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Wednesday 22 January 2014
Three Campaign Workers Charged with Buying Votes<br /> in a Donna, Texas School Board ElectionRead the Press Release
A campaign worker was indicted yesterday by a federal grand jury in the Southern District of Texas for allegedly paying voters to vote in a Donna, Texas school board election. Two other campaign workers were indicted on similar charged last week for alleged vote-buying in the election.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
The three indictments charge Donna residents Diana Balderas Castaneda, 48; Guadalupe Zapata Escamilla, 72; and Rebecca Gonzalez, 44, with one count each of vote-buying. They face a maximum penalty of five years in prison upon conviction.
According to the indictments, a general election was held in Donna on Nov. 6, 2012, which included candidates for the presidential election, as well as for various state, county and local offices, including Donna School Board. The three defendants are alleged to have assisted in the campaign to elect the Democratic candidates to the Donna School Board. In the course of that work, the three women are accused of knowingly and willfully paying and offering to pay voters for voting in this election.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI. Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas are prosecuting the case.The Executive Office for Immigration Review to Host Stakeholder Meeting on New Country Conditions ResourceRead the Press Release
SUMMARY: The Executive Office for Immigration Review invites interested parties to participate in a meeting regarding the new Country Pages section of the Virtual Law Library, the agency’s online legal research resource. The new section is an extensive collection of information about the conditions in countries around the world.
DATE: Friday, Jan. 31, 2014, at 2 p.m.
MEETING LOCATION: 5107 Leesburg Pike, Suite 1800, Falls Church, VA.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs, 703-305-0289, [email protected], by noon on Jan. 30, 2014. Attendance will be limited to the first forty (40) individuals to RSVP. Those who are unable to attend in person will be able to participate via teleconference. Call-in information will be available to those who RSVP. To attend the meeting via conference call, please RSVP with the name(s) of the attendee(s), the attendee’s organization, and an email address where instructions may be sent for accessing the conference call.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Stockton Man Pleads Guilty to Being A Felon in Possession of Firearms, Bank and Credit Card Fraud, and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Antwane Pierre Burrise, 33, of Stockton, pleaded guilty today to being a felon in possession of firearms, possessing unauthorized access devices, possessing identifications of others, possessing stolen U.S. mail, bank fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
According to court documents, on October 24, 2013, the Stockton Police Department received reports of a suspicious vehicle in a Stockton neighborhood. The responding officer later identified Burrise as the only occupant of the vehicle. Burrise possessed a fully loaded extended magazine Glock pistol in the driver's floor area where he sat in the vehicle. Also found in the car were hundreds of items of stolen U.S. Mail bearing the names of at least 300 different San Joaquin County victims. Burrise also possessed an extended magazine AK-47 in the trunk of his vehicle and ammunition for his assault rifle. Burrise further possessed more than 15 identifications of others, more than 25 credit and debit cards of others, and merchandise purchased using the credit and debit cards of others.
Burrise is scheduled to be sentenced on April 9, 2014, by United States District Judge Kimberly J. Mueller. He faces up to 10 years in prison for the felon in possession of charge, up to 30 years in prison for bank fraud, two years in prison consecutive to any other sentence for aggravated ID theft, up to 10 years in prison for access device fraud, up to 15 years in prison for possession of ID documents of others, and up to five years for possession of stolen U.S. Mail. 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.
Stella Man Indicted for Transporting a Minor for Illicit SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Stella, Mo., man has been indicted by a federal grand jury for transporting a minor across state lines for illicit sex.
Tong Yang, 45, of Stella, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Jan. 21, 2014.
The federal indictment alleges that Yang transported a minor across state lines to Newton County, Mo., on Dec. 7, 2013, with the intent to engage in illicit sexual activity.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Cassville, Mo., Police Department and the Neosho, Mo., Police Department.
Stamford Resident Pleads Guilty to Running $800,000 Fraudulent Computer Networking Parts SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CRAIG A. STANLAND, 40, of Stamford, waived his right to indictment and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of mail fraud arising from a scheme in which STANLAND obtained hundreds of computer networking parts from Cisco Systems, Inc. through the use of multiple aliases, business entities, and post office boxes and shipping addresses.
According to court documents and statements made in court, from October 2012 until he was arrested on October 1, 2013, STANLAND operated a service contract fraud scheme in which he purchased or controlled approximately 18 service contracts for Cisco networking parts. Pursuant to these service contracts, STANLAND – using the aliases “Alan Johnston” of Opex Solutions, “Kyle Booker” of KLB Networks, “Steve Jones” of SHO Networks, “Robert Johnson” of Adaptations, and “Paul Smith” of PS Solutions, among others – made hundreds of false service requests to Cisco to replace purportedly defective computer networking parts. Based on these requests, Cisco shipped replacement parts to various addresses at STANLAND’s direction, including to his home in Stamford, to his wife’s business in Brooklyn, N.Y., and to two post office boxes in Greenwich.
STANLAND sold the new parts to third parties to enrich himself. Although he was supposed to return the allegedly defective part to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.
Through this scheme, STANLAND fraudulently obtained nearly 600 parts from Cisco. The retail cost of the parts ranged from approximately $500 to $8,600, and the total loss to Cisco was approximately $834,307.
STANLAND is scheduled to be sentenced by Judge Arterton on April 21, 2014, at which time he faces a maximum term of imprisonment of 20 years. He has been released on a $100,000 bond since his arrest on October 1, 2013.
This case was investigated by the Federal Bureau of Investigation with valuable assistance from the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Stafford Woman Sentenced to Three Years in Prison for Drug ConspiracyRead the Press Release
ALEXANDRIA, Va. – Patricia Mae Huntt, 52, of Stafford, Virginia, was sentenced today to 36 months in prison, followed by three years of supervised release for conspiracy to distribute controlled substances.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Charles E. Jett, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
Huntt pleaded guilty on November 4, 2014. According to court documents, Huntt is a former patient of Dr. Nibedita Mohanty, a Stafford, Virginia, medical doctor who was indicted on July 24, 2014, on charges of conspiracy to distribute controlled substances, distribution of controlled substances, aiding and abetting health care fraud, and aiding and abetting money laundering. Mohanty is scheduled for a jury trial on February 24, 2015.
Beginning in January 2010, Huntt and other conspirators began seeing Dr. Mohanty to obtain large quantities of oxycodone and Dilaudid to distribute for profit. Huntt admitted to selling approximately 3,600 oxycodone pills and 1,200 Dilaudid pills over the previous year. Throughout the conspiracy Huntt was personally involved in the distribution of an amount of oxycodone and Dilaudid that is equivalent to at least 700 kilograms but less than 1,000 kilograms of marijuana.
The case was initiated and investigated by the FBI’s Washington Field Office, the FBI’s Richmond Field Office, and the Stafford County Sheriff’s Office. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jennifer Ballantyne and Nicole Grosnoff prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-190.Tweet
Southeastern Illinois Man Enters Guilty Plea, Sentenced for Misdemeanor Trespass and Damage to PropertyRead the Press Release
Springfield, Ill. – A southeastern Illinois man, Jordan L. Clark, 23, of Marshall, Ill., appeared in federal court this afternoon and pled guilty to misdemeanor charges of trespassing and damage to property of the National Park Service on Jan. 18, 2014. U.S. Magistrate Judge Byron Cudmore sentenced Clark to time served and ordered that Clark pay restitution in the amount of $3,000.
Clark, who was living temporarily in the 800 block of North 6th Street, in Springfield, was charged in an information filed today by the U.S. Attorney’s Office. Clark admitted that on Jan. 18, 2014, he trespassed upon property of the National Park Service, specifically the Abraham Lincoln Home, and that he caused damage to the property by forced entry and damage to interior structures causing flooding. Clark was arrested on Jan. 18, on the property of the National Park Service.
The National Park Service investigated the incident. The government was represented by Assistant U.S. Attorney John E. Childress.
Service Station Owner Sencenced for Extortion and Mail FraudRead the Press Release
BOSTON – An automobile service station owner, who conspired with a Massachusetts Registry of Motor Vehicle (RMV) project manager to extort other service station owners who wanted to obtain a license to conduct vehicle safety inspections, was sentenced today.
Simon Abou Raad, 51, of Tyngsborough, was sentenced by U.S. District Court Judge George A. O’Toole to three years in prison, two years of supervised release, a $10,000 fine and ordered to forfeit $360,000 in illegal proceeds. In December 2013, Abou Raad pleaded guilty to mail fraud and conspiracy to extort money under color of official right.
Abou Raad owned service stations in Tewksbury and Tyngsboro. His co-defendant, Mark LaFrance, project manager for Vehicle Safety and Compliance Services at the RMV, had oversight responsibilities for the entire motor vehicle inspection program within Massachusetts. In Massachusetts, applications to obtain a license to conduct motor vehicle safety inspections are intended to be granted off a waiting list with consideration given to geographic location. An applicant for a vehicle inspection license must pay a $100 fee and the actual equipment costs about $2,500. The inspection network was at its capacity, therefore the RMV was not granting new licenses off the waiting list.LaFrance and Abou Raad operated what was essentially “a black market” for such licenses through the use of LaFrance’s official position. LaFrance provided to Abou Raad a list of vehicle inspection stations that had a low volume of inspections and/or were planning to surrender their license and sell the inspection equipment. Abou Raad then contacted the service station owner and offered to buy the inspection license and equipment for prices usually in the range of $5,000 to $6,000. Abou Raad offered for sale such licenses and equipment to service station owners desirous of acquiring a license for prices between $50,000 to $75,000. Abou Raad then arranged the transaction to appear as if the service station owners selling and buying the license were merging as a new business entity or with a change in ownership. Although he was aware that these purported mergers were not bona fide, LaFrance either approved the issuing of a new license or permitted others in the RMV to approve the new license. After the fraudulent transaction resulting in the issuance of a vehicle inspection licenses was completed and payment was made to Abou Raad, he split the illegal proceeds with LaFrance. Through this illegal scheme, Abou Raad sold at least 10 inspection licenses and/or machines for approximately $657,000 in total.
In November 2013, LaFrance was sentenced to three years in prison.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Robert Fisher of Ortiz’s Public Corruption Unit.Second Man Pleads Guilty to Fraud Involving Real Estate LoanRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Dwayne H. Means, 46, of Cincinnati pleaded guilty in U.S. District Court to conspiracy to commit bank fraud in connection with a loan to buy a lot in the Villages of Sugar Ridge subdivision in Lawrenceburg, Indiana in 2007.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati (FBI), and Dugan Wong, Inspector in Charge, U.S. Postal Inspection Service announced the plea entered yesterday before Senior U.S. District Judge Herman Weber.
According to court documents, Means and Thomas Reusch, 60, Florence, Kentucky, formed TBS Development LLC and applied for a loan to develop a lot in the subdivision. The price of the lot was $1,200,000. Reusch and Means convinced the seller to artificially increase the sale price and TBS obtained a $2,170,000 loan from Central Bank. Means and Reusch did not disclose to the bank that the additional funds included three years’ worth of pre-payment of rent for Gimmies Restaurant, which was located at Sugar Ridge Golf Course, and payments to others including cash back to themselves. TBS submitted false invoices to Central Bank purportedly showing expenditures on development of the lot. The defendants fraudulently obtained $558,446.81 in loan proceeds.
Reusch pleaded guilty on January 8, 2014 to one count of conspiracy to commit bank fraud, which is punishable by up to 30 years in prison and a fine of $1 million. Reusch’s sentencing is scheduled for April 29. Means’ sentencing is scheduled for April 30.
U.S. Attorney Stewart commended the investigation by FBI special agents and Postal Inspectors and Senior Litigation Counsel Anne Porter, who represented the United States in the case.
Second Guilty Plea in Child Support Collection Business and in Drug ConspiracyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Mark C. Simpson, 51, of Lake Park, Georgia, entered pleas of guilty on January 22, 2014, to conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering in one case and to conspiracy to possess with intent to distribute cocaine and crack cocaine in a separate case. Mr. Simpson entered his pleas of guilty before Senior U.S. District Court Judge Hugh Lawson in Macon, Georgia.As a part of his plea, Mr. Simpson admitted that from September 2007 through August 2009, he, his co-defendant Stuart C. Cole, and others conspired to operate a fraudulent private child support collection business in Lake Park, Georgia and in other locations known as Child Support Services of Atlanta and Child Support Services. Mr. Simpson, Mr. Cole and their associates defrauded custodial parents who were to receive child support payments by inducing them to sign collection agreements with their company and offering to assist them in collecting child support payments from non-custodial parents, claiming that all fees connected with the collections would be the responsibility of the non-custodial parent. Mr. Simpson and Mr. Cole would then use fraud, deception and coercion to get non-custodial parents and their employers to send funds for “child support” to their business. Only a portion of the funds was ever given to the parents for the use of the children. The remainder was retained by Mr. Simpson, Mr. Cole and their associates to fund their lifestyles including leases of homes, cars and boats. The conspiracy collected more than $2.3 million and retained approximately $1.2 million. Additionally, Mr. Simpson admitted to laundering the collected funds through bank accounts including an account for a corporation, purported to be a church, as “love gifts”. Mr. Cole entered a plea of guilty to the same charges on January 17, 2014 in Valdosta, Georgia, and is also currently serving a federal sentence for a drug distribution conviction in the Southern District of Texas.
In a separate case, Mr. Simpson admitted to conspiring with a number of other individuals, including Cole, between 2007 and October 21, 2011, to distribute cocaine in Georgia. Simpson was stopped on I-85 in Troup County, Georgia on December 15, 2010, carrying approximately 13 kilograms of cocaine in furtherance of the conspiracy. The drugs were found in a hidden compartment around the transmission of the vehicle he was driving, which had Texas tags and had crossed the border into Mexico as recently as the day before the stop. The Defendant and the Government stipulated that Mr. Simpson would be sentenced based on the possession with intent to distribute between 15 and 50 kilograms of cocaine hydrochloride as a part of the drug distribution conspiracy.
The Court has scheduled sentencing in both cases for April 4, 2014 in Albany, Georgia. Mr. Simpson faces a maximum possible sentence of up to twenty (20) years imprisonment and a maximum fine of $250,000, or both, on the mail and wire fraud conspiracy count and up to twenty (20) years imprisonment, a maximum fine of $500,000.00 or twice the value of the property involved in the money laundering, whichever is greater, or both on the money laundering conspiracy. Mr. Simpson also agreed to forfeit all assets obtained directly or indirectly through his criminal activity in that case. In the cocaine conspiracy case, Mr. Simpson faces an additional sentence of a mandatory minimum 10 years to life imprisonment and a maximum fine of $10,000,000.U.S. Attorney Michael Moore said, “Mr. Simpson and Mr. Cole took advantage of victims who needed help the most. These were parents trying to raise children on their own and having to do it without the financial support these children were due from parents who were not living up to their financial obligations. On the one hand, Mr. Simpson and Mr. Cole offered hope to the custodial parents, and then with the other hand, they snatched the money that they were counting on to support their children away from them. While Mr. Simpson was taking money meant for children, he was also involved in putting cocaine on the street. He may have been able to hide his drug stash, but he can’t hide from the law.”
“The actions committed by Mr. Simpson and Mr. Cole are especially troubling, given that ultimately the victims were children. The Governor’s Office of Consumer Protection is pleased to have initiated this investigation more than five years ago and to see these individuals finally brought to justice,” said John D. Sours, Administrator, Georgia Governor’s Office of Consumer Protection.“Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable," stated Special Agent in Charge, Veronica F. Hyman-Pillot. “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice”.
“U.S. Postal Inspectors have protected the sanctity of the U.S. mails for over 200 years. Working closely with our law enforcement partners, we were persistent in our investigative efforts to bring to justice those responsible for victimizing the families in this particular case. The use of U.S. mail to defraud the American public cannot and will not be tolerated,” said Keith A. Fixel, Inspector in Charge, Charlotte Division.
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Drug traffickers who distribute illegal and dangerous drugs are a true menace to society. These crack distributors have now been removed from the streets, largely because of the true spirit of cooperation that exists between all of the law enforcement agencies involved.”
The money and wire fraud and money laundering conspiracy case was investigated by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service and the Georgia Governor’s Office of Consumer Protection. Assistant United States Attorney Robert D. McCullers is handling that prosecution for the Government. The drug conspiracy case was investigated by the Drug Enforcement Administration and the Georgia Bureau of Investigation. Assistant United States Attorney Leah E. McEwen is handling that prosecution for the Government.For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Scott Man Pleads Guilty to Making False Statements in Order to Steal Social Security BenefitsRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that William Joseph Folse, Jr., 51, of Scott, La., pleaded guilty before U.S. Magistrate Judge C. Michael Hill, to making false statements to the Social Security Administration (SSA) concerning his disability status in order to receive nearly $200,000 in fraudulent benefits.
According to evidence presented at the guilty plea, Folse applied for and was granted benefits for total disability in the 1990s for a slip and fall accident. He also signed paperwork acknowledging that he would report his change in job status should he return to work. Investigators later determined that Folse worked at a restaurant in Lafayette since 1998 and earned more than $12,000 per year plus tips. It is estimated that he improperly received $199,007.80 from the SSA.Folse faces a maximum penalty of five years in prison, a $250,000 fine, restitution, and three years of supervised release. A sentencing date of May 16, 2014 was set.
The Social Security Administration conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.San Francisco Man Sentenced to 40 Months in Prison for FraudRead the Press Release
SAN FRANCISCO – Blessed Marvelous Herve (aka Herve Rodrigue Ndandou, aka Blessed Roll Herve) was sentenced today to 40 months in federal prison after pleading guilty to defrauding two victims out of more than $1.6 million over the course several years, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Herve pleaded guilty to wire fraud on September 6, 2013. According to the Plea Agreement, Herve admitted to executing a scheme to defraud two victims out of approximately $1.6 million through a series of false statements and promises. Among other false statements, Herve falsely stated that his father was a foreign dignitary and a multibillionaire, and that the United States government had seized millions of dollars belonging to Herve. Herve claimed that he needed money from his victims to prevail in a secret federal case to gain access to these funds, which he would then use to repay his victims.
Herve, 41, of San Francisco, was arrested on April 24, 2013, after a Criminal Complaint was filed against him. He was indicted by a federal grand jury on May 7, 2013. The Indictment charged Herve with one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge. Judge Breyer also sentenced the defendant to a three-year period of supervised release following his prison term and ordered him to pay $1,605,926 in restitution to the victims of his fraudulent scheme. Herve has been in custody since his arrest on April 24, 2013.
Hallie Hoffman and Doug Sprague are the Assistant United States Attorneys who are prosecuting the case with the assistance of Muffy Mallory, Rayneisha Booth, and Rawaty Yim. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Herve Indictment)
San Diego Lobbyist Makes Initial Appearance for Role in Campaign Finance CrimesRead the Press Release
San Diego, CA – Marco Polo Cortes, a San Diego-based lobbyist, made an initial appearance in federal district court today on charges that he conspired to finance political campaigns using money from an illegal foreign source.
Cortes was arrested by FBI Agents on Tuesday, January 21, 2014 in the Little Italy section of San Diego, pursuant to an arrest warrant. According to the complaint, filed by an FBI Special Agent and unsealed by U.S. Magistrate Judge William V. Gallo, Cortes conspired with Ravneet Singh and Ernesto Encinas—each of whom were named in a similar complaint unsealed yesterday—to funnel more than $500,000 of illegal foreign money into San Diego municipal and federal campaigns, primarily in 2012 and 2013. The source of the illegal foreign money, the complaint stated, was a person referred to as “the Foreign National.”
As set forth in the complaint, Cortes has lobbied San Diego Police Department officials, city council members and mayoral staff. In 2012, Cortes and a coconspirator approached a representative of a person running for federal elective office during the 2012 general election cycle. But one of the candidate’s representatives informed Cortes that the Foreign National would need to at least show proof of a green card, and emailed Cortes a link to the Federal Election Commission’s rules on foreign contributions. Despite this, Cortes and a coconspirator helped the Foreign National contribute in the Straw Donor’s name instead.
Later, Cortes joined together with Singh and other coconspirators to facilitate illegal in-kind contributions to a candidate for the office of mayor during the 2012 general election cycle. Finally, in September 2013, Cortes met with a confidential informant to discuss the possibility of arranging additional contributions from the Foreign National to a candidate for the office of mayor during the 2013 special election.
Acting United States Attorney Cindy M. Cipriani praised the continuing efforts of 3 the FBI and IRS, noting “we will not tolerate fraud in our elections at any level, and we will root out the influence of foreign money in our electoral processes and on our elected leaders.”
Complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Case Number:Marco Polo Cortes
14MJ0171 SUMMARY OF CHARGES AND MAXIMUM PENALTIES
Age: 44
San Diego, CACount 1: Conspiracy to Commit Offenses against the United States – 18 U.S.C. § 371.
INVESTIGATING AGENCIES
Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessmentFederal Bureau of Investigation
Internal Revenue Service
San Diego Police DepartmentProperty Owner and Maintenance Supervisor Plead Guilty in Albany to Crimes Relating to Illegal Handling and Disposal of AsbestosRead the Press Release
John Mills and Terrance Allen, both of Malone, New York, pleaded guilty yesterday in federal court in Albany, New York, to conspiracy to violate the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and substantive CERCLA counts in relation to the illegal removal, handling, and disposal of asbestos from properties owned and operated by John Mills, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice.
Mills and Allen were charged in an 11-count indictment alleging a conspiracy to impede the functions of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Labor, Occupational Safety and Health Administration, and to violate the Clean Air Act and CERCLA, along with substantive violations of the Clean Air Act and CERCLA. The indictment further charged Mills and Allen with making false statements to law enforcement officers and Mills with retaliating against a witness. CERCLA requires that owners and operators of regulated facilities notify the National Response Center immediately after becoming aware of the release of more than one pound of asbestos into the environment.
Mills and Allen pleaded guilty to one count of conspiracy to violate CERCLA. Mills also pleaded guilty to two counts of knowingly violating CERCLA for failing to immediately report the release of more than a pound of asbestos from properties owned by Mills. In addition to the conspiracy, Allen pleaded guilty to one count of knowingly violating CERCLA.
In open court Tuesday, Mills and Allen admitted that they knowingly failed to report to the National Response Center the release of asbestos, in the form of thermal system insulation, or “pipe wrap,” that had been removed from the basement of buildings owned and operated by John Mills, as soon as they knew of the release. According to the indictment, the defendants illegally removed and disposed of more than 260 linear feet of pipe wrap containing asbestos. The defendants directed an employee to remove the asbestos containing pipe wrap without warning him or giving him adequate personal protective equipment. They transported and caused others to transport that pipe wrap, which was in open bags, in the open bed of a pickup truck.
They further admitted that they conspired together to violate CERCLA. The asbestos pipe wrap was deposited by the defendants in a UHaul-style box truck owned by Mills and a shed maintained by the Malone Department of Public Works in an effort to conceal the material from authorities.
Conspiracy to violate CERCLA carries a maximum penalty of five years in prison and a $250,000 fine. The defendants are scheduled to be sentenced by in Albany on May 12, 2014.
The investigation was conducted by the Environmental Protection Agency Criminal Investigation Division and the New York State Department of Labor Asbestos Control Bureau with assistance from the New York State Department of Environmental Conservation, the Malone Police Department, and the Malone Department of Public Works. The case is being prosecuted by Trial Attorneys Gary N. Donner and Lana N. Pettus, paralegal Puja Moozhikkattu, and litigation support specialist Elga Ozols of the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division.Pittsford Man Sentenced for Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul Jr. announced today that Michael Mercadel, 21, of Pittsford, N.Y., who was convicted of possessing child pornography, was sentenced to 10 years supervised release by U.S. District Court Judge David G. Larimer. The defendant had been subject to a recommended sentencing guideline range of 97 to 120 months in prison.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant downloaded and distributed child pornography, via a peer-to-peer file sharing network. Mercadel came to the attention of law enforcement during an undercover FBI investigation during which agents downloaded images of child pornography from the defendant. A search warrant was then executed at the defendant’s home in Pittsford. Agents recovered items of digital media which contained images of children, many of whom were under the age of 12, engaged in sexually explicit conduct, and many of which depicted acts of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Pearland Man Gets Nearly 30 Years for Producing and Distributing Child PornographyRead the Press Release
GALVESTON, Texas – Travis James McReynolds, 32, of Pearland, has received a significant sentence following his two convictions of production and distribution of child pornography, announced United States Attorney Kenneth Magidson. McReynolds pleaded guilty Nov. 7, 2013.
Today, U.S. District Judge Gregg Costa handed McReynolds 351 and 60 months for the production and distribution convictions, respectively. The sentences will run concurrently. At the hearing, the victim’s mother testified about the impact this has had on her daughter and described how McReynolds took her innocence away. In handing down the sentence, Judge Costa took the crimes into consideration and noted how the defendant exploited someone who trusted him. Following completion of his prison term, McReynolds will be on supervised release for the rest of his life and will also be ordered to register as a sex offender.
McReynolds was chatting online with an undercover officer in New Mexico, during which the undercover officer received three images and several videos of child pornography. One of the videos appeared to be a webcam video of a minor female under the age of 13 who is seen lewdly displaying her genitals for the camera and digitally penetrating herself. Still images depicting minor girls displaying their genitals were also emailed to the undercover officer. The officer was able to determine the Internet Service Provider and traced the user to McReynold’s address in Pearland. The undercover officer received from McReynolds a short video clip of what turned out to be a young teen girl that McReynolds had produced himself. Based on this, the undercover officer contacted Galveston area law enforcement with the information.
On Oct. 20, 2012, a state search warrant was executed at the defendant?s apartment in Pearland, at which time two laptop computers were seized which revealed child pornography. Upon questioning, McReynolds admitted to obtaining child pornography by chatting with others over the Internet. Forensic analysis resulted in the discovery of approximately 132 images and 35 videos of child pornography on the two computers.
McReynolds will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The charges against McReynolds were the result of an investigation conducted by the Galveston and Albuquerque offices of Homeland Security Investigations and the Pearland Police Department as part of the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Parole Officer Sentenced to Federal Prison for BriberyRead the Press Release
HOUSTON – April Carson, 35, of Houston, has been ordered to federal prison for accepting payoffs from parolees, announced United States Attorney Kenneth Magidson. Carson was employed as a Texas Department of Criminal Justice (TDCJ) parole officer and pleaded guilty Aug. 27, 2013.
Today, U.S. District Judge Lee H. Rosenthal accepted arguments of counsel and a plea for leniency by the defense based on Carson’s lack of criminal record and sentenced Carson to 18 months in federal prison. She will also have to serve a term of three years of supervised release following her release from prison.
Carson was responsible for the supervision of state inmates. As part of her duties, she supervised parolees, their travel between the states as well as their activities to ensure they did not engage in criminal conduct. Carson was found guilty of accepting $2000 from a parolee on Oct. 15, 2012, to allow him to travel while under her supervision.
She was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The operation was a combined public corruption task force effort conducted by the FBI, Texas Rangers, Houston Police Department and TDCJ - Office of Inspector General. The case is being prosecuted by Assistant United States Attorney James McAlister with the assistance of the Harris County District Attorney’s Office.
Oakland Woman Pleaded Guilty for Bringing Illegal Wildlife into the United StatesRead the Press Release
OAKLAND – Patty Chen pleaded guilty in federal court on Friday, January 17, 2014, to False Statement and Lacey Act violations for her involvement in illegally bringing wildlife into the United States from Ecuador, United States Attorney Melinda Haag announced.
In pleading guilty, Chen admitted to bringing wildlife products including shark fins, shark fin noodles, sea horses, dried conch, dried fish and eel maw, valued at $29,760 from Ecuador into the United States. Chen admitted that on each occasion that she illegally brought wildlife into the United States, she falsified the United States Customs Service Declaration by falsely stating that she was not transporting wildlife products into the United States.
Chen, 67 of Oakland, was indicted by a federal Grand Jury on July 25, 2013, in the Southern District of Florida, with two counts of violating the Lacey Act, in violation of 16 U.S.C. § 3372(d)(1), and two counts of violating the False Statement Statute, in violation of 18 U.S.C. § 1001(a)(3). The case was transferred to the Northern District of California on November 22, 2013. Chen pleaded guilty to all counts.
Chen’s sentencing is scheduled for May 9, 2014, before the Honorable Jon S. Tigar, United States District Court Judge in Oakland. The maximum statutory penalty for each count of the Lacey Act, 16 U.S.C. § 3372(d)(1) is 5 years imprisonment, 3 years supervised release, a fine of $250,000, plus restitution; for each count of the False Statement Statute, 18 U.S.C. § 1001(a)(3), is 5 years imprisonment, three years supervised, a $250,000 fine, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Maureen Bessette and Thomas Watts-FitzGerald are the Assistant U.S. Attorneys prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the National Oceanic Atmospheric Administration, Office for Law Enforcement, assisted by Homeland Security Investigations.
(Chen Indictment)
North Tonawanda Man Sentenced for Selling Cocaine and Setting a Car on FireRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that William Hutchins, 37, of North Tonawanda, N.Y., who was convicted of conspiracy to possess with intent to distribute, and to distribute 500 grams or more of cocaine, and maliciously destroying a vehicle by means of a fire, was sentenced to 37 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorney Timothy C. Lynch, who handled the case, between January 2009 and July 27, 2009, the defendant conspired with others to distribute cocaine to customers in Niagara and Northern Erie Counties. Hutchins obtained the cocaine and then sold it at, among other places, a restaurant on Niagara Falls Boulevard in Niagara Falls, N.Y. In addition, on May 23, 2008, the defendant poured gasoline in the back seat of a 1998 Mazda and ignited it, causing damage. At the time, the vehicle was used by another person for drug trafficking.
The sentencing is the culmination of an investigation on the part of Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the Niagara County Drug Task Force, under the direction of Sheriff James Votour, the Niagara Falls Police Department, under the direction of Chief John Chella and the Amherst Police Department, under the direction of Chief John AskeyNorth Texas Man Sentenced to One Year and One Day in Federal Prison for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
Defendant to Pay $102,836 in Restitution
DALLAS — Adnan Z. Khan was sentenced this afternoon by U.S. District Judge Jorge A. Solis to 12 months and one day in federal prison and ordered to pay $102,836 in restitution, following his guilty plea in October 2013 to one count of aiding and assisting in the preparation of fraudulent tax returns. Khan was arrested in June 2013 but was later released on bond. According to the order setting conditions for his release, Khan resides in Wylie, Texas. He must surrender to the Bureau of Prisons on February 26, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Khan used his parents’ residence in Dallas to prepare federal tax returns and supporting schedules and forms for clients. However, Khan falsified items on the clients’ returns, without their knowledge, to obtain large tax returns.
For example, according to the factual resume, Khan would falsify Schedule A medical expenses, moving expenses, job expenses, education credits and residential energy credits to increase the tax refunds, and instead of providing clients with a copy of the filed return, he would provide them with another tax return that reflected a smaller refund. On many of the filed returns, Khan listed one of his personal bank accounts and many of the tax refunds were paid to those accounts, and Khan kept a large portion of the refund, without the client’s knowledge. On several returns, Khan changed the taxpayer’s address to his address so that any IRS correspondence would be mailed to him and not the client. The copy of the return Khan provided to the client, however, reflected the client’s correct address.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney J. Nicholas Bunch was in charge of the prosecution.
New Haven Man Sentenced to More Than Five Years in Prison for Role in Heroin Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NELSON RIOS, also known as “Pito,” 37, of New Haven, was sentenced yesterday by Senior U.S. District Judge Ellen Bree Burns in New Haven to 63 months of imprisonment, followed by five years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, RIOS and more than one hundred other individuals were charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. The investigation revealed that RIOS assisted a co-defendant’s heroin trafficking operation by helping to package heroin into bundles for street-level distribution, testing the quality of the heroin and distributing the drug to customers.
RIOS was arrested on May 17, 2012. On August 14, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. He is currently detained.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mexican National Sentenced to 10 Months for Conspiring to Produce False Identification DocumentsRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Roman
Garcia-Lopez, also known as Romeo Bartalon, 57, a Mexican citizen who formerly lived in
Portland, was sentenced today in U.S. District Court by Judge Nancy Torresen to 10 months
imprisonment for conspiring to produce and transfer false Permanent Resident cards and Social
Security cards. Garcia-Lopez pleaded guilty to the charge on September 25, 2013.According to court records, Garcia-Lopez sold false Permanent Resident cards and Social
Security cards to individuals in the Portland area who were in the United States illegally.
Individuals seeking to buy the false documents would provide biographical information, and
Garcia-Lopez would take their photograph with his telephone and forward the picture and the
information to another individual who actually created the fraudulent documents. The documents
would later arrive in Maine via the U.S. Postal Service from the Atlanta, Georgia area.It was disclosed during the sentencing hearing that Garcia-Lopez was ordered removed
from the United States in 1997 but remained in the country. Judge Torresen ordered that after
Garcia-Lopez completes serving his sentence, he is to be turned over to immigration authorities
for removal proceedings.The investigation was conducted by U.S. Immigration and Custom Enforcement’s
Homeland Security Investigations.Martinez Man Sentenced to 24 ½ Years for Attempted Online Enticement of A Minor and Destruction of EvidenceRead the Press Release
AUGUSTA, GA – Fawad Shah Syed, 47, of Martinez, Georgia, was sentenced yesterday by United States District Court Judge J. Randal Hall to over 24 years in prison, followed by ten years of supervised release, for the Attempted Online Enticement of a Minor to Engage in Sexual Activity, Destruction of Records in a Federal Investigation, and Attempted Destruction of Records in a Federal Investigation. He was also ordered to pay a $6,000 fine, and will be required to register as a sex offender. Syed had been convicted of those crimes by a federal jury in September 2013.
United States Attorney Edward Tarver said, “The online solicitation of minors for sexual purposes is deplorable, and the U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. This defendant committed a serious crime for which lengthy punishment is justified.”
Evidence presented during the trial and sentencing hearing revealed that Syed, posing as a man in his twenties named “Daniel,” engaged in online communications with a person he believed to be a 14-year-old girl who he initiated contact with online. After four days of text messaging and several attempts to meet the girl, Syed showed up at what he believed to be the girl’s residence with condoms and alcohol. He was immediately arrested by law enforcement officers. Shortly thereafter, he contacted his wife from jail, and before telling her what charges he faced, instructed her to delete his email account and remotely wipe his phone. He also asked her to wipe his computer. Mrs. Syed cooperated with law enforcement thereafter, providing an investigator with Syed’s computer and testifying at trial. Syed’s computer was searched, and revealed online texts that Syed had last summer with a 13-year-old girl in the Evans, Georgia area. The Court cited to Syed’s pattern of predatory behavior as one of the many disturbing components of his criminal conduct when imposing the lengthy sentence.
This prosecution was the result of a joint investigation of the Richmond County Sheriff’s Office and the FBI’s Computer Crime Child Exploitation Task Force. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States 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.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Man Sentenced to 52 Months in Prison for Swindling Churches and Business Owners Nationwide in Advance-Fee Fraud SchemeRead the Press Release
CHICAGO — A man who victimized small businesses and churches nationwide, including three churches in Chicago, in a so-called “advance-fee” fraud scheme, was sentenced today to more than four years in federal prison after being convicted at trial last summer. Prosecutors said that the defendant, JAMAL E. LAWSON, Sr., “fleeced noble church pastors and hard-working businessmen” of more than $225,000 by repeatedly telling lies about his credentials, experience, and ability to obtain loans on their behalf. Over 18 months in 2009 and 2010, Lawson promised more than $650 million in loans to more than 30 victims and never funded a single loan.
Lawson, 44, of Duluth, Ga., and formerly of Dayton, Ohio, was sentenced to 52 months in prison and ordered to pay $227,252 in restitution by U.S. District Judge James Zagel. Lawson, who was convicted of three counts of mail fraud after a trial last August, was ordered to begin serving his sentence on March 31.
“The victim churches lost money obtained from parishioners, wasted their time and efforts dealing with [Lawson], and missed opportunities to pursue funding through other legitimate sources. In addition, the pastors and business owners suffered losses to their reputations and, in some case, suffered extreme hardships,” the government argued at sentencing.
In return for pledging to obtain loans, Lawson collected advance fees from his victims and used the money for personal expenses, such as travel, clothing, food, and cars, instead of securing the loans as he had promised. Additional churches and small businesses victimized by the scheme were located in Georgia, New Jersey, North Carolina, Ohio, Oregon, and Virginia.
As part of the scheme, Lawson offered to provide loans to pastors of churches and owners of small businesses through one of his companies: Evangel Capital Group LLC and Evangel Capital Partners Ltd., Ascendant Capital Partners LLC and Ascendant Commercial Mortgage, and Destiny Capital Group LLC and Destiny Capital Partners Ltd. Lawson advertised low-interest loans to churches and small businesses and, after receiving a loan application, advised the borrowers that his companies had approved loans in amounts ranging from approximately $300,000 to $206 million and that firm closing dates had been set. Lawson knew that he lacked the ability to fund the loans through his companies and he had not secured funding or closing dates from other outside lenders.
Lawson further told the borrowers that, before any loans would be disbursed, they were required to pay certain advance fees, in amounts ranging from approximately $1,250 to $35,000, that would be used to obtain appraisals, loan documents, title reports, and audited financial statements. Lawson directed the borrowers to pay the advance fees by mailing checks or transferring funds to accounts that he controlled.
Lawson told borrowers that he would refund their application fees if they did not receive the loans, knowing that he never intended to provide the actual loans. In Chicago, he defrauded a former west side branch of a Kankakee, Ill., church of $3,950 in fees for a purported $742,000 mortgage loan; a far south side church of $4,000 in fees to provide a mortgage loan of $1,546,000; and another far south side church of $3,950 in fees for a $3,045,000 mortgage loan.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government was represented by Assistant U.S. Attorneys Christopher R. McFadden and Kathryn Malizia.
Man Convicted of New Britain Shooting Sentenced to Prison for Illegally Reentering U.S. After DeportationRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ARMANDO BERMEJO, 27, a citizen of Mexico last residing in New Britain, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport, to four months of imprisonment for illegally reentering the U.S. after he was deported.
According to court documents and statements made in court, BERMEJO has never held legal status in the U.S. In June 2008, he was deported to Mexico after his arrest by the New Britain Police Department and subsequent conviction of possession of marijuana. At the time of his arrest on March 22, 2008, BERMEJO, who had been operating a vehicle without a license and had been drinking, possessed false identification, a “butterfly” knife, brass knuckles, and marijuana.
On March 11, 2009, BERMEJO was encountered by ICE agents in the area of Naco, Ariz., and he was again removed to Mexico.
BERMEJO again illegally entered the U.S. On October 3, 2010, in a residential neighborhood in New Britain, he shot a victim multiple times at point-blank range, causing life threatening injuries. BERMEJO was arrested and, on January 12, 2012, he was sentenced in New Britain Superior Court to eight years of incarceration.
On October 9, 2013, BERMEJO pleaded guilty to one count of illegal reentry of a removed alien. Judge Underhill ordered BERMEJO to serve his four-month federal sentence after he is released from state custody.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Man Arrested on Federal Charges in USPS Shooting Second Suspect Still at LargeRead the Press Release
Boston – One Dorchester man was arrested this morning and another remains a fugitive in connection with the attempted robbery, assault and kidnapping of a U.S. Postal letter carrier that took place just before Christmas. The federal criminal complaint was filed in U.S. District Court in Boston yesterday and was unsealed today.
Maurice Williams Miner-Gittens, 23, and Keyon Taylor, 21, were charged with conspiracy to rob, attempted robbery and kidnapping of a federal employee.
The government is seeking the public’s assistance in locating Keyon Taylor. Anyone with information regarding Taylor’s whereabouts should contact the U.S. Postal Inspectors at 877-876-2455 (option 2). Taylor may be armed and should be considered dangerous; no one should attempt to apprehend him.
Gittens and Taylor were charged in connection with the Dec. 20, 2013 attempted robbery, shooting and kidnapping of a U.S. Postal letter carrier in Dorchester. While the letter carrier was delivering holiday packages, Taylor allegedly jumped into the postal truck and put a pistol to the letter carrier’s head. A scuffle ensued and the letter carrier was shot in the wrist and was subsequently beaten with the pistol and kicked, told to take off his postal uniform and lie face down.
It is alleged that Taylor took the letter carrier’s keys and started to drive the postal truck away. According to the affidavit, the letter carrier, who was bleeding extensively and who feared for his life, escaped by jumping out of the back door of the truck and running away. Taylor drove the truck a short distance further before abandoning it and fleeing on foot, leaving a trail of boot prints in the snow and his blood on a chain link fence from a cut or puncture wound on his hand. The trail of boot prints led through several back yards to a trash or recycling bin, which also had his blood on the handle.
The letter carrier's uniform, cell phone and personal keys were found in the bin.
Gittens, meanwhile, was the renter and driver of a U-Haul van that was used during the attempted robbery, which had the letter carrier’s blood on the outside.The charges were made after an extensive investigation by the U.S. Postal Inspection Service and the Boston Police Department. The Boston Police Department’s crime laboratory also provided exceptional assistance in analyzing forensic evidence within a very short time period.
The defendants each face a maximum sentence of life in prison on the kidnapping charges; five years on the conspiracy charges; and 25 years on the robbery of federal property.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans made the announcement today. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local Bookkeeper/Office Manager Sentenced on $2 Million EmbezzlementRead the Press Release
St. Louis, MO - ELIZABETH BYRNE was sentenced to 41 months in prison for embezzling more than $2 million over the course of about ten years.
According to court documents, between 1997 and February 2013, Elizabeth Earnest, a/k/a Elizabeth Byrne, a/k/a Elizabeth Johnson, worked as an office manager and assistant for various businesses owned by an individual referred to in court documents as Employer. Her duties included managing and paying the Employer's personal bills and attending to the Employer's personal schedule. Earnest admitted with her plea that from 2003 to February 2013, she abused her position of trust to embezzle funds from her Employer and to cover up her embezzlement. Earnest made blank checks signed by the Employer payable to herself instead of paying the Employer's personal expenses. After making the checks payable to herself, she deposited the checks into one of her personal bank accounts and used the funds to pay her personal bills and to send funds to family members. In order to conceal the scheme, Earnest intercepted Employer's monthly bank statements and removed and shredded the incriminating checks that she had made payable to herself. To further cover her tracks, Earnest falsified bookkeeping entries she prepared for the Employer and falsely classified the expenses.
Her scheme was uncovered in February 2013 when she was out of the office for a vacation and someone else was able to receive, open and review the true bank information.
Earnest, St. Louis, MO, pled guilty last July to one felony count of mail fraud and appeared today for sentencing before United States District Judge Jean C. Hamilton. Additionally, as part of her earlier plea, Earnest has agreed to the forfeiture to the government all money and property derived from her illegal activity.
This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney John Bodenhausen handled the case for the U.S.Leichester Man Pleads Guilty to Recruiting A Minor for PrositutionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jacob Shamp, 23, of Leichester, NY, pleaded guilty to conspiring to recruit an underage girl to commit a commercial sex act before Chief U.S. District Judge Frank P. Geraci. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that Shamp and his girlfriend, Ashlee Cook, 24, posted an ad on Backpage.com, advertising a minor victim for prostitution. Law enforcement officers conducted an undercover operation and arranged to meet the girl in Gates, NY. When officers arrived, they took a statement from the minor victim.
Charges are still pending against Ashlee Cook. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesworth, and the Gates Police Department, under the direction of Chief James VanBrederode.
Lawrenceville Tax Return Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
ATLANTA - Roberta L. Allen has been sentenced for filing false tax returns that claimed over $600,000 in fraudulent refunds.
"The millions of honest, hard-working taxpayers who prepare and file their tax returns should be assured that those who evade their civic duty or try to 'game the system' will be investigated by the IRS and, where appropriate, criminally prosecuted," said United States Attorney Sally Quillian Yates.
“IRS does not endorse or recommend tax preparers but we do offer guidelines to help the public choose a reliable tax professional,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot, “these guidelines are available on the IRS website (irs.gov). Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, ‘If it sounds too good to be true, it probably is’.”
According to United States Attorney Yates, the charges and other information presented in court: Allen prepared fraudulent federal income tax returns at a tax preparation business named Refund Now Tax Services from 2009 through 2010. On the tax returns, Allen claimed fictitious capital losses and taxes paid which resulted in her clients receiving fraudulent tax credits. Allen also charged her clients exorbitant fees for preparing the returns. In total, Allen's preparation of false income tax returns resulted in over $600,000 in tax losses to the Department of the Treasury.
Allen, 49, of Lawrenceville, Ga., was sentenced to two years, nine months in prison to be followed by one year of supervised release, 100 hours of community service, and ordered to pay restitution in the amount of $641,421. Allen was convicted on these charges on October 8, 2013 after she pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Lake County Man Indicted in Alleged $3.2 Million Mortgage Fraud Scheme Involving Properties in Chicago’s Englewood CommunityRead the Press Release
CHICAGO — A Lake County man who operated two real estate–related firms was indicted on federal mortgage fraud charges. The defendant, CONRAD ULZ, allegedly engaged in a scheme to fraudulently obtain 13 residential mortgage loans, totaling approximately $3.2 million, from lenders to purchase properties in Chicago’s Englewood neighborhood. The indictment alleges that Ulz paid buyers to purchase the properties and promised them no out-ofpockets costs, and then made false statements to lenders on their behalf. As a result, the lenders incurred losses totaling more than $3.1 million because the amount of the mortgage loans was not fully recovered through subsequent sale or foreclosure.
Ulz, 73, of Libertyville, who operated Citywide Financial Group and Metro Realty Services, was charged with five counts of wire fraud and three counts of making false statements to financial institutions in an indictment that was returned by a federal grand jury yesterday and announced today. The indictment also seeks forfeiture of at least $3.1 million. Ulz will be arraigned on a date to be determined in U.S. District Court.
According to the indictment, between August 2007 and May 2009, Ulz caused buyers to fraudulently obtain 13 mortgage loans from various lenders for properties on South Sangamon, South Carpenter, South Morgan, South May, and South Ada streets, among others, in Englewood on the city’s south side. The alleged fraud involved false representations in documents, including loan applications and HUD-1 settlement statements concerning sales prices and the buyers’ employment, assets, income, and intention to occupy the property.
Ulz allegedly recruited buyers with good credit, promising to pay them for purchasing the properties, and promising that they would not have to pay any of their own money toward the purchases, including down payments and mortgage payments.
The charges were 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 government is being represented by Assistant U.S. Attorney Renai Rodney.
Each count of wire fraud affecting a financial institution and making false statements on loan applications carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. The Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Justice Department Releases Findings Showing That the Alabama Department of Corrections Fails to Protect Prisoners from Sexual Abuse and Sexual Harassment at the Julia Tutwiler Prison for WomenRead the Press Release
Today the Justice Department’s Civil Rights Division announced its letter of findings determining that prison officials at the Alabama Department of Corrections (ADOC) and the Julia Tutwiler Prison for Women (Tutwiler) violate women prisoners’ constitutional rights by failing to take reasonable steps to protect them from harm due to sexual abuse and sexual harassment caused by correctional staff. Specifically, the Justice Department found that prison officials have long been on notice of the risks to women prisoners and have chosen to ignore them. The findings also included a notice that the investigation will be expanded to examine allegations of additional constitutional violations.
The department found that women prisoners at Tutwiler live in a toxic environment with repeated and open sexual behavior. The conduct to which women are exposed includes: officers forcing women to engage in sexual acts with officers in exchange for basic sanitary supplies; male officers openly watching women shower or use the toilet; a staff facilitated “strip show”; a constant barrage of sexually offensive language; punishment of prisoners who report improper conduct; and encouraging improper sexual contact between prisoners. The sexual abuse and harassment is grossly underreported due to insufficient staffing and supervision, inadequate policies and procedures, a heightened fear of retaliation and an inadequate investigative process.
“Our investigation has revealed serious systemic operational deficiencies at Tutwiler that have exposed women prisoners to harm and serious risk of harm from staff-on-prisoner sexual abuse and sexual harassment,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “These problems have been festering for years, and are well known to Alabama prison officials. Remedying these deficiencies is critical to ensuring constitutionally protected treatment of women prisoners at Tutwiler and will promote public safety.”
The department’s comprehensive investigation involved an in-depth review and analysis of documents, including policies and procedures, incident reports, investigative reports, orientation materials and staff training materials. The department also interviewed prison officials and administrative and security staff, as well as current and former women prisoners.
The expanded investigation will examine allegations of excessive use of force, constitutionally inadequate conditions of confinement, constitutionally inadequate medical and mental health care and discriminatory treatment based on national origin, sexual orientation and gender identity. The department’s decision to expand its investigation of conditions at Tutwiler stemmed from the department’s review of information suggesting that the systemic deficiencies at Tutwiler that facilitated staff sexual misconduct may also lead to constitutionally inadequate conditions of confinement.
“The department stands ready to work with the state of Alabama on solving the problems at Tutwiler,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “The report has identified a very serious and troubling situation at the facility. Action needs to be taken immediately. I am certain that Commissioner Thomas and the governor’s office will continue to cooperate in eradicating these deplorable conditions.”
The department commends Commissioner Kim Thomas and his staff for the cooperation they have shown, and for their receptivity to concerns raised, and looks forward to continuing to work with ADOC and Tutwiler officials in a collaborative manner on the expanded investigation and to resolve the existing findings expeditiously and under mutually agreeable terms.
For more information on the Civil Rights Division, please visit www.justice.gov/crt
Jury Finds Pill-Mill Doctor Guilty of 51 CountsRead the Press Release
In total, 10 defendants convicted and $2 million forfeited relating to
the prosecution of a phony pain clinic in Garden City, GeorgiaSAVANNAH, GA – DR. NAJAM AZMAT, 57, of Waycross, Georgia, was found guilty by a federal jury on last week of all charges relating to his role the running of East Health Center, a pill-mill clinic that operated in Garden City in 2011. United States District Court Judge William T. Moore, Jr. presided over AZMAT’s five-day jury trial. AZMAT was found guilty of conspiring to dispense oxycodone and other drugs without legitimate medical purpose, 49 counts of dispensing without legitimate medical purpose, and conspiracy to launder money. He will be sentenced at a future date and faces up to 20 years imprisonment on each count.
According to evidence presented at the trial, AZMAT worked at East Health Center from February 21 to March 18, 2011. During that time, AZMAT wrote prescriptions for 196 patients, 96% of whom received prescriptions for oxycodone, a powerful and highly addictive pain killer. Nearly two-thirds of the patients seen by AZMAT traveled long distances to receive their prescriptions, often coming from Kentucky, Ohio, and Florida. Patients typically paid $300 to be seen by AZMAT or one of the other doctors who worked at East Health Center following AZMAT’s departure on March 18, 2011. During the trial, patients testified that they were addicted to oxycodone and learned of the clinic through aggressive marketing techniques conducted by the clinic organizers at rival pill-mill clinics in Florida. AZMAT was paid $2,000 per day, typically in cash, at the end of each day he worked.
AZMAT had been indicted with five co-defendants. The following pleaded guilty to related offenses before trial:
Sean Michael Clark, age 34, Boca Raton, Florida (Conspiracy)
Adelaida M. Lizama, age 28, Boca Raton, Florida (Conspiracy)
Daniel John Wise, age 35, West Palm Beach, Florida (Conspiracy)
Candace Anne Carreras, age 26, Boca Raton, Florida (Misprision of Felony)
Shelly Lynn Morford, age 31, Fort Lauderdale, Florida (Misprision of Felony)None of these other five defendants, who either organized or worked for the clinic, had any medical education, training or experience aside from having been associated with earlier pill-mill operations in South Florida. The organizers decided to open the clinic in Garden City because of changes in Florida law which restricted non-medical doctors from owning pain clinics. None of the other defendants had any connection to the State of Georgia before opening the clinic.
In addition to the defendants named in the indictment, other targets of the investigation previously pleaded guilty to offenses related to the phony pain clinic operation and are awaiting sentencing. Adelard LeFrancois, III, 44, of Boca Raton, Florida and Francis J. Barbuscia, 37, of Plantation, Florida, entered guilty pleas on August 3, 2012. Each pleaded guilty to conspiring to knowingly and intentionally distribute and dispense, and cause to be distributed and dispensed, quantities of controlled substances, including oxycodone, not for a legitimate medical purpose. Konstantinos Afthinos, 32, of Florida pleaded guilty to misprision of felony on November 5, 2012. On November 7, 2012, Dr. Kenneth Gossett, age 52, of Rome, Georgia, pleaded guilty to conspiring to knowingly and intentionally dispense controlled substances not for a legitimate medical purpose. These defendants have not yet been sentenced. Nuvest LLC, a Florida corporation which financed the startup costs for East Health Center, pleaded guilty to maintaining a drug-involved premises. The corporation, which provided the funds used to launch and operate the clinic, admitted that the clinic was opened for the purpose of dispensing oxycodone, hydrocodone, and other drugs without legitimate medical purpose. As part of a plea agreement, the corporation forfeited the sum of $2,000,000, representing proceeds of unlawful activity laundered by the corporation.
United States Attorney Edward Tarver said, “The United States Attorneys’ Office, in partnership with federal, state, and local investigative agencies, has demonstrated time and again that illegitimate pain clinics such as East Health Center will be shut down, the participants prosecuted, and their money forfeited if they open in our neighborhoods. During the last two years, we have seen a number of pill-mills relocate their unlawful businesses to the State of Georgia. These pill-mills prey upon their so-called ‘patients’ by draining them of time and assets, fueling their drug addictions, and depriving them of legitimate medical treatment. This case sends a strong message to would-be clinic operators that they are not welcome in the Southern District of Georgia and will be prosecuted.”
Harry S. Sommers, Special Agent in Charge of the DEA’s Atlanta Field Division, stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care is not about the good of the community or an individual’s specific health needs; it is about greed and those involved in pill-mill activity are in fact drug dealers. This investigation was a success because of the cooperative spirit between all agencies involved.”
Veronica F. Hyman-Pillot, IRS Special Agent in Charge, added, “We are proud to work with our law enforcement partners at the local, county, state, and federal levels, to bring to justice individuals who use their knowledge and power to commit crimes for their own personal gain. IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
“The conviction of Dr. Najam Azmat is a good example of positive results that occur when state and federal agencies combine efforts in addressing the illegal distribution of narcotics,” said Scott Whitley, Special Agent in Charge of the GBI Southeastern Regional Drug Enforcement Office. “The GBI remains committed to addressing pharmaceutical diversion and other drug crimes in the State of Georgia.”
The investigation of East Health Center resulted from a joint investigation by the Drug Enforcement Administration (DEA), Georgia Bureau of Investigation (GBI), Chatham Savannah Counter Narcotics Team (CNT), the Internal Revenue Service (IRS), and the United States Marshals Service.
Assistant United States Attorneys Karl Knoche, Greg Gilluly, and Jeffrey Buerstatte prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Jury Finds Montgomery Man Guilty of Identity Theft and Bank FraudRead the Press Release
Montgomery, Alabama - Edmund Lee McCall, 39 years old of Montgomery, Alabama, was found guilty yesterday of conspiracy to commit bank fraud and wire fraud, and six counts of aggravated identity theft after a five day trial held before United States District Court Judge William H. Albritton. The same jury found United States Postal employee Vanessa Valease Gordon not guilty of the same charges.
McCall was the leader of a criminal conspiracy that ran from approximately 2004 to 2009 in Montgomery, Alabama, and elsewhere in the United States. McCall directed others to steal mail from the United States Postal Service that included credit cards and other personal information. McCall then sent runners to pick up the mail and bring it to his home in Montgomery where he used an online service to obtain basic biographical information on the mail theft victims.
Once he had this basic biographical information, McCall contacted his co-conspirators in Georgia who could access credit reports from Experian. The co-conspirators gathered additional biographical information such as the dates of birth, addresses, and social security numbers of the victims. Once a victim’s credit report was accessed and the information gathered, the co-conspirators sent the information back to McCall, who would then activate or reactivate credit cards in the name of the unsuspecting victims. McCall further used a number and voice masking phone service called “Spoofcard” to activate the credit cards.
McCall also had fake identifications made for himself and his co-conspirators in case they were required when using the victims’ credit cards. He and his co-conspirators then used the credit cards to purchase items and take cash advances for themselves. Altogether, there were more than one hundred and ten victims in this case, with losses to their financial institutions totaling $656,417.46.
McCall faces a statutory maximum sentence of 20 to 30 years imprisonment on the conspiracy to commit bank fraud and wire fraud count, and two years on each count of aggravated identity theft.
The case was investigated by the United States Postal Inspection Service, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Denise O. Simpson, Assistant United States Attorney Tommie B. Hardwick, and Assistant United States Attorney Donald Valeska. Assistance was also provided by the Internal Revenue Service in Montgomery, Alabama, and the Georgia and Alabama Bureaus of Investigation.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Juneau Man Sentenced to 60 Months in Drug ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Juneau resident was sentenced in Juneau to federal prison for drug conspiracy.
Bradley Arin Bethel, 26, of Juneau, Alaska, was sentenced January 22, 2014, by U.S. District Court Judge Timothy M. Burgess to 60 months in prison for his role in a drug trafficking conspiracy. Co-conspirator Joshua River Riley was sentenced for his role in the drug trafficking conspiracy on May 31, 2013 and received a 30 month prison sentence.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, Federal Bureau of Investigation, and the Juneau Police Department-Drug Metro Unit, as they investigated the importation of heroin into Juneau, Alaska.
Between October 2012, and continuing through November 2012, Bethel and his co-conspirator Riley conspired to import heroin from Portland, Oregon, to Juneau, Alaska. As part of the conspiracy, Riley contacted other co-conspirators in Oregon to supply heroin to him for subsequent distribution in Alaska. Riley and Bethel provided the money to purchase the heroin and Bethel recruited a drug courier and arranged for the courier’s flight to Oregon to pick up the heroin with Riley, who had traveled the previous day to Oregon. Bethel provided the courier with a cell phone and programmed the number for Riley in the cell phone for the courier to get in contact with Riley in Oregon. Riley and the courier met in Oregon and Riley provided 106.4 grams of heroin to the courier to transport back to Alaska via commercial air carrier for subsequent distribution.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense, the need to deter the defendant and others and to provide treatment in the most effective manner for the defendant as reasons for imposing the 60 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, Federal Bureau of Investigation, and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Riley and Bethel.Jamestown Woman Receives Prison Term for Wire FraudRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced that Angela Womack, age 51, of Jamestown, North Carolina, received a prison term on multiple counts of wire fraud and money laundering.
On January 17, 2014, United States District Judge Catherine C. Eagles sentenced Womack to 70 months in prison followed by three years of supervised release, and ordered her to pay restitution of $2,857,201.85 and a special assessment of $300.00. Womack will begin serving her sentence not later than March 7, 2014.
Womack worked as the Accounts Payable Manager of Carolina Steel Group, LLC, a business located in Guilford County. As Accounts Payable Manager, Womack prepared the company’s reports to provide that vendors would be paid.
While working at Carolina Steel Group, Womack opened non-profit accounts in the name of “IBOCF.” Unbeknownst to her employer, Womack created vendor checks payable to “International BOCF” even though this company was not a vendor to Carolina Steel Group, and also caused additional checks payable to “International BOCF” to be included on the company’s vendor reports. Womack then ensured that banks would honor the company’s checks (including the fraudulent ones) by uploading additional fraudulent reports to a financial clearinghouse website.
In an attempt to hide her scheme, Womack changed internal accounting entries so that the checks to “International BOCF” appeared to be written to legitimate vendors of Carolina Steel Group and altered internal accounting data using another employee’s access codes. Womack deposited fraudulently obtained checks into the “IBOCF” account she controlled, and used the funds from that account for her own benefit.
This case was investigated by agents of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Robert Hamilton.
Iyanbito, N.M., Woman Sentenced to Prison for Involuntary Manslaughter Conviction Involving the Death of a ChildRead the Press Release
ALBUQUERQUE – Sherie Rena Pete, 24, an enrolled member of the Navajo Nation who resides in Iyanbito, N.M., was sentenced this morning to a year and a day in federal prison followed by three years of supervised release for her involuntary manslaughter conviction.
Pete was arrested on May 14, 2013, on a criminal complaint charging her with involuntary manslaughter based on a single motor vehicle crash on May 5, 2013, in Iyanbito, which is located on the Navajo Indian Reservation that resulted in the death of a three-year old child. Two other individuals were injured as a result of the crash.
On Aug. 7, 2013, Pete pled guilty to involuntary manslaughter and admitted killing the victim while driving under the influence of alcohol. Pete admitted that she had been drinking alcohol before driving her vehicle off the roadway, overcorrecting, and flipping the vehicle one and a half times.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Indictment: 15 Pounds of Meth Seized from Driver in MerriamRead the Press Release
KANSAS CITY, KAN. - A man from Mexico was indicted in federal court here Wednesday on charges of possessing 15 pounds of methamphetamine, U.S. Attorney Barry Grissom said.
Guillermo Fernandez-Vera, 38, a citizen of Mexico, is charged with one count of possession with intent to distribute methamphetamine. Fernandez-Vera initially was charged in December in a criminal complaint filed in U.S. District Court in Kansas City, Kan. An affidavit filed in support of the complaint alleges that the investigation began when the Drug Enforcement Administration received information that a man driving a Toyota Tacoma with Mexican license plates could be found at the Drury Inn in Merriam with approximately 15 pounds of methamphetamine. When investigators stopped Fernandez-Vera’s car on Dec. 26, 2013, they found the methamphetamine in seven large rectangular packages hidden inside the seat-backs of the rear truck seats of the vehicle.
If convicted, he faces a penalty of not less than 10 years and not more than life in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
OTHER INDICTMENTS
Patrick C. Hains, 38, Wichita, Kan.; Wyatt Leedy, 35, Wichita, Kan.; and Jose Ramon Monelongo-Castrejon, 28, Wichita, Kan., are charged with conspiring to sell a pound of methamphetamine to an undercover investigator for $20,000.
The three men are charged with one count of conspiracy to distribute methamphetamine. In addition, Hains is charged with four counts of possessing a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 14, 2014, in Sedgwick County, Kan.
The men initially were charged in a criminal complaint filed Jan. 16 in U.S. District Court in Wichita. An affidavit in support of the complaint alleges investigators agreed to pay Hains $20,000 for a pound of methamphetamine. Hains was arrested Jan. 14, 2014, at Pelican Point apartments in Wichita when he attempted to make the sale.
Upon conviction, the conspiracy charge carries a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The firearms charges carry a mandatory penalty of five years -- consecutive to the sentence on the drug charge -- and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Faustino Soto, 41, who is being held in the Shawnee County Jail, is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred Jan. 13, 2014, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the charge of possession with intent to distribute methamphetamine, not less than five years and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the remaining count. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Topeka Police Department and the Kansas Bureau of Investigation Task Force investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Lioncio Borjas-Madrid, 25, Kansas City, Kan., and Luis Borjas-Madrid, 20, Kansas City, Kan., are charged in an indictment.
Lioncio Borjas-Madrid is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm by a person who is unlawfully in the United States and one count of unlawfully re-entering the United States after being deported.
Luis Borjas-Madrid is charged with one count of unlawful possession of a firearm by a person who is unlawfully in the United States and one count of unlawfully re-entering the United States after being deported.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute methamphetamine: A maximum penalty of 20 years and a fine up to $1 million.
Possession of a firearm by a person not lawfully in the United States: A maximum penalty of 10 years and a fine up to $250,000.
Unlawfully re-entering the United States after being deported: A maximum penalty of two years and a fine up to $250,000.ICE-DHS investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Independence Man Sentenced for Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man has been sentenced in federal court for an investment fraud scheme in which he stole $724,000 from 13 victims.
Richard J. Gumerman, 67, of Independence, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, Jan. 21, 2014, to three years and 10 months in federal prison without parole. The court also ordered Gumerman to pay $722,326 in restitution.
On July 26, 2013, Gumerman pleaded guilty to one count of mail fraud and one count of filing a false income tax return. Gumerman admitted that he stole at least $724,000 from investors from 2007 through December 2011. Gumerman used investor funds for personal living expenses, to pay other investors, to give money to Hooters’ restaurant waitresses and in other businesses he owned.
Gumerman did business as Gumerman Trading Company (GTC). Gumerman is not registered as a broker-dealer agent, investment adviser representative, or issuer agent in the state of Missouri, nor has he ever been. Despite not being registered to sell securities, Gumerman sold investments with the GTC Trading Fund.
Between January 1992 and December 2010, individuals and groups invested more than $948,000 in the GTC Trading Fund. Gumerman told investors that the GTC Trading Fund pooled investor funds to trade in the commodities futures market. Prior to opening the GTC Trading Fund, Gumerman had only traded commodities for one year in a personal account, and lost money in that personal trading account. Gumerman did not disclose this material fact to investors.
Gumerman mailed statements, sometimes monthly (with the December statements showing yearly totals), to investors. The statements listed a fictional ending balance, fictional “interest” earned and a fictional rate of return on investment. The account statements did not reflect actual balances in the accounts, actual interest earned, or an actual rate of return. Gumerman sent to investors Internal Revenue Service Forms 1099 which reflected that they had earned interest from their investment accounts, when in fact they had not earned interest. Investors used these forms to pay taxes on interest they had not earned.
Gumerman also admitted that, when he filed his tax return in April 2011, he stated that his taxable income was $42,534 in 2010. Gumerman failed to declare income he had obtained by fraud; his taxable income was actually $248,350. The total tax loss from Gumerman’s false tax returns was $96,635.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, U.S. Secret Service and the Lee’s Summit, Mo., Police Department.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Jose Israel Gutierrez-Garcia, age 28, a citizen of Mexico, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for a felony.
If convicted, Gutierrez-Garcia faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.St. Paul felon charged with possessing shotgun, ammunition
Michael John Walker, age 45, of St. Paul, was charged with one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition. Because he is a felon and three or more of his prior convictions were for violent crimes, Walker is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction on either or both of the charges.
This case is the result of an investigation by the Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Franklin County Man Sentenced on Drug and Money Laundering ChargesRead the Press Release
St. Louis, MO - CRAIG MOLITOR was sentenced to 84 months in prison on January 22 for distributing multi-ounce quantities of methamphetamine in the St. Louis metropolitan area.
According to statements presented to the court at the time of his plea, Craig Molitor began to obtain and distribute methamphetamine before 2010. Molitor obtained bulk quantities of actual methamphetamine, which he distributed to others. He was the main supplier for co-defendant Eric Wessler, who redistributed a large portion of the methamphetamine he received. At times, Wessler also made contact with different sources of supply for actual methamphetamine, which he met through co-defendant Kellen Lincoln. The sources for actual methamphetamine included Peter Coyle, Gerald Dement, Luz Angelica Carrillo and others. Additionally, Eric Wessler obtained ounces of actual methamphetamine from co-defendant Jason Knox.
As Craig Molitor began to distribute actual methamphetamine before 2010, he utilized various credit cards to fund his trips. The credit cards used were obtained by his grandmother. Funds from their joint accounts were used to pay the credit card balances, bills and to make periodic payments for various high-end vehicles utilized by Molitor. Molitor had his grandmother make deposits from cash derived from the distribution of actual methamphetamine, which was used to pay the various bills. The purpose was to conceal the true nature of the proceeds of actual methamphetamine distribution.
The following co-defendants have previously pled guilty to related charges:
- Eric Wessler, Lake Saint Louis, MO, scheduled for sentencing March 25, 2014
- Gerald Dement, Liberty, MO, sentenced in October to 120 months in prison
- Peter Coyle, Larexa, KS, sentenced in August to 120 months in prison
- Jason Knox, Foristell, MO, scheduled for sentencing February 6, 2014
- Kellen Lincoln, Kansas City, MO, sentenced in August to one year and one day in prison.
Luz Angelica Carrillo, is currently a fugitive and still faces trial. She is presumed innocent until and unless proven guilty.
This case was investigated by the Drug Enforcement Administration, Franklin County Narcotics Unit and IRS Criminal Investigation.
Four Martinsburg Residents Sentenced on Drug and Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Four Martinsburg residents involved in a crack cocaine distribution ring were recently sentenced to federal prison.
According to United States Attorney William J. Ihlenfeld, II, the following individuals were sentenced by U.S. District Court Judge Gina M. Groh for their roles in the trafficking of crack cocaine.
- ARTHUR LEE WALKER, age 28, was sentenced to 120 months in prison and six years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of the Rosemont Elementary School,” and “Felon in Possession of a Firearm.”
- TIMOTHY LOVE CRITES, age 36, was sentenced to 30 months in prison and six years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of the Burke Street Elementary School.”
- TREY CARDALE CAMPBELL, age 21, was sentenced to 15 months in prison and six years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of the Burke Street Elementary School.”
- ADRIAN DEVONNE GREEN, age 41, was sentenced to 5 years probation for “Aiding and Abetting in the Distribution of Crack Cocaine.”
The case was investigated by the Eastern Panhandle Drug & Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Task Force consists of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
According to Ihlenfeld, the following persons were also sentenced to prison by Judge Groh:
TYRIEK KEARNEY, age 33, of Martinsburg, was sentenced to 57 months in prison and three years of supervised release for “Felon in Possession of a Firearm.” This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department.
TRACEY LONG, age 48, of Martinsburg, West Virginia, was sentenced to 12 months in prison and three years of supervised release for “Aiding and Abetting the Distribution of Crack Cocaine.”
AUTUMN CULLEN, age 31, of Martinsburg, was sentenced to 4 months in prison and three years of supervised release for “Aiding and Abetting the Distribution of Heroin.”
The LONG and CULLEN cases were investigated by the Eastern Panhandle Drug & Violent Crime Task Force
The cases referenced herein were prosecuted by Assistant United States Attorneys Paul T. Camilletti, Stephen L. Vogrin, David J. Perri and Robert H. McWilliams, Jr.Four Individuals Sentenced This Week for <br /> Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
Four individuals were sentenced this week for their respective roles in trafficking the identities and corresponding identity documents of Puerto Rican U.S. citizens.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico made the announcement. The sentencings took place in front of U.S. District Judge Gustavo A. Gelpí in the District of Puerto Rico.
Domingo Pablo Gutierrez, 52, a Guatemalan national formerly of Albertville, Ala., was sentenced today to serve 30 months in prison to be followed by three years of supervised release. Gutierrez agreed to forfeit $40,000 in proceeds and to be removed from the United States after the completion of his sentence. On Aug. 22, 2013, Gutierrez pleaded guilty in front of U.S. Magistrate Judge Bruce J. McGiverin of the District of Puerto Rico to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain.
On Jan. 21, 2014, Moises Lara-Ceballos, 38, a Mexican national formerly of Seymour, Ind., was sentenced to serve 54 months in prison to be followed by three years of supervised release. Lara-Ceballos agreed to forfeit $422,793 in proceeds and to be removed from the United States after the completion of his sentence. On Sept. 20, 2013, Lara-Ceballos pleaded guilty in front of U.S. Magistrate Judge Marcos E. López to one count of conspiracy to commit identification fraud, one count of aggravated identity theft, and one count of illegal reentry after deportation.
Juan Quero-Mendez, 28, a Mexican national formerly of Lilburn, Ga., was also sentenced on Jan. 21, 2014, to serve 36 months in prison and three years of supervised release. The court ordered the defendant to forfeit $17,180 in proceeds and to be removed from the United States after the completion of his sentence. On Sept. 20, 2013, Quero-Mendez pleaded guilty in front of U.S. Magistrate Judge Camille L. Vélez-Rive of the District of Puerto Rico to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain.
Adonis Ramirez-Segura, 54, a Dominican national and a legal permanent resident of Columbus, Ohio, was sentenced on Jan. 21, 2014, to serve 22 months in prison to be followed by three years of supervised release. On Sept. 20, 2013, Ramirez-Segura pleaded guilty in front of U.S. Magistrate Judge Camille L. Vélez-Rive to one count of conspiracy to commit identification fraud and one count of Social Security fraud.
The four defendants were charged in a superseding indictment returned by a federal grand jury in Puerto Rico on March 22, 2012. To date, 53 individuals have been charged for their roles in the identity trafficking scheme. All 49 arrested defendants have pleaded guilty and 36 defendants have been sentenced.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that these identity brokers in the United States ordered the identity documents from the document suppliers in Savarona on behalf of their customers by making coded telephone calls. The conspirators are charged with using text messages, money transfer services, and express, priority or regular U.S. mail to complete their illicit transactions.
Court documents allege that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, DeKalb and Aurora, Ill.; Seymour, Columbus and Indianapolis, Ind.; Hartford, Conn.; Clewiston, Fla.; Lilburn and Norcross, Ga.; Salisbury, Md.; Columbus and Fairfield, Ohio; Dorchester, Lawrence, Salem and Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington and Hickory, N.C.; Hazelton and Philadelphia, Pa.; Houston; Abingdon and Albertville, Ala.; and Providence, R.I.
According to court documents, Quero-Mendez was an identity broker who operated in Lilburn, Ga.; Ramirez-Segura was an identity broker who operated in Columbus, Ohio; Lara-Ceballos was an identity broker who operated in Seymour, Ind.; and Gutierrez was an identity broker who operated in Albertville, Ala.
The charges are the result of Operation Island Express, an ongoing, nationally coordinated investigation led by the ICE Homeland Security Investigations’ (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report them to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft . Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html ; www.ssa.gov/pubs/10064.html ; www.fbi.gov/about-us/investigate/cyber/identity_theft ; and www.irs.gov/privacy/article/0,,id=186436,00.html .Four Chicago and Suburban Men Indicted in Alleged $1.4 Million Automobile Loan Fraud SchemeRead the Press Release
CHICAGO — Four Chicago and area defendants were indicted on federal bank fraud charges for allegedly engaging in a scheme to fraudulently obtain 46 automobile loans totaling approximately $1.4 million without ever intending that the borrowers would purchase the highend luxury cars that they claimed to be buying. As a result, various credit union lenders, Including Great Lakes Credit Union, Pentagon Federal Credit Union, and Sherwin-Williams Credit Union, incurred losses totaling at least $914,000, the charges allege.
One defendant, PRECIOUS W. HOUSE, 47, of Chicago, the president of Rolling Auto, Inc., a Plymouth, Ind., wholesale auto dealership that purported to be selling many of the autos, was arrested today. He pleaded not guilty to five counts of bank fraud and one count making false statements on a loan application, and is scheduled to have a detention hearing at 9:15 a.m. next Tuesday before Magistrate Judge Sidney I. Schenkier in U.S. District Court.
Another defendant, BRIAN K. HUGHES, 41, of Homewood, was arrested Jan. 9 and was ordered detained in federal custody. He was charged with four counts of bank fraud and one count of making false statements on a loan application.
Co-defendants MICHAEL O. TURNER, 44, of Richton Park, who was charged with one count of bank fraud, and KEITH B. FOSTER, 46, of Harvey, who was charged with one count each of bank fraud and making false statements on a loan application, were not arrested and will be arraigned next Tuesday in U.S. District Court.
The six-count indictment was returned by a federal grand jury yesterday and announced today. The indictment also seeks forfeiture of approximately $914,511 from all four defendants.
According to the indictment, between February and November 2013, the defendants fraudulently obtained at least 28 automobile loans of the 46 they fraudulently applied for, and obtained approximately $914,000 of $1.4 million they sought in loan proceeds. They made, and caused others to make, false representations in documents submitted to lenders, including loan applications, vehicle purchase orders, and verifications of employment, concerning the individuals’ income, employment, credit history, intent to use the loan proceeds to purchase automobiles, and the existence of contracts obligating the borrowers to purchase vehicles from House and Rolling Auto.
House, Hughes, and Turner allegedly recruited individuals seeking auto and personal loans and agreed to find loans for them in exchange for a fee of 20 to 30 percent of the loan. Then, they submitted false information in the borrowers’ loan applications, their income, employment, and credit history, as well as their intent to use the loan proceeds to purchase autos from Rolling Auto and other dealerships, and the existence of contracts obligating them to purchase luxury automobiles made by BMW, Chevrolet, Jaguar, Lexus, Mercedes-Benz, Nissan, and Porsche, the indictment alleges.
If the individual borrowers refused to cash checks obtained as part of the scheme, Hughes allegedly threatened them with civil lawsuits and criminal prosecutions. House allegedly deposited the loan proceeds into bank accounts he controlled in Illinois, California, and Georgia.
The indictment 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 government is being represented by Assistant U.S. Attorney Christopher R. McFadden.
Each count of bank fraud and making false statements on loan applications carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. The Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Inmate Turned Pastor Barry Minkow Pleads Guilty to Bilking CongregationRead the Press Release
United States Attorney Laura E. Duffy announced today that former convict, turned fraud investigator and pastor, Barry Minkow, admitted embezzling and defrauding the San Diego Community Bible Church (“SDCBC”) and its congregation out of more than $3 million. Minkow, who is currently in custody after his conviction on unrelated securities fraud charges, entered a guilty plea today in federal court in San Diego before the Honorable William Gallo, United States Magistrate Judge.
As part of his guilty plea, Minkow admitted to a litany of improper conduct, including opening unauthorized bank accounts on behalf of the SDCBC, forging signatures on SDCBC checks, using funds drawn on legitimate church accounts for his personal benefit, and charging unauthorized personal expenses on church credit cards. In addition, Minkow confessed to diverting SDCBC member donations for his own benefit and embezzling money intended as church donations. In all, Minkow admitted purloining – and concealing from the IRS – at least $3 million from SDCBC’s parishioners and lenders. As described in court documents, Minkow’s conduct continued for over a decade.
U.S. Attorney Laura E. Duffy remarked: “Barry Minkow is again convicted of fraud, this time for stealing money from the parishioners of San Diego Community Bible Church. With our law enforcement partners, we stand vigilant against those who cheat and steal without regard to the consequences wrought on their victims and their communities.” The U.S. Attorney observed that in the course of each fraudulent transaction, Minkow abused the position of trust bestowed upon him by SDCBC and its congregation.
Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation for the Los Angeles Field Office, Joel P. Garland stated, "Barry Minkow pled guilty today to embezzling over $3.0 million in money intended as church donations (while employed as a pastor) and concealing it all from the IRS. Barry Minkow has admitted not only his fraud, but his omission of over $890,000 in unreported income and over $250,000 in tax. Today's court action reaffirms IRS Criminal Investigation's commitment to investigating crimes involving tax and other financial crimes."
The fraud on SDCBC is just the latest fraud perpetrated by Minkow. In December 1988, Minkow was convicted of running a Ponzi scheme related to his ZZZZ Best carpet cleaning enterprise, a NASDAQ-traded entity. In that case, Minkow bilked banks and investors of millions of dollars, for which he was sentenced to 25 years in prison. While incarcerated, Minkow became involved in the Christian ministry, and upon his release in 1995 after having served approximately seven and a half years, he went to work at the Church at Rocky Peak in Chatsworth, California.
In 1997, Minkow became the pastor at SDCBC and soon thereafter founded the Fraud Discovery Institute (“FDI), a for-profit entity, which allegedly was aimed at the detection and prevention of fraudulent business practices. Through the work of FDI, Minkow soon garnered national media attention as a fraud detection expert, and his turn-around story was profiled on 60 Minutes in August 2006.
Yet even while working through FDI to detect fraud, Minkow was engaged in manipulating the stock prices of the companies he was investigating. Most prominently in 2009, Minkow released a report accusing major homebuilder Lennar of massive accounting irregularities and fraud. In the wake of this report, Lennar’s share price was sliced in half – from 11.57 a share to $6.55 a share. According to court records, unbeknownst to the public, Minkow shorted Lennar stock in advance of the issuance of his report. Based on these transactions, Minow was charged with conspiracy to commit securities fraud, and on March 30, 2009, he pled guilty in Miami to conspiring to manipulate Lennar’s share price, for which he was sentenced to serve five years in prison and to pay $583.5 million in restitution to Lennar. Minkow is currently serving that sentence at the Federal Medical Center in Lexington, Kentucky.
After pleading guilty today, Minkow faces a maximum of five years in prison, a fine of up to $250,000, and the payment of restitution to his victims. Sentencing is scheduled for April 7, 2014 before U.S. District Court Judge Michael Anello.
U.S. Attorney Laura E. Duffy praised the exacting effort and close cooperation of the Federal Bureau of Investigation and IRS Criminal Investigations -- the investigative agencies on this case.
DEFENDANT Case Number:Barry Minkow
14CR0153-MMA SUMMARY OF CHARGESConspiracy To Commit Mail Fraud, Wire Fraud, Bank Fraud and To Defraud the United States, in violation of Title 18, United States Code, Section 371 - Maximum penalties: Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYFederal Bureau of Investigation
IRS Criminal InvestigationsFormer Executive Director of Albuquerque-Based Halfway House Sentenced to Two Years in Federal Prison for Conviction on Embezzlement and Tax ChargesRead the Press Release
ALBUQUERQUE – Robin Cash, 56, of Albuquerque, N.M., was sentenced this morning to 24 months in federal prison followed by three years of supervised release for her conviction on embezzlement and tax charges. Cash also was ordered to pay $202,775 in restitution to the victim of her criminal conduct and $66,575 in tax loss for years 2008 to 2010 to be paid directly to the IRS. Cash’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Cash was charged in a seven-count indictment with four counts of theft concerning programs receiving federal funds, and three counts of willful failure to file a tax return. At the time of the offenses charged in the indictment, Cash was employed as the Executive Director of the La Pasada Halfway House (La Pasada), a residential center in Albuquerque that provides housing for defendants in the federal criminal justice system, including those awaiting trial and those who are re-entering society after serving a prison sentence. Court filings reflect that the Pretrial Services Office (PTS) of the U.S. District Court for the District of New Mexico contracted with the not-for-profit corporation that operates La Pasada to cover the costs of providing a custodial residential environment for federal defendants. PTS made monthly payments of approximately $60,000 to $80,000 to La Pasada to cover these costs, and La Pasada deposited the funds in its business bank account.
According to court filings, after Cash became Executive Director of La Pasada in April 2008, she was added as a signatory on the halfway house’s business bank account and received a debit card for the account. Between Sept. 2008 and Jan. 2011, Cash made unauthorized debits to La Pasada’s business bank account and used the proceeds for her own benefit and not for La Pasada’s benefit. The unauthorized debits included checks written for services that were never provided to La Pasada; ATM withdrawals at various Albuquerque locations, including casinos; and debit card charges at casinos in Las Vegas, Nev.
In April 2010, Cash opened a checking account and corresponding bank account in the name of La Pasada without authorization. Thereafter and until Feb. 2011, Cash regularly took funds that La Pasada residents were required to pay to defray their housing costs and deposited the funds into the unauthorized account. She then used the funds to pay for personal expenses that did not benefit La Pasada.
On May 15, 2013, Cash entered a guilty plea to all seven counts in the indictment without the benefit of a plea agreement. In entering her guilty plea, Cash admitted that, while acting as an agent of an organization that received at least $10,000 in funds on an annual basis under a federal program, she embezzled funds from the organization and converted those funds for her own use. Cash also admitted that she failed to file federal income returns for calendar years 2008, 2009 and 2010.
The case was investigated by IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Fred J. Federici.Former Bank Supervisor Charged with Embezzling $316,324.00Read the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that today in U.S. District Court in Harrisburg, a criminal information has been filed against Shelly Ann Kocher, 42, Lehighton, Pennsylvania, for embezzling approximately $316,324 from customer accounts while she worked as a customer service supervisor at Jim Thorpe National Bank in Jim Thorpe, Pennsylvania. A plea agreement was also filed indicating that Kocher intends to plead guilty to the charge when she appears in federal court for her arraignment.
According to U.S. Attorney Peter J. Smith, Kocher was employed by Jim Thorpe National Bank from 1999 until May 2013. Kocher allegedly embezzled the funds by making unauthorized withdrawals from customers' CD and savings accounts between April 2010 and April 2013. Upon discovery of the activity, the bank reimbursed the victims for their losses.
If convicted, Kocher faces up to 30 years' imprisonment, $1 million in fines, and mandatory restitution.
The case was investigated by the Scranton office of the FBI and is assigned to Senior Litigation Counsel Bruce Brandler.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Baltimore Police Officer Pleads Guilty to Operating A Prostitution BusinessRead the Press Release
Baltimore, Maryland – Former Baltimore Police officer Lamin Manneh, age 32, of Baltimore, pleaded guilty today to traveling across state lines and using the telephone and internet to operate a prostitution business.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.
According to the indictment and information presented at today’s plea hearing, between February 2013 and May 9, 2013, Manneh operated a prostitution business that serviced over 300 customers. The business provided prostitution services to customers who came to an agreed location (“in-call”), as well as at locations specified by the customers (“out-call”). Manneh’s 19 year old wife and another 19 year old woman worked as prostitutes for Manneh. The government alleges that as part of his business, Manneh drafted, paid for, and posted more than 50 prostitution advertisements for the two women on internet websites; rented an apartment and hotel rooms to facilitate “in-call” commercial sex acts with clients who responded to the prostitution advertisements and drove the women to “out-call” commercial sex acts at residences and hotel rooms.
According to the information presented at the plea hearing, Manneh provided the women with cell phones and taught them to use “voice over internet” phone services to communicate with prospective clients and with one another. Manneh waited outside the commercial sex act locations and sent the women electronic messages when they were with clients; and that Manneh carried his police-issued firearm and agreed to forcibly interrupt a commercial sex interaction if the client was aggressive or non-compliant; and that he supplied both women with synthetic marijuana. Manneh collected all of his wife’s prostitution earnings and a percentage of the other woman’s prostitution earnings.
Manneh faces a maximum sentence of five years in prison, followed by up to lifetime of supervised release, for operating a prostitution business. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 8, 2014 at 9:30 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police and Anne Arundel County State’s Attorney’s Office for their work in the investigation and recognized the Baltimore Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.Florida Man Convicted of Tax FraudRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced today that on Jan. 21, 2014, a federal jury in Palm Beach, Fla., convicted Paul F. Wrubleski, a resident of Weston, Fla., of one count of corruptly impeding the due administration of the internal revenue laws and four counts of filing false claims for tax refunds. Wrubleski was remanded into custody yesterday.
According to court documents and the evidence presented at trial, Wrubleski had a decade-long pattern of filing false documents with the IRS. Wrubleski impeded the IRS by filing false W-4 forms that claimed he was exempt from income tax withholding and by filing false tax returns, including four tax returns that requested over $1.5 million in federal refunds. Wrubleski also sent obstructive letters, tax returns and other false documents to the IRS between 1999 and 2010. In addition, the indictment alleged and the evidence proved that Wrubleski filed for bankruptcy in 2006 in order to impede IRS collection actions.
Sentencing is scheduled for April 3, 2014. Wrubleski faces a statutory maximum potential sentence of 23 years in prison and faces a fine of up to $1.2 million.
Assistant Attorney General Kathryn Keneally of the Tax Division commended the efforts of special agents of IRS – Criminal Investigation who investigated the case, as well as Tax Division Trial Attorneys Charles Edgar Jr. and Jed Silversmith, who prosecuted the case, with local assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Five Sentenced in Kidnapping CaseRead the Press Release
Jackson, Miss. – Five defendants were sentenced in federal court today by U.S. District Judge William H. Barbour, Jr. for their involvement in the kidnapping of Jashayla Hopson from East Kemper Elementary School on April 30, 2013, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Wanda Faye Dancy, of DeKalb, Shamarius S. Ruffin, of Porterville, and Shaquayla S. Johnigan, of Porterville, were each sentenced to 12 months and one day in federal prison followed by three years of supervised release for conspiracy to kidnap. They were also ordered to pay restitution in the amount of $1400 each.
Joyce M. Johnigan and James Shurman Johnigan both of Porterville, Mississippi, were sentenced to 8 months in federal prison followed by one year of supervised release with home confinement. They had previously pled guilty to a criminal information charging them with misprision of a felony. They were also ordered to pay restitution in the amount of $1400 each.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Criminal Division Chief John M. Dowdy, Jr.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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Five Co-Conspirators Plead Guilty to Federal Drug Trafficking ChargesRead the Press Release
POCATELLO – Five members of an Idaho Falls area drug trafficking organization pleaded guilty today in United States District Court in Pocatello, U.S. Attorney Wendy J. Olson announced.
Federico Cervera, 56, and Antonio Tamez, 39, both of Blackfoot, Idaho, and Imelda Ramos, 36, of Pocatello, pleaded guilty to possession with intent to distribute in excess of 50 grams of methamphetamine. The charge is punishable by a minimum term of ten years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
Jesse J. Short, 33, of Pocatello, pleaded guilty to possession with intent to distribute in excess of five grams of methamphetamine. The charge is punishable by a minimum term of five years up to 40 years in prison, a maximum fine of $5 million, and at least four years of supervised release.
Dominga Tamez, 67, of Blackfoot, pleaded guilty to possession with intent to distribute methamphetamine. The charge is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
According to the plea agreements, on various dates in May 2013, the five defendants, distributed various quantities of methamphetamine in Pocatello and Heyburn, Idaho.
The defendants are scheduled to be sentenced on April 15, 2014, before U.S. District Edward J. Lodge at the federal courthouse in Pocatello.
The charges are the result of an investigation by the Idaho State Police, assisted by the Pocatello Police Department, Blackfoot Police Department, Bannock County Sheriff’s Office, Bingham County Sheriff’s Office, Power County Sheriff’s Office, the Mini-Cassia Drug Task Force, Drug Enforcement Administration (DEA), and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).