigns for candidates running in the 2006 mayoral election; the 2007 special election for the Ward 4 seat on the Council of the District of Columbia; the 2008 election for an At-Large seat on the D.C. Council; the 2010 elections for Ward 1 and Ward 6 of the D.C. Council, and the 2011 special election for an At-Large seat on the D.C. Council.
According to the statement of offense, Thompson secretly spent about $278,000 for a shadow campaign for a person described as “Mayoral Candidate B,” a candidate in the 2006 mayoral primary. In that same race, according to the statement of offense, Thompson agreed to pay a competing candidate $200,000 to drop out and endorse “Mayoral Candidate B.” Thompson also entered into a $150,000 consulting agreement with the competing candidate on behalf of TCBA.
Also, between 2006 and 2011, Thompson utilized at least 75 conduits to make contributions to at least 15 mayoral and D.C. Council candidates in excess of $500,000.
Federal Campaigns: More than $1 million
From February 2008 through May 2008, according to the statement of offense, Thompson used TCBA and DCHSI to funnel, through Harris’s Belle International, about $608,750 to fund a shadow campaign for a candidate running for President of the United States.
The money was used for, among other things, the hiring of a marketing services company owned by Troy White, as well as for street teams and canvassers who supplemented the campaign’s official activities in Texas, Pennsylvania, Indiana, North Carolina and Puerto Rico.
The services included assembling and organizing paid street teams and canvassers to disseminate and distribute campaign materials prepared by the presidential campaign, including posters, lawn signs, pamphlets and stickers. The agreed-upon goal of these efforts was to raise the campaign’s visibility during the 2008 presidential primary election cycle.
Thompson also secretly provided $50,000 to help a civic organization pay for a lawsuit in Texas challenging the two-step voting process in that state, in which voters were allowed to vote twice, once in a primary and once in a caucus. He also provided $150,000 for a political demonstration organized by the civic organization in Washington, D.C. The funds for the lawsuit and the demonstration were to assist the campaign of the preferred presidential candidate.
However, there is no indication that the presidential candidate was personally aware of Thompson’s illicit activities.
Also, between 2006 and 2012, Thompson utilized at least 32 conduits to make contributions to at least 13 federal candidates and a political action committee of at least $250,000.
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In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Weber commended the work of those who investigated the case from the FBI’s Washington Field Office and IRS-CI.
They also expressed appreciation for the work of Assistant U.S. Attorneys Michael K. Atkinson, Loyaan A. Egal, Ellen Chubin Epstein, Lionel André, Jonathan P. Hooks, Ephraim “Fry” Wernick and Ted Radway, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, who are prosecuting the case.
Finally, they acknowledged the efforts of others who worked on the case from the U.S. Attorney’s Office, including Deborah Connor, Chief of the Fraud and Public Corruption Section, and former Assistant U.S. Attorneys Jonathan W. Haray and Mary Chris Dobbie, as well as Criminal Investigators Matthew J. Kutz, Mark Crawford, Melissa Matthews, and Durand Odom; Forensic Accountants Crystal Boodoo and Maria Boodoo; Paralegal Specialists Krishawn Graham, Tasha Harris, Shanna Hays, Corrine Kleinman, and Nicole Wattelet; and Legal Assistant Angela Lawrence.
14-059Illinois Felon Sentenced to Six Years and Six Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Huntington, W.Va. – A Illinois felon who illegally possessed four firearms in February of 2013 was sentenced today to six years and six months in federal prison, U.S. Attorney Booth Goodwin announced. Thomas Ray III, 44, of Will County, Illinois, previously pleaded guilty in December 2013 to possessing a firearm after having been convicted of a felony offense.
On February 5, 2013, the United States Marshal Service C.U.F.F.E.D. Task Force in Huntington was contacted by the Great Lakes Regional Fugitive Task Force in Illinois to assist in locating Ray. Ray was wanted by the State of Illinois for a parole violation. Deputy Marshals found Ray at a residence in the 2100 block of 9th Avenue in Huntington. As Ray was approached, he fled and was apprehended a short time later. Deputy Marshals found Ray with a loaded Glock .40 caliber pistol concealed in the back of his waistband.
Deputy Marshals also conducted a search of the 9th Avenue residence and discovered three additional firearms: a loaded Mossberg 12 gauge shotgun, an AR-15 5.56mm assault rifle along with a 30 round magazine, and a GSG-5 .22 caliber rifle, also with a 30 round magazine. Ray admitted to possessing all the firearms seized.
Ray was prohibited from possessing a firearm based on prior felony convictions for Forcible Armed Detention and Giving a False Bomb/Gas Alarm.
The United States Marshal Service conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
INTERPOL Washington and the U.S. Department of State to Host International Workshop on Human SmugglingRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Monday, March 10, 2014INTERPOL Washington and the U.S. Department of State to Host International Workshop on Human Smuggling
WASHINGTON - INTERPOL Washington (U.S. National Central Bureau) and the U.S. Department of State, Bureau of International Narcotics and Law Enforcement (INL), will conduct a “Workshop on Investigations and Prosecutions of Human Smuggling in the Americas” March 11th through March 13th at the International Law Enforcement Academy in San Salvador.
Ambassador Adam Blackwell, the Secretary of Multidimensional Security at the Organization of American States (OAS) in Washington, D.C., will deliver the keynote address at the opening ceremony.
The two and one-half-day event aims to provide a venue for representatives from various agencies responsible for investigating and prosecuting the crime of human smuggling to network, share best practices, and discuss the related criminal justice gaps and capacity-building efforts in the Americas region.
Approximately 30 participants from 18 countries are expected to attend, to include senior law enforcement and prosecutorial officials responsible for migrant smuggling and human trafficking, international legal experts, along with representatives from INTERPOL Headquarters, the United Nations Office on Drugs and Crime, and the Organization of American States.
Houston Man Pleads Guilty to Role in the Deaths of Grand Forks Area TeenagersRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 10, 2014, Charles William Carlton, 29, Katy, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribution of controlled substances and analogues controlled substance resulting in serious bodily injury or death, introduction and delivery of a misbranded drug, and money laundering before U.S. District Judge Ralph R. Erickson.
The conspiracy involved the distribution of illegal analogue controlled substance through Motion Resources, an online business owned by Carlton. Motion Resources imported illegal analogue controlled substance including hallucinogens from several countries and then sold online throughout the United States. Carlton is the 15th defendant to be convicted as part of the investigation, prosecution and dismantling of this drug trafficking organization, an effort that has been dubbed “Operation Stolen Youth.”
Judge Erickson set sentencing for May 27, 2014, at 1:30 p.m. U.S. District Court.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, Food and Drug Administration, Internal Revenue Service, North Dakota Bureau of Criminal Investigations, and Grand Forks Police Department.
First Assistant U.S. Attorney Chris Myers is prosecuting the cases.
Houston Man Gets Significant Sentence for Humble Bank RobberyRead the Press Release
HOUSTON – A 22-year-old Houston man will be spending the next 189 months in federal prison as a result of his convictions related to the April 2013 robbery of Regions Bank in Humble, announced United States Attorney Kenneth Magidson. Demontray Ward entered guilty pleas to aggravated bank robbery and brandishing a firearm during a crime of violence on Dec. 2, 2013, along with Justin Devon Hayes, 24, also of Houston.
Today, U.S. District Judge Vanessa Gilmore handed Ward a sentence of 105 months for the aggravated bank robbery which be served consecutively to another 84 months for brandishing a firearm. The sentence was enhanced due to the fact there was bodily injury during the course of the robbery. Specifically, evidence presented today indicated that two bank employees had been struck in the back of the head. Hayes is set for sentencing May 5, 2014.
On April 26, 2013, Hayes, Ward and a third, now deceased man, robbed the Regions Bank at 7044 East FM 1960 in Humble. Ward was armed with a shotgun, while the other two had pistols. All of the weapons were loaded. The defendants demanded money, threatened the tellers and became agitated when they realized the vault was on a 10-minute timer.
A Houston police officer entered the bank, but was disarmed by Ward. Outside, another officer witnessed the three men leave the bank and enter an SUV. He attempted to confront them, but the vehicle drove towards him. Seeing a muzzle of a shotgun pointed at him, the officer fired and the driver was shot and killed. Ward and Hayes were then taken into custody.
Ward will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.Hogsett Announces Indictment of Putnam County Sheriff’s DeputyRead the Press Release
Deputy used excessive force on citizens on four occasions
TERRE HAUTE - U.S. Attorney Joseph H. Hogsett and the Special Agent in Charge of the Federal Bureau of Investigation Indianapolis Division, Robert A. Jones, announced this afternoon the arrest and indictment of Terry Joe Smith, a/k/a T.J., age 37, of Greencastle, Indiana. Smith serves as a Deputy with the Putnam County Sheriff’s Department and is also a member of the Greencastle Common Council.
The federal indictment, which was unsealed this morning, charges Smith with four counts of federal civil rights violations. The indictment alleges that Smith used excessive force against citizens on four occasions in his capacity as a Putnam County Sheriff’s Deputy. These incidents occurred near Moore’s Bar in Greencastle, on West Stardust Road in Cloverdale, at the Lazy Acres trailer park in Greencastle, and at the Cloverdale Truck Stop.
The allegations contained in the indictment include Mr. Smith’s use of a Taser against an individual after that individual had already been restrained; punching another individual in the face after restraint; throwing yet another individual on the ground after the individual had been handcuffed, driving a knee into the person’s back while secured, remaining handcuffed and prone on the ground; and, finally, throwing a female to the floor and forcing her outside of a truck stop, placing her face down into lava rocks in below freezing temperatures without proper clothing and holding her down for an extended period of time.
Law enforcement officials are subject to criminal prosecution whenever evidence exists that they knowingly abused this authority and deprived individuals of their constitutional rights. Such acts of misconduct, known as acts committed under “color of law,” include allegations of excessive force.
"Our message has been consistent over the last year, but bears repeating today: it doesn't matter to me what your politics are or what position you hold in your community," Hogsett said. "If you violate the public trust, our Public Integrity Working Group will find you, will investigate you and the U.S. Attorney's Office will then prosecute you to the fullest extent of the law."
“There is no acceptable level of corruption or abuse of power. To this end, earlier this year, the FBI created a new Public Corruption and Civil Rights squad that will conduct more focused efforts on these violations,” stated FBI Special Agent in Charge Robert A. Jones.
Hogsett praised the outstanding law enforcement work by the Federal Bureau of Investigation. The FBI is a leading partner in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana.
FBI Indianapolis Division Special Agent in Charge Robert A. Jones stated, “Of the over 300 violations of federal criminal law investigated by the FBI, few are more important than civil rights. Color of law violations are especially egregious because they erode the community’s trust. The vast majority of police officers are well-trained, professional and exceedingly careful with the use of force. Those few that violate their oath to protect and serve will be held accountable.”
According to Assistant United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum, who are prosecuting the case for the government, Smith could be sentenced to up to ten years in federal prison for each count, and could also face significant fines and federal supervision for up to three years once he has served his prison term.
Hogsett acknowledged the critical role that whistleblowers often play in prosecutions of public corruption. He urged anyone with information relating to alleged criminal activity to contact the U.S. Attorney's Office public corruption hotline at (317) 229-2443.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Greece Man Charged with Bank RobberyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Joseph Cumbo, 34, of Greece, N.Y., was arrested and charged by criminal complaint with bank robbery. The charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Frank T. Pimintel, who is handling the case, stated that the defendant is accused of robbing the Bank of America branch at 5091 Broadway in Depew, N.Y., on February 18, 2014. According to the complaint, Cumbo handed a demand note to the teller stating, “I have a gun, count out $10,000 quickly.” Also according to the complaint, the defendant is suspected in two other bank robberies, one in Cheektowaga, N.Y. and one in Pittsford, N.Y.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Jeremiah J. McCarthy. Cumbo is being held pending a detention hearing on March 17, 2014 at 9:30 a.m.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, detectives with the Depew Police Department, under the direction of Chief Stan Carwile, detectives with the Cheektowaga Police Department, under the direction of Chief David Zack, the Monroe County Sheriff’s Department, under the direction of Sheriff Patrick M. O’Flynn; and detectives with the Greece Police Department, under the direction of Chief Todd Baxter.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.French Citizen Pleads Guilty to Obstructing Criminal Investigation into Alleged Bribes Paid to Win Mining Rights in the Republic of GuineaRead the Press Release
Frederic Cilins, 51, a French citizen, pleaded guilty today in the Southern District of New York to obstructing a federal criminal investigation into whether a mining company paid bribes to win lucrative mining rights in the Republic of Guinea.
Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Preet Bharara, the U.S. Attorney for the Southern District of New York; and George Venizelos, the Assistant Director in Charge of the FBI’s New York Field Office, made the announcement.
Cilins pleaded guilty to a one-count superseding information filed today, which alleges that Cilins agreed to pay money to induce a witness to destroy, or provide to him for destruction, documents sought by the FBI. According to the superseding information, those documents related to allegations concerning the payment of bribes to obtain mining concessions in the Simandou region of the Republic of Guinea.
According to publicly filed documents, Cilins allegedly attempted to obstruct an ongoing federal grand jury investigation concerning potential violations of the Foreign Corrupt Practices Act and laws proscribing money laundering. Court documents state the federal grand jury was investigating whether a particular mining company and its affiliates – on whose behalf Cilins had been working – transferred into the United States funds in furtherance of a scheme to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins allegedly agreed to pay substantial sums of money to induce a witness to the bribery scheme to turn over documents to Cilins for destruction, which Cilins knew had been requested by the FBI and needed to be produced before a federal grand jury. Court documents also allege that Cilins sought to induce the witness to sign an affidavit containing numerous false statements regarding matters under investigation by the grand jury.
Court documents allege that the documents Cilins sought to destroy included original copies of contracts between the mining company and its affiliates and the former wife of a now-deceased Guinean government official, who at the relevant time held an office in Guinea that allowed him to influence the award of mining concessions. The contracts allegedly related to a scheme by which the mining company and its affiliates offered the wife of the Guinean official millions of dollars, which were to be distributed to the official’s wife as well as ministers or senior officials of Guinea’s government whose authority might be needed to secure the mining rights.
According to court documents, the official’s wife incorporated a company in 2008 that agreed to take all necessary steps to secure the valuable mining rights for the mining company’s subsidiary. That same contract stipulated that $2 million was to be transferred to the official’s wife’s company and an additional sum was to be “distributed among persons of good will who may have contributed to facilitating the granting of” the valuable mining rights. According to the complaint, in 2008, the mining company and its affiliates also agreed to give 5 percent of its ownership of particular mining areas in Guinea to the official’s wife.
The case is being investigated by the FBI. The case is being prosecuted by Trial Attorney Tarek Helou of the Criminal Division’s Fraud Section and Assistant United States Attorney Elisha J. Kobre of the Southern District of New York. The Justice Department’s Office of International Affairs and Office of Enforcement Operations also assisted in the investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .French Citizen Pleads Guilty in Manhattan Federal Court to Obstructing Criminal Investigation into Alleged Bribes Paid to Win Mining Rights in GuineaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, announced today the guilty plea of FREDERIC CILINS, a French citizen, for obstructing a federal criminal investigation into allegations of bribes paid to secure certain valuable mining rights in the Republic of Guinea. CILINS was arrested in April 2013 and pled guilty today before United States District Judge William H. Pauley, III.
According to the allegations contained in the superseding information and other documents filed in Manhattan federal court:
CILINS sought to obstruct an investigation being conducted by a federal grand jury sitting in the Southern District of New York into potential violations of the Foreign Corrupt Practices Act (“FCPA”) and money laundering. The investigation related to allegations that a mining company with which CILINS was affiliated paid bribes to officials of a former governmental regime of the Republic of Guinea to win valuable mining concessions in the Simandou region of Guinea. During monitored and recorded phone calls and face-to-face meetings, CILINS agreed to pay substantial sums of money to induce a witness to, among other things, destroy documents and turn over documents to Cilins for destruction, knowing that such documents were being sought by the Federal Bureau of Investigation (“FBI”) and were to be produced before a federal grand jury. Cilins sought to induce the witness to sign an affidavit containing false statements regarding matters under investigation by the grand jury.
Cilins pled guilty to a one-count superseding information filed today, which alleges that Cilins sought to induce the witness to give him documents so that he could destroy them. According to the superseding information, those documents related to allegations concerning the payment of bribes to obtain mining concessions in the Simandou region of the Republic of Guinea and were sought by FBI agents. Cilins admitted as part of his guilty plea that he tried to induce the witness to leave the United States to avoid being questioned by the FBI about these allegations.
CILINS, 51, a resident of France, pled guilty to one count of obstructing a criminal investigation. He faces a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. CILINS is scheduled to be sentenced by Judge Pauley on June 27, 2014, at 2:00 p.m.
Mr. Bharara praised the outstanding efforts of FBI in the investigation, which he noted is ongoing. He also thanked the Justice Department’s Office of International Affairs and Office of Enforcement Operations for their assistance in the investigation
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Elisha J. Kobre and Trial Attorney Tarek Helou of the Fraud Section of the Criminal Division are in charge of the prosecution.
US v. Frederic Cilins Superseding Info S2 13 Cr 315 (WHP)
Fort Hall Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
POCATELLO – Cody Preacher, 20, of Fort Hall, Idaho, pleaded guilty today in United States District Court to assaulting a federal officer, U.S. Attorney Wendy J. Olson announced. He was indicted on October 22, 2013.
On July 17, 2013, Preacher was arrested on the Fort Hall Indian Reservation for intoxication and for an active arrest warrant from the Fort Hall Tribal Court. He was being placed in a police car for transport to the Fort Hall Jail when he kicked the arresting officer, Jeremy Ball of the Fort Hall Police Department, in the groin. Officer Ball was treated at the hospital.
The charge is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Preacher is set for sentencing on May 20, 2014, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Postal Worker Pleads Guilty to Stealing IPhones from MailRead the Press Release
BOSTON – A Roxbury man pleaded guilty today to stealing iPhones from the mail and making false statements.
Mark Dozier, 58, pleaded guilty before U.S. District Senior Judge Mark L. Wolf to theft of mail by an employee of the postal service and making false statements. In February 2013, he was charged in superseding information. Sentencing is scheduled for May 28, 2014 at 3p.m.
While working as an employee at the U.S. Postal Service, Dozier was caught stealing iPhones from the mail sorting machine. He confessed to stealing 12 iPhones over the course of several weeks and reselling them at a local barbershop. Dozier also lied about his identity on his application to become a Postal worker, using his brother’s name and date of birth rather than his own.
Dozier faces a maximum of five years in prison, three years of supervised release, and a $250,000 fine on each count.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General, Northeast Area Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz's Public Corruption and Special Prosecutions Unit.
Former Police Officer Sentenced for Unlawfully Disclosing Information in Narcotics Investigation-Admits Alerting Two People to Wiretaps-Read the Press Release
WASHINGTON – Vanessa Edwards-Hamm, a former officer with the Prince George’s County Police Department, was sentenced today to 30 months of probation, including four months to be spent in home confinement, for unlawfully disclosing information about a wiretap being used on a target of a law enforcement investigation.
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, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Edwards-Hamm, 38, pled guilty in December 2013 in the U.S. District Court for the District of Columbia to a charge of making an unlawful disclosure of wire, oral, or electronic communications. She was sentenced by the Honorable Chief Judge Richard W. Roberts. While on probation, Edwards-Hamm must complete 100 hours of community service.
As a condition of the plea, Edwards-Hamm has resigned from the Prince George’s County Police Department. She had been a member of the department since 2004. At the sentencing today, Chief Judge Roberts barred Edwards-Hamm from seeking or obtaining employment as a law enforcement officer during her period of probation.
Edwards-Hamm was among 17 people indicted in July 2013 on federal charges in connection with an investigation into a network that allegedly distributed heroin, cocaine, marijuana, and prescription pills in the Washington, D.C. area. She was indicted on one count each of tampering with documents or proceedings and unlawful notice of electronic surveillance. The other 16 defendants were charged with taking part in a drug conspiracy.
According to the government’s evidence, Edwards-Hamm received information on Feb. 22, 2013, that Aaron Vaughn, the brother of one of her close friends, was under investigation for illegal drug trafficking. She also learned that federal agents had a wiretap on Vaughn’s telephone number and that they previously had wiretaps on other numbers associated with him. Finally, she learned that agents felt they had collected enough evidence for an indictment against Vaughn.
In her guilty plea, Edwards-Hamm acknowledged that she called Aaron Vaughn’s brother on Feb. 22 or Feb. 23, 2013; at the time, Vaughn’s brother was serving a prison sentence. She acknowledged that she talked to him in a way that informed him that his brother, Aaron Vaughn, was under investigation; that law enforcement had a wiretap on Aaron Vaughn’s telephone, and that it was too late to help Aaron Vaughn avoid arrest. Furthermore, she acknowledged informing her own brother, Mark Edwards, that law enforcement was listening to Aaron Vaughn’s telephone conversations and that he should be careful and stay away from him. At that point, Mark Edwards also was a target of the drug investigation.
She acknowledged these actions were conducted with the intent to interfere or impede with the FBI investigation. At the time of this conduct, Edwards-Hamm was serving as a task force officer with the Drug Enforcement Administration (DEA) in Maryland.
According to the government’s evidence, Aaron Vaughn got a call from his brother on Feb. 26, 2013 and was told to stop dealing with those he was involved with and to change his telephone number. Aaron Vaughn’s brother also advised him to consider moving out of the area.
Aaron Vaughn, 36, and Mark Edwards, 40, were among the 16 defendants indicted on federal narcotics charges in July 2013. Vaughn remains a fugitive from justice.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier expressed appreciation for those who pursued the investigation from the FBI/MPD Safe Streets Task Force. They also expressed appreciation for the assistance provided by the Prince George's County, Md., and Culpeper, Va. police departments, as well as the U.S. Marshals Service and the Charlottesville Resident Agency of the FBI’s Richmond Field Office.
In addition, they acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Teesha Tobias and Starla Stolk; Legal Assistant Niya Attucks; Program Specialist Kim Hall, and Legal Assistants Diane Brashears and Jessica Moffatt, and Assistant U.S. Attorneys Arvind K. Lal, Catherine K. Connelly and Zia Faruqui, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorneys Kenneth F. Whitted and David B. Kent of the Violent Crime and Narcotics Trafficking Section, who are prosecuting the case.
14-058Former Mingo Chief Magistrate Sentenced to 27 Months in Federal PrisonRead the Press Release
Dallas Toler is second former official to draw prison time in Mingo corruption probe
CHARLESTON, W.Va. – A former chief magistrate is the latest defendant sentenced to federal prison time in a probe of corruption in Mingo County, West Virginia, United States Attorney Booth Goodwin announced today. Dallas Toler, 45, of Delbarton, West Virginia, was sentenced to 27 months’ imprisonment. Last December, Toler admitted in federal court that he falsified a voter registration application during the 2012 primary election campaign. Toler faked the application so that a convicted felon, still on probation and thus barred from voting, could vote for Toler’s Team Mingo faction.
“Voters deserve clean elections and honest public officials,” said U.S. Attorney Goodwin. “Politicians have to follow the law like everybody else. When they forget that, they need to pay the price. Today’s sentence is an important reminder that no one is above the law.”
United States District Judge Thomas E. Johnston, who imposed today’s sentence, emphasized the need to send a strong deterrent message in light of Mingo County’s history of public corruption.
Toler pleaded guilty in December 2013 and was released on bond while awaiting today’s sentencing. Last month, however, Goodwin’s office successfully asked to have Toler’s bond revoked, citing evidence that Toler was part of a conspiracy to distribute cocaine. According to prosecutors, shortly after resigning from office as a requirement of his plea agreement, Toler began bankrolling a local cocaine dealer. The dealer became a confidential informant for investigators after local police caught him using Toler’s car to attempt to transport cocaine. In January of this year, the informant recorded Toler accepting profits from the sale of cocaine and making plans for future cocaine distribution.
At a February 13 hearing on the bond revocation motion, Toler declined to contest prosecutors’ allegations of his drug activity, and Judge Johnston revoked Toler’s bond. Toler has been in federal custody since then.
Toler joins former Mingo County Commissioner David Baisden as the second official sentenced to prison in a wide-ranging corruption probe led by Goodwin’s office. Baisden received a 20-month prison sentence in January. He admitted that he tried to extort a discounted set of tires from an Appalachian Tire store in Williamson, West Virginia. When Appalachian officials refused Baisden’s demand, he punished them by cutting off tens of thousands of dollars of county business that otherwise would have gone to Appalachian.
Two more former Mingo officials are set to be sentenced next month. Former circuit judge Michael Thornsbury will be sentenced April 21, and former county prosecutor C. Michael Sparks will be sentenced April 24. Both officials pleaded guilty last year in a scheme to force George White, a local drug defendant, to change lawyers after they learned that White and his lawyer were informing the Federal Bureau of Investigation (FBI) of alleged crimes committed by then-sheriff Eugene Crum. A criminal defendant has a constitutionally protected right to counsel of his choosing.
All four officials charged to date in the federal investigation have been required to resign from office.
The investigation of Toler’s election fraud was conducted by the FBI and the West Virginia State Police (WVSP), with assistance from the West Virginia Secretary of State’s office. Toler’s drug-distribution activity was investigated by the FBI, the WVSP, the Mingo County Sheriff’s Department and the Williamson Police Department. Counsel to the United States Attorney Steven R. Ruby and Assistant United States Attorney C. Haley Bunn are in charge of the prosecution.
Former Hilo Resident Sentenced to 87 Months in Jail for Fraud and Tax OffensesRead the Press Release
HONOLULU – Justin Wade Smith, age 32, formerly of Hilo, was sentenced to 87 months in federal prison on March 10, 2014 for engaging in an “advance fee” fraud scheme that netted him more than $1.2 million, and failing to file income tax returns.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that, according to information presented in court, Smith earlier pled guilty to two counts of wire fraud, based on his solicitation of money from others through false representations. Smith’s false statements included telling others that (1) he would inherit money from a sizable family trust, once he paid certain fees and costs, and (2) he was a contractor for a law enforcement agency, and could generate large fees through drug seizures. In court proceedings, Smith admitted asking people to “advance” money to him, and promising to repay the amounts with substantial interest once he obtained money from the family trust or law enforcement agency. Smith admitted that he was not an heir to a large trust, or a law enforcement contractor, and that he used the money received from others to support his own lifestyle.
According to the court documents, Smith ran his scheme from 2006 through 2012 in Hawaii and elsewhere, and obtained more than $1.2 million in cash, Western Union or Moneygram wire transfers, and the “loading” of a prepaid debit card belonging to Smith.
During court proceedings, Smith also pled guilty to willfully failing to file a tax return for the calendar year 2012, during which he received approximately $233,995 from his wire fraud scheme. Under the plea agreement, Smith admitted failing to report total income of $1,024,196 between 2007- 2012, and that the resulting tax liability was $185,386.
At sentencing, United States District Judge J. Michael Seabright imposed a term of incarceration of 87 months on the wire fraud counts, and 12 months on the failure to file offense, with the terms to run concurrently. Judge Seabright also ordered Smith to pay restitution of $1,262,930 to the 33 victims of his wire fraud scheme, and to pay back taxes of $185,386 to the Internal Revenue Service.
Smith has been in custody since his arrest on August 22, 2013.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service -- Criminal Investigation, with the assistance of the Hawaii County Police Department. The prosecution was handled by Assistant United States Attorney Larry Tong.
Former Executive Director of Mississippi Department of Marine Resources Pleads GuiltyRead the Press Release
Hattiesburg, Miss - William Walker, 68, of Ocean Springs, pled guilty today in U.S. District Court to conspiracy to commit federal program fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Walker admitted conspiring with his son, Scott Walker, to divert federal grant monies in a scheme that resulted in the federal grant monies being used to unlawfully purchase Scott Walker’s personal property in Ocean Springs, Mississippi.
"Today's guilty plea holds accountable a former high ranking state official for his criminal acts of misappropriating federal grant funds" said U.S. Attorney Davis. "This guilty plea brings us one step closer to restoring the confidence of the citizens of south Mississippi in the Department of Marine Resources."
William Walker will be sentenced on June 5, 2014 at 1:00 p.m. by U.S. District Judge Keith Starrett in Hattiesburg. The maximum penalty for conspiracy is five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden are prosecuting the case..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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Former Energy Director for City of Rockford Sentenced on Charges of FraudRead the Press Release
ROCKFORD — The former Energy Director for the City of Rockford was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for mail fraud. MARK E. BIXBY, 58, of Rockton, Ill., was sentenced to 14 months in federal prison, to be followed by 3 years of supervised release, and was ordered to pay restitution in the total amount of $41,618.33 to the two victims. Judge Kapala immediately remanded Bixby to the custody of the U.S. Marshal’s Service to begin serving his sentence.
Bixby pled guilty on November 21, 2013, admitting that between December 2006 and March 2010 he defrauded a heating contractor and window contractor, both of whom did work under the weatherization program for the City’s Energy Division, by causing them to provide funds and benefits to him through false representations and pretenses. According to the written plea agreement, Bixby, as the Energy Director, managed the City of Rockford’s Energy Division. The Energy Division operated the Illinois Home Weatherization Assistance Program in Winnebago and Boone counties. The purpose of the weatherization program was to help low-income residents save energy and money by providing services that included repairing and replacing heating systems, windows, and doors.
According to the plea agreement, the funds and benefits Bixby obtained from the two contractors included the following: (1) use of a new, 2007, two-door, red, convertible Pontiac Solstice; (2) a total of $18,440 in donations to “charities,” which were deposited into bank accounts controlled by Bixby and a family member, and which were used to pay their personal expenses; (3) $2,980 for the “sale” of cemetery plots by Bixby to the heating contractor, for which Bixby never turned over the titles or deeds to the heating contractor; and (4) a $2,000 “loan” from the window contractor, which Bixby never repaid.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Winnebago County State’s Attorney’s Office and the Rockford Police Department assisted in the investigation.
The government was represented by Assistant U.S. Attorney Mark T. Karner.
Former Connecticut Resident Admits Structuring Money She Embezzled from EmployerRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LYNN A. SCHEUFLER, 35, formerly of Woodstock, Conn. and currently residing in Vermont, pleaded guilty on Friday, March 7, before U.S. District Judge Alvin W. Thompson in Hartford to structuring hundreds of thousands of dollars, including funds that she embezzled from her employer.
According to court documents and statements made in court, SCHEUFLER was the Controller and Chief Financial Officer of a company that owns and operates dining and nightlife venues in the northeastern United States. In that role, she was responsible for filling ATM machines located in the company’s venues out of the cash that managers collected from daily business operations and deposited into nightly deposit bags. Over the course of approximately two years, SCHEUFLER embezzled funds by taking cash out of the company’s nightly deposit bags and by making unauthorized withdrawals from the company’s cash accounts using the company’s ATM cards.
SCHEUFLER, with the assistance of then boyfriend and now husband, Craig L. Galligan, deposited at least $400,000 in stolen cash into their personal bank accounts. Most of these deposits were illegally structured so that no individual deposit exceeded the $10,000 threshold that would have triggered bank reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
SCHEUFLER pleaded guilty to one count of illegally structuring financial transactions as part of a pattern of illegal activity, which carries a maximum term of imprisonment of 10 years. Judge Thompson scheduled sentencing for May 30, 2014.
On August 1, 2013, Galligan, 42, pleaded guilty to one count of conspiracy to structure financial transactions. He awaits sentencing.
SCHEUFLER and Galligan were arrested on October 10, 2012, and are currently released on bond.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Case Manager for Nebraska Aids Project Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
United States Attorney Deborah R. Gilg today announced that Chief United States District Court Judge Laurie Smith Camp, sentenced Jason Armstrong, age 35 of Omaha, Nebraska, following his conviction for Conspiracy to Commit Mail Fraud. Armstrong was sentenced to 24 months in prison and ordered to pay restitution to the Nebraska Department of Health and Human Services in the amount of $141,091.18. Following his release from prison Armstrong will be required to serve a 3 year term of supervised release.
Armstrong worked as a case manager for the Nebraska Aids Project where he was tasked with addressing the needs of Nebraska clients living with HIV/AIDS. Armstrong linked clients to appropriate resources, including housing assistance. Armstrong, working in concert with another individual, submitted fraudulent applications for housing benefits that were paid out with funds provided by the United States Department of Housing and Urban Development. The applications were fraudulent, in some instances, because they had been submitted in the names of people who were not clients of the Nebraska Aids Project. In other instances, the applications were submitted in the names of actual clients but the submissions were made without the clients’ knowledge or consent. Checks would be issued in response to the fraudulent applications and the proceeds would be split between Armstrong and the person with whom he conspired. During the course of the scheme approximately $141,091.18 in fraudulent benefits were paid out. Tamika Payne has also been charged in connection with the same scheme. She is currently awaiting trial.
This case was investigated by the United States Secret Service.
Former Agency Employee Pleads Guilty to Fraud Related to Tornado BenefitsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of an agency that administered disaster relief funds pleaded guilty in federal court today to her role in a wire fraud scheme following the tornado that struck Joplin, Mo., on May 22, 2011.
Herlana L. Latham, 32, of Memphis, Tenn., formerly of Joplin, Mo., pleaded guilty before U.S. Chief District Judge Greg Kays to the charge contained in a June 11, 2013, federal indictment.
By pleading guilty today, Latham admitted that she participated in a conspiracy to defraud the Economic Security Corporation of Southwest Area (ESC). The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund (MHTF) Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011, tornado that struck Joplin.
Latham, an employee of ESC, and conspirators stole a total of $8,565 from the rental assistance program. Co-defendants Christopher L. Smith, 36, and John L.Williams, 31, both also of Memphis and formerly of Joplin, have also pleaded guilty to their roles in the conspiracy.
Latham submitted applications for rental assistance for payments to Smith and Williams, who were not the landlords or property managers of ESC clients. Latham did so by verifying false landlord information on the application forms.
Smith assisted in the wire fraud scheme in two fraudulent transactions. In June or July 2012, Smith signed two MHTF program applications as landlord/property manager/mortgagee, which was false and fraudulent in that Smith then knew he was not a landlord, property manager, or mortgagee entitled to receive MHTF program funds. Based on the false application, the Economic Security Corporation issued a $1,850 check to Smith on June 21, 2012, and a $2,085 check to Smith on July 26, 2012. The financial loss resulting from Smith’s conduct and for which Smith must pay restitution totals $3,935.
Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud. The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050.
Under federal statutes, Latham, Smith and Williams are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Florida Resident Pleads Guilty to Advance Fee SchemeRead the Press Release
BOSTON – A former Florida resident who defrauded victims across the country, including in Massachusetts, pleaded guilty in U.S. District Court in Springfield to charges stemming from a $7 million investment fraud scheme.
John Condo, 62 of formerly of Clearwater, Fla., pleaded guilty before U.S. District Court Judge Nathaniel M. Gorton to conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering.
Condo and his co-defendants induced developers seeking funding for their projects to submit supposedly fully refundable deposits in amounts of $300,000 to $1 million, which totaled more than $7 million over the course of the scheme. Funding for the projects was supposed to come from a $25 billion European fund made up of reclusive and wealthy European investors. The fund and everything associated with it, the websites, an offshore bank, the numerous corporations and world-wide offices, were all a mirage. No projects were funded and the deposits were spent by the defendants.Condo is scheduled to be sentenced on June 10, 2014. He faces up to 20 years in prison, three years of supervised release, a $250,000 fine or twice the net gain or loss from the fraud, and restitution, on each count of wire fraud.
Condo’s co-defendants, Evripides Georgiadis, Michael Zanetti and Frank Barecich are scheduled for trial on April 22, 2014.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Susan Hensley, Director of the U.S. Department of Labor, Employee Benefits Security Administration, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Alex Grant and Karen L. Goodwin of Ortiz’s Springfield Brank Unit.
Final Defendant in Tax Fraud Scheme Pleads GuiltyRead the Press Release
Wendell Cisco, 39, of York, PA, pleaded guilty today to his role in a tax fraud scheme that bilked the government of over $1.8 million. Cisco is one of nine defendants who participated in a conspiracy to defraud the Internal Revenue Service through false tax returns. Cisco pleaded guilty to one count of conspiracy to file false claims and one count of theft of government property, admitting responsibility for $525,434.74 in actual losses. Sentencing is scheduled for June 16, 2014. Cisco faces a statutory maximum sentence of 20 years in prison plus possible restitution to the IRS. He is the last defendant to plead guilty.
Between September 2006 and March 2011, Michael Akers filed false tax returns on behalf of people who believed he was a legitimate tax preparer, who knew he was not a legitimate tax preparer, or who had their identities stolen and did not know tax returns were being filed. Akers would allegedly: inflate the amount of taxes paid by a tax filer, claim refunds to which the filer was not entitled, file the return electronically, have the refund electronically deposited into a bank account, and take a cut of the refund check. Each fraudulent return resulted in a refund in the thousands of dollars. Cisco, and each of the other co-defendants, facilitated the fraudulent returns by providing Akers tax payers’ identity information for Akers to prepare the false returns or by providing Akers bank accounts into which Akers could direct the IRS to send the refunds. The scheme attempted to defraud the government of more than $3.2 million, with actual losses of more than $1.8 million.
Money was passed among members of the conspiracy in face to face hand-offs, and in wire transfers among some of the defendants.
Charged in the original indictment were: Michael Akers, of Philadelphia and Cherry Hill, NJ, Raymond Holmes, of Philadelphia, William Fisher, of Philadelphia, Lynell Matthews and Latoya Matthews, both of Whitesboro, NJ, Maria Latorre, of York, PA, and Jalon Hopewell, of Philadelphia. Ruby Jones, of Philadelphia, was charged separately by information.
The case was investigated by the Internal Revenue Service Criminal Investigation Division and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Sarah Grieb and Special Assistant United States Attorney Karen Fox.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Grand Jury Indictment Charges San Antonio Area Businesswoman and Six Others in Connection with Estimated $1.6 Million Fraud SchemeRead the Press Release
In San Antonio, seven individuals face federal charges in connection with an estimated $1.6 million wire fraud scheme announced United States Attorney Robert Pitman and FBI Acting Special Agent in Charge Aaron C. Rouse.
Charged in the indictment include: 46–year-old Boerne, TX, resident Lea Ann Blystone, owner and managing partner of HipDingo stores in San Antonio, Boerne and Fredericksburg and former marketing director for a land development company, Rinco of Texas, Inc. (Rinco), and Rockin’ J Ranch (Rockin’ J); her ex-husband and Rockin’ J contractor, 49-year-old Michael J. Webb of San Antonio; 48-year-old Rockin’ J contractor Karen Lindsay of Boerne; 56-year-old Boerne resident and Rockin’ J contractor Cheryl E. Hartsfield; 47-year-old Boerne resident and Rockin’ J contractor Roy E. Pokrant, Jr.; 47-year-old Boerne resident and Rockin’ J contractor Thomas J. Worsham; and, 47–year-old Rinco employee and HipDingo co-owner Manson Porter of Boerne.
The indictment, returned on March 5, 2014, and unsealed this afternoon, charges Blystone with eight counts of wire fraud, twelve counts of forged endorsements and two counts of witness tampering. Porter is charged with three counts of wire fraud and two counts of witness tampering. Each of the remaining defendants is charged with three counts of wire fraud.
According to the indictment, from January 2009 until August 2011, Blystone, with assistance from the other defendants, devised and implemented a scheme to defraud Rinco, Rockin’ J, Security State Federal Credit Union and others to obtain money and other property by means of false and fraudulent pretenses. As marketing director for Rinco and Rockin’ J, Blystone coordinated staffing and vendor payments for promotional booths or display space at shows, malls, sporting and other events.
In the scheme, Blystone caused Rinco and Rockin’ J to make checks payable based on numerous fraudulent third-party contractor invoices submitted which greatly overstated the actual operating costs of the promotional booths. Blystone also caused Rinco and Rockin’ J to fraudulently pay defendants Webb, Lindsay, Hartsfield, Pokrant and Worsham for staffing the promotional displays. In some instances, the indictment states that Rinco and Rockin’ J paid for services when no promotion had been done at all at a stated location, or for work performed for the benefit of Blystone and Porter at HipDingo.
Blystone allegedly forged the names of payees on the back of Rinco and Rockin’ J checks and deposited the proceeds into a bank account under her control. Blystone also caused one or more of her fraudulently paid co-defendants to give her a portion of their illegally derived proceeds. The indictment further alleges that Blystone used money derived from her scheme for inventory acquisition and payroll at HipDingo.
The indictment also alleges that on two separate occasions during the investigation, Blystone and Porter tried to persuade an individual to provide false information or recant information already provided to FBI agents.
Furthermore, the indictment contains a notice for demand for asset forfeiture whereby the Government is seeking the criminally derived proceeds of the scheme, namely: four real estate properties located in Boerne; all inventory, assets, bank accounts and equipment owned, held or maintained by HipDingo, LLC., Blystone and Porter; and, four vehicles. The Government is also seeking a monetary judgment in this case in the amount of $1,597,708 representing the amount of proceeds traceable to the above mentioned scheme.
Upon conviction, each wire fraud and witness tampering charge call for up to 20 years in federal prison; each forged endorsement charge, up to ten years in federal prison.
These charges resulted from an investigation conducted by agents with the Federal Bureau of Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Erie Man Pleads Guilty in $700K Fraud SchemeRead the Press Release
ERIE, Pa - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of wire fraud, United States Attorney David J. Hickton announced today.
Peter Jerard Turk, 61, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that Turk convinced an acquaintance to send him over $700,000 by falsely claiming that the money would be used to pay the Nigerian government certain fees related to a five million dollar Nigerian government contract that Turk had been awarded. The contract never existed. Turk then kept over $100,000 for himself, unbeknownst to the victim, and forwarded the balance of the victim’s money to bank accounts and individuals across the world.
Judge Cohill scheduled sentencing for August 4, 2014 at 11:00 a.m. The law provides for a total sentence of twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Turk on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Turk.
Englewood Man Arrested for Production of Child Pornography and Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
DENVER – U.S. Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced that Mervin Edy Wolf, age 61, of Englewood, Colorado, was arrested and charged with travel with intent to engage in illicit sexual conduct and production of child pornography. Wolf appeared before a U.S. Magistrate Judge on March 6, 2014 for an initial appearance, where he was advised of the charges pending against him, as well as his rights. He is due back in court Tuesday, March 11, 2014 at 10:00 a.m. for a detention hearing and preliminary hearing.
According to the affidavit in support of the Criminal Complaint, Wolf formerly resided in California but moved to Englewood, Colorado with his wife sometime after 1999. Wolf and his wife visited relatives regularly in California, usually for two-week periods at a time. Beginning on or about September of 2007, Wolf began producing pornographic photographs of a minor child who lived in the home of California relatives. Over the next seven years Wolf and his wife would travel to California to visit the same relatives, sometimes up to three times a year. During each of these trips Wolf would force the same minor child to perform and participate in an escalating pattern of sexual acts which Wolf would photograph and or video tape. During several of the molestations, Wolf’s wife and relatives would be in the house unaware of what was happening.
In January 2013, the minor child contacted Wolf via telephone and told him that she was afraid she may be pregnant due to his sexual activity with her. Wolf told the minor child he would pay for an abortion if she was in fact pregnant by Wolf. Wolf mailed two home pregnancy tests to the minor child; after she took the tests and learned she was not pregnant.
When the minor child learned that Wolf was planning to visit California in June 2014, she made the decision to disclose all of the sexual abuse by Wolf. The minor child explained she was afraid Wolf would start molesting her younger sibling. Once the minor child’s family learned of the abuse by Wolf, other family members came forward to also report abuse by Wolf. During the course of the California investigation, it was also learned that Wolf and his wife were foster parents in 2003. Two foster children who were both girls and under the age of seven, both disclosed sexual abuse by Wolf. The allegations were investigated by the Arapahoe County Department of Human Services and the Englewood Police Department. No charges were filed against Wolf. However, due to the allegations, the Wolfs’ foster care license was revoked.
On March 5, 2014, a federal search warrant was executed at the residence of Mervin Wolf in Englewood, Colorado. Minutes before the execution of the search warrant, the minor child contacted Wolf on his cell phone at the direction of the investigating agency in California; the call was recorded. During the call, Wolf confirmed the sexual relationship between him and the minor child. He also confirmed the production of pictures and videos of the sex acts with the minor child. However, Wolf told the minor child that the pictures had been destroyed and no one would find them. During the subsequent search of Wolf’s home, FBI agents seized a 8mm video camera, a digital camera, a camera tripod, and a laptop among other items. Electronic media are currently undergoing forensic examination.
“As this case demonstrates, our society will not tolerate sexual abuse of children,” said U.S. Attorney John Walsh. “In this case, the defendant not only traveled across state lines to sexually exploit a minor child, he also documented that horrible behavior using video recording devices. Prosecuting cases such as this are a priority to protect innocent victims.”
“The FBI and our partners will continue to vigorously investigate all allegations of conduct that exploits and jeopardizes the wellbeing of our children,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “We encourage anyone who suspects this type of activity to immediately report their information to law enforcement.”
If convicted of travel with intent to engage in illicit sexual conduct, Wolf faces not less than 30 years and up to life in federal prison, as well as up to a $250,000 fine. If convicted of production of child pornography, Wolf faces not less than 15 years and up to 30 years in federal prison, as well as up to a $250,000 fine.
This case was investigated by the FBI with support from the Tehama County Sheriff’s Office. If you have any information about this case contact the Denver FBI at 303-629-7171.
Wolf is being prosecuted by Assistant U.S. Attorney Judith Smith, chief, Special Prosecutions Section, Criminal Division of the Colorado U.S. Attorney’s Office.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a federal grand jury.
The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."