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28 February 2014
Copley Man Charged with Defrauding Investors Out of $1.8 MillionRead the Press Release
A 14-count criminal information was filed charging a Copley man with operating a fraudulent investment scheme which caused investors to lose approximately $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Davian, 34, was charged with one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering.
“This defendant took advantage of his clients’ trust to steal from them and live the high life,” Dettelbach said. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”
The information charges that between July 2008 and July 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss.
Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others. Instead, he used the investors’ monies to redeem earlier investors, enrich himself and pay off personal expenses, such as the purchase of an Audi Q7 Prestige, according to the information.
The investigation revealed that Davian cajoled investors’ into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was and by falsifying client account statements, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Matthew Cronin and James Morford following an investigation by agents of the United States Secret Service, the Internal Revenue Service and the United States Postal Service.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cherryville's Former Finance Director Sentenced to Two Years for Embezzling More Than $435,000 from the CityRead the Press Release
CHARLOTTE, N.C. – Cherryville’s former Finance Director, Bonny Verley Alexander, was sentenced today in U.S. District Court for embezzling over $435,000 from the city, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Alexander, 59, pleaded guilty to five counts of program embezzlement for misappropriating city funds over a six year period. U.S. District Judge Robert J. Conrad, Jr. sentenced Alexander to 24 months in prison, followed by two years of supervised release. He also ordered Alexander to pay restitution in the amount of $435,294.17.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI) join U.S. Attorney Tompkins in making today’s announcement.
According to the filed documents and facts presented at today’s sentencing hearing, from about August 2005 through her retirement in December 2011, Alexander embezzled at least $435,294 of Cherryville’s funds and used the money to pay for personal expenses. As Cherryville’s Finance Director, Alexander oversaw multiple departments and had access to city funds. Among other things, Alexander was in charge of processing payroll payments to city employees, directing payments for city expenses and issuing checks on behalf of the city. Alexander also had access to Cherryville’s electronic accounting systems and was authorized to make adjustments as needed, court records indicate.
Court documents show that Alexander made weekly payroll payments to herself which were more than 300% of her actual salary, totaling approximately $309,594. Alexander also issued city checks to pay for personal expenses, including shopping and travel expenses, charged on her personal credit card. According to filed documents, after issuing the city checks payable to American Express, Alexander forged on the checks the signature of another Cherryville employee who was the authorized signatory on the account. To conceal the fraud, once the forged checks had cleared and were returned by the bank, Alexander removed them from the city’s records. Alexander issued and forged 26 checks totaling approximately $97,000, to pay off personal charges on her American Express card.
Alexander was ordered to self-report to the Federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation into Alexander was handled by the FBI and SBI. The prosecution is handled by Michael Savage, of the U.S. Attorney’s Office in Charlotte.
Charges Allege Philadelphia Woman Was Illegally Receiving Dead Mother's BenefitsRead the Press Release
Nancy Gonzalez, 74, of Philadelphia, PA, was charged today by information with one count of theft of Government funds, and one count of social security fraud, announced United States Attorney Zane D. Memeger. The information alleges that between December 29, 1994 and September 2012, Gonzalez received and converted to her own use survivor's insurance benefits intended for her mother. The benefits checks that Gonzalez’s mother received were directly deposited into an account jointly held by the defendant and the intended benefits recipient. After her mother died, Gonzalez did not report the death, resulting in fraudulent payments of approximately $155,400.33.
If convicted the defendant faces a maximum possible sentence of 15 years in prison, a $500,000 fine, and three years supervised release.
The case was investigated by the Social Security Administration’s Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Car Dealer Pleads Guilty to FraudRead the Press Release
HOUSTON – George Baumanis, 59, of Houston, has pleaded guilty to conspiracy to transport stolen property in interstate commerce, announced United States Attorney Kenneth Magidson.
Baumanis operated a car dealership called Primus Northwest located at 10600 West Road in Houston. He would browse Internet sites seeking for cars being sold by owners and travel around the country to purchase them.
Owners were persuaded to sell by promising to pay the balance of the note or lease on the cars. In the presence of the owners, checks for payment of the loan or lease in full were mailed and the cars would then be transported to Primus Northwest in Houston where the dealership would attempt to sell them. However, the checks were executed by Primus Northwest but without sufficient funds in the account. The lien holders were never repaid.
In one instance, a victim from Michigan leased a 2010 Volvo S80 from U.S. Bank and later sold the vehicle to Primus Northwest based on the promise to pay off that lease. U.S. Bank received two fraudulent checks from Primus Northwest totaling $22,187.35. No payoff was ever received by U.S. Bank and Baumanis later fraudulently sold the vehicle in Texas.
Dennis Kane was allegedly a partner of Baumanis in this scheme. The case against him is pending and he is presumed innocent unless and until found guilty through due process of law.
U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, has set sentencing for May 23, 2014, at 10:00 a.m. At that time, he faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing. d to remain free on bail pending sentencing.
The case was investigated by the U.S. Postal Inspection Service and the Houston Police Department. Assistant United States Attorney Jay Hileman is prosecuting.
California Couple Sentenced to Federal Prison for Credit Card Fraud and Identity Theft CrimesRead the Press Release
ATLANTA - Elton Lee Flenaugh and Deje D. Silas have been sentenced to federal prison for credit card fraud and identity theft crimes.
“Identity theft and credit card fraud exacts both a financial and emotional toll on its victims, harming credit histories, bank accounts, and emotional well-being,” said United States Attorney Sally Quillian Yates. “Undoing the damage can be agonizing for individual victims. Financial institutions spend untold resources investigating, detecting, and deterring such schemes. These defendants callously ignored the consequences of their scheme, and will now serve justly deserved terms in federal prison.”
“This case validates the impact of identity theft on innocent victims and our communities. The United States Secret Service will continue to collaborate with its law enforcement partners and prosecutors to ensure those nefarious individuals that commit these crimes are put behind bars,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: Flenaugh and Silas had a romantic relationship dating back several years. On February 9, 2013, Flenaugh and Silas were scheduled to fly from Atlanta to Los Angeles. During the pre-flight security screening process in Atlanta, alert TSA security officers noticed a suspicious package in Flenaugh’s carry-on bag and, upon further inspection, found nearly 100 fraudulent credit cards secreted inside a double-sealed manila envelope, which had been hidden inside an empty, foil-lined Lay’s potato chip bag. Thirty-three of the cards were embossed in Silas’ name, 28 were embossed in three different aliases used by Flenaugh, and 21 were blank and had not yet been embossed. Subsequent searches by the Atlanta Police Department revealed fraudulent driver’s licenses inside the protective case attached to Silas’ cell phone and underneath the removable insole of one of Flenaugh’s shoes in the carry-on bag.
Additional investigation revealed fraudulent credit cards, licenses, and stolen credit card account and identity information of hundreds of people. These were found in personal items seized from and during searches of Google e-mail accounts controlled by Flenaugh and Silas, an Apple iPad seized from them at the airport, and a 2007 BMW M6 automobile registered to one of Flenaugh’s aliases.
The investigation showed that the scheme began at least by early 2012 and continued until Flenaugh and Silas’ arrests in February 2013. The scheme involved obtaining credit and debit card account information of hundreds of people, which were then used to manufacture fraudulent credit cards. The cards were made to appear as if they had been issued by major financial institutions such as Chase Bank, U.S. Bank, and Capital One. The defendants also obtained personal identifying information—including Social Security numbers, dates of birth, and credit information—of dozens of people, which were used to create fraudulent driver’s licenses to use with the fraudulent credit cards. The fraudulent credit cards were then embossed with the names used on the fraudulent driver’s licenses. The issuing banks and the names embossed on the fraudulent credit cards were merely a front to make them appear legitimate. The magnetic stripes on those cards were encoded with the actual debit and credit card account information of account holders at dozens of financial institutions throughout the country, but primarily at credit unions located in California, Florida, Georgia, Oregon, and Washington.In at least three instances identified to date, Flenaugh and Silas opened fraudulent credit card accounts in one of the stolen identities and made thousands of dollars in unauthorized charges.
Elton Lee Flenaugh, a/k/a Josh Ford, a/k/a Ali Waheed, 34, of Richmond, Calif., was sentenced today to nine years, three months in federal prison, to be followed by four years of supervised release. Flenaugh was convicted on these charges on December 4, 2013, after he pleaded guilty. At sentencing, the court held Flenaugh responsible for using the credit and debit card account information and identity information of over 100 different victims to make counterfeit credit cards and driver’s licenses, and for losses between $200,000 and $400,000.In a separate case, Deje D. Silas, 22, of San Francisco, Calif., was sentenced on August 28, 2013 to three years, 5 months in federal prison, to be followed by three years of supervised release. Silas was convicted on these charges on May 21, 2013, after she pleaded guilty.
This case was investigated by the United States Secret Service. Valuable assistance was provided by the Hartsfield-Jackson Atlanta International Airport division of the Atlanta Police Department, the Office of the Chief Counsel of the Transportation Security Administration, the city of Atlanta Department of Aviation, the Miami-Dade State’s Attorney’s Office, the San Francisco Field Office of the Federal Bureau of Investigation, the Investigations Division of the California Department of Motor Vehicles, and the Oakland Police Department.
Assistant United States Attorney David M. Chaiken prosecuted the case.
Anyone who believes they may be the victim of identity theft is strongly encouraged to request and review their credit reports from the three nationwide consumer credit reporting companies; Equifax, Experion, and Trans Union, to be sure everything on the reports are authorized, and that they request a fraud alert from the companies. It is also suggested that they immediately close any accounts that have been compromised or opened fraudulently. Those who do online banking or manage other accounts online, check these accounts regularly and be sure passwords are strong. To report identity theft, contact the Federal Trade Commission at: http://www.consumer.ftc.gov/articles/0277-create-identity-theft-report or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Broward County Resident Pleads Guilty in Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that Regina James, 38, of Fort Lauderdale, pled guilty for her participation in a check cashing and stolen identity scheme. Sentencing is scheduled for May 16, 2014 at 4:00 p.m. before U.S. District Judge Marra.
Specifically, James pled guilty to one count of theft of public money, in violation of 18 U.S.C. § 641, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). At sentencing, James faces a maximum term of ten years in prison for the theft of public money charge, and a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
According to court documents, Wilson and Kate Lau owned a check cashing store called American Quick Cash (AQC). The Laus were cashing fraudulent tax refund checks arising out of fraudulent tax refund filings containing stolen identities. James was one of the seven “middle men” who brought the fraudulently obtained U.S. Treasury checks to AQC. James also brought fake Florida driver’s licenses in the names of the individuals on the checks that she cashed at AQC. James was charged 15% to cash the fraudulent checks, but Lau subsequently increased the fee to 50%. James received the stolen checks from another person and gave 40% of the amount of the check to that individual, and kept 10% for herself.
From January 2010 through June 2011, the total amount of U.S. Treasury checks cashed by James at AQC is approximately $650,617. The number of victims involved is greater than 50, but fewer than 250.
Mr. Ferrer commended the investigative efforts of IRS-CI and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bank Robber SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Recco Roger Collins, aged 45, of Albany, Georgia, was sentenced on Thursday, February 27, 2014, to serve nearly eighteen years (210 months) in Federal prison for armed bank robbery by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia. Co-defendants Tony Key and Anthony Facon were sentenced earlier for their part in the robbery. The Court also ordered Mr. Collins to pay restitution to repay the money stolen and repay costs associated with vehicle repair for vehicles stolen or damaged while apprehending the trio and medical costs of persons affected by their crimes.
Mr. Collins entered a plea of guilty to the charge on November 4, 2013. As a part of his plea agreement, Mr. Collins admitted that on February 28, 2013, he drove a get-away vehicle during the robbery of PeoplesSouth Bank located on Tennille Avenue in Donalsonville, Georgia.Mr. Collins also admitted to robbing the Trust Bank located at 607 W. 4th Street in Adel Georgia of approximately $9,279 and preparing to rob the Citizen’s Bank in Ray City, Georgia on February 7, 2013.
U.S. Attorney Michael Moore said, “Mr. Collins provided the get-away ride for two violent criminals and, while doing so, he put human lives and property in jeopardy. He has well-earned his lengthy stay in federal prison.”
Ricky Maxwell, Acting Special Agent-In-Charge, FBI Atlanta Field Office, stated: “While we are thankful that these dangerous individuals are no longer a threat to the public, we cannot underestimate the impact of what their violence did to the bank tellers, customers and community. They may not have physically harmed anyone, but the psychological harm that these victims have undergone because of these subjects is immeasurable. We will continue to pursue these violent offenders in cooperation and collaboration with our law enforcement partners to protect the citizens of our community”.
The case was investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Donalsonville Police Department, Miller County Sheriff’s Office and Seminole County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Leah E. McEwen.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Baltimore Heroin Trafficker Exiled to 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Christopher Thornton, age 26, of Baltimore, today to 11 years in prison, followed by four years of supervised release, for conspiracy to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, from July to December 2012, Thornton distributed heroin in Baltimore City; regularly collected cash drug proceeds from other members of the conspiracy; and communicated with the leaders of the conspiracy about the conspiracy’s operations. Federal agents used wire intercepts of cellular telephones of Thornton’s associates to record Thornton discussing his drug activities with other members of the conspiracy.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Arthur Schlecht Convicted in Precious Metals Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announce yesterday’s conviction of Arthur John Schlecht, 54, of Boone, North Carolina, and formerly of Miami-Dade County, for conspiracy to commit mail and wire fraud, and for wire fraud. Schlecht was convicted by a jury in Miami following a five-week trial.
The indictment charged Schlecht and others with conspiracy to commit fraud through their operation of three corporations, Global Bullion Trading Group, Inc., WJS Funding, Inc., d/b/a Capital Asset Management, and Certified, Inc., d/b/a Certified Clearing. These businesses claimed to be investment brokerage firms offering investors the opportunity to invest in gold, silver, platinum and palladium bullion, which would be stored for the investors in depository vaults. The indictment charged that the companies did not actually purchase physical metal in the name of their investors. The indictment also charged that Schlecht tried to hide his control of Global Bullion Trading Group, Inc., and Capital Asset Management, and that Schlecht used millions of dollars of company funds for his own benefit, including direct payments to family members, and for cars, maid services, home décor, landscaping, remodeling, interior furnishings, and jewelry.
Evidence at trial showed that hundreds of victims lost in excess of $25 million. Co-defendants Frederick B. Gomer, Carlos Rodriguez, Ricardo Padron and Robert Roca, who also worked at the businesses, pled guilty prior to trial.
Schlecht faces a statutory maximum sentence of up to 40 years in prison, plus fines and restitution. Schlecht will be sentenced in May by U.S. Judge Richard W. Goldberg.
Mr. Ferrer commended the investigative efforts of the FBI, USPIS, and the Florida Office of Financial Regulation. This case is being prosecuted by Senior Litigation Counsel Caroline Heck Miller and Assistant U.S. Attorney Michael R. Sherwin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
27 February 2014
Zuni Pueblo Man Pleads Guilty to Brandishing a Firearm During a Crime of ViolenceRead the Press Release
ALBUQUERQUE – Shannon D. Concho, 35, a member of Zuni Pueblo, pleaded guilty this morning to brandishing a firearm during a crime of violence, announced Acting U.S. Attorney Steven C. Yarbrough and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Concho was arrested in Oct. 2012, on an indictment charging him with three counts of assault with a dangerous weapon (a shotgun), being a felon in possession of a firearm, and brandishing a firearm during a crime of violence. According to the indictment, Concho committed all five offenses on Oct. 2, 2011, within Zuni Pueblo. At the time, Concho was prohibited from possessing firearms or ammunition because he previously had been convicted of two felonies, involuntary manslaughter and aggravated assault.
Today, Concho pleaded guilty to Count 5 of the indictment charging him with brandishing a firearm during a crime of violence. In his plea agreement, Concho admitted that on Oct. 2, 2011, he brandished a 12 gauge shotgun during and in furtherance of a crime of violence. Concho admitted assaulting two men by pointing the shotgun at one man’s head and pushing the muzzle of the shotgun into the second man.
Concho has been in federal custody since his arrest on Oct. 24, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Concho will be sentenced to seven years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Zuni Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Wounded Knee Men Charged with Theft of A Cow and CalfRead the Press Release
United States Attorney Brendan V. Johnson announced that two Wounded Knee, South Dakota, men have been indicted by a federal grand jury for Larceny.
Richard Daniel Ecoffey, a/k/a George Ecoffey, age 50, and Eugene Hunts Horses, Jr., age 43, were indicted on February 19, 2014. They appeared before U.S. Magistrate Judge Veronica L. Duffy on February 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Ecoffey and Hunts Horses stealing a cow and calf from another man on February 9, 2013, near Manderson.
The charges are merely accusations and Ecoffey and Hunts Horses are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Ecoffey and Hunts Horses were released on bond pending trial. A trial date has been set for May 6, 2014.
Willard Man Indicted for $1.9 Million Conspiracy to Distribute K2 at Bilbo's Earth StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Willard, Mo., man has been indicted by a federal grand jury for his role in a $1.9 million conspiracy to distribute synthetic drugs through his business in Battlefield, Mo.
John Waddell, 49, of Willard, was charged in a six-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Feb. 25, 2014. Waddell and his wife owned and operated Bilbo’s Earth Store at 4032 W. Lark, Suite #F in Battlefield under their company Johrri Enterprises, LLC.
The federal indictment alleges that Waddell participated in a conspiracy to distribute a controlled substance analogue in Greene County, Mo., from April 1, 2011, to Sept. 25, 2013. Waddell is also charged with maintaining a place in Battlefield, Mo., for the purpose of distributing a controlled substance analogue and with possessing several firearms in furtherance of the drug-trafficking conspiracy. Waddell was allegedly in possession of a Springfield Armory .40-caliber pistol, a Bersa 9mm pistol and a Springfield Armory 9mm pistol.
The indictment also charges Waddell with one count of money laundering and two counts of structuring a currency transaction to evade reporting requirements.
The indictment also contains forfeiture allegations, which would require Waddell to forfeit to the government any property obtained from the proceeds of the alleged violations or any property used to commit the alleged violations, including $1,928,204 (which represents the amount involved in the conspiracy); Waddell’s residential property in Willard; Waddell’s commercial property in Springfield; 83 electric, acoustic and bass guitars; a five-piece drum set; dozens of speakers and amplifiers; several guitar cases; three pistols; $32,271 seized from Waddell’s residence; a certificate of deposit in the amount of $100,000; $216,535 in the bank accounts of Johrri Enterprises, LLC, dba Bilbo's Earth Store, and $1,323 in Waddell’s bank account.
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 Special Assistant U.S. Attorney Ami Harshad Miller and Assistant U.S. Attorney Cindy Hyde. It was investigated by the Drug Enforcement Administration, COMET (the Combined Ozarks Multi-Jurisdictional Enforcement Team), the Food and Drug Administration, IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, and the Greene County, Mo., Sheriff’s Department.
Wheeling Man Convicted on Drug and Gun ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Wheeling man who was selling cocaine and heroin from a local hotel has been convicted on drug and gun charges and now faces a minimum of five years in federal prison.
United States Attorney William J. Ihlenfeld, II, announced that DALE A. DAVIS, also known as “Big Loc”, age 36, of Wheeling, entered a plea of guilty to “Possession with Intent to Distribute Crack Cocaine” and “Possession of a Firearm in Furtherance of a Drug Trafficking Offense.” In August of 2013 the Ohio Valley Drug Task Force utilized an informant to make controlled purchases of cocaine and heroin from DAVIS at the Knights Inn (formerly the Wheeling Inn) on Main Street in Wheeling. After the controlled purchases were made the Task Force obtained a search warrant for the hotel room and DAVIS was found to have a 9mm pistol, cocaine, heroin, and approximately $2,400 in cash.
DAVIS is in custody pending sentencing and faces at least 5 years in prison and up to 20 years. The case was prosecuted by Ihlenfeld and was heard by Judge Frederick P. Stamp, Jr.
In another matter before Judge Stamp, DANIEL BANKS, age 37, of Wheeling, was sentenced to 46 months in prison and six years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of a Protected Location” as well as violations of supervised release. BANKS was also ordered to forfeit $2,565 in U.S. currency which constituted proceeds from the illegal drug activity. BANKS was remanded to the custody of the United States Marshal pending designation to a Federal institution.This case was prosecuted by Assistant U.S. Attorney David J. Perri and investigated by the Ohio Valley Drug Task Force.
REBECCA L. LAMP, age 50, of New Cumberland, West Virginia, entered a plea of guilty before Judge Stamp to “Acquiring or Obtaining a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception or Subterfuge.” LAMP, who is free on bond pending sentencing, faces up to 4 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
STEDMUND CREECH, age 23, of Grafton, Ohio, entered a plea of guilty to “Felon in Possession of a Firearm” before U.S. Magistrate Judge James E. Seibert. CREECH, who is in custody pending sentencing, faces up to 10 years in prison. This case was prosecuted by Assistant U.S. Attorney Randolph J. Bernard and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Virginia Man Charged in Identity Theft RingRead the Press Release
Michael Bullock, 29, of Highland Springs, Virginia was charged today by Indictment with one count of bank fraud and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Bullock entered TD Bank branches and used false driver’s licenses and posed as the true account holders of TD Bank accounts in order with withdraw money from and cash fraudulent checks against the accounts.
Bullock faces a maximum sentence of 32 years’ in prison, including a two year mandatory term, a five year period of supervised release, a $1,250,000 fine, and a $200 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525United States Attorney Files Suit to Forfeit Ancient Italian Sarcophagus LidRead the Press Release
A civil complaint was filed today in federal court in the Eastern District of New York seeking forfeiture of an ancient Roman marble sarcophagus lid featuring a high-relief sculpture of a sleeping woman. According to Italian authorities, the piece matches photographs found in the files of convicted antiquities dealer Gianfranco Becchina. As alleged in the complaint, the antiquity is the property of Italy and is therefore forfeitable as stolen property that was unlawfully introduced into the United States.
The filing of the complaint was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), New York.
Becchina, an Italian citizen, operated an antiquities gallery in Basel, Switzerland. In February 2011, he was convicted in an Italian court of illicitly dealing in antiquities. During the investigation that led to his conviction, Swiss and Italian authorities searched Becchina’s Swiss gallery and warehouse and seized Italian archeological artifacts, commercial documents and photographs of thousands of artifacts that Becchina had sold. Among the documents in Becchina’s archive were photographs, commercial records and customs paperwork pertaining to the marble sarcophagus lid. According to these records, Becchina purchased the marble sarcophagus lid in Italy and shipped it to his gallery in Switzerland in 1981. Thirty years later, the marble sarcophagus lid, now restored, reappeared at a public exhibition in New York. On February 20, 2014, HSI agents located the antiquity in a storage facility in Long Island City, New York.
“Whether looted cultural property enters our ports today or decades ago, it is our responsibility to see that it is returned to its rightful owners, in this case, the Italian people,” stated United States Attorney Lynch. “We will continue to use all legal tools available to us to seize, forfeit and repatriate stolen cultural property.” Ms. Lynch thanked the Italian Ministry of Cultural Heritage and the Italian Carabinieri Protection of Cultural Heritage Command for their assistance.
“The forfeiture of this sarcophagus lid brings us one step closer to returning this stolen treasure to its rightful owner, the Italian people,” said James T. Hayes Jr. special agent in charge of HSI in New York. “HSI is committed to intercepting and recovering stolen cultural artifacts and repatriating them to their rightful owners.”
The government’s case is being handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 14-CV-1318
Sleeping.Beauty.Exhibits A-B
U.K. Computer Hacker Charged in Manhattan Federal Court with Hacking into Federal Reserve Computer SystemRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging LAURI LOVE, a citizen of the United Kingdom, with computer hacking and aggravated identity theft. The charges stem from LOVE’s efforts in late 2012 and early 2013 to secretly infiltrate computer servers belonging to the Federal Reserve Bank (the “Federal Reserve”), remove non-public information from those servers, and publicly disclose that information by posting it on certain websites.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Lauri Love is a sophisticated hacker who broke into Federal Reserve computers, stole sensitive personal information, and made it widely available, leaving people vulnerable to malicious use of that information. We place a high priority on the investigation and prosecution of hackers who intrude into our infrastructure and threaten the personal security of our citizens.”
Assistant Director-in-Charge George Venizelos said: “As alleged in the indictment, Love was part of a sophisticated network of criminals involved in computer intrusions. Fortunately, Love underestimated the level of sophistication and dedication maintained by the FBI Cyber Division to vigorously investigate and identify Love’s criminal hacking and identity theft. Cyber crime knows no boundaries and justice will not stop at international borders. The FBI is committed to working with private and public entities to stop computer intrusions and prevent hackers from harming victim companies and individuals. We thank the Federal Reserve Bank of New York for its assistance in this investigation.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:
LOVE is a sophisticated computer hacker who resides in the United Kingdom. From October 2012 through February 2013, LOVE worked with other computer hackers around the world to secretly gain access to the Federal Reserve’s computer servers in order to steal and then publicly disseminate confidential information found on those servers, including personal identification information of people using the Federal Reserve network.
LOVE and the other computer hackers communicated with each other by logging onto a restricted online “chat room” (the “Chat Room”) and sending messages to each other. As reflected in the Chat Room messages, in the months prior to the hack of the Federal Reserve servers, LOVE and the other hackers in the Chat Room were searching the Internet for computer servers that were running a particular software program (the “Program”). LOVE and the other hackers were aware that the Program contained a vulnerability that they could use to gain unauthorized access to those servers.
In October 2012, LOVE determined that certain of the servers that were running the Program belonged to the Federal Reserve. Thereafter, LOVE used a particular hacking method called a sequel injection to exploit the vulnerability in the Program and gain unauthorized access to certain Federal Reserve servers, including servers associated with the Federal Reserve Bank of New York. LOVE used his unauthorized access to locate and steal certain confidential information residing on the Federal Reserve servers, including the names, e-mail addresses, and phone numbers of users of the Federal Reserve computer system. LOVE then disseminated that information publicly by posting the information to a website that previously had been hacked and that he controlled.
LOVE, of Suffolk, England, has been charged with one count of computer hacking, which carries a maximum term of 10 years in prison, and one count of aggravated identity theft, which carries an additional sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative efforts of the FBI. He also thanked the Federal Reserve Bank of New York for its assistance in this investigation.
The case is being handled by the Office’s Complex Frauds Unit.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Lauri Love Indictment
Two Plead Guilty to Wire and Mail Fraud in A Debt Elimination SchemeRead the Press Release
Montgomery, Alabama - Bradford Lamar Daley, of Phenix City, Alabama, and Terril Yarham, of Missouri, pled guilty before United States Magistrate Judge Charles S. Coody, for engaging in a conspiracy to commit wire fraud, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Daley also pled guilty to money laundering and tax fraud.
According to court documents, between 2005 and 2011, Daley and Yarham solicited individuals who were heavily burdened by debt to pay them between $2500 and $5000 for debt elimination services. In exchange for the payment, Yarham promised to assume and eliminate the victims’ unsecured debt, including credit card debt, signature loans, business loans, student loans and personal loans. These debts were not eliminated as promised. During the course of this conspiracy, records show that Daley and Yarham profited over $5 million dollars. As part of the plea agreement, Daley agreed to forfeit to the United States over $5 million dollars, a beach house in Florida, almost 40 acres of land in Georgia, vehicles, and two UPS stores located in Georgia.
“Since our founding in 1772, postal inspectors have sought to ensure the U.S. Mail is not used for illegal gain,” said Robert Wemyss, United States Postal Inspector in Charge, Houston Division. “When criminals use the mail to commit fraud, postal inspectors will not hesitate to ensure they are brought to justice.”
"Daley exploited unsuspecting individuals by perpetrating a scheme that was based entirely on lies," stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. "In addition, Mr. Daley concealed the income and failed to pay taxes on the income. IRS Criminal Investigation is committed to addressing financial fraud at every level and is proud to have worked with our law enforcement partners in this case."
“I want to thank the U.S. Postal Inspection Service and the IRS for their tireless work on this case,” stated George L. Beck, U.S. Attorney. “This district is lucky to have such capable agencies protecting the victims of financial crimes. What these defendants did was deplorable and their pleading guilty is justice served.”
A sentencing date has not been set, but Daley and Yarham face a maximum sentence of 20 years in prison, five years supervised release and a fine of $250,000.
The case was investigated by the Inspectors at the United States Postal Inspection Service and the Special Agents of the IRS - Criminal Investigation. U.S. Attorney George L. Beck, Jr. and Assistant U.S. Attorney Donald Valeska are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Two More Correctional Officers Plead Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
Smuggled Drugs into Baltimore Correctional Facility and One of the Officers Had Sex With BGF Inmates; 11 Correctional Officers Have Pleaded Guilty to Date
Baltimore, Maryland – Correctional officer Ebonee Braswell, age 27, of Baltimore, pleaded guilty today to participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Another correctional officer, Danielle Forrest, age 27 pleaded guilty on February 25th to the conspiracy.
The guilty pleas were 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; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Braswell, a correctional officer at BCDC, admitted that in 2012 and 2013, she helped smuggle contraband, including drugs such as Percocet, into BCDC for further distribution by BGF members. Forrest, a correctional officer at BCDC, admitted that she worked with a BGF leader in 2012 to smuggle contraband, including marijuana, Percocet and tobacco into BCDC. She was familiar with the drug activities of other correctional officers, including Braswell. At the direction of BGF, Forrest met outside suppliers to obtain the contraband, and managed payments for drugs using her Green Dot account. Forrest had sexual relations inside BCDC with two BGF inmates.
The defendants face a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for Braswell on June 27, 2014, and for Forrest on June 16, 2014.
Eleven correctional officers have pleaded guilty to their roles in the conspiracy. Two of these correctional officers, Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 27, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014.
BGF leader Tavon White, age 37, BGF commander Steven Loney, age 25, Kenneth Parham, age 24, a BGF member, and Jermaine McFadden, age 25, an associate of BGF, also pleaded guilty to the racketeering enterprise. Parham was sentenced on February 24, 2014 to151 months in prison and Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White and Jermaine McFadden are awaiting sentencing.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Two Men Charged in Robbery and Shooting of Postal Truck DriverRead the Press Release
ATLANTA - Kendrick Watkins and Charles Jackson have been indicted by a federal grand jury for conspiracy, armed postal robbery, and discharge of a firearm during a crime of violence, in connection with the robbery and near-fatal shooting of a postal truck driver in Conley, Ga., on December 20, 2013.
“The victim in this case--an on-duty postal employee--was shot, bound, and left for dead,” said United States Attorney Sally Quillian Yates. “Postal Service employees should not have to work in fear of attack as they carry out their duties. We will prosecute violent criminals with such little regard for human life.”
“The safety and security of Postal Service employees and customers is core to the mission of the U.S. Postal Inspection Service,” said George Frazier, Assistant U.S. Postal Inspector in Charge of the Atlanta Field Office. “These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.”
According to United States Attorney Yates, the charges, and other information presented in court: On December 20, 2013, a postal truck driver conducting a routine mail pick-up in Conley, GA, was approached by two robbers, Kendrick Watkins, 39, of Rex, Ga., and Charles Jackson, 55, of Griffin, Ga. Jackson and Watkins demanded the keys to the postal truck, and when the victim did not immediately comply, the men shot him in the torso, nearly killing him. Jackson and Watkins also bound the victim’s feet and took his cell phone so that he could not run or call for help. They then drove away with the stolen truck and all its contents. The victim was forced to crawl several hundred feet to the nearest road where he flagged down a passerby for help.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the United States Postal Inspection Service.
Assistant United States Attorneys Mary Kruger and John Ghose are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Two Indicted in Two Separate Cases of Theft of Mail in BakersfieldRead the Press Release
BAKERSFIELD, Calif. — A federal grand jury returned a three-count indictment today against Keyvan Asari, 43, charging him with theft of U.S. mail, United States Attorney Benjamin B. Wagner announced.
According to court documents, Asari knowingly possessed checks in February and March of 2013 that he knew had been stolen from the mail.
Last month in a separate case, a federal grand jury returned an indictment against Christine Marie Fritzler, 44, of Kerman, for theft of U.S. mail. According to the five-count indictment, Fritzler stole mail from collection boxes at Bakersfield post offices on 2525 East Brundage Lane and 3200 Larson Lane on several occasions between June and August 2013. Fritzler’s next court appearance is on March 17, 2014.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for mail theft and to protect postal customer’s mail from theft.”
Both cases are the product of investigations by the United States Postal Inspection Service, and are part of Operation Mailbox, an ongoing effort to work with local law enforcement partners to investigate and prosecute stolen mail offenses. To date, Operation Broken Mailbox has resulted in at least 22 arrests, 33 searches, the recovery of 10 counterfeit or stolen postal keys, and the identification of more than 2,100 victims and nearly $400,000 in losses. Assistant United States Attorney Megan A. S. Richards is prosecuting the cases.
If convicted, Asari and Fritzler each face a maximum statutory penalty of five years in prison on each count and a $100,000 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Florida Businessmen Indicted on Federal Charges of Conspiring to Defraud InvestorsOver 100 Investors Lost More Than $11 Million in SchemeRead the Press Release
ORLANDO, FLA. – Donovan G. Davis, Jr., and Blayne S. Davis, both 32, have been indicted on federal charges in a Florida-based investment fraud scheme that led to more than $11 million in losses for over 100 investors, U.S. Attorney Ronald C. Machen Jr. and James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS- Criminal Investigation announced today.
The indictments, returned on Feb. 26, 2014 by a grand jury in the Middle District of Florida, charge the defendants with one count of conspiracy, five counts of mail fraud, seven counts of wire fraud, and eight counts of money laundering. Donovan Davis, Jr. also is charged individually with five counts of wire fraud and one count of money laundering. The indictment includes a forfeiture allegation seeking a money judgment representing the defendants’ proceeds from the scheme. The defendants are not related.
A third defendant, Damien L. Bromfield, 37, of Ocoee, Fla., pled guilty on Nov. 14, 2013, to conspiracy to commit wire fraud and is awaiting sentencing. Under his plea agreement, Bromfield must pay between $6,752,000 and $8,541,102 in restitution.
According to the indictment, Blayne Davis, of Naples, Fla., was the director of trading for Capital Blu Management, LLC, a Florida-based corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace. Donovan Davis, Jr., of Palm Bay, Fla., was the managing member of Capital Blu, and Bromfield was the director of operations.
“These Florida men have been charged with lying to investors while gambling away $11 million of their victims’ hard-earned savings,” said U.S. Attorney Machen. “According to the indictment, these businessmen had been deceiving investors into believing that their money was growing, when in fact their life savings were disappearing. The defendants allegedly took money for themselves and for use of a private plane while they were hiding massive losses from their investors. This indictment signals our commitment to protecting innocent investors from fraud and to pursuing those who undermine confidence in our financial markets.”
“The indictment of these two executives alleges the misuse of their positions of trust within their investment corporation,” said Special Agent in Charge Robnett. “The Special Agents of IRS-Criminal Investigation are committed to unraveling complex financial transactions and money laundering schemes and bringing justice for the investors.”
Blayne Davis and Bromfield formed Capital Blu in January 2007. In 2007, according to the indictment, Donovan Davis, Jr. solicited relatives, friends, and associates to invest in Capital Blu, resulting in substantial amounts being placed under the company’s management. Donovan Davis, Jr., became a managing member of Capital Blu in August 2007, working out of an office in Melbourne, Fla.
In or about September 2007, according to the indictment, the three men formed the CBM FX Fund, LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Many of Capital Blu’s managed-account investors transferred their investments into the CBM FX Fund.
By January 2008, according to the indictment, the three partners knew that the CBM FX Fund sustained significant trading losses, resulting in large losses for its investors. At or about that time, the indictment alleges, the men began defrauding investors by means of materially false and fraudulent pretenses, representations, and promises. These included, according to the indictment, a series of misrepresentations about Capital Blu’s trading performance, the value of the fund, and the risks of the fund.
The men allegedly conspired to post positive monthly returns to the CBM FX Fund’s investors from January through August of 2008, even though the fund and its investors had sustained net losses. In addition, the men allegedly diverted investors’ money from the fund to pay for Capital Blu’s operational expenses and personal expenses, including their salaries and payments for the use of a private airplane.
In or about September 2008, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, conducted a surprise audit of Capital Blu and suspended its operations. As of September 2008, according to the indictment, investors had invested over $16 million into the CBM FX Fund; the investors had lost over $11 million.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case was transferred to the U.S. Attorney’s Office for the District of Columbia from the Middle District of Florida. The investigation is continuing.
This case is being investigated by a task force consisting of agents from the IRS- Criminal Investigation, the U.S. Secret Service, the Florida Department of Law Enforcement, and the Brevard County, Fla., Sherriff’s Office. Related civil litigation was pursued by the Commodity Futures Trading Commission. Assistance on the criminal case was provided by Paralegal Specialists Donna Galindo and Corinne Kleinman; former Paralegal Specialist Diane Hayes; Legal Assistant Angela Lawrence; Forensic Accountant Crystal Boodoo; Information Technology Specialist Thomas (Ron) Royal; and Victim Witness Advocates Yvonne Bryant and Tasheeka Hawkins, all of the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, have assisted with guidance on asset forfeiture matters.
The case is being prosecuted by Assistant U.S. Attorneys Jonathan P. Hooks and Ephraim (Fry) Wernick of the U.S. Attorney’s Office for the District of Columbia, who are designated as Special Attorneys in the Middle District of Florida.
14-048Two Aryan Brotherhood of Texas Gang Members <br /> Plead Guilty to Federal Racketeering ChargesRead the Press Release
Two members of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Clay Jarrad Kirkland, aka “Diesel,” 35, of Dallas, and David Orlando Roberts, aka, “Chopper,” 36, of Houston, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Kirkland, Roberts and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Kirkland, Roberts and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other activities.
By pleading guilty to racketeering charges, Kirkland and Roberts admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 7, 2014, Kirkland and Roberts each face a maximum penalty of life in prison.
Kirkland and Roberts are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 23 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.Treasure Valley Contractor Sentenced for Conspiracy, Wire Fraud and Tax FraudRead the Press Release
Court Orders Forfeiture of Over $3 Million in Fraud Proceeds
BOISE – Elaine Martin, 67, of Meridian, Idaho, the former president and majority stockholder of MarCon, Inc., was sentenced today by U.S. District Judge B. Lynn Winmill to 84 months in prison followed by three years of supervised release for conspiracy, wire fraud and mail fraud, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Tax Division Kathryn Keneally announced. Martin was also sentenced to 24 months in prison for tax fraud and obstruction of justice followed by three years of supervised release. The sentences will run concurrent.
Judge Winmill ordered Martin to pay restitution of $98,825.20 to the Internal Revenue Service and $32,575.28 to the Idaho DBE Program. She was also ordered to pay costs of prosecution in the amount of $22,859.60.
The United States and the defendant entered into an agreement this week in which they stipulated that the correct forfeiture amount is $3,084,038.05. Martin paid the full amount via wire transfer to a U.S. Treasury account before sentencing.
Martin was convicted by a federal jury on September 19, 2013, of 22 criminal counts, including four counts of filing false individual and corporate tax returns, two counts of conspiracy to defraud the United States, five counts of wire fraud, five counts of mail fraud, one count of false statement, three counts of interstate transportation of property taken by fraud, one count of conspiracy to obstruct justice and one count of obstruction of justice.
“Elaine Martin’s conviction, sentence and forfeiture of more than $3 million clearly demonstrates that fraud and misrepresentations to government programs is the wrong way to run a business,” said Olson. “This office, indeed the entire Department of Justice, along with its law enforcement partners are committed to rooting out greed and dishonesty in government contracting. I commend the thorough efforts of the dedicated attorneys and agents involved in this case.”
Martin’s co-defendant, Darrell Swigert, 68, of Boise, a minority shareholder in MarCon, was found guilty of two counts of obstruction of justice and one count of conspiracy to obstruct justice. He is scheduled to be sentenced on March 19, 2014.
During the 26-day trial, the jury heard evidence that as early as 1997, Martin concealed a portion of MarCon’s business income by diverting customer payments for the sales of used materials into a separate bank account. Martin did not tell MarCon’s external accountant about the bank account or the unreported sales, and in fact organized the company’s business affairs to help conceal these sales from the external accountant, such as by personally overseeing the sales and invoicing of used materials, deleting call logs for these sales, and tracking the sales using a separate set of books. The jury also heard that Martin boasted about her failure to pay taxes on this income, referring to the separate bank account with the unreported income as a “slush fund.” When the IRS initiated a civil audit, Martin lied to the IRS revenue agent and told him that all business income was reported on MarCon’s tax returns. The evidence at trial, however, showed that neither MarCon nor Martin reported the income they received from the used material sales on their tax returns from 1997 through at least 2006.
The jury also heard evidence during trial that as early as 2000, Martin submitted false and fraudulent applications to have her construction company, MarCon, admitted and/or remain in two different federally funded programs, the U.S. Small Business Administration (SBA) 8(a) Program, and the Department of Transportation Disadvantaged Business Enterprise (DBE) Program. Both programs are designed to help economically and socially disadvantaged businesses compete in the marketplace. To be admitted into the program, the owner/shareholder that qualifies as socially disadvantaged must also demonstrate economic disadvantage, in part by having a personal net worth below a certain statutory cap.
According to evidence presented at trial, Martin took steps to artificially lower her personal net worth, such as by failing to report all of her income from MarCon, causing MarCon to pay for personal expenses such as renovations and landscaping for her home, and acquiring, holding and transferring assets into the names of nominees in order to appear to be economically disadvantaged. This allowed Martin’s construction firm, MarCon, to qualify for the DBE and SBA 8(a) programs. Martin also caused false and fraudulent tax returns to be filed for herself and MarCon, Inc., which did not report all of the income received by Martin or the company. The false returns were submitted in support of MarCon’s applications to the SBA 8(a) Program and DBE Programs for Idaho and Utah, along with false personal financial statements. The government presented evidence that Martin omitted, deleted, altered and mis-categorized entries in MarCon’s financial books and records. Martin also concealed her role or relationship in other business entities that dealt with MarCon, Inc.
The jury heard evidence that MarCon received more than $2.5 million in government contracts based on the company’s fraudulently obtained SBA 8(a) status, and that MarCon received more than $15 million in government contracts based on the company’s fraudulently obtained DBE status in the states of Idaho and Utah.
The government presented evidence that in order to impede an IRS audit of MarCon and criminal investigation into Martin, Martin and Swigert conspired to obstruct justice by fabricating documents and making false statements that sought to conceal the true nature, source, and extent of property belonging to Martin.
“Today’s sentence should be a warning to those who seek to gain preference for federal contracting opportunities through deceit and lies,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Those who take part in such activity will pay the price for their crimes. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“Tax evasion is not a victimless crime,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho. “Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules. As Martin and Swigert have discovered, operating outside the law and failing to pay taxes have severe consequences.”
“As evidenced by today’s sentencing, severe penalties await those that would seek to defraud DOT’s DBE Program,” said William Swallow, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field. Working with the Secretary of Transportation and other DOT leaders, and our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
The case was investigated by Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Administration, and the Office of Inspector General for the U.S. Department of Transportation.
Today's announcement is part of an effort by President Obama's Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, the task force is 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.
Three Philippine Nationals Sentenced for <br /> Importing High-powered Weapons into the U.S.Read the Press Release
Three Philippine nationals were sentenced in the Central District of California for illegally importing machine guns, sniper rifles, grenade launchers, a mortar launcher and military-grade ballistic vests into the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
S ergio Syjuco, 27, Cesar Ubaldo, 28, and Arjyl Revereza, 27, each of Manila, the Republic of the Philippines, were found guilty by a federal jury on March 4, 2013, of conspiring to import military-grade weapons illegally into the United States and aiding and abetting the importation of those weapons. On February 26,Ubaldo was sentenced to serve 60 months in prison, followed by two years of supervised release, and Revereza was sentenced to serve 51 months in prison, followed by two years of supervised release. On Feb. 25, 2014, Syjuco was sentenced to serve 84 months in prison, followed by three years of supervised release, and ordered to pay a $15,000 fine.
According to information presented in court, the defendants conspired to sell high-powered military and assault weapons to a buyer interested in bringing weapons into the United States to arm drug dealers in Mexican drug cartels and Mexican Mafia gang members. Ubaldo met with a prospective weapons buyer, who was actually an undercover FBI agent, and offered to introduce the agent to suppliers of high-powered firearms. Ubaldo subsequently introduced the undercover agent to Syjuco, who supplied the weapons, and Revereza, who was a police officer in the Philippines Bureau of Customs who facilitated the movement of illegal weapons through Philippines customs and eventually into the United States. The weapons included a rocket propelled grenade launcher, a mortar launcher, a single-shot grenade launcher and 12 Bushmaster machine guns, as well as explosives including mortars and grenades. The defendants also illegally imported into the United States the highest level military body armor.
The weapons, which were tracked and safeguarded by the FBI during their shipment, landed on June 7, 2011, in Long Beach, Calif., where they were seized by the FBI.
The investigation was conducted by the FBI, Secret Service and the Philippine National Bureau of Investigation. Trial Attorney Margaret Vierbuchen of the Criminal Division’s Organized Crime and Gang Section (OCGS) and Assistant U.S. Attorney Kim Dammers, who is on detail to OCGS from the Northern District of Georgia, prosecuted the case.Ten Individuals Sentenced on Methamphetamine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA – Ten individuals were sentenced by Chief Judge John Preston Bailey on methamphetamine-related drug charges.
United States Attorney William J. Ihlenfeld, II, announced that:
KEVIN LEE GREGORY, age 43, of Cleveland, West Virginia, was sentenced to 157 months in prison and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine,” and “Felon in Possession of a Firearm.” The Court also ordered the forfeiture of $1,440 in U.S. currency, three cell phones, surveillance equipment and a Mossberg 12 gauge shotgun. GREGORY was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the West Virginia State Police, the United States Marshals Service and the Webster County Sheriff’s Office.
Elkins residents MICHAEL WAYNE JOHNSON, age 32, was sentenced to 120 months in prison and three years of supervised release; NICOLE ROSELLA SPOR, age 37, was sentenced to 78 months in prison and three years of supervised release; and, EILEEN MICHAEL DESHAYES, age 28, was sentenced to 41 months in prison and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” JOHNSON and SPOR were remanded to the custody of the United States Marshal pending designation to a Federal institution. DESHAYES, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the Mountain Region Drug and Violent Crime Task Force, consisting of officers from the West Virginia State Police-Bureau of Criminal Investigations, U.S. Forest Service, Randolph County Sheriff’s Department, Tucker County Sheriff’s Department and the DEA.
ERIC SCOTT PENNINGTON, age 30, of Parsons, West Virginia, was sentenced to 97 months in prison and three years of supervised release; MICHAEL LUTHER WHITE, age 22 of Thomas, West Virginia, was sentenced to 30 months in prison and three years of supervised release; and MISTY AUTUMN GRAFTON, age 26, of Hambleton, West Virginia, was sentenced to five years probation for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” PENNINGTON was remanded to the custody of the United States Marshal pending designation to a Federal institution and WHITE, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the Tucker County Sheriff’s Department, the U.S. Forest Service and the West Virginia State Police.
RONNIE GERALD BELT, age 52, of Camden on Gauley, West Virginia, was sentenced to 97 months in prison and three years of supervised release for “Possession of Material to be Used in the Manufacture of Methamphetamine.” BELT was remanded to the custody of the United States Marshal pending designation to a Federal Institution. This case was investigated by the West Virginia State Police.
TIMOTHY ALLEN HAWKS, age 20, of Moorefield, West Virginia, was sentenced to 46 months in prison and three years of supervised release for “Possession of Material to be Used in the Manufacture of Methamphetamine.” HAWKS was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations and US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI); the Grant County Sheriff’s Office, the Hardy County Sheriff’s Office and the Moorefield Police Department.
MATTHEW PAUL SELLERS, age 25, of Annapolis, Maryland, was sentenced to 41 months in prison and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” SELLERS, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the Lewis County Sheriff’s Department and the West Virginia State Police.
The above cases were prosecuted by Assistant U.S. Attorney Stephen D. Warner.
In other cases before Judge Bailey:
DONNA STURM, age 32, of Belington, West Virginia, was sentenced to 24 months in prison and three years of supervised release for “Distribution of Marijuana” and “Felon in Possession of a Firearm.” STURM, who is free on bond, will self-report to the designated Federal institution. This case was prosecuted by Assistant U.S. Attorney Zelda E. Wesley and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the West Virginia State Police.
KENNETH RAY ANDERSON, age 40, of Cleveland, West Virginia, was sentenced to 33 months in prison and three years of supervised release for “Possession of a Firearm with a Shortened Barrel.” ANDERSON, who is free on bond, will self-report to the designated Federal institution.
BENJAMIN MCWILLIAMS, age 39, of Beverly, West Virginia, was sentenced to 18 months in prison and three years of supervised release for “Embezzlement.” MCWILLIAMS embezzled from his employee’s pension benefit fund while he was owner and operator of McWilliams Masonry. The Court ordered MCWILLIAMS to make restitution in the amount of $149,101 to his employee’s pension benefit plan as well as the forfeiture of a $90,000 money judgment. This case was investigated by Assistant U.S. Attorney Andrew R. Cogar and was investigated by the Department of Labor Office of Inspector General, the Federal Bureau of Investigation and the West Virginia Insurance Commission Office of Inspector General.
In a hearing before Magistrate Judge John S. Kaull: BARBARA ANN SPIVA, age 47, of Elkins, entered a plea of guilty to “Maintaining a Drug-Involved Premise” from the Fall of 2012 to December 29, 2012, in Randolph County for the purpose of manufacturing, storing, distributing and using methamphetamine. SPIVA, who is in custody pending sentencing faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen D. Warner and investigated by the Randolph County Sheriff’s Department and the West Virginia State Police.
Tampa Couple Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington today sentenced Tressa V. Guy to 10 years and one month in federal prison for conspiring to commit wire fraud and aggravated identity theft. The court also sentenced Guy’s husband, Brian E. Simmons, to 16 years in federal prison for wire fraud and aggravated identity theft. As part of their sentence, the court entered a money judgment against each in the amount of $790,421.28, the proceeds of the wire fraud and identity theft scheme. The court also ordered Guy and Simmons to each pay $790,421.28 in restitution.
Guy pleaded guilty on October 16, 2013. Simmons pleaded guilty to his charges on November 26, 2013.
According to court documents, Guy and Simmons, and others, orchestrated a scheme to defraud the United States Treasury by causing fraudulent federal income tax returns to be filed using stolen identities, and soliciting personal identifying information and addresses from co-conspirators in Florida and Georgia. To facilitate the scheme, the conspirators coordinated the withdrawal of fraudulently obtained tax refund amounts from prepaid debit cards. The identities used to file the fraudulent tax returns in this scheme belonged to individuals living in various states across the country. As part of the conspiracy, at least 322 federal income tax returns for tax year 2011 were filed from nine Internet Protocol (IP) addresses, claiming refunds of $2,701,844.00. The scheme resulted in a loss of $790,421.28 to the Internal Revenue Service.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Tampa Police Department, and the Monroe County (Georgia) Sheriff’s Office, with assistance from the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Sussex County Man Sentenced in Illegal Storage and Clean Water Act ViolationsRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Patrick Henry Procino, age 66, of Laurel, Delaware, was sentenced today by United States District Court Judge Richard G. Andrews to one year probation, a $50,000 fine and a $100 special assessment for one count of illegal storage of hazardous waste without a permit.
On October 15, 2013, as the owner/operator of Procino Plating, Inc. (Procino Plating), Procino entered a guilty plea on behalf of that corporation to one count of violating the Clean Water Act. Procino was also sentenced today on the Clean Water Act violation to five years’ probation, a $400 special assessment.
According to statements made at the plea hearing and documents filed in court, Procino owned and operated Procino Plating, Inc. ("the facility"), at 901 South Market Street in Blades, Delaware. Until the fall of 2007, the facility was utilized for plating and electroplating-related operations.
The Resource Conservation and Recovery Act (RCRA) defines hazardous waste to include chemical waste which due to its chemical characteristics presents a hazard to human health or the environment. RCRA mandates that producers of hazardous wastes may not store such wastes without first obtaining a storage permit from the Environmental Protection Agency (EPA). From December 2007 through May 2010, Patrick Procino stored a tank containing approximately 450 gallons of liquid hazardous waste which originally had been used at the facility on its decorative chrome plating line. This chemical waste had a ph. of 0.8 and, therefore, was a corrosive waste under RCRA.
As to Procino Plating, in the course of its operations it produced wastewater, and pursuant to a pretreatment industrial wastewater permit issued by Sussex County, Procino Plating was permitted to discharge its industrial wastewater to the Seaford, Delaware treatment plant which, in turn, discharges into the Nanticoke River. Pursuant to the Clean Water Act, the permit set limits on the amount of various pollutants that Procino Plating could discharge in its industrial waste water to the Seaford treatment plant, including limits on various metals.
On or about June 1, 2009, Sussex County modified Procino Plating’s industrial user permit to specifically prohibit the discharge of waste water generated as a result of electroplating operations, and any waste or bi-products of the electroplating processes then in storage at the facility. This modification was made based upon statements and representations by Procino Plating to Sussex County officials, indicating that the business has ceased electroplating-related operations at the facility. However, from June 2009 through March 2010, Procino Plating processed, through its wastewater treatment plant, stored drums of chemicals which were leftover from its former electroplating operations and, in violation of its Clean Water Act mandated permit, discharged resulting wastewater to the Seaford treatment plant.
Following the sentencing, Charles M. Oberly, III, United States Attorney for the District of Delaware, stated, “Environmental crimes endanger the welfare of our citizens and natural resources, and where appropriate will be prosecuted to ensure the safety of our citizens.”
“For years the defendant knowingly disregarded federal and state environmental laws,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program for the Middle Atlantic States. "Improperly handling hazardous wastes and industrial pollutants can threaten the environment and put the public at serious risk. Today's sentencing demonstrates our resolve to collaborate with our state and federal counterparts to vigorously investigate and prosecute any credible allegation that a company and its leaders treat our nation's environmental laws with contempt.”
This case was investigated by the Environmental Protection Agency, Criminal Investigation Division, and the Department of Natural Resources and Environmental Control-Criminal Investigations. This case was prosecuted by Assistant United States Attorney Edmond Falgowski and Special Assistant United States Attorney Joseph Lisa.
“Sentencing for Mr. Procino culminates another environmental protection partnership effort between Delaware, EPA and the U.S. Attorney's Office,” said DNREC Secretary Collin O’Mara. “Delaware companies demonstrate every day that they can be successful while complying with environmental standards to protect public health, and DNREC works hard to assist the state's businesses in achieving these goals. Mr. Procino continually demonstrated a blatant disregard for the state’s hazardous waste regulations, and we appreciate the great efforts of the EPA and U.S. Attorney’s Office in bringing this case to a close.”Sullivan County Hedge Fund President SentencedIn White Plains Federal Court to Five and A Half Years in Prison for $12 Million Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that LLOYD BARRIGER, former president and principal shareholder of the Gaffken & Barriger Fund LLC (the “Fund”), which was a hedge fund based in Monticello, Sullivan County, New York, was sentenced today in White Plains federal court by U.S. District Judge Cathy Seibel to serve five and a half years in prison for committing securities fraud, conspiracy to commit securities fraud, mail fraud, and conspiracy to commit mail fraud in connection with a $12 million investment fraud scheme. In addition, BARRIGER was ordered to forfeit $12,387,494.01 and make restitution of $9,370,416.08 to his victims. He was also ordered to surrender to start serving his prison term on April 28, 2014.
U.S. Attorney Preet Bharara stated: “The trust put in Lloyd Barriger, a Sullivan County hedge fund manager, by hopeful investors proved to be sadly misplaced. Barriger took in $12 million of investments by lying to investors about the hedge fund’s performance. We hope that the sentence imposed today will serve as deterrence for other fund operators who may be tempted to lie.”
According to the Superseding Indictment and other documents previously filed in White Plains federal court:
From July 2006 through March 2008, when he froze the Fund, BARRIGER solicited over $12 million dollars from approximately 70 investors by deceiving them about the Fund’s performance. During this time period, the Fund invested primarily in real estate collateralized commercial mortgage loans. BARRIGER described the Fund to prospective investors as a safe and liquid investment that paid a minimum return of 8% per year, which BARRIGER referred to as the “Preferred Return.” He then reported this Preferred Return to investors as income on periodic account statements produced by the Fund. In reality, the Preferred Return reported to the investors greatly exceeded the funds actual performance.
BARRIGER tricked investors into investing their money by concealing material information from them, including that (1) the Fund had incurred a loss of $600,000 in 2005; (2) the Fund lacked sufficient income to support the promised 8% Preferred Return; (3) the Fund only continued to pay the Preferred Return -- when it actually paid the return rather than simply credit it to investors’ accounts -- by funding payments with investor capital, rather than income; (4) the Fund disguised the lack of income by creating a large and growing deficit in BARRIGER’s capital account with the Fund; (5) as a result of the failure of its borrowers to repay their loans, the Fund experienced a severe liquidity crunch and could not meet a substantial amount of withdrawal requests; (6) the Fund had defaulted on its $20 million line of credit with a third party lender in March 2007 and remained in default for much of the period thereafter, which entitled the lender to prohibit distributions to investors and to seize the Fund’s assets; and (7) delinquencies on the Fund’s loan portfolio spiked to over approximately 25% in July 2007 and increased to approximately 34% in November 2007.
In a letter dated May 30, 2008, BARRIGER told the investors that the Fund wrote down the value of the portfolio by approximately 40% and that there was a total reduction in investors ‘capital accounts from $25,538,530 to $15,003,208.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission for its extraordinary assistance in the investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the White Plains Division. Assistant United States Attorney John P. Collins, Jr. is in charge of the prosecution.
U.S. v. Lloyd Barriger S1 Indictment
Statement on Condition of Attorney General Eric HolderRead the Press Release
Director of Public Affairs Brian Fallon released the following statement this morning:
“During his regular morning meeting with senior staff, the Attorney General began experiencing symptoms including faintness and shortness of breath. As a precaution, the Attorney General was taken to MedStar Washington Hospital Center to undergo further evaluation. He is currently resting comfortably and in good condition. He is alert and conversing with his doctors. Additional information will be provided as it becomes available.”
Statement on Attorney General Eric Holder’s <br /> Discharge from HospitalRead the Press Release
Director of Public Affairs Brian Fallon released the following statement this afternoon:
“The Attorney General has been discharged from MedStar Washington Hospital Center. He was taken there earlier today as a precaution, after experiencing lightheadedness and shortness of breath during a senior staff meeting at the Justice Department in Washington.
“The Attorney General arrived at the hospital at approximately 10:30 am, and was treated for an elevated heart rate. He received medication that quickly restored his heart rate to a normal level, and after successfully completing a full range of tests, doctors were satisfied that the Attorney General could be discharged.
“He departed the hospital at 1:15 pm. He walked out without any assistance, and has returned home, where he is resting comfortably.
“Several years ago, the Attorney General experienced similar symptoms, but in milder form that did not require serious medical attention.
“Throughout today, the Attorney General has remained alert and in good spirits. He appreciates the well wishes from so many friends and colleagues, and is grateful for the excellent care he received from the professionals at MedStar Washington Hospital Center.”South Carolina Resident Charged with Armed RobberyRead the Press Release
Case is one of many brought as a result of United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 27, 2014, Denzell D. Grant, 19, a resident of South Carolina, who was stationed at an army base in Fort Hood, Texas, at the time of the commission of alleged offense, was arraigned on a two-count Indictment which charges, in Count 1, Interference with Commerce by Robbery (Armed Robbery), and, in Count 2, Possession of a Firearm in Furtherance of a Crime of Violence. The Armed Robbery count is a federal “Hobbs Act Robbery.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois. Grant was ordered detained, that is, held without bond, pending trial, which is scheduled for April 28, 2014, in East St. Louis, Illinois.
Count 1 of the Indictment charges that Grant committed an armed robbery at Max’s One Stop Shop in Swansea, Illinois, by demanding that the clerk on duty give him the money in the cash register. Count 2 charges that, in furtherance of the armed robbery, Grant used a firearm, and that the firearm discharged.
If convicted on Count 1, Grant faces a term in prison of not more than 20 years, a fine up to $250,000, or both, and a term of supervised release of not more than three years. If convicted on Count 2, Grant faces a mandatory sentence of not less than 10 years in prison, a fine up to $250,000, or both, and a term of supervised release of not more than five (5) years. In addition, the sentence imposed on Count 2 must run consecutively to the sentence imposed on Count 1.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by the Swansea, Illinois, Police Department, and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
South American Company Agrees to Plead Guilty to Price Fixing on Ocean Shipping Services for Cars and TrucksRead the Press Release
Compañía Sud Americana de Vapores S.A. (CSAV), a Chilean corporation, has agreed to plead guilty and to pay an $8.9 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, CSAV engaged in a conspiracy to suppress and eliminate competition by allocating customers and routes, rigging bids and fixing prices for the sale of international ocean shipping services of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. CSAV participated in the conspiracy from at least January 2000 to September 2012. CSAV has also agreed to cooperate with the department’s ongoing antitrust investigation. The plea agreement is subject to court approval.
Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel. Examples of this cargo include new and used cars and trucks, as well as construction, mining and agricultural equipment.
“Today’s charges are the first to be filed in the Antitrust Division’s investigation into bid rigging and price fixing of ocean shipping services,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Because of the growth in the automobile ocean shipping industry over the past 40 years, the conspiracy substantially affected interstate and foreign commerce. Prosecuting international price-fixing conspiracies remains a top priority for the division."
According to the charge, CSAV and its co-conspirators carried out the conspiracy by, among other things, agreeing – during meetings and communications – on prices, allocating customers, agreeing to refrain from bidding against one another and exchanging customer pricing information. The department said the companies then charged fees in accordance with those agreements for international ocean shipping services for certain roll-on, roll-off cargo to and from the United States and elsewhere at collusive and non-competitive prices.
CSAV is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international ocean shipping industry, which is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection, Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Baltimore Field Office at 410-265-8080.
Seven Arrested in Synthetic Marijuana ConspiracyRead the Press Release
MIDDLESEX COUNTY, Va. – Connie Rhoades Bowler, 47, of Gloucester, Virginia; Melody Rhoades Green, 52, of Topping, Virginia; John Stacey Rhoades, 41, of Hayes, Virginia; Brandon Bowler, 22, of Gloucester, Virginia; Robert Rhoades, 19, of Hayes, Virginia; Christopher Lowery, 29, of Farnham, Virginia; and Harrell Kenneth Stockwell, Jr., 54, of Gloucester, Virginia, were arrested yesterday on charges of conspiracy to distribute and possess with intent to distribute smokeable synthetic cannabinoids (Schedule I controlled substances or analogues of Schedule I controlled substances) with intent for human consumption, and drug paraphernalia.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Scot R. Rittenberg, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS) Washington; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service-Criminal Investigation, along with Sheriff David P. Bushey of Middlesex County, Virginia; Sheriff Stanley Clarke of Essex County, Virginia; Chief James G. Ashworth of the Tappahannock Police Department; and W. Steven Flaherty, Superintendent, Virginia State Police, made the announcement after the initial appearances of the defendants before United States Magistrate Judge David J. Novak.
Each of the defendants faces a maximum penalty of 20 years’ imprisonment if convicted of the conspiracy charge. Additionally, Connie Bowler, Melody Green and John Rhoades are charged with maintaining drug involved premises for the Slipknots Trading & Tobacco stores located in Topping and Tappahannock, Virginia. That charge also carries up to 20 years’ imprisonment.
According to the indictment, the seven defendants were engaged in a conspiracy to distribute various forms of synthetic cannabinoids from May 14, 2012 until February 18, 2014. In court proceedings today and in documents filed with the court, authorities allege that Connie Bowler, Melody Green and John Rhoades were the owners of Slipknots Trading & Tobacco, LLC, a tobacco store that sold smokeable synthetic cannabinoid (“SSC”) products, often commonly referred to as “Spice,” and items ranging from water pipes to rolling papers, used to smoke SSC. The documents assert that over the course of an 18-month investigation, law enforcement made numerous controlled purchases of SSC from the Slipknots stores in Topping and Tappahannock Virginia. It is alleged that although some of the SSC that the stores sold was not yet regulated, much of the SSC purchased was in fact illegal Schedule I controlled substances or Schedule I controlled substance analogues. The authorities allege that Slipknots Trading & Tobacco sold over $3 million of SSC product over an 18 month period of time.
The investigation was conducted by ICE-HSI, IRS, the VSP Tri-River Drug Task Force and special agents with the VSP Bureau of Criminal Investigations Richmond and Chesapeake Field Offices, the Middlesex Sheriff’s Office, the Essex County Sheriff’s Office, and the Tappahannock Police Department. Assistant United States Attorney Olivia L. Norman is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Seevers Arraigned on Charges of Attempted Murder and Aggravated Sexual Abuse by ForceRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a three count indictment on Dec. 3, 2013, against William E. Seevers, 48, for one count of attempted murder and two counts of aggravated sexual abuse by force. Seevers appeared in court Feb. 27, 2014, before U.S. Magistrate Judge H. Bruce Guyton and pleaded not guilty to the charges in the indictment. He is being held pending trial, which has been set for Apr. 29, 2014, in U.S. District Court, Knoxville.
The indictment alleges that in June 2012, in the Great Smoky Mountains National Park, Seevers attempted to kill an individual by stabbing her in the neck with a knife. Additionally, Seevers engaged in sexual activity with the individual by use of force and placing her in fear of death by holding her at knife point and stabbing and punching her when she attempted to flee from him.
If convicted, Seevers faces two terms of life in prison followed by an additional 20 years.
This indictment is the result of an investigation by the National Park Service and Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer Kolman will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
San Leandro Man Sentenced to 27 Months in Prison for Student Aid Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Myron Jacobs, 41, of San Leandro, was sentenced today by United States District Judge Morrison C. England Jr. to 27 months in prison and ordered to pay $66,748 in restitution for mail fraud, associated with a student aid fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, between August 1, 2009, and December 31, 2011, Stacey and Myron Jacobs engaged in a scheme to defraud the Department of Education by recruiting individuals to act as straw students at various community colleges and applying for financial aid assistance in their names. The recruited straw students were not active students at these schools and many did not intend to become active students at these schools. Stacey Jacobs had the financial aid funds sent to addresses associated with her or to others with whom she was associated. Due to the scheme, the Department of Education lost at least $66,748.
This case is the product of an investigation by the U.S. Department of Education OIG. Assistant United States Attorney Lee S. Bickley prosecuted the case.
Myron Jacobs is currently in custody. His co-defendant Stacey Jacobs is next scheduled for a status conference on May 22, 2014. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
San Jose Man Sentenced to 15 Years for Attempting to Bomb Bank in OaklandRead the Press Release
OAKLAND – Matthew Aaron Llaneza was sentenced today to 15 years in prison, followed by supervised release for the rest of his life, for attempting to detonate a vehicle-borne explosive device at a bank in Oakland, announced Melinda Haag, United States Attorney for the Northern District of California; John P. Carlin, Acting Assistant Attorney General for National Security at the Department of Justice; and David J. Johnson, Federal Bureau of Investigation (FBI) Special Agent in Charge, San Francisco Field Office.
Llaneza, 28, of San Jose, Calif. pleaded guilty on October 10, 2013, to the sole count in an indictment returned by a federal grand jury on March 7, 2013, charging him with attempted use of a weapon of mass destruction against property used in an activity that affects interstate or foreign commerce, in violation of 18 U.S.C. § 2332a(a)(2)(B).
According to the plea agreement, Llaneza admitted to knowingly attempting to detonate a vehicle-borne explosive device, or car bomb, at the Bank of America branch at 303 Hegenberger Road in Oakland, Calif., with the goal of destroying the bank building. He constructed the car bomb with a man he believed to be connected with the Taliban and the mujahidin in Afghanistan. Unbeknownst to Llaneza, this man was an undercover agent with the FBI and the car bomb he helped to construct and attempted to detonate had been rendered inert by agents of the FBI.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge, following a guilty plea to one count of attempted use of a weapon of mass destruction against property used in an activity that affects interstate or foreign commerce, in violation of 18 U.S.C. § 2332a(a)(2)(B).
This case is being prosecuted by the Special Prosecutions and National Security Unit of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by FBI’s San Jose Resident Agency, with the assistance of the FBI San Francisco Joint Terrorism Task Force, the California Highway Patrol, the San Jose Police Department, the Oakland Police Department, the Hayward Police Department, and the Union City Police Department.
(Llaneza indictment )
San Francisco Man Sentenced to 2 Years in Prison for Assaulting A Security Guard at the Oakland Federal CourthouseRead the Press Release
OAKLAND – Antonio Chavez was sentenced yesterday to 2 years in prison for assaulting a security guard protecting the federal courthouse in Oakland, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson and Mario A. Canton, Regional Director at the Department of Homeland Security.
“The U.S. Attorney’s Office takes the safety of the personnel who protect federal employees and federal property very seriously. Our prosecution of this case, and the resulting sentence, demonstrate our commitment to holding accountable those who endanger the people who keep us safe,” said United States Attorney Melinda Haag.
“The Federal Protective Service takes full satisfaction with the outcome of this case in that there is a strong, clear message being sent emphasizing that we will investigate and prosecute to the fullest extent of the law those individuals who assault the law enforcement and security staff protecting our facilities.” said Regional Director Mario A. Canton.
On November 18, 2013, after a four-day trial, a jury convicted Chavez of assaulting a person assisting a federal officer, in violation of 18 U.S.C. § 111(a) and (b). Evidence at trial showed that on December 8, 2012, at about 3 a.m., private security guards noticed on surveillance video a group of six or seven individuals vandalizing the guard house next to the federal building in Oakland, Calif., on the corner of 12th Street and Jefferson Street. One of the guards went to the guard house to investigate the vandalism. The group largely dispersed as the guard approached, but two individuals remained when the guard arrived. As the guard continued his investigation, one of the individuals attempted to grab the guard’s flashlight and a struggled ensued. During that struggle, Chavez attacked the guard with an electric stun gun, striking him in the neck and chest and knocking him to the ground. Chavez later brandished and activated the stun gun while threatening the security guard with it. Chavez was ultimately apprehended later that night by the Oakland Police Department. At trial, Chavez testified that he acted in defense of another person. The jury rejected this claim with its guilty verdict.
Chavez, 21, of San Francisco, was indicted by a federal grand jury on February 21, 2013. Chavez was remanded into custody following his conviction at trial. The sentence was handed down by the Honorable Phyllis J. Hamilton, United States District Court Judge in Oakland. Judge Hamilton also sentenced the defendant to a 3-year period of supervised release.
Assistant U.S. Attorney Brian C. Lewis and Special Assistant U.S. Attorney Manish Kumar prosecuted this case with the assistance of Janice Pagsanjan and Noble Hughes. This prosecution is the result of an investigation by the Federal Protective Service, the Oakland Police Department, and the Federal Bureau of Investigation.
(Chavez indictment )
Salem Man Sentenced to Five Years in Federal Prison for Trafficking HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS MARTINEZ, 34, of Salem, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by four years of supervised release, for distributing heroin.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. MARTINEZ was intercepted several times over a court-authorized wiretap ordering quantities of heroin from his drug supplier, Luis Ariel Capellan Maldonado, for distribution purposes.
In addition, when he arrested on April 3, 2013, MARTINEZ was found in possession of approximately one ounce of cocaine, a digital scale and drug packaging materials.
On November 19, 2013, MARTINEZ pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
Capellan Maldonado has pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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SACRAMENTO, Calif. — A federal grand jury indicted brothers Luis Cortez-Garcia, 44, and Emiliano Cortez-Garcia, 37, of Sacramento, today charging them with unlawful manufacturing and sales of firearms, conspiracy to unlawfully manufacture and sell firearms, and several counts each related to the unlawful possession, manufacturing, and sale of short-barreled rifles, machine guns, and silencers, announced U.S. Attorney Benjamin B. Wagner; Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Joseph M. Riehl; Assistant Special Agent in Charge for Homeland Security Investigations Daniel Lane; and California Department of Justice Bureau of Firearms Chief Stephen Lindley. Both defendants are charged with being an alien in possession of firearms, and Emiliano Cortez-Garcia is also charged with being a felon in possession of firearms.
During the course of a joint investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the California Department of Justice, Bureau of Firearms (BOF), undercover agents and at least one convicted felon purchased manufactured-to-order assault weapons from the defendants. These firearms did not have any manufacturer markings or serial numbers, making them untraceable should they be involved in criminal activity. The purchases were for cash, and no background check, waiting period, or required transaction paperwork was completed.
According to search warrants unsealed today, Luis Cortez-Garcia and Emiliano Cortez-Garcia are part of a network of individuals engaged in the illegal manufacture and sale of firearms. On October 9, 2013, eleven locations were searched in Sacramento, West Sacramento, Antelope, Auburn, Ione, Placerville, and Fresno. During those searches, agents seized 345 guns, including multiple fully automatic assault rifles, illegal short-barreled rifles, and silencers.
"The conduct alleged in this case involves the systematic evasion of federal firearms laws, for profit, in a manner that created a real threat to public safety," said U.S. Attorney Wagner. "The unregistered, untraceable firearms created and sold by these defendants included multiple AR-15-style assault rifles, similar to the guns used in shootings in Newtown, Connecticut and Aurora, Colorado. Our investigation is ongoing, and we expect to charge additional persons involved in similarly dangerous commercial sales of illegal guns."
"Manufacturing and selling unmarked firearms is illegal and poses grave danger to our communities," said ATF Special Agent in Charge Riehl. "These unmarked firearms used in violent crimes are difficult, if not impossible to trace back to perpetrators of the offense."
"The federal regulations involving the manufacture, sale and export of firearms are designed to ensure that guns and other weapons don't end up in the hands of criminals and others bent on doing us harm," said Daniel Lane, assistant special agent in charge for ICE Homeland Security Investigations in Sacramento. "As this case demonstrates, HSI, together with our law enforcement partners, are aligned in the effort to target those who seek to profit by circumventing these laws with zero regard for the public's safety."
According to court records, the defendants operated shops in Sacramento and Fresno and manufactured and sold AR-15-style pistols and rifles. The defendants did not have a license to manufacture or sell firearms. Further, the defendants sold firearms without filling out required ATF or BOF firearm transaction reports or subjecting the buyer to a background check or waiting period. In addition, as an illegal alien and a felon, the defendants were prohibited from possessing firearms.
According to federal law, a person may manufacture a firearm for personal use without including a serial number on the firearm, provided that the firearm is not sold or transferred to another person. Otherwise, to manufacture a firearm requires a license from ATF. A firearm that is transferred to another person must bear a serial number.
Most firearm parts are not subject to regulation by ATF and can be bought and sold without reporting the sales and without requiring a background check. According to court documents, the defendants and others involved in the scheme sold the parts necessary to assemble a firearm. The parts included a metal casting of an incomplete lower receiver called a "blank," which is not considered a firearm by ATF. The blank is eventually converted into a lower receiver using a drill press or automated machine that creates the precise shape and space necessary for the lower receiver to accept the parts that will allow the firing of a projectile. These parts (e.g., the hammer, bolt or breechblock, and firing mechanism) are the internal mechanical parts that combine with a trigger, firing pin, and other parts to form a functioning firearm. Once the blank is milled into a completed lower receiver, it is considered firearm by statute even if there is no barrel, handle, or trigger, and it is subject to federal regulation.
According to the search warrant affidavit, once a customer purchased the firearm parts including a blank lower receiver, he was directed to Emiliano Cortez-Garcia who operated the drill press. Once Emiliano Cortez-Garcia had completed machining the lower receiver, he or Luis Cortez-Garcia would assemble the completed AR-15. Customers paid cash to receive a complete firearm that bore no serial number. No ATF paperwork or background checks were completed. During the course of the investigation, ATF conducted seven undercover purchases of AR-15 firearms.
The investigation is continuing. Additional search warrants were executed yesterday at three locations in Sacramento, Rancho Cordova and Orangevale. It is anticipated that additional defendants will be charged in connection with the conduct under investigation.
This case is the product on an investigation by ATF, HSI, and the California Department of Justice's BOF, with assistance from the Sacramento Police Department, the Sacramento County Sheriff's Department, and California Highway Patrol. Assistant U.S. Attorney Justin Lee is prosecuting the case.
Search Warrant Package
Indictment
Radford Man Pleads Guilty to Operating Ponzi SchemeRead the Press Release
ROANOKE, VIRGINIA – A Radford, Va., man who bilked investors out of more than $620,000 with promises of high interest returns on investments in his company, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to federal fraud charges.
Charles G. Shomo, 63, of Radford, Va., pled guilty today to three counts of mail fraud, two counts of securities fraud and one count of money laundering. The defendant entered his guilty pleas today without the benefit of a plea agreement.
“Mr. Shomo stole the life savings of dozens of his customers, many of them elderly,” United States Attorney Timothy J. Heaphy said today. “While he is required to provide restitution, Mr. Shomo cannot restore the lost sense of trust that he stole from his victims.”
This case is the result of a thorough and cooperative investigation by the United States Postal Inspection Service, the Virginia State Corporation Commission, and the Commonwealth’s Attorneys’ Offices for Giles, Smyth, Floyd and Wythe counties, along with the Sheriff’s Offices for Giles, Smyth, Floyd, Wythe, Rockbridge counties, the City of Pulaski and the Pearisburg Police Department.
All total, Shomo obtained approximately $620,000 from over thirty victims, most of who were over the age of 65, residing in the Western district of Virginia.
According to the indictment, in 1999 Shomo founded P&G Enterprises LLC, a business originally established to purchase and set-up retail ATM and credit card processing systems throughout Virginia, West Virginia and North Carolina. P&G purportedly developed revenue from fees charged to users who obtained cash from P&G ATMs and from retailers that used P&G’s credit card processing service.
It is alleged that between December 2006 and June 2013 Shomo solicited investors under the representation that investor funds would be used to load ATM units and generally fund the operation of the ATM business. In return, Shomo offered investors promissory notes that typically matured over a one-year time period and paid an annualized interest rate of at least 5.95 percent. Unbeknownst to investors, Shomo was using investor funds for his personal expenses and to help fund an unrelated scooter business.
Additionally, Shomo is accused of using new investors’ funds to pay existing P&G note holders. The indictment claims that between March 2010 and June 2013, Shomo received in excess of $620,000 in proceeds from the sale of P&G promissory notes to investors.
Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission will prosecute the case for the United States.
Portola Valley, Calif., Man Sentenced to Prison for Failure to Report Foreign Bank Accounts Held at UBSRead the Press Release
Christopher B. Berg of Portola Valley, Calif., was sentenced yesterday to one year and one day in prison to be followed by three years supervised release, announced Assistant Attorney General for the Tax Division Kathryn Keneally and U.S. Attorney Melinda Haag for the Northern District of California. Prior to sentencing, Berg paid restitution to the Internal Revenue Service (IRS) of more than $250,000 as well as a penalty of $287,896 for failure to properly report his foreign account. Berg previously pleaded guilty to willfully failing to file the required report of foreign bank account for an account he controlled in 2005 at UBS in Switzerland that had a balance over $10,000.
According to court documents, Berg began working as a consultant in 1999. In 2000, Berg met with Beda Singenberger, a Swiss financial consultant, and a vice president of banking at UBS in San Francisco regarding setting up a bank account at UBS in Switzerland to shelter a portion of his consulting income from taxation. Beginning in 2001 and continuing through 2005, Berg used wire transfers to deposit $642,070 in earned income into UBS accounts. Berg used money in these Swiss UBS accounts to purchase a vehicle, to obtain cash while in Europe and to pay the balance on a Eurocard he used while traveling in Europe. Berg did not disclose the existence of his accounts at UBS in Switzerland to his certified public accountant, and also failed to disclose the income earned by these accounts or the consulting income deposited to the accounts. The tax harm associated with Berg’s conduct exceeded $250,000.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant Chiefs Elizabeth C. Hadden and Margaret Leigh Kessler of the Tax Division.
Pittsburgh Woman Sentenced for Collecting Federal Housing Subsidies in Pittsburgh and New YorkRead the Press Release
PITTSBURGH – A Pittsburgh woman was sentenced yesterday in federal court to three years probation and restitution of $10,513.80 on her conviction of theft of government property, United States Attorney David J. Hickton announced today.
Senior United States District Court Judge Gustave Diamond imposed sentence upon Sherrie Williams, 65.
According to information presented to the court, Williams fraudulently received federal housing subsidies totaling $10,513.80 during the period from March 2009 through May 2011. During this period, Williams was the tenant of record at a federally subsidized apartment located in Staten Island, New York, and received rent subsidies for this apartment. Throughout this same period, Williams was living in Pittsburgh, Pennsylvania in other federally subsidized housing.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Housing and Urban Development, Office of Inspector General, and the New York City Housing Authority, Office of Inspector General, for the investigation that led to the successful prosecution of Williams.
Pine Ridge Woman Charged with Health Care FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Jamie Wounded Arrow, age 26, was indicted on February 19, 2014. She appeared before U.S. Magistrate Judge Veronica L. Duffy on February 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction on either count is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Wounded Arrow presenting a falsified prescription for Hydrocodone to the Indian Health Services Pharmacy in Pine Ridge on October 16, 2013.
The charges are merely accusations and Wounded Arrow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Wounded Arrow was released on bond pending trial. A trial date has been set for April 29, 2014.
Owner of Fake Michigan Psychotherapy Clinic<br /> Sentenced for Role in Medicare Fraud SchemeRead the Press Release
The owner of two Flint, Mich., adult day care centers was sentenced today for his leadership role in a $3.2 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Glenn English, 53, was sentenced by United States District Judge Victoria A. Roberts in the Eastern District of Michigan to serve 96 months in prison. In addition to his prison term, English was sentenced to serve three years of supervised release and was ordered to pay $988,529 in restitution.
On Oct. 18, 2013, English and co-defendant Richard Hogan were found guilty by a federal jury for their roles in organizing and directing a psychotherapy fraud scheme through New Century Adult Day Program Services LLC and New Century Adult Day Treatment Inc. (together, New Century). English was convicted of one count of conspiracy to commit health care fraud and seven counts of health care fraud, and Hogan was convicted of one count of conspiracy to commit health care fraud.
E vidence presented at trial showed that from 2009 through 2012, New Century operated as an adult day care center that billed Medicare for psychotherapy services. English was New Century’s owner and chief executive officer. New Century brought in mentally disabled residents of Flint-area adult foster care (AFC) homes, as well as people seeking narcotic drugs, and used their names to bill Medicare for psychotherapy that was not provided. English and his co-conspirators lured drug seekers to New Century with the promise that they could see a doctor there who would prescribe to them the narcotics they wanted if they signed up for the psychotherapy program. New Century used the signatures and Medicare information of these drug seekers and AFC residents to claim that it was providing them psychotherapy, when in fact it was not.
The evidence also showed that English directed New Century employees to fabricate patient records to give the false impression that psychotherapy was being provided. English also instructed New Century clients to pre-sign sign-in sheets for months at a time for dates they were not there, and used these signatures to claim to Medicare that these clients had been provided services.
The evidence at trial showed that in little more than two years, New Century submitted approximately $3.28 million in claims to Medicare for psychotherapy that was not provided. Medicare paid New Century $988,529 on these claims.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case was prosecuted by Trial Attorneys William G. Kanellis and Henry P. Van Dyck of the Fraud Section, with assistance from Assistant Chief Catherine K. Dick.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Owner of Local Payroll Services Company Indicted on Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – BRADLEY FERGUSON, owner of Fenton-based Paymaster Business Solutions, Inc., was indicted late yesterday on mail fraud and money laundering charges involving his alleged failure to remit federal, state and local taxes to the proper taxing authorities that had been deducted from victim client bank accounts. Ferguson also failed to remit FICA withholding to the IRS on behalf of his business clients.
According to the indictment, from January 2005 through January 2014, Ferguson drafted funds directly from Paymaster business clients’ bank accounts in order to pay their federal, state and local tax liabilities. However, Paymaster, at Ferguson’s direction, failed to forward the Paymaster business clients’ funds to the taxing authorities in order to pay their tax liabilities then due and owing. Paymaster drafted in excess of $2,700,000 from Paymaster business clients’ bank accounts to pay client’s federal, state and local tax liabilities, as well as FICA liabilities, for the period July 2013 through December 2013, but were not forwarded to the proper taxing authorities. Additionally, the indictment alleges that Ferguson,as Power of Attorney for Paymaster business clients, was contacted directly by the IRS and questioned as to the failure of the payments of client federal tax liabilities. Fergusondid not tell his clients about the IRS inquiries. When clients occasionally learned that Paymaster had not forwarded their funds to the taxing authorities, Ferguson lied to them and told them Paymaster had made the payments. Finally, the indictment states that in December 2013, Ferguson retained the services of a commercial shredding company and directed that the Paymaster business client records be shredded and removed from the Paymaster offices.
Ferguson, Washington, MO, was indicted by a federal grand jury late Wednesday on one felony count of mail fraud and one felony count of money laundering.
Additionally, upon a finding of guilt, the defendant will be subject to a forfeiture allegation, which will require the forfeiture to the government of all money derived from the illegal activity.
If convicted, mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; money laundering carries a maximum of 5 years. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, Postal Inspection Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Owensboro, Kentucky, Man Guilty of Defrauding Elderly Couple of over $200,000 in Retirement SavingsRead the Press Release
– Money was spent on personal expenses including Hummer vehicle and motorcycle
OWENSBORO, Ky. – An Owensboro, Kentucky man pleaded guilty this week in United States District Court to mail fraud in connection with defrauding over $200,000 from an elderly Daviess County, Kentucky, couple and agreed to pay restitution in the amount of $220,000 announced David J. Hale, United States Attorney for the Western District of Kentucky.
Robert K. Gray, age 49, admitted to defrauding the couple of their retirement fund, by making material misrepresentations about an investment opportunity in the defendant’s construction company, after home improvements to the couple’s residence in excess of $300,000 were completed, an amount that is more than double the assessed value of the property.
Specifically, between January 13, 2010, through August 5, 2010, C.R. paid $338,000 to the defendant Robert Gray, and to his brother (not a defendant in the indictment), for renovations to his home which, in 2013, according to the property valuation records kept by the City of Owensboro was valued at $148,000.
Further, between July 10, 2010, and December 17, 2010, Gray is charged with devising a scheme to defraud C.R. and U.R. of their GE retirement fund in the amount of $220,000. Specifically, Gray asked C.R. to invest in his start-up company, Unlimited Constructors, to fund commercial construction projects Gray said the company had in Madisonville, Kentucky and on Highway 54 in Owensboro. Gray promised C.R. a substantial return on his investment, and promised C.R. he would get all of his investment back, with interest, when in truth and in fact, Gray knew Unlimited Constructors did not have construction projects for a shopping center in Madisonville, Kentucky, or for any commercial development on Highway 54 in Owensboro.
It was further part of the scheme to defraud that an Unlimited Constructors bank account was opened by defendant Gray at US Bank on September 27, 2010. According to the indictment, none of the funds obtained from C.R. were used in construction projects in Madisonville or Owensboro. According to bank records, the account was almost entirely funded by checks drawn on C.R.’s retirement fund, made payable to C.R. and U.R. Gray allegedly used the funds to pay for personal expenses and to purchase vehicles including a 2006 Hummer for $25,000 the day after the account was opened, and, approximately two weeks later, to purchase a 2006 Kawasaki motorcycle for $5,000.
If convicted at trial, Gray faced 120 years in prison, a $1,500,000 fine, and a three year period of supervised release. Gray is scheduled for sentencing before Chief Judge Joseph H. McKinley Jr., on May 22, 2014, in U.S. District Court in Owensboro.
This case is being prosecuted by Assistant United States Attorney Marisa Ford, and was investigated by the Federal Bureau of Investigation (FBI).
Omnicare to Pay Government $4.19 Million to Resolve <br /> False Claims Act Allegations of KickbacksRead the Press Release
Omnicare Inc., an Ohio-based long-term care pharmacy, has agreed to pay the government $4.19 million to settle allegations that it engaged in a kickback scheme in violation of the False Claims Act, the Justice Department announced today. Omnicare provides pharmaceuticals and services to long-term care facilities and residents and other senior populations.
The settlement resolves allegations that Omnicare solicited and received kickbacks from the drug manufacturer Amgen Inc. in return for implementing “therapeutic interchange” programs that were designed to switch Medicaid beneficiaries from a competitor drug to Amgen’s product Aranesp. The government alleged that the kickbacks took the form of performance-based rebates that were tied to market-share or volume thresholds, as well as grants, speaker fees, consulting services, data fees, dinners and travel.
“Kickbacks are designed to influence decisions by health care providers, such as which drugs to prescribe,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Americans who rely on federal health care programs, particularly vulnerable patients in skilled nursing facilities, are entitled to feel confident that decisions about their medical care are not tainted by improper financial arrangements.”
“The District of South Carolina has devoted significant resources over the last three years to pursuing claims under the False Claims Act, and this settlement is the latest example of this office’s successful efforts,” said U.S. Attorney for the District of South Carolina William Nettles. “I am very proud of the work this office has done in this area.”
This civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The relator’s share in this case is $397,925.
“Kickbacks corrode our federal health care programs,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General, U.S. Department of Health and Human Services in the region covering South Carolina. “OIG is committed to unveiling these illegal reciprocal relationships, and companies making or receiving such payments can expect serious consequences.”
The settlement with Omnicare Inc. was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office for the District of South Carolina and the U.S. Department of Health and Human Services Office of Inspector General.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.The claims settled by this agreement are allegations only; there has been no determination of liability.
The False Claims Act lawsuit was filed in the U.S. District Court for the District of South Carolina and is captioned United States ex rel. Kurnik v. Amgen Inc., et al.
Nisland Woman Charged with Theft of Another Person’s IdentityRead the Press Release
United States Attorney Brendan V. Johnson announced that a Nisland, South Dakota, woman has been indicted by a federal grand jury for Access Device Fraud, False Statement on Application, and Fraudulent use of Social Security Number.
Glenda Suhr, a/k/a Glennda Suhr, a/k/a Glenda Currier, age 59, was indicted on February 19, 2014. She appeared before U.S. Magistrate Judge Veronica L. Duffy on February 26, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Suhr fraudulently acquiring the social security account number of another person and using the number to receive social security benefits between 2010 and 2013.
The charges are merely accusations and Suhr is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Social Security, Office of the Inspector General. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Suhr was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 6, 2014.
New Orleans Man, Evans Lewis, Pleads Guilty to Drug-related MurderRead the Press Release
EVANS LEWIS, a/k/a “Easy”, 22, a resident of New Orleans, pleaded guilty yesterday to the murder of Gregory Keys and shooting of Kendrick Smothers during the course of a drug trafficking crime, announced U.S. Kenneth Allen Polite, Jr. In December 2011, LEWIS and co-defendant Gregory Stewart, a/k/a “Rabbit”, a/k/a “D-Nice”, 22, were charged with participating in the homicide of Keys and the shooting of Smothers. Stewart’s trial is scheduled for July 14, 2014.
LEWIS’s guilty plea resulted from a multi-year investigation of a heroin trafficking organization that operated in an area known as the “G-Strip” in New Orleans. The G-Strip is an area encompassing the 1300 block of Gallier Street in the Ninth Ward of New Orleans. Many of the members of the G-Strip were also affiliated with a gang known as the 39ers, an alliance of heroin traffickers in the Third and Ninth Wards of New Orleans. To date, eleven individuals related to the G-Strip organization have pleaded guilty to drug trafficking-related offenses.
According to Court records, on or about May 24, 2011, LEWIS and Stewart knowingly carried and used two firearms, a 40-caliber semi-automatic handgun and a 7.62-caliber assault rifle, during and in relation to the commission of a drug trafficking crime, and in the course of this violation, caused the death of Keys through the use of a firearm.
LEWIS will be sentenced on July 17, 2014, at 10:00 a.m. He faces a maximum penalty of life imprisonment, a $250,000 fine, and a period of supervised release of not more than 5 years.
The investigation is being conducted by Special Agents of the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco and Firearms, the New Orleans Police Department, Jefferson Parish Sheriff=s Office and St. Tammany Parish Sheriff=s Office. The case is being prosecuted by Assistant U.S. Attorneys Sharan Lieberman, Maurice Landrieu and Matthew Payne.
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New Jersey Woman Charged in Identity Theft RingRead the Press Release
Celeste C. Paige, 55, of Newark, New Jersey, was charged today by Indictment with two counts of bank fraud and two counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Paige entered TD Bank and Susquehanna Bank branches and used false driver’s licenses, sometimes posing as the true account holders, in order with withdraw money from and cash fraudulent checks against the customers’ accounts.
Paige faces a maximum sentence of 64 years in prison, including a two year mandatory term of imprisonment, a five year period of supervised release, a $2.5 million fine, and a $400 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525