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Wednesday 22 January 2014
Five Appear in Federal Court on Drug Trafficking ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Five men from Wheeling, West Virginia appeared in federal court on charges of drug trafficking.
United States Attorney William J. Ihlenfeld, II, announced that the following individuals appeared before Judge Frederick P. Stamp, Jr. for plea and sentencing hearings:
DEON YOUNG, age 27, was sentenced to 108 months in prison and three years of supervised release and CARLOS MOORE, age 27, was sentenced to 42 months in prison and three years of supervised release for “Conspiracy to Distribute Cocaine Base and Heroin” from November of 2012 to January of 2013. The Court also ordered the forfeiture of $2,260 from YOUNG and $1,541 from MOORE. YOUNG and MOORE were remanded to the custody of the United States Marshal pending designation to a Federal institution.
DEVON BERTRAM, age 24, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Wheeling Central Catholic High School.” BERTRAM, who is in custody pending sentencing, faces up to 40 years in prison.
GARY MOE WADE, age 39, entered a plea of guilty to “Aiding and Abetting the Distribution of Crack Cocaine within 1,000 Feet of Wheeling Central Catholic High School.” WADE faces up to 40 years in prison.
Finally, in a matter before U.S. Magistrate Judge James E. Seibert, JEROME MELVIN ROSS, age 22, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Riverview Towers.” ROSS faces up to 40 years in prison.
These cases were prosecuted by U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Randolph J. Bernard and investigated by the Ohio Valley Drug Task Force, which is comprised of officers and agents from the West Virginia State Police-BCI, the Wheeling Police Department, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on January 22, 2014:
Shawn C. Norman, 54, of Fort Wayne, Indiana, is charged in a three count Indictment with distribution of heroin on or about October 4, 2013, and November 20, 2013, and possession with intent to distribute heroin on or about December 20, 2013. The Indictment also alleges forfeiture of United States currency. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, FBI Safe Streets Task Force and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Sheila Robinson, 49, of Fort Wayne, Indiana, is charged in a twenty count Superseding
Indictment with wire fraud and making a false claim on or about January 18, 2012, January 26,
2012, January 31, 2012, February 13, 2012, February 15, 2012, February 29, 2012, April 23,
2012, and August 6, 2012; mail fraud on or about March 2, 2012, and aggravated identity theft on or about February 13, 2012, February 15, 2012, and August 6, 2012. These charges were filed as the result of an investigation by the Internal Revenue Service and United States Postal Inspection Service. This case has been assigned to and will be prosecuted by Assistant United States Attorneys Lovita Morris King and Deborah M. Leonard.
Deantre L. Rogers, 35, of Fort Wayne, Indiana, is charged in a three count Indictment with distribution of cocaine on or about October 1, 2013, distribution of cocaine base, “crack” on or about November 22, 2013, and possession with intent to distribute cocaine on or about December 20, 2013. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, FBI Safe Streets Task Force and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Christopher R. Smith, 30, of Fort Wayne, Indiana, is charged in a single count
Indictment with being a felon in possession of a firearm on or about December 30, 2013. The
Indictment also alleges forfeiture of a firearm, ammunition and a magazine. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Etters Couple Sentenced on Federal Tax Evasion and Bribery ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mayra Garces, age 47 and Ivan Garces, age 45, Etters, Pennsylvania, were sentenced yesterday in U.S. District Court in Harrisburg on charges involving tax evasion and bribery.
U.S. District Court Judge John E. Jones, III sentenced Ivan Garces to 18 months’ imprisonment, a $7,700 fine and a term of supervised release of one year. The Court sentenced Mayra Garces to 12 months plus one day of imprisonment, a $7,700 fine and a term of supervised release of one year.
According to United States Attorney Peter J. Smith, on September 27, 2011, the Garces offered to pay a Revenue Agent, who was conducting an audit, $50,000 if the agent would reduce their tax liability and not expand the audit to include the years before and after the current audit. On November 10, 2011, during an undercover operation, the couple paid the Revenue Agent $50,000 in cash.
A review of the couples’ business records established that the couple intentionally failed to report $1,091,267 in income for the years 2008, 2009 and 2010.
The Garces pleaded guilty to tax evasion and bribery of a public official in May 2013. The couple has paid the IRS a total of $843,866.47 in penalties, back taxes and interest. The $50,000 used for the bribe was relinquished to the United States Treasury.
“Tax evasion is not a victimless crime,” said IRS Special Agent in Charge Akeia Conner. “We all pay when others swindle the government. This sentence should send a clear message: schemes to evade the payment of taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time. Honest taxpayers have been reassured today that no one is above the law--especially when the integrity of tax administration is at stake.”
Robert Geary, TIGTA Special Agent in Charge, stated “today’s sentence also sends a clear and convincing message that those individuals who use bribery as a criminal vehicle to escape their just federal tax obligation face substantial criminal and financial penalties. TIGTA stands in close partnership with the U.S Attorney's Office to identify, thoroughly investigate, and prosecute such criminal conduct.”
This case was investigated by the Treasury Inspector General for Tax Administration (TIGTA) and the Internal Revenue Service-Criminal Investigations. Prosecution was handled by Assistant United States Attorney Daryl F. Bloom.
****Eastern Idaho Man Pleads Guilty to Selling Methamphetamine and GunsRead the Press Release
POCATELLO — Harold Thomas Barker, 59, of Rexburg, Idaho, pleaded guilty today to unlawfully transferring firearms and distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Barker was indicted by a federal grand jury in Pocatello on May 29, 2013.
According to the plea agreement, between May and July 2011, Barker sold eight firearms, assorted ammunition, and methamphetamine to an individual Barker knew was prohibited from possessing firearms. One of the firearms was a sawed-off shotgun. Barker agreed to forfeit $3,040, which constitute proceeds of his offenses.
The charge of unlawful transfer of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of distribution of methamphetamine is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Sentencing is set for April 14, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison County Sheriff’s Office, with the assistance of the Department of Homeland Security.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Dickinson Man Pleads Guilty to Medina Bank RobberyRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Jan. 21, 2014, Satrone Rashard Boyd, 38, of Dickinson, N.D., pleaded guilty to one count of bank robbery before U.S. District Judge Ralph R. Erickson.
On Oct. 25, 2013, at approximately 9:30 a.m., Boyd and another individual wearing clown masks, forcefully robbed Northland Financial in Medina, N.D. One of the individuals possessed a handgun and brandished it as they entered the bank. After quickly approaching the teller, the two individuals demanded money from a bank employee after which the two men fled the scene. Law enforcement received numerous leads regarding the suspects from several citizens near Medina and Jamestown, N.D. Both men were later apprehended. Boyd was apprehended in Fargo, N.D. His codefendant in the case, Rendell Charles Hardy, was apprehended in Dickinson, N.D.
Judge Erickson set sentencing for April 14, 2014, at 1:30 p.m. U.S. District Court.
The case was investigated by the Federal Bureau of Investigation, along with several state and local law enforcement agencies, including the Stutsman County Sheriff’s Office, Dickinson Police Department, Fargo Police Department and North Dakota Bureau of Criminal Investigation.
Assistant U.S. Attorney Keith Reisenauer is prosecuting the case.
Dallas Psychologist Remanded into Federal Custody After Pleading Guilty to Health Care Fraud OffenseRead the Press Release
Treated Disabled Federal Workers
DALLAS — Psychologist Michael Ellis Wolf, 62, of Dallas, was remanded into federal custody today after pleading guilty, before U.S. District Judge Jorge A. Solis, to an Information charging one count of health care fraud. Wolf faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and restitution, and he agrees to surrender his license to practice psychology. Sentencing is set for May 7, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Wolf provided psychotherapy to individuals, including civilian employees of the federal government who sustained on-the-job injuries or employment-related occupational illness. The Federal Employees Compensation Act (FECA) provides disability compensation benefits and payment for medical and rehabilitation care for federal civilian employees who sustain on-the-job injuries or employment-related occupational illness. The FECA is a health care benefit program administered by the U.S. Department of Labor (DOL), Office of Workers Compensation Program.
As part of his scheme to defraud a health care benefit program, Wolf filed claims for payment of services that were never rendered and for services that were rendered in far less quantities than billed.
For example, through his billings, Wolf claimed he provided therapy for one particular injured federal employee, from January 2008 through mid-2013, seven days a week, when he in truth and fact he would only provide it once or twice a week, for 60 minutes. He also falsely claimed through billings that he provided therapy to this individual on holidays and on Sundays, and that on multiple days, he provided eight hours of therapy, per day, for this patient. Wolf also falsely claimed, through billings, that he provided four-eight hours of explanations to this patient’s family and employers multiple times a week, when in fact, he only offered occasional phone or in-office consultation with the family.
During this time period, the total amount billed by Wolf, on behalf of this patient, was more than $1.9 million. Of the amount billed, Wolf was paid more than $1 million.
The investigation is being conducted by DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney P. J. Meitl is in charge of the prosecution.
Columbia Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Devereaux L. Davis, a 36-year old Columbia, Illinois, man was sentenced on January 22, 2014, in federal district court, in East St. Louis, Illinois, on one count of to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis was sentenced to 27 months in federal prison, to be followed by five years of supervised release, and ordered to pay a $100 special assessment.
The violation occurred in 2009, when Davis moved from Illinois to Missouri. He signed an Illinois Sex Offender Registration Act Notification Form on August 14, 2008, acknowledging his requirement to either update his sex offender registration in Illinois to reflect his change of address, or register as a sex offender in Missouri. Davis had been previously convicted of Aggravated Criminal Sexual Abuse on September 15, 2005, in Monroe County, Illinois. Because of his failure to register in Missouri and his failure to update his registration in Illinois, Davis was charged in federal court with Failure to Register as a Sex Offender pursuant to the Sex Offender Registration and Notification Act.
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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Cincinnati Man Indicted for Producing Child Porn Involving A Child He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has charged Caleb Zachary Storey, 30, Cincinnati, with one count each of production of child pornography and possession of child pornography, alleging that he took sexually explicit photographs of a child he regularly babysat.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, FBI Cincinnati, announced the indictment returned today.
FBI agents and members of the FBI Child Exploitation Task Force began investigating Storey when an image traceable to an address where he babysat was recovered during a child pornography investigation in Georgia. The image was of a three-and-a-half year old prepubescent male who was naked from the waist down and had an adult male’s hand in the picture. Agents obtained a search warrant for Storey’s apartment and conducted preliminary forensic exams of some items of computer equipment where they found images of child erotica and child pornography.
The FBI arrested Storey on January 8 based on a criminal complaint. He has been in custody since his arrest.
The indictment charges Storey with one count of production of child pornography, punishable by at least 15 and up to 30 years in prison, and one count of possession of child pornography, punishable by up to ten years in prison. Senior U.S. District Judge Sandra S. Beckwith will schedule a trial for Storey.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The FBI Child Exploitation Task Force includes the Regional Electronics and Computer Investigations (RECI) unit from Hamilton County Sheriff Jim Neil’s Office and the Cincinnati Police Department.
U.S. Attorney Stewart commended the FBI agents and task force officers who are investigating the case, as well as Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Capital District Men Appear in Federal Court on Charges Relating to the Development of Lethal Radiation DeviceRead the Press Release
ALBANY, NEW YORK – Two men who were arraigned in June on a scheme to create a mobile, remotely operated, radiation emitting device appeared in U.S. District Court in Albany in separate proceedings today.
Eric J. Feight pleads guilty to Providing Material Support to Terrorists
Eric J. Feight, 55, of Hudson, New York, appeared before U. S. District Court Chief Judge Gary L. Sharpe this morning and entered a guilty plea to a felony Information charging him with Providing Material Support to Terrorists in violation of 18 U. S. C. Section 2339 A(a). Judge Sharpe scheduled sentencing for Feight on May 22, 2014 in U. S. District Court. Feight is being detained pending his sentencing. Feight faces a maximum term of imprisonment of 15 years and a fine of $250,000 and a term of supervised release, upon release, of up to life.
Glendon Scott Crawford is arraigned on new Indictment
In a separate proceeding, co-defendant Glendon Scott Crawford, 49, of Galway, New York, was arraigned before Magistrate Judge Christian F. Hummel on an Indictment, filed late last week, containing three charges relating to the development of and plans to use a remotely-operated radiation-emitting device to kill humans. In his appearance, Crawford entered not guilty pleas to the Indictment charging him with: (Count 1) Attempting to produce and use a radiological dispersal device, in violation of Title 18, United States Code, Section 2332h(a) and (c)(1); (Count2) Conspiracy to use a weapon of mass destruction, in violation of Title 18, United States Code, Section 2332a(a)(2)(C); and (Count 3) Distributing information relating to weapons of mass destruction, in violation of Title 18, United States Code, Section 842(p)(2)(A). The penalties for these offenses are, respectively: (Count 1) a maximum of life in prison, with a mandatory minimum of not less than 25 years and a $2,000,000 fine; (Count2) a maximum of life in prison and a $250,000 fine; (Count3) a maximum of 20 years in prison and a $250,000 fine. He was ordered detained pending further disposition of the charges. The charges are merely accusations and Crawford is presumed innocent until and unless proven guilty.
These cases resulted from a long term investigation conducted by the Albany FBI Joint Terrorism Task Force, which includes the Department of Homeland Security, New York State Police, Albany Police Department, Troy Police Department, and New York City Police Department. The United States Attorney’s Office also acknowledged the assistance of the Criminal Division and National Security Division of the United States Department of Justice. The case is being prosecuted by Assistant United States Attorneys Stephen C. Green and Richard Belliss, and Counterterrorism Section Trial Attorney Joseph Kaster.
Further questions or inquiries may be directed to Executive Assistant United States Attorney John G. Duncan at 315-448-0672.
Bay-Area Real Estate Agent Arrested for Orchestrating Fraudulent Short Sale in Stanislaus CountyRead the Press Release
FRESNO, Calif. — Minerva Sanchez, 47, was arrested at her home in Fremont today for conspiring to commit bank fraud in connection with a fraudulent short-sale scheme, United States Attorney Benjamin B. Wagner announced.
The indictment, unsealed today, was returned by a federal grand jury in Fresno on December 19, 2013. Sanchez was arraigned today in San Jose federal district court and pleaded not guilty to the charges. She is scheduled to appear in Fresno before U.S. Magistrate Judge Barbara A. McAuliffe on February 10, 2014.
According to court documents, in March 2010, Sanchez, a licensed real estate agent, represented Agustin Simon, 52, of Gustine, in the sale of his home in Patterson. Sanchez recommended that he undertake a short-sale of his home using her son as a straw buyer. Simon submitted to Tri Counties Bank and Freddie Mac fraudulent short-sale applications that caused them to approve the charge-off of funds for the short-sale of his home. Sanchez and Simon falsely claimed that the transaction was “arm’s length,” and the made false statements about Simon’s assets and ownership of other real estate. Sanchez wrote a “hardship letter” for Simon to include with the short-sale application that misrepresented his inability to make his monthly mortgage payments. They made other false statements in order to conceal their agreement that Simon would provide Sanchez’s son with the money for the short-sale but ultimately would regain ownership of his home following the short-sale.
With Sanchez’s knowledge, Simon provided her son with $355,000, the purchase price of the home. In addition to her commission as the listing agent, Sanchez received 75 percent of the commission paid to her son’s real estate agent. As a result of her conduct, Tri Counties Bank suffered a loss of $247,000 and Freddie Mac lost $107,348.
On June 10, 2013, Simon, pleaded guilty to conspiring to commit bank fraud in connection with this scheme. He is scheduled to be sentenced on October 6, 2014, before U.S. District Judge Lawrence J. O’Neill.
“The alleged actions of Minerva Sanchez were harmful to Freddie Mac and the taxpayers,” said Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency (FHFA). “Every fraud causes harm or loss and we will work with our law enforcement partners to stop any and all criminal activity.”
This case is the product of an investigation by the FHFA Office of Inspector General and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
If convicted, Sanchez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Baltimore Felon Exiled to 20 Years in Prison for Gun and Drug CrimesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antoin Lamont Garrison, age 46, of Baltimore, Maryland, today to 20 years in prison followed by three years of supervised release for illegal possession of guns and ammunition by a convicted felon, possession of cocaine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Judge Blake enhanced Garrison’s sentence upon finding that he is an armed career criminal based on three previous convictions for drugs and violent crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; and Maryland Attorney General Douglas F. Gansler.
According to testimony presented at Garrison’s five day trial, in May 2011, Baltimore Police officers and FBI agents received information from a source that Garrison had offered to sell the source guns and drugs. Witnesses testified that after additional investigation, law enforcement arranged for the source to purchase ammunition, firearms and cocaine from Garrison. On May 20, 2011, Garrison met with the source and sold the source 200 rounds of ammunition. On May 24, 2011, the source contacted Garrison. The two agreed to meet and Garrison provided the source with a police issued bullet proof vest. Later that same day, Garrison and the source met again at a residence on Bartlett Avenue. Garrison brought a black bag out of the residence and showed the source two handguns that were in the bag. Garrison explained that those guns were for protection but that he had other guns he could sell to the source. The source paid Garrison $3,750 in FBI funds to purchase three ounces of cocaine. Garrison told the source he would contact the source to arrange delivery of the cocaine. According to trial testimony, Garrison met with the source the next day and provided 70.7 grams of cocaine.
On May 27, 2011, a search warrant was executed at the Bartlett Avenue residence. Law enforcement agents seized a .22 LR rifle; a 30-30 caliber rifle; 9mm handgun loaded with 10 rounds of ammunition; a .22 caliber revolver and various rounds of ammunition.
Garrison was prohibited from possessing firearms or ammunition due to his previous felony convictions.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore City State’s Attorney=s Office and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Assistant United States Attorney Benjamin M. Block, who prosecuted the case.
Bakken Drug Case Defendant Robert Farrell Armstrong, Aka Dr. Bob Pleads Guilty in Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 22, 2014, before U.S. District Judge Susan Watters, ROBERT FARRELL ARMSTRONG, who used the nickname "DR. BOB", 49, of Moses Lake, Washington, pleaded guilty to Possession With the Intent to Distribute Methamphetamine. Armstrong's plea could result in a term of life in prison, and his sentence can be no less than 10 years. There is no parole in the federal system.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Joe Thaggard informed that in early 2013, the Montana Division of Criminal Investigation (MDCI), Sidney, Montana Police Department, and the Drug Enforcement Administration (DEA) began to investigate a drug trafficking organization that was distributing methamphetamine in the Sidney, Montana area. Ultimately, the investigation revealed that Armstrong and his associates, including co-conspirator Kera Evans, were transporting methamphetamine from the State of Washington to Montana, where it was then distributed in an area that stretched from southern Montana to the Bakken oil region in northeastern Montana.
On February 7, 2013, Armstrong distributed approximately 1.8 grams of actual methamphetamine to a confidential informant during the course of an undercover operation monitored by law enforcement agents and that took place in Richland County, Montana, and then three weeks later, on February 20, 2013, distributed an additional five grams or more of actual methamphetamine during a separate undercover transaction. This buy also took place in Richland County.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
On March 15, 2013, Evans disclosed to the MDCI that a person named "Jennifer" and Armstrong were in a vehicle located in the vicinity of Three Forks, Montana and in possession of approximately six ounces of methamphetamine. Evans identified "Jennifer" as Armstrong's driver. The MDCI requested that the Montana Highway Patrol stop the vehicle, at which time Armstrong and a woman identified as Jennie Britt were taken into custody. Approximately six ounces of methamphetamine and a pistol were recovered from the vehicle's console.
Attorney Pleads Guilty to Laundering Client Fraud MoniesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas attorney pleaded guilty today to assisting a client launder approximately $2.25 million that had been obtained fraudulently in an online investment scheme, in which over 1,400 persons lost $16 million, announced the United States Attorney’s Office for the District of Nevada.
R. Christopher Reade, 43, of North Las Vegas, pleaded guilty to one count of accessory after the fact to laundering of monetary instruments. Reade faces up to 10 years in prison and a $1,125,000 fine, and is scheduled to be sentenced on May 2, 2014.
Reade was a licensed attorney in Las Vegas and practiced business law. His client, Rick Young, owned and operated a Nevada corporation known as Global One Group, LLC, a web-based company which purported to train others how to trade in the foreign currency exchange market, or FOREX. Young advertised that he was an experienced and highly successful trader in the FOREX market, who for a fee would teach persons his winning trading strategies and techniques. Young solicited persons to become members of Global One which would allow them access to his web-based live training seminars. Young claimed that he had developed an automated trading program that traded according to his strategies simply by “flipping a switch.” Young enticed members into providing money for “loans” to Global One and told them that they would be able to earn high yield returns on their investments. In actuality, the automated trading program did not exist in the form that Young represented and Young was running an elaborate Ponzi scheme in which proceeds from the member loans were diverted to Young his own use. From about 2006 to 2008, Young derived approximately $16 million in proceeds from the scheme.
Beginning in February 2007, Reade represented Young and Global One in connection with business litigation and transactions. In March 2007, Young intended to use Global One loan monies to purchase a FOREX brokerage company named Trend. To disguise the source and ownership of the illegal proceeds, Young authorized Reade to create and control a holding corporation called Way FX Corp. In April 2007, Young transferred approximately $2.25 million from Global One accounts to the Way FX bank account controlled by Reade, and Reade signed an agreement to purchase Trend. On August 21, 2007, Reade received $75,000 from Global One for his services related to Way FX and the purchase of Trend.
From about May 2007 to August 2007, in connection with an investigation by the National Futures Association about the ownership and funding of Trend, Reade falsely told investigators that he was unaware who owned Global One or how Global One raised money, and that the funds used to purchase Trend came from his personal contributions and not from Global One. Reade knew that his statements were false and that Young had committed the offense of money laundering. Reade also knew that he had assisted Young in order to hinder or prevent the investigation of Young in connection with the money laundering.
In March 2011, Young was convicted by a federal jury in the District of Nevada of conspiracy, fraud and money laundering charges. In December 2011, he was sentenced to 25 years in prison and ordered to pay $13.3 million in restitution.
The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by First Assistant United States Attorney Steven W. Myhre and Assistant United States Attorney James E. Keller.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Tuesday 21 January 2014
“Pill Shoppers" and Meth Cooks Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Members of a ring of methamphetamine manufacturers were sentenced in federal court on Friday, January 17, 2014. The group, most of whom are from the Mt. Vernon area, was engaged in activity characterized as “pill shopping,” that is, the practice of buying pseudoephedrine pills for use in the methamphetamine manufacturing process. Court documents establish that members of the group were traveling from Alabama to Georgia, Florida and Texas to buy large quantities of pseudoephedrine and then returned with it to Mobile County, where the manufacturing took place. The “pill shoppers” received cash or small quantities of finished methamphetamine in exchange for their acquisition of pseudoephedrine. Pseudoephedrine records established that more than 3.2 kilograms of pseudoephedrine was acquired by members of the conspiracy from 2009 through 2012.
Ray Anthony Lofton, 35, of Mt. Vernon, was characterized by District Court Judge Kristi K. Dubose as the ring leader just before she imposed a sentence of 120 months imprisonment in his case. Lofton was also ordered to serve five years of supervised release following the completion of his custody sentence. Jeremy Scott Lofton, 34, of Mt. Vernon, who was identified as one of the defendants actually manufacturing the pseudoephedrine into methamphetamine, was ordered to serve 72 months imprisonment, to be followed by a term of supervised release of five years. Michael Thomas Lofton, 27, of Mt. Vernon, one of the so-called “pill shoppers” and an occasional meth cook, was sentenced to 48 months imprisonment, followed by five years of supervised released. Dustin Lee Sullivan, another of the “pill shoppers,” was sentenced to time served, followed by five years of supervised release, which included 10 months in a half-way house. All the defendants were ordered to undergo drug testing and treatment, and each was required to pay a mandatory special assessment of $200. Each defendant entered guilty pleas to charges of conspiracy to manufacture methamphetamine and conspiracy to possess a List I chemical (pseudoephedrine) with knowledge or reasonable cause to believe it would be used to manufacture a controlled substance.
The case was investigated by the Mobile County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
United States Forfeits $304,050 and A G-35 Infiniti as Drug ProceedsRead the Press Release
Fort Myers, Florida, – U.S. District Judge John E. Steele last week forfeited $304,050.00 in United States Currency and a G-35 Infiniti to the United States, as traceable proceeds of illegal drug activity.
According to court documents, the $304,050 was found hidden within the tires of a salvaged G-35 Infiniti that was being transported on Interstate 75. The currency, mostly $20 bills, was bundled inside the tires, in heat-sealed packaging. The Infiniti, which was also equipped with a hidden after-market GPS transponder, allowing it to be remotely monitored, had been loaded onto a car-hauler in New Jersey. The car was scheduled to be delivered to an address in Miami, which Homeland Security Investigations special agents later determined to be non-existent.
The United States commenced a civil forfeiture action against the property, alleging that it was the proceeds of drug trafficking. An individual (Johnny A. Melo) came forward to contest the forfeiture, asserting that the seized money was the proceeds of his Miami-based business, “Images Windows and Doors,” not drug proceeds. Following his conviction in the Southern District of Florida for a federal narcotics offense, aggravated identity theft and related criminal offenses, he abruptly abandoned his claim.
In the Middle District of Florida, enforcement of asset forfeiture laws is an integral part of our law enforcement mission. Taking the profit out of crime is important in disrupting and dismantling illegal enterprises, deterring crime, funding law enforcement efforts, and restoring property to victims. In fiscal year 2013, more than $46.2 million in criminal and civil forfeitures was deposited into the Department of Justice and Department of Treasury Assets Forfeiture Funds as a result of forfeitures completed in the Middle District of Florida.
“This case is yet another example of the outstanding work done by both our law enforcement partners and the attorneys in our Asset Recovery and Victims Rights Division,” said Acting U.S. Attorney A. Lee Bentley, III.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with support from U.S. Customs and Border Protection, Office of General Counsel, and the Florida Department of Transportation. It is being prosecuted by Assistant United States Attorneys David G. Lazarus and Bonnie Glober.
Two Sentenced for Illegally Possessing Firearms with Plans to ExportRead the Press Release
McALLEN, Texas – The second of two defendants has been ordered to federal prison for being a prohibited person in possession of firearms, announced United States Attorney Kenneth Magidson. Eduardo Villanova-Anaya, 21, a Mexican citizen illegally present in the United States, and Jorge Rodriguez, 35, of Pharr, had previously entered guilty pleas in the case.
Today, U.S. District Judge Randy Cane sentenced Rodriguez to 78 months in federal prison to be followed by a three-year-term of supervised release. Villanova-Anaya was previously sentenced to 120 months and, as a non-U.S. citizen, is expected to face deportation proceedings following his release from prison.
The investigation into both defendants began after agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were alerted to individuals who had made straw purchases of firearms. Villanova-Anaya was determined to be their recruiter and organizer.
During the investigation, Villanova-Anaya contacted an undercover ATF agent to determine if he could procure firearms for him to take to Mexico. After several discussions, Villanova ordered six highly-trafficked firearms and the agent was to be paid upon delivery.
On July 26, 2012, Villanova, Rodriguez and the agent met for the purposes of the transaction, at which time Villanova stated the firearms were going to be smuggled into Mexico. Rodriguez aided and abetted Villanova-Anaya by acting as a driver, assistant and protection at the meeting. They were arrested as Villanova-Anaya picked up and moved the firearms from the agent’s vehicle to his own.
Villanova-Anaya and Rodriguez have been in custody without bond where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation. Assistant United States Attorney Steven Schammel prosecuted the case.
Two Sentenced for Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Two defendants were sentenced today for child pornography offenses, United States Attorney Benjamin B. Wagner announced.“Every time a sexually explicit image of a minor is produced, transmitted, or viewed, a child is victimized,” said Ray Greenlee, assistant special agent in charge for HSI San Francisco. “These sentences send a strong message to online child sex predators that there is a high price to pay for their actions. HSI will continue to work tirelessly to seek justice for those who mistakenly believe the Internet makes them invisible and invincible.”
Kern County Man Sentenced to More than 12 Years in Prison
(1:13-cr-265 AWI)
Senior United States District Judge Anthony W. Ishii sentenced Clark Alan Tyler, 53, of Rosamond, to 12 years and seven months in prison for distribution of child pornography.According to court documents, between February 2012 and March 2013, Tyler received and distributed more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Tyler was indicted on June 27, 2013, charged with receipt and distribution of child pornography and pleaded guilty to this charge on November 25, 2013. He has been in custody since July 3, 2013.
Fresno Man Sentenced to Six and a Half Years in Prison for Distributing Child Pornography
(1:12-cr-083 AWI)
Judge Ishii sentenced Daniel Oluwa Sesan Leitch, 31, of Fresno, to six and a half years in prison for distribution of child pornography.According to court documents, from December 18, 2011, through December 20, 2011, Leitch received more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Leitch was indicted on October 23, 2013, and in March 2012, he went to trial but pleaded guilty on the second day of trial. He was remanded into custody after sentencing today.
These cases were the product of investigations by the Central California Internet Crimes Against Children Task force with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos prosecuted both cases, and Special Assistant United States Attorney Ian P. Whitney was co-prosecutor on the Leitch case.
These cases were 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Two Charleston Men Enter Guilty Pleas to Federal Drug Distribution ChargesRead the Press Release
Defendants charged as part of Charleston’s West Side Drug Market Intervention initiative
CHARLESTON, W.Va. – Two Charleston men each face up to 20 years in prison after pleading guilty today to federal drug charges, U.S. Attorney Booth Goodwin announced. Deandre D. Coleman, 22, pleaded guilty to distribution of crack cocaine. In a separate hearing, defendant Jamaal D. Davis, also known as “DT,” pleaded guilty to heroin distribution. Both men pleaded guilty in front of United States District Judge John T. Copenhaver, Jr. in Charleston federal court.
Davis and Coleman were prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative. The defendants were designated members of the DMI A-list, which comprises the most serious offenders identified in the initiative.
On July 9, 2013, Coleman sold crack cocaine to a confidential informant working in cooperation with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $100. A lab test determined that the crack cocaine weighed .52 grams.
Davis, 22, sold heroin to a police informant on June 13, 2013 in exchange for $180. The illegal drug transaction took place on Roane Street in Charleston.
The Charleston Police Department and other law enforcement agencies, including MDENT, have conducted undercover operations and completed investigations culminating in federal charges being filed against thirteen individuals.
The DMI initiative was launched in February 2012 by U.S. Attorney Booth Goodwin and Charleston Police Chief Brent Webster, in collaboration with other federal, state, local law enforcement agencies and leaders representing several West Side community development organizations. A continuation of the DMI initiative was announced last month in Charleston.
The DMI strategy also included a staged community intervention that was held at the New Covenant Missionary Baptist Church on Charleston’s West Side. The community intervention meeting offered a rare second chance for five low-level, non-violent offenders to end their criminal activity and avoid being prosecuted, if a strict set of guidelines set by law enforcement are obeyed. The Dec. 12 community intervention call-in meeting was attended by offenders’ relatives, concerned citizens, and faith-based leaders from the West Side community. The call-in meeting was coordinated and attended by federal, state and local law enforcement officials.
Davis and Coleman are scheduled to be sentenced on April 22, 2014.
Assistant United States Attorney John Frail is in charge of the prosecutions.
Twenty-Six Individuals Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
KNOXVILLE, Tenn.-- A federal grand jury in Greeneville returned a 24-count indictment on Jan. 14, 2014, against John A. Ayers, a.k.a. Blondie, 31, of Rutledge, Tenn.; Gary S. Valentine, 53, of Knoxville, Tenn.; Victor M. Lynn, 51, of Rutledge, Tenn.; Paula W. Teague, 45, of Fairmont, Ga.; Eric R. Sizemore, 37, of East Berndstadt, Ky.; Drew A. Gregg, Jr., 36, of Newport, Tenn.; Joseph A. Jackson, a.k.a. Joey Jackson, 47, of Russellville, Tenn.; Teresa J. Turner, a.k.a. Terri Red, 52, of Whitesburg, Tenn.; Charles E. Bishop, a.k.a. Chucky, 51, of Whitesburg, Tenn.; Donna S. Roberts, 58, of Thorn Hill, Tenn.; Casper G. Hurley, 39, of McKee, Ky.; Harold E. Long, 61, of Tazewell, Tenn.; Robert D. Purkey, 43, of White Pine, Tenn.; Christopher M. Lawson, 35, of Rutledge, Tenn.; James E. Hayes, 56, of Talbott, Tenn.; Bradley S. Johnson, 29, of Bean Station, Tenn.; Troy R. Eads, 40, of Tazewell, Tenn.; Lisa A. Meece, 35, of Mooresburg, Tenn.; Stephanie Ellis, 22, of Rutledge, Tenn.; Phillip R. McNeil, Jr., 31, of Corryton, Tenn.; Floyd S. Simpson, 44, of Taylor, Mich.; Jeffrey W. Flynn, 33, of Mascot, Tenn.; Adam W. Houchins, 32, of Mooresburg, Tenn.; Amanda C. Roach, 36, of Rutledge, Tenn.; Luciano Castro, 74, of Savannah, Ga.; and Smokey E. Fleenor, 32, of Morristown, Tenn., for a conspiracy to distribute methamphetamine.
In addition, Ayers, Valentine, Lynn, Gregg, and Jackson, were indicted for firearms violations, including possessing a firearm and/or after having been convicted of a crime punishable by a term of more than one year in prison, or for being a drug addict. Lynn and Jackson were also indicted for possession of a firearm in furtherance of a drug trafficking offense.
Thirteen of these individuals appeared in court on Jan. 16, 2014, and one appeared in court on Jan. 21, 2014, before U.S. Magistrate Judge C. Clifford Shirley and pleaded not guilty to the charges in the indictment.
The investigation has shown that individuals involved were obtaining methamphetamine from individuals in Georgia and were distributing these drugs in Tennessee and Kentucky.
If convicted, all face a minimum and mandatory term of 10 years in prison and a maximum term of life, a maximum fine of $10,000,000.00, and a term of supervised release of at least five years. In addition, Ayers, Valentine, Lynn, Gregg, and Jackson, face a maximum term of 10 years in prison, a maximum fine of $250,000.00, and a term of supervised release of up to three years, as to the possession of firearms by a prohibited person charges. Lynn and Jackson, face a mandatory minimum and mandatory five year sentence up to life, which by statute must be served consecutively with any other prison term imposed, a maximum fine of $250,000.00, and a term of supervised up to five years as to the possession of a firearm in furtherance of a drug trafficking crime charges. All also face mandatory court assessments.
This indictment is the result of an investigation by the Third Judicial Drug Task Force, Fourth Judicial Drug Task Force, Eighth Judicial Drug Task Force, Claiborne County Tennessee Sheriff’s Department, Grainger County Tennessee Sheriff’s Department, Knox County Tennessee Sheriff’s Department, Knoxville Police Department, Bean Station Police Department, Rutledge Police Department, Morristown Police Department, Kentucky State Police, Tennessee Highway Patrol, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets will represent the United States.
Three Men Charged in Federal Court for Starting Illegal Campfire in Angeles National Forest That Became Colby FireRead the Press Release
LOS ANGELES, California – Three men were charged this afternoon in United States District Court with illegally setting a campfire above Glendora that erupted in Santa Ana winds last week to become a destructive wildfire called the Colby Fire.
Federal prosecutors filed a criminal complaint that charges the three men with unlawfully setting timber afire, a felony offense that carries a possible five-year prison term.The three men named in the criminal complaint are:
Clifford Eugene Henry Jr, 22, of Glendora;
Steven Robert Aguirre, 21, a transient; and
Jonathan Carl Jarrell, 24, also a transient.
The three men were taken into custody by local officials last Thursday after the fire started. Henry, Aguirre and Jarrell are expected to be turned over to federal authorities this afternoon. The defendants are expected to make their first appearance in federal court tomorrow, possibly as early as 11:00 a.m.
The Colby Fire started on the morning of January 16. By that evening, the fire had consumed more than 1,700 acres of federal, state, local and private lands. The fire had also destroyed five residences, damaged 17 additional structures, and resulted in injuries to one civilian and two firefighters.
Henry, Aguirre and Jarrell were detained by Glendora Police Officers after they were seen escaping the fire. During interviews with Glendora Police and personnel with the Los Angeles County Fire Department’s Arson Investigations Unit, all three defendants admitted playing a role in the starting of a campfire that started the Colby Fire after wind blew burning paper into the brush in the hills above Glendora, according to the affidavit in support of the criminal complaint.
A United States Forest Service fire investigator has determined that the origin of the Colby Fire was at a point near a fire ring built by Henry, Aguirre and Jarrell; the cause of the fire was embers from the campfire that set dry grass adjacent to the campfire ring afire; and both the campfire ring and the origin of the fire are clearly located on federal lands within the Angeles National Forest.
The investigation is being conducted by the United States Forest Service, the Glendora Police Department and the Los Angeles County Fire Department.
Release No. 14-007
Tampa Woman Sentenced in Stolen Identity Income Tax Relief SchemeRead the Press Release
TAMPA, FL - U.S. District Judge James S. Moody, Jr. today sentenced Beverly McFadden (23, Tampa) to six years and nine months in federal prison for her role in a stolen identity income tax refund scheme. As part of the sentence, the Court also entered a money judgment in the amount of $351,431.44.
On September 24, 2013, McFadden pleaded guilty to one count of conspiracy to defraud the United States and to steal government funds, and to one count of aggravated identity theft.
According to court documents, McFadden, who maintained an account with Suncoast Schools Federal Credit Union, conspired with a teller (Louren Velez) to cash 47 fraudulently obtained income tax refund checks, totaling more than $350,000, through that financial institution. McFadden also recruited Larry Walker, another account holder, to assist in the scheme.
On April 23, 2013, Walker pleaded guilty for his role in the conspiracy and was sentenced to time served, six months’ home detention, and a 3-year term of supervised release. Velez was charged by information on June 28, 2013.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
Springfield Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for using two minors to produce child pornography.
Ronald Mazza, 33, of Springfield, was charged in a three-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Mazza used two minors, identified as “Jane Doe” and “John Doe,” to produce child pornography between Aug. 1 and Dec. 1, 2013. Each count, upon conviction, carries a mandatory minimum sentence of 15 years in federal prison without parole.
Mazza is also charged with one count of receiving and distributing child pornography over the Internet between Aug. 1 and Dec. 1, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Sex Offender Sentenced to 30-Months in Prison for Failure to Comply with Registration LawRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama announced that John David Smith, 55, of Robertsdale, Alabama, was sentenced today by Chief Judge William H. Steele to 30-months imprisonment, followed by a supervised release term of life, for failing to comply with the Sex Offender Registration and Notification Act. Smith was convicted in 1989 of Criminal Sexual Contact of a Minor, Third Degree, in New Mexico, and of Production of Child Pornography in Baldwin County, Alabama, in August of 2013.
The United States Marshals Service conducted the investigation, and Assistant United States Attorney Donna B. Dobbins represented the United States.
Settlement Agreement Approved in Manhattan Federal Court in Pension Class Action Lawsuit Brought Against the City of New York and NYPDRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that after a fairness hearing on January 13, 2014, United States District Judge Richard J. Sullivan has approved the proposed Settlement Agreement entered into between the United States Attorney’s Office and the City of New York (the “City”), resolving the issues raised in the August 2012 class action lawsuit brought against the City in Manhattan federal court. The suit concerns the City’s illegal calculation of pensionable earnings, in violation of the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”), of retired New York City Police Department (“NYPD”) officers who were called up to active military service since September 11, 2001, and are collecting a pension from the City (“NYPD Class Members”).
Manhattan U.S. Attorney Preet Bharara said: “This Settlement Agreement will ensure that the brave men and women at all the City agencies who served both their city and their country get the pension that they have earned. Now we can turn to implementing the Settlement Agreement, which will require continued coordination between the City and this Office to put into effect these critically important changes.”
According to the Amended Complaint and other documents filed in Manhattan federal court:
On August 2, 2012, the United States Attorney’s Office filed a class action lawsuit against the City, the NYPD, and the New York City Police Pension Fund, on behalf of all current and retired NYPD officers who have performed active military service since September 11, 2001, or who will do so in the future. The class action suit alleges that the City unlawfully calculates the pensionable earnings of NYPD officers called to active military duty by relying exclusively on their base pay rate, instead of including the overtime or night shift differential compensation they would have earned had they not been on active military duty, as required by USERRA. As a result, service members are being deprived of pension benefits they would have been reasonably likely to receive but for their military service.
The class action lawsuit sought to require the City to lawfully calculate the pensionable earnings of all current and former NYPD officers who were called to perform active military service after September 11, 2001, or who will be called to service, to recalculate the pension benefits they are currently receiving, and to remit any additional pension benefits owed as a result of performing these recalculations.
On July 2, 2013, the Court preliminarily approved the Settlement Agreement, and ordered that notice be given to the approximately 630 potential members of the class. Following a four-month period in which potential class members had an opportunity to submit objections to the Settlement Agreement, the Court found on January 14, 2014, that there were no objections that warrant withholding approval of the Settlement Agreement, and, by orders dated January 14 and 21, 2014, the Court approved the Settlement and closed the case.
The Settlement Agreement provides the following relief:
- All NYPD Class Members will receive the past pension benefits that they are entitled to under USERRA as well as have their future pension benefit payments adjusted to reflect any increase that results from the recalculation of their pension benefits.
- All active NYPD officers who have been or will be called up to active military service will have their future pensionable earnings calculated in accordance with USERRA, and can request in writing to have their past pensionable earnings recalculated.
- The City will implement the terms of the Settlement Agreement in the other retirement systems so that all other municipal workers will have their pensions appropriately calculated.
More information can be obtained by calling the civil rights hotline number at (212) 637-0840, or e-mailing [email protected].
This case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Tara M. La Morte and Arastu K. Chaudhury are in charge of the case.
Goodman v. City of New York, et al. Final Order Approving Settlement
Goodman v. City of New York, et al. Approved Settlement AgreementSecond Individual Convicted in False Claims ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Earl Rojelio Blanchett, Jr. (37, Tampa) to 10 years and 4 months in federal prison for tax fraud charges, including charges of aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $22,500.
Blanchett pleaded guilty to all fourteen counts of the indictment on October 29, 2013.
According to court documents and statements made at the sentencing hearing, in June and July 2013, Blanchett sold seven United States Treasury checks, with a face value of over $77,000, at a discounted price, to undercover law enforcement agents. These Treasury checks were issued as a result of tax returns filed in the names individuals who were victims of identity theft. The victims either did not authorize the filing of those returns, the issuance and cashing of the resulting Treasury checks, and/or confirmed that the Treasury checks were fraudulently and falsely endorsed in their names. Personal identifying information related to some of the stolen identities was found in a search of Blanchett’s residence, where he lived with his girlfriend. Inside the residence, agents also found thousands of other individuals’ personal identifying information in computers, ledgers and notebooks, along with notes about the filing of tax returns, debit cards, passwords, and user names. The information totaled over $7 million, with nearly $3 million confirmed by the IRS.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, Hillsborough County Sheriff’s Office and Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Second Individual Convicted in False Claims ConspiracyRead the Press Release
Orlando, Florida, – Acting United States Attorney A. Lee Bentley, III announces that Marcus Dwayne Robertson (45) was found guilty yesterday of conspiring to defraud the Internal Revenue Service. This is Robertson’s second conviction in this District. On August 23, 2011, he was arrested by the Federal Bureau of Investigation and charged for being a previously convicted felon in possession of a firearm. Robertson pleaded guilty to that crime on January 5, 2012. He was then indicted, on March 14, 2012, for conspiring to defraud the IRS. A bench trial ensued in December 2013, in which he was convicted for that offense. Robertson faces a maximum penalty of 20 years in federal prison for both convictions. His sentencing hearing has been scheduled for April 14, 2014, before Senior U.S. District Judge Gregory A. Presnell.
According to court documents and evidence presented at Robertson’s trial and the sentencing of a co-conspirator (Jonathan Paul Jimenez), the FBI was investigating an international terrorism matter regarding the operation of a travel facilitation network by Robertson and others that sends individuals overseas to commit violent jihad. In November 2010, Jimenez relocated from New York to Central Florida, where he began training with Robertson in the skills necessary to participate in violent jihad overseas. The training included martial arts, firearm and knife training, reading the Quran, and learning Arabic. During Jimenez’s training, Robertson stressed that Jimenez needed to focus on the religious aspects of his training, prior to perfecting the skills needed to commit violent acts.
In late May and early June of 2011, Jimenez, with the assistance of Robertson and others, began making preparations for his overseas travel. Robertson assisted Jimenez with getting his photographs for his visa application and his vaccinations. On June 17, 2011, Jimenez departed Central Florida and traveled to New York by airplane, where he expected to get his visa and then travel overseas.
During the course of the investigation, the FBI obtained evidence about the nature of Robertson’s training of Jimenez and the plan for Jimenez to travel overseas to engage in violent jihad. As part of the investigation, the FBI obtained consensually recorded conversations with Jimenez and others, in which Jimenez stated his goals. When interviewed by the FBI on September 22, 2011, Jimenez lied about making those statements.
In order to have funds available for him when he was overseas, Robertson, Jimenez, and another individual conspired to submit a false 2010 tax return for Jimenez, in which Jimenez falsely claimed three of Robertson’s children as his dependents and falsely represented that he lived with each of the three children for all of the year 2010. As a result of those false representations, Jimenez obtained a refund from the IRS in the amount of $5,587.
On August 28, 2012, Jimenez pleaded guilty to making a false statement to a federal agency in a matter involving international terrorism and conspiring to defraud the IRS. On April 18, 2013, he was sentenced to 10 years in federal prison, ordered to serve a 3-year term of supervision following his release, and to pay $5,587 in restitution.
These cases were investigated by the FBI’s Joint Terrorism Task Force and the Internal Revenue Service - Criminal Investigation. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Rock Island, IL, Man Sentenced to 100 Months of Imprisonment for Possession of A Firearm in Connection with Attempted MurderRead the Press Release
DAVENPORT, IA – On January 16, 2014, DeMarko Onslow Williams, age 25, of Rock Island, Illinois, was sentenced by Chief United States District Judge James E. Gritzner to 100 months in prison for being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Williams was also ordered to serve two years of supervised release.
On March 31, 2013, Williams walked into the parking lot of The Chorus Line gentlemen’s club and fired multiple shots at a group of people standing near the entrance of the business. Williams did not hit anyone but his shots hit vehicles and the business’ front door in the immediate vicinity of numerous bystanders. Williams is a known affiliate of Fifth St. Mafia, aka Zone Fifth, a street gang in Rock Island, Illinois. Multiple members of the rival Davenport gang, Savage Life, aka 12th Street Boys, were standing in front of The Chorus Line when Williams opened fire. Davenport, Iowa, Police officers responded to the scene and Williams and another individual led the police on a high-speed vehicle pursuit that ended with Williams’ vehicle crashing into a fence. Williams then fled on foot and discarded the handgun that he had used in the shooting. Bullet casings recovered from The Chorus Line were analyzed and were determined to have been fired by the gun discarded by Williams.
This case was investigated by the Davenport, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Project Safe Childhood Manchester Woman Pleads Guilty to Child ExploitationRead the Press Release
CONCORD, NEW HAMPSHIRE: Erin Upham, 21, of Manchester, pled guilty In United States District Court for the District of New Hampshire to one count of sexual exploitation of children, announced United States Attorney John P. Kacavas.
The investigation began in 2013 when the Manchester Police received information from the United States Air Force, Office of Special Investigations that the defendant, a resident of Manchester, was communicating with a member of the armed services who was stationed at Kadena Air Base in Okinawa, Japan. Specifically, the Air Force Special Agents informed the Manchester Police that they had information that the defendant’s communication was of a sexual nature and involved a minor child. A federal search warrant was obtained for the search and seizure of various electronic items belonging to the defendant, including a lap top and cell phones. A forensic examination of the items revealed digital images of the defendant and a minor child engaged in sexually explicit conduct.
The defendant is facing a minimum term of fifteen years in prison and is scheduled to be sentenced on April 29, 2014 at 10:30.
The charge was the result of an investigation by the United States Air Force, Office of Special Investigations, the Federal Bureau of Investigation, and the Manchester and Derry Police Departments and is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being prosecuted by Assistant United States Attorney Helen White Fitzgibbon who is the U.S. Attorney’s coordinator for Project Safe Childhood.Ozark Man Indicted for Child Sexual ExploitationRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man was indicted by a federal grand jury today for using two minors to produce child pornography.
Dennis Lee Whitaker, 53, of Ozark, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Whitaker used two minors, identified as “Jane Doe” and “John Doe,” to produce child pornography between Jan. 1, 2010, and Jan. 1, 2013, in Stone and Taney counties. Each count, upon conviction, carries a mandatory minimum sentence of 15 years in federal prison without parole.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Stone County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Oahu Man Sentence to Six Years in Prison for Drug Offense, Identity Theft, and Naval Exchange TheftRead the Press Release
HONOLULU – Chief U.S. District Judge Susan Oki Mollway sentenced defendant Ashon L. Fain-Farias, age 25, on January 13, 2014, to an imprisonment term of six years following a plea to (i) one count of possession with intent to distribute five grams or more of methamphetamine; (ii) one count of conspiring to steal government property; and, (iii) one count of aggravated identity theft. These offenses occurred in December 2012 at Joint Base Pearl Harbor-Hickam, Hawaii, and the theft and aggravated identity theft offenses involved two other co-defendants, Joseph Routt, age 37, and Chanice Viloria, age 20, who were sentenced to 14 months and ten days imprisonment, respectively, for their roles in the conspiracy. All three are Oahu residents.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced to the court, Fain-Farias, Routt, and Viloria attempted to steal over $17,000 of high-value electronic items from the Navy Exchange at Pearl Harbor (NEX) by using a military identification card obtained from a military retiree to gain access to the NEX on December 18 and 19, 2012. All three, however, were apprehended on December 19. During the ensuing search of Fain-Farias’ car by Naval Security Forces, a bag containing over 35 grams of methamphetamine, 17 grams of cocaine base, and drug distribution material were recovered from the trunk.
Fain-Farias sentence consisted of terms of four years imprisonment for the drug and theft conspiracy charges, to be served concurrently, and a mandatory two-year term of imprisonment for identity theft which must be served consecutively to the four-year terms, for a total of six years imprisonment.
The charges resulted from an investigation conducted by the Naval Criminal Investigative Service, Drug Enforcement Administration, and Naval Security Forces. Special Assistant U.S. Attorney Robert Singer and Assistant U.S. Attorney Michael Kawahara prosecuted this case.
Niagara County Woman Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Roberta Hannon, 46, of the Town of Niagara, who was convicted of conspiring to manufacture methamphetamine, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, the defendant was arrested along with three others during the execution of a search warrant of a mobile home at 314 Quain Place, Town of Niagara, on May 3, 2012. Hannon resided in a mobile home at that address. During the execution of the search warrant, members of the Niagara County Drug Task Force and Drug Enforcement Administration seized, among other things, an active one-pot methamphetamine lab "cooking" on the stove in the kitchen, substantial quantities of precursor chemicals and ingredients used to manufacture methamphetamine, a digital camera, spent blister packs from pseudophedrine tablets, and drug paraphernalia. The digital camera contained photographs of the defendant and others engaged in drug-related activity.
The defendant’s husband, Jason Hannon, was sentenced to 63 months in prison; her nephew Robert Gardiner was sentenced to 12 months in prison; and a third co-defendant, Keith Crossley, was sentenced to 37 months in prison.
The sentencing is the result of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, and members of the Niagara County Drug Task Force, under the direction of Sheriff James Votour.New York Man Sentenced to 175 Months for Leadership Role in Mortgage Office Burglary and Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – Jeffrey Washington, 36, of New York, NY, was sentenced today to 175 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. The defendant was ordered to pay restitution in the amount of $254,995.71.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Washington plead guilty on August 28, 2014. According to court documents, Washington admitted his involvement in a multi-defendant ring of individuals that burglarized Wells Fargo mortgage offices throughout NY, NJ, CT and MD in 2012 -2013. The defendants stole over 1,800 mortgage files that were then used in a variety of bank customer impersonation and retail credit fraud schemes, targeting various banks and retailers. Washington recruited individuals to go into banks, impersonate customers and remove funds via setting up business accounts and transferring funds from the accounts of bank customers. Washington and other defendants traveled from NY to EDVA on multiple occasions throughout 2012 and 2013. Following the arrest of a co-defendant in August, 2013, the defendant continued to burglarize mortgage offices until his arrest in May, 2014. Washington was on probation at the time of the offense. Thus far, three defendants have pled guilty and a fourth remains pending trial.
This case was investigated by United States Secret Service and United States Postal Inspection Service. Assistant U.S. Attorney Brian J. Samuels is prosecuting the case on behalf of the United States.
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. 4:14CR32.Tweet
Navajo Man from Arizona Sentenced to Forty-Six Months for Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Donovan Eric Williams, 24, an enrolled member of the Navajo Nation who resides in Whippoorwill, Ariz., was sentenced to 46 months in federal prison followed by three years of supervised release for assaulting a federal officer, announced Acting U.S. Attorney Steven C. Yarbrough and Director John Billison of the Navajo Nation Division of Public Safety.
Williams was arrested on April 24, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. According to the complaint, Williams assaulted a Sergeant of the Navajo Nation Division of Public Safety by deliberately veering his vehicle into her police vehicle on March 21, 2013, near Church Rock, N.M. Williams subsequently was indicted and charged with assaulting a federal officer who was engaged in the performance of her official duties because the tribal officer possessed a Special Law Enforcement Commission from the BIA at the time of the assault.
On Oct. 21, 2013, Williams pled guilty to the indictment and admitted intentionally assaulting a federal officer on March 21, 2013. In his plea agreement, Williams acknowledged that, at the time of the assault, he was being pursued by a tribal officer who was attempting to pull his vehicle over and the federal officer was approaching him from the opposite direction. Williams admitted intentionally striking the federal officer’s vehicle even though the officer had pulled her marked police vehicle off to the side of the road to avoid a collision. Williams subsequently learned that the officer was commissioned as a federal law enforcement officer at the time of the assault.
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.
Mortgage Broker Pleads Guilty to Conspiring to Commit Mortgage FraudRead the Press Release
TAMPA, FL – Acting United States Attorney A. Lee Bentley, III announces that Michelle Carducci (37, Tampa) today pleaded guilty to conspiracy to commit wire fraud affecting a financial institution and making false statements to a federal agency. She faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, in 2001, Carducci moved from Ohio to Florida and, in 2002, became a Florida-licensed mortgage broker. Subsequently, she entered into a conspiracy with a Florida-licensed real estate agent and a primarily Pinellas County-based developer. The real estate agent was recruiting buyers to purchase houses that were being “flipped” by the developer, through a series of companies. Buyers were falsely told that these deals would require no money from them. Instead, to hide the fact that the seller (the developer) was really providing closing funds (down payments) to otherwise unqualified buyers, Carducci, among other things, inflated the buyers’ assets on their loan-related documents.
Carducci’s role in the conspiracy is estimated to have caused losses between $400,000 and $1,000,000, for transactions that she handled in 2005 and 2006.This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Modesto Woman Pleads Guilty to Structuring Cash Proceeds of Interstate Oxycodone and Hydrocodone TraffickingRead the Press Release
FRESNO, Calif. —Phally Thach, 30, of Modesto, pleaded guilty today to one count of conspiracy to structure cash transactions and one count of aggravated structuring, United States Attorney Benjamin B. Wagner announced.According to court documents, Phally Thach and co-conspirators obtained prescriptions for oxycodone and hydrocodone from pharmacies in Modesto and then transported and mailed the pills to other states, including Washington, for distribution on the black market. In addition, Phally Thach opened bank accounts at Bank of America into which co-conspirators deposited the cash proceeds of the oxycodone and hydrocodone sales for $10,000 or less. After receiving the cash deposits, Phally Thach withdrew the cash from those accounts in amounts of $10,000 or less to attempt to prevent Currency Transactions Reports from being filed by the banks on her cash deposits. Currency Transactions Reports are reports prepared by financial institutions for any transactions involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Phally Thach is scheduled to be sentenced by United States District Judge Anthony W. Ishii on April 7, 2014. She faces a maximum statutory penalty of five years in prison and a $250,000 criminal fine for conspiracy and 10 years in prison and a $500,000 criminal fine for structuring. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Plea Agreement
Millcreek Township School District Agrees to Pay Government $350,000 to Resolve Allegation of Improper Medicaid ReimbursementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Millcreek Township School District has agreed to pay the United States $350,000 to resolve allegations that it submitted improper claims to the Medicaid-funded School Based Access Program. Millcreek Township School District is the public school system for students residing in Millcreek Township, Pennsylvania, a suburb of Erie.
According to United States Attorney Peter J. Smith, Millcreek Township School District has agreed to pay $350,000 to resolve allegations that from August 11, 2005, through June 28, 2007, the School District improperly submitted claims to the Pennsylvania School Based Access Program for payment when those claims did not satisfy the necessary program requirements. Payment is due within 60 days from the date of the Settlement Agreement (January 14, 2014).
The Pennsylvania School Based Access Program provides federal Medicaid reimbursement to schools for health related services provided by those schools to special needs students as part of an Individualized Education Plan. Schools submitting claims to Access for payment must satisfy a number of requirements, and the amount of reimbursement depends on the type of service performed.
The U.S. Attorney’s Office in Harrisburg had jurisdiction because Access is managed by the Pennsylvania Department of Public Welfare and the Pennsylvania Department of Education, both of which are based in Harrisburg.
In regard to Millcreek, the government determined that the School District submitted Access claims and received federal reimbursement for claims that were improper due, generally, to discrepancies including the absence of recipients on dates billed for services, claims for non-compensable services, improper grouping of services for billing purposes, lack of adequate documentation, and claims for unlisted services. The specific types of violations are set out in the Settlement Agreement. (A copy of the Settlement Agreement is available from the U.S. Attorney’s Office on request.)
The U.S. Attorney’s Office credited the assistance provided by the Pennsylvania Department of Public Welfare, which conducted the audit of Millcreek Township School District’s Access claims. The U.S. Attorney’s Office also acknowledged Millcreek Township School District’s cooperation with the investigation. The Settlement Agreement is not an admission of liability by the School District.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Department of Education, Office of Inspector General. The case was handled by Assistant United States Attorneys D. Brian Simpson and Anthony Scicchitano, Civil Division, United States Attorney’s Office.
****Middle Georgia Methamphetamine Organization DismantledRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that a major methamphetamine organization has been dismantled. On January 16, 2014, Shawn Foster Phillips, age 35, of Bibb County, Marty Bass, age 51, of Bibb County, and Jonathan McBride, age 39, of Houston County, appeared in federal court and entered guilty pleas to conspiracy to possess with the intent to distribute methamphetamine. Travis Walker McElhenny, age 40, of Houston County, entered a plea of guilty to possession with the intent to distribute more than 50 grams of methamphetamine. John Rylander, age 32, of Houston County, entered a plea of guilty to possession of methamphetamine. Chad Minter, age 39, of Houston County, appeared in court on January 21, 2014 and entered a plea of guilty to conspiracy to possess with the intent to distribute methamphetamine. The guilty pleas were entered before U.S. District Court Judge Marc T. Treadwell in Macon, Georgia.The conspiracy charge carries a maximum statutory penalty of up to twenty (20) years confinement. The charge of possession with the intent to distribute methamphetamine carries a maximum penalty of a mandatory minimum of ten (10) years, up to life in prison. The possession charge carries a penalty of up to twelve (12) months incarceration. The Court has scheduled sentencing for April 9, 2014 in Macon, Georgia.
As a part of their guilty pleas, the respective defendants admitted that between January 1, 2011 and December 31, 2012, Mr. Phillips traveled from Warner Robins, Georgia, to Atlanta, Georgia, to obtain methamphetamine from a source of supply. The drugs were transported by Mr. Phillips from Atlanta to Warner Robins where they were sold to Mr. Rylander, Mr. Bass, Mr. McBride, Mr. McElhenny, and others in the Warner Robins area. These men in turn sold the methamphetamine to street level dealers. Conservative estimates suggest that during its operation, the organization distributed more than 50 kilograms of methamphetamine. Federal and state authorities seized 250 grams of methamphetamine and three firearms. The Government anticipates that additional indictments will be filed targeting other members of the organization.
The case was investigated by the Federal Bureau of Investigation, U.S. Marshals Service, and Houston County Sheriff’s Department. Assistant U.S. Attorney Charles L. Calhoun is prosecuting the case.
US Attorney Michael Moore stated, “My office will continue to target and dismantle these types of drug trafficking organizations. Methamphetamine use and distribution poses a significant threat to the public and must be vigorously prosecuted.”For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Methamphetamine Trafficker Sentenced to Federal PrisonRead the Press Release
FRESNO, Calif. — Victor Torres, 28, of Selma, was sentenced today by United States District Judge Lawrence J. O'Neill to five years and 10 months in prison for methamphetamine trafficking, United States Attorney Benjamin B. Wagner announced.
According to court documents, Torres pleaded guilty to a methamphetamine trafficking conspiracy that spanned May 2012 through December 2012. In June 2012, wiretap information led investigators to stop a vehicle in which Torres was a passenger. The car was impounded and a subsequent search revealed approximately one pound of methamphetamine. In December 2012, a search warrant was executed at Torres’s Selma residence, and approximately two ounces of methamphetamine were seized.
This case was the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Department with assistance from the Bakersfield Police Department and the Kings County Sheriff’s Department. Assistant United States Attorney Kevin Rooney prosecuted the case.
Torres was ordered to begin serving his sentence on March 5, 2014. On October 7, 2013, co-defendant Daniel Ochoa, 36, of Fresno, was sentenced to 55 months in prison.
Men Plead Guilty to Transporting Teenage Girls from California to Nevada to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – Two California men pleaded guilty today to felony sex trafficking crimes for inducing and enticing two minor girls to travel from Oakland, Calif., to Las Vegas, Nev., to work as prostitutes during April and May 2013, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ray Darnell Webb, 19, and Seagram Joshua Miller, 21, both of Hayward, Calif., who were arrested and indicted in May 2013, pleaded guilty to one count of coercion and enticement, and are scheduled to be sentenced on April 29, 2014, by U.S. District Judge Kent J. Dawson. The men face up to 20 years in prison and a $250,000 fine, and will have to register as sex offenders.
“We must work together as a community to prevent children from getting involved with sex trafficking,” said United States Attorney Bogden. “The pimps who scour the streets, schools, and online communities preying on boys and girls are predators and we will work with our local, state and federal law enforcement partners to ensure that they are prosecuted.”
According to their plea agreements, in early 2013, Webb and Miller met one of the victims, a 12-year-old female, in Oakland, Calif. where she was working as a prostitute. Shortly thereafter, the 12-year-old began working as a prostitute for Webb and Miller, and provided the money she made working as a prostitute to them. In about April 2013, Miller met a 16-year-old female on Facebook, and she also began working as a prostitute for Miller and Webb. In April 2013, Miller, Webb, and the two minor girls, decided to travel to Las Vegas to make money. Before leaving, Webb and the 16-year-old girl posted an advertisement on MyRedbook.com so that they would have dates lined up when they arrived in Las Vegas. The advertisement contained photographs of the 16-year-old. On April 29, 2013, Webb, Miller, and the two minor girls, drove from Oakland to Las Vegas and stayed in a rented hotel room on Las Vegas Boulevard. Both girls worked as prostitutes on April 30 and in early May.
The cases were investigated the FBI and Las Vegas Metropolitan Police Department, as part of the Innocence Lost Task Force. The cases were prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr.The cases were brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal
Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.usdoj.gov/psc.Los Gatos Man Sentenced to Two Years for Conspiracy to Commit Mail and Wire Fraud, and Conspiracy to Commit Bank FraudRead the Press Release
SAN JOSE – David Foley, the former chief technology officer of Santa Clara, California video game developer Global VR, and former owner of NexTune Corporation, d/b/a UltraCade Technologies, was sentenced today to two years in prison and ordered to pay a $5,000 fine for engaging in a conspiracy to commit mail and wire fraud, and conspiracy to commit bank fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Foley, 48, of Los Gatos, pleaded guilty on January 6, 2012 to one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349, as charged in a superseding indictment filed on January 9, 2009, and one count of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, as charged in an indictment filed on August 18, 2011. The charges contained in the separate indictments were consolidated for the guilty pleas.
In his plea agreement, Foley admitted that he manufactured thumb drives, known as “game packs,” containing video gaming software that could be loaded onto arcade video game machines made for the home market. Foley illegally produced the products from his home while working as the chief technology officer of Global VR, which had previously acquired all rights to produce and sell games under the UltraCade name. After producing the game packs, Foley sold the products to a co-defendant located in Milford, Conn., and agreed to sell the game packs to the public using packaging and advertisements that falsely represented the goods to have been genuinely manufactured by UltraCade. Foley thereafter received payment for the illegally manufactured game packs by mail and wire.
Foley further admitted that he defrauded Countrywide Home Loans (now owned and operated by Bank of America) of mortgage and home equity line of credit loans in the amounts of $2,624,475 and $374,925. He did this by falsely claiming that he was still employed at Global VR. Foley had been fired from his job by the time the loan applications were submitted. Foley admitted that he instructed a co-defendant to contact Countrywide Home Loans to falsely confirm his continued employment after his employment had been terminated and prior to receiving the funds.
The sentence was handed down by the Honorable Edward J. Davila, United States District Court Judge in San Jose. Judge Davila also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence on March 27, 2013.
Hanley Chew, Susan Knight, and Richard C. Cheng are the Assistant United States Attorneys who prosecuted the case with the assistance of Laurie Worthen and Tracey Andersen. The prosecution was the result of an investigation by the Federal Bureau of Investigation.
(Foley Indictment 11-0054)
(Foley Indictment 09-00670)
(Foley Superseding Indictment 09-00670)
Last Man Heads to Prison for Area Bank RobberyRead the Press Release
HOUSTON – Kendrick Deswhan Castille, 20, has been ordered to prison for his involvement in the November 2012 robbery of Amegy Bank in Houston, announced United States Attorney Kenneth Magidson. Castille pleaded guilty as did co-defendants Terrance Trent Batiste, 21, and Joshua Demond Clay, 29.
Today, U.S. District Judge Kenneth Hoyt sentenced Castille to 31 months for conspiracy to commit bank robbery as well as 31 months for aiding and abetting aggravated bank robbery which will be served concurrently. He was also convicted of aiding and abetting the brandishing of a firearm during a crime of violence for which he received a consecutive 84-month sentence for a total term of imprisonment of 117 months in federal prison. He will be further required to serve three years of supervised release following completion of the prison term.
Batiste was previously sentenced to 60 months for conspiracy to commit bank robbery as well as 78 months for aiding and abetting aggravated bank robbery which will be served concurrently. He was also convicted of aiding and abetting the brandishing of a firearm during a crime of violence for which he received a consecutive 84-month sentence for a total term of imprisonment of 162 months in federal prison. He will be further required to serve five years of supervised release following completion of the prison term. Clay was sentenced to 60 months in prison for conspiracy to commit bank robbery.
On Nov. 7, 2012, at approximately 12:00 p.m., the Amegy Bank on 1502 Eldridge Parkway in Houston was robbed. Batiste, Castille and Clay were apprehended by Houston Police Department (HPD) officers a short distance from the bank following a pursuit.
The investigation revealed Castille and Batiste entered the bank wearing baseball hats. Batiste was armed with a dark colored revolver which was given to him by Castille before they entered the bank. Castille and Batiste both jumped over the teller counter and demanded money. Clay did not enter the bank, but all three got back into their vehicle and fled after the robbery. After a pursuit by HPD, the vehicle carrying the defendants stopped into the Forest Park Cemetery, located at 12800 Westheimer in Houston, where it ran over and destroyed several tombstones. Clothing and hats worn by Batiste and Castille were recovered from the vehicle along with a large amount of U.S. currency.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Kittery Man Pleads Guilty to Structuring Cash TransactionsRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that
John W. Price, 58, of Kittery, Maine pleaded guilty today in U.S. District Court to structuring
over $157,000 in cash transactions to evade federal cash transaction reporting requirements.
Under federal law, financial institutions that dispense more than $10,000 in cash to a
customer are required to report the transaction to the Internal Revenue Service
(IRS). Structuring occurs when a customer breaks up cash withdrawals into multiple increments
of less than $10,000, to avoid the cash transaction reporting requirement.
Court records reveal that between 2008 and 2010, Price, the owner of J.P.’s Shellfish, a
seafood distributor in Eliot, Maine, directed his employees who withdrew cash from the J.P.’s
Shellfish business bank account to pay for lobsters not to withdraw more than $10,000 in cash at
any one time, so as to avoid the cash transaction reporting requirement.Price faces up to 5 years in prison and a $250,000 fine on each of the 12 counts. He will
be sentenced after the completion of a presentence investigation report by the United States
Probation Office.The charges are the result of a collaborative investigation conducted by the IRS, the
National Oceanic and Atmospheric Administration Office of Law Enforcement, and the Knox
County Sheriff’s Office.Kiosk Operators in Music City Mall in Odessa Plead Guilty in Counterfeiting CaseRead the Press Release
In Midland, 41-year-old Raja Zafar Iqbal and 50–year-old Javed Iqbal Raja of Odessa, TX, face up to ten years in federal prison after pleading guilty to trafficking in counterfeit goods announced United States Attorney Robert Pitman, Homeland Security Investigations Special Agent in Charge Dennis Ulrich and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before United States Magistrate Judge David Counts this morning, Raja Zafar Iqbal admitted to trafficking in counterfeit goods from January 2001 to September 2013. According to court records, Iqbal, with assistance from Raja between November 2008 and September 2013, operated Music City Mall kiosks Gold-N-Silver, ICEE Jewelry, Jewel Time, Pretty-N-Sassy, Famous Stars and Straps, and Right Jewelry. During that time, the defendants knowingly sold counterfeit jewelry, watches, buckles, key chains, lanyards and other items. The counterfeit goods bore trademarks identical to or substantially indistinguishable from trademarks used by Angry Bird, Fox Head, Monster, Nike, Playboy, Polo Ralph Lauren, Chanel and Juicy Couture. The defendants admitted that they were not authorized to sell or distribute any of the goods bearing the counterfeit trademarks.
On September 5, 2013, federal agents arrested the defendants and executed search warrants at the kiosks where they seized over 300 counterfeit items.
Both defendants are currently on bond pending sentencing. No sentencing date has been scheduled. Charges are still pending against a third defendant in this case, 33-year-old Muhammad Asif Raza, formerly of Odessa.
This investigation was conducted by Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Austin Berry is prosecuting these cases on behalf of the Government.
KC Woman Sentenced to 30 Years for Large-scale Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for her role in a conspiracy that was responsible for distributing hundreds of kilograms of cocaine in Jackson County, Mo.
Tamiko Grandison, 41, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 30 years in federal prison without parole.
On Aug. 20, 2013, Grandison was found guilty of participating in a conspiracy to distribute cocaine in Jackson County between Jan. 1, 2004, and June 17, 2010. Evidence introduced during the trial indicated that Grandison was the conduit who made deliveries of cocaine to customers in the Kansas City area on behalf of her then-boyfriend, Jiles Johnson, formerly of Kansas City, Mo. Johnson, who testified at Grandison’s trial, is being prosecuted in a separate case in the Northern District of Georgia. The government alleges that tons of cocaine was smuggled across the Mexican border and distributed throughout the United States to Johnson and others.
Johnson brought cocaine to Kansas City in 30- and 50-gallon drums and broke it down into kilogram quantities in Grandison’s basement. Grandison stored multi-kilogram quantities of cocaine at her residence until it was delivered.
Grandison delivered hundreds of kilograms of cocaine to co-conspirators over the course of the conspiracy. She also picked up the money from these customers for Johnson, and helped him conceal the drug-trafficking conspiracy by laundering some of the proceeds.
This case was prosecuted by Assistant U.S. Attorney Charles E. Ambrose, Jr. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Justice Department Releases Investigative Findings Showing the Alabama Department of Corrections Fails to Protect Women Prisoners at the Julia Tutwiler Prison for Women from Sexual Abuse and Sexual HarassmentRead the Press Release
Montgomery, Alabama - The Justice Department’s Civil Rights Division released last week 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 protect them from harm due to sexual abuse and sexual harassment by correctional staff. The Justice Department found that ADOC and Tutwiler officials have failed to take reasonable steps to protect people in their custody from the known and readily apparent threat of sexual abuse and sexual harassment. 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 Justice 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 requiring 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 Jocelyn Samuels, Acting Assistant Attorney General 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 Justice 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 Justice Department also interviewed prison officials and administrative and security staff, as well as current and former women prisoners.
In its letter of findings, the Justice Department also notified ADOC and Tutwiler officials of its intent to expand its investigation to 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 decision to expand its investigation of conditions at Tutwiler stemmed from the Justice 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 Justice Department commends Commissioner Kim Thomas and his staff for the cooperation they have shown, and for their receptivity to concerns raised. The Justice Department looks forward to continuing to work with ADOC and Tutwiler officials in a collaborative manner to timely resolve these findings under mutually agreeable terms and to work on the expanded investigation.
For more information on the Justice Department’s Civil Rights Division, please visit justice.gov/crt.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617John Quinn Pleads Guilty to Internet Sales of Tools Stolen from Ge AviationRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Quinn, 55, of Rutland, pleaded guilty today in United States District Court in Burlington to a charge of mail fraud. U.S. District Judge William K. Sessions III released Quinn on conditions pending his sentencing, which has been set for April 21.
According to the information to which Quinn pled guilty, Quinn had been employed for a number of years as a subcontractor for GE Aviation in Rutland. The GE facility manufactures components for jet engines on military and commercial aircraft. Quinn served as an account manager and was involved in the ordering, stocking and delivering of tools and other materials. According to the information, Quinn began stealing tools from GE Aviation's inventory no later than 2009 and resold the stolen tools over the Internet. Most of the stolen hardware consisted of high-speed carbide drill bits. Purchasers paid for the stolen tools by depositing funds into Quinn's personal PayPal account. According to PayPal records, between 2009 and July 2013, Quinn realized more than $108,000 from sales of carbide drill bits.
GE Aviation came to suspect that Quinn might be stealing company property last spring and conducted a sting operation where security personnel made three undercover purchases from Quinn. Quinn typically used the U.S. mails to send the stolen tools to the purchasers.
As part of his plea agreement, Quinn consented to the entry of a $108,000 forfeiture money judgment.
Quinn faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Rutland office of the Federal Bureau of Investigation.
Quinn is represented by Barry Griffith. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Indictment Unsealed Charging El Paso County Juvenile Probation Officer with Federal Sex Trafficking ChargesRead the Press Release
In El Paso, federal authorities have arrested a juvenile probation officer indicted on federal sex trafficking charges announced United States Attorney Robert Pitman, Homeland Security Investigations Special Agent in Charge Dennis Ulrich and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On Friday, authorities arrested El Paso County juvenile probation officer 28–year-old Timothy McCullouch, Jr., without incident. McCullouch is charged in a superseding federal grand jury indictment, returned on Wednesday (1.15.14) and unsealed following his arrest, with one count of conspiracy to commit sex trafficking of persons and one substantive count of sex trafficking of a minor. McCullouch remains in federal custody pending a detention hearing on January 24, 2014, before United States Magistrate Judge Anne T. Burton. He faces up to life in federal prison upon conviction.
In addition to McCullouch, the indictment charges five El Paso gang members for their roles in the sex trafficking scheme including: 25-year-old Deion Lockhart, 21-year-old Brandon Shapiro, 20-year-old Tai Von Lynch, 24-year-old Richard Gray, and 23–year-old Emmanual Lockhart. All five remain in custody pending trial scheduled for June 6, 2014, before United States District Judge Philip Martinez. Upon conviction, each defendant faces up to life in federal prison.
Court records allege that the defendants have been involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang between May 2012 and March 2013. The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and in Colorado.
This investigation, conducted by Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the El Paso Police Department Gang Unit, also resulted in a separate, but related, indictment. Folk Nation/Gangster Disciples members Kiry Hakeem Nalls, age 24, and Grant Rutledge, age 24, were indicted in July of last year on forced prostitution charges. Nalls and Rutlege also face up to life imprisonment upon conviction. Their trial is currently set for March 3, 2014, before Judge Martinez.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Assistant United States Attorneys Rifian Newaz and Robert Almonte are prosecuting these cases on behalf of the Government.
Income Tax Return Fraudsters Headed to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Margo Marvette Stafford, Richard Clayton and Mark Jerome Jackson have been sentenced to federal prison for conspiring to use stolen identities to file fraudulent income tax returns, announced United States Attorney Kenneth Magidson. All previously entered guilty pleas in relation to the case.
Today, Senior U.S. District Judge John D. Rainey sentenced Stafford to a term of 12 months and one day in federal prison followed by three years of supervised release. She was further ordered to pay restitution of $98,493. Jackson and Clayton had been sentenced previously to respective terms of six and 14 months, each to be followed by three years of supervised release. The court further ordered restitution to be paid by Jackson and Clayton in the amounts of $19,871 and $75,668, respectively.
In 2011, Internal Revenue Service – Criminal Investigation (IRS-CI) and the U.S. Postal Inspection Service (USPIS) began investigating a fraudulent tax refund scheme in the Corpus Christi area. During the course of the investigation, nine bank accounts were identified which received numerous fraudulent tax refund deposits. Those accounts were opened and controlled by Stafford, Clayton and Jackson.
At the time of their pleas, each admitted they were part of a conspiracy to defraud the United States, acknowledging they opened and maintained bank accounts for the purpose of receiving funds generated by fraudulent tax returns filed using stolen identities. Clayton also admitted he prepared and submitted some of the fraudulent tax returns using stolen identifying information provided by a co-conspirator. Stafford acknowledged stealing identity information from medical files at two nursing homes where she was employed and forwarding that information to a co-conspirator to use in the preparation of fraudulent tax returns. Stafford further admitted to receiving debit cards through the U.S. mail used to access $40,242 resulting from an additional 15 fraudulent tax returns.
Stafford opened and maintained three accounts which had received deposits tied to 47 fraudulent tax returns filed in the names of 47 different victims resulting in electronic tax refund deposits totaling $54,910. An additional seven fraudulent tax returns requested $14,848 in tax refunds, but were detected as fraudulent and not deposited. Agents found 43 fraudulent tax refunds were deposited into five accounts Clayton controlled totaling $56,732.30, with an additional 19 fraudulent income tax returns requesting $31,841 determined to be fraudulent and not deposited. The one account used by Jackson had 17 electronic tax refund deposits related to fraudulent tax returns filed in the names of 17 different individuals, totaling $19,871.
Stafford was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons (BOP) facility to be determined in the near future. Jackson has also been allowed to voluntarily surrender, while Clayton has already reported to a BOP facility to serve his sentence.
These cases were investigated by IRS-CI and USPIS and are being prosecuted by Assistant United States Attorney Robert D. Thorpe Jr.
Honolulu Tax Preparer Sentenced for Tax Crimes Related to Hawaii Clients and Her Own Tax ReturnRead the Press Release
HONOLULU - United States District Court Judge J. Michael Seabright today sentenced Honolulu tax preparer Merla Balubar, age 59, to 24 months imprisonment for falsifying information on an income tax return she prepared for another person and for falsifying her own tax return. Judge Seabright ordered Balubar to pay restitution totaling $326,799 to the United States.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said according to documents filed in connection with the case:
- Balubar a resident of Ewa Beach, provided tax preparation services while doing business as Filcom Tax Services LLC. Balubar would prepare returns for clients for a fee and her activities covered tax years 2006 through 2009, with specific returns being prepared and submitted to the Internal Revenue Service (IRS) from 2007 through 2010. The returns contained materially false information that resulted in refunds, to which the clients were not entitled, or reduced the tax liability for the filer. This was accomplished by including within the returns false overstatements of deductible expenses.
- Balubar also prepared a Joint United States Individual Income Tax Return, Form 1040, for herself and her husband, for tax year 2007. This tax return contained materially false statements of fact by under reporting income from business operation, income from rental property, and gambling income. In addition, the return also contained false itemized deductions. Balubar also admitted to filing false returns for tax years 2008 and 2009.
The case resulted from an investigation conducted by IRS - Criminal Investigation. Assistant United States Attorney Ronald G. Johnson handled the prosecution.
Hawthorne Man with History of Mental Illness Indicted on Gun ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces the arrest and charging of David Harris Dunaway (58, Hawthorne) for being an individual adjudicated as mentally defective and having been committed to a mental institution, in possession of a firearm and ammunition. If convicted, Dunaway faces a maximum penalty of ten years in federal prison.
Dunaway was indicted on December 18, 2013.
According to the indictment, on or about October 9, 2013, Dunaway knowingly possessed a Smith & Wesson .40 caliber semi-automatic pistol and 50 rounds of ammunition. In 1992, he was found not guilty of homicide, by reason of insanity. Subsequently, Dunaway was involuntarily committed to a mental institution for five years. When arrested, in Alachua County, Florida, Dunaway had 37 guns and more than 1,000 rounds of ammunition in his vehicle.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.