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27 February 2014
New Hampshire Man Sentenced to 4 Years for Heroin TraffickingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that
Derek Parker, 30, of Gonic, New Hampshire, was sentenced in United States District Court by
Judge George Z. Singal to 4 years in prison to be followed by 3 years of supervised release for conspiracy to distribute heroin. Parker pleaded guilty to the offense on November 13, 2013.
In late 2012 and early 2013, law enforcement agents learned that Parker was obtaining
10-20 grams of heroin on an almost daily basis and distributing heroin to customers in Maine and southern New Hampshire. On April 24, 2103, Parker and thirteen other individuals were indicted for conspiracy to distribute heroin. Parker was arrested shortly after he was indicted.
This case results from a joint investigation conducted by the United States Drug
Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the
Maine Drug Enforcement Agency; New Hampshire and Maine State Police, the York County
Sheriff’s Office; the Rochester, New Hampshire Police Department and the Organized Crime
Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Delahanty praised the cooperation among the law enforcement agencies noting that “these heroin traffickers were brought to justice because local, state, county and federal law enforcement agencies across two states worked closely together.”National Task Force on Wildlife Trafficking and Interpol Officials to Mark World Wildlife DayRead the Press Release
On Monday, March 3, 2014, at 2:00 p.m. EST, at an event marking World Wildlife Day, INTERPOL’s Environmental Security Sub-directorate will present an executive summary of two strategic law enforcement reports on wildlife crime: Assessment of Enforcement Responses to Tiger Crime and Elephant Poaching and Ivory in East Africa: Assessment for an Effective Law Enforcement Response. In addition, representatives of the national wildlife trafficking task force will discuss efforts to eradicate the illegal wildlife trade and better protect the world’s most iconic species from the threat of extinction.
Acting Assistant Attorney General for the Environment and Natural Resources Division Robert G. DreherU.S. Fish and Wildlife Service Director Dan Ashe, and Deputy Assistant Secretary of State Brooke Darby of the State Department’s Bureau of International Narcotics and Law Enforcement Affairs (INL) will join Benito Perez, Strategic and Operational Advisor of INTERPOL’s Environmental Security Sub-directorate at the event.
WHO: Benito Perez, Strategic and Operational Advisor of INTERPOL’s Environment Security Sub-directorate
Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division
Dan Ashe, Director of the U.S. Fish and Wildlife Service Director Deputy
Brooke Darby, Deputy Assistant Secretary of State for International Narcotics and Law Enforcement Affairs, U.S. Department of State
WHAT: Officials will discuss joint efforts to combat wildlife crime and the importance of law enforcement engagement to
protect the world’s most iconic species from the threat of extinction.
WHEN: Monday, March 3, 2014
2:00 p.m. EST
WHERE: INTERPOL Washington
145 N Street NE
Washington, D.C.
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media interested in attending should RSVP to Wyn Hornbuckle at [email protected] Press inquiries regarding logistics should be directed to [email protected] or 202-514-2007.
Nampa Woman Charged in Multi-Defendant Meth Trafficking Case Sentenced to 84 Months in PrisonRead the Press Release
Co-Defendant Pleads Guilty to Related Charges
BOISE – Wendy Demirdjian Harrison, 53, of Nampa, Idaho, was sentenced today to 84 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Harrison to serve five years of supervised release. She pleaded guilty to the charge on November 18, 2013.
According to court documents and Harrison’s admission in court, beginning in November 2012, she conspired with others, including her co-defendants, to distribute 50 grams or more of actual methamphetamine and 500 grams or more of a substance containing a detectable amount of methamphetamine.
Harrison’s co-defendant, Juan Luis Mojica-Barragan, 24, of Nyssa, Oregon, pleaded guilty today to an information charging him with conspiring to distribute methamphetamine.
According to Mojica’s plea agreement, on February 20, 2013, an undercover police officer met with Mojica and co-defendant Hernan Gomez-Gutierrez at a restaurant in Nampa to discuss methamphetamine transactions. Gomez-Gutierrez offered to sell cocaine to the officer and offered to provide a sample. Mojica was present during the conversation. After they left the restaurant, the officer followed Gomez-Gutierrez and Mojica to a residence where Mojica retrieved a clear plastic bag containing a white powdery substance. Gomez-Gutierrez separated a portion of the substance and provided it to the officer. Testing by the Drug Enforcement Administration (DEA) laboratory determined the substance weighed 1.1 grams and contained cocaine. According to the plea agreement, Gomez-Gutierrez recruited others to help him distribute methamphetamine, including other co-defendants. Mojica participated in the distribution of methamphetamine. Another co-defendant told law enforcement agents that she met with Gomez-Gutierrez and Mojica at the restaurant in Nampa on several occasions in February 2013, where Mojica provided her with approximately eight ounces of methamphetamine during those meetings.
Mojica-Barragan faces up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release. He is scheduled to be sentenced on May 21, 2014.
A federal grand jury indicted Harrison, Mojica-Barragan and nine other defendants on July 9, 2013. The indictment alleges that the defendants conspired together to distribute methamphetamine. It also contains additional charges alleging distribution of methamphetamine, distribution of cocaine, and unlawful possession of a firearm. Nine of the defendants have pleaded guilty. Two co-defendants, Jeramie Ethan Mahler, 27, of Star, Idaho, and Carlos Eberardo Tovar, 29, of Nampa, are scheduled to enter guilty pleas next week to related drug trafficking and firearms charges. Co-defendant Bobbi Eileen Woolsey, 36, of Boise, is set for sentencing on March 4, also for conspiring to distribute methamphetamine.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, with assistance from the Nampa Police Department. The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Modesto Man Indicted for Possession of MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today, charging Juan Carlos Martinez-Vargas, 29, of Modesto, with possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
The according to court documents, on February 9, 2014, Martinez-Vargas was arrested when he was attempting to deliver one pound of methamphetamine to a customer at a Modesto-area motel. A subsequent search of his car and residence resulted in the seizure of approximately 7.5 pounds of methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration and the Modesto Police Department Narcotics Team. Assistant United States Attorney Melanie L. Alsworth is prosecuting the case.
If convicted, Martinez-Vargas faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Maryland Man Sentenced to Life in Prison for Conspiring to Distribute Cocaine-Evidence at Trial Included Nearly 30 Kilograms of Cocaine, Found in A Storage Locker-Read the Press Release
WASHINGTON – Gezo G. Edwards, 40, formerly of Silver Spring, Md., was sentenced today to life in prison for conspiring to distribute large quantities of cocaine in the Washington, D.C. metropolitan area, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Edwards and two others – William M. Bowman, 35, and Henry B. Williams, 33 - were found guilty of the drug conspiracy charge in November 2012, following a five-week trial in the U.S. District Court of the District of Columbia. The three defendants were among 14 people indicted in 2011, following one of the largest recent seizures of cocaine in the area.
Bowman, formerly of Bowie, Md., was sentenced in April 2013 to a 45-year prison term. Williams, of Glenn Dale, Md., was sentenced in February 2013 to a 51-month prison term.
The Honorable Colleen Kollar-Kotelly sentenced Edwards this morning. In sentencing the defendant, Judge Kollar-Kotelly cited the seriousness of the offenses, as well as Edwards’s use of a firearm, and his attempted tampering with a juror during the trial. She also ordered that Edwards pay a $3 million forfeiture money judgment and turn over more than $360,000 in cash and bank accounts that were seized as proceeds of the drug conspiracy.
“Gezo Edwards trafficked millions of dollars of cocaine from Los Angeles into local D.C. neighborhoods,” said U.S. Attorney Machen. “He profited from the addictions that destroy lives and tear apart families. Today he will begin paying the price for the irreparable pain that his drug trafficking caused our community.”
“Today, Gezo Edwards faced the consequences of taking part in a large-scale cocaine trafficking conspiracy,” said Assistant Director in Charge Parlave. “This case took out a group that brought more than $3 million worth of cocaine into the District of Columbia and Maryland, and demonstrates the FBI’s continued dedication to large-scale investigations that target traffickers in the drug supply chain.”
“The defendants in this case were major traffickers of narcotics to the D.C. Metropolitan area,” said Chief Lanier. “Through the coordinated efforts of the Metropolitan Police Department’s Narcotics and Special Investigations Division, along with our FBI partners, and the U.S. Attorney’s Office, we have reduced the availability of drugs in this region and taken criminals off our streets.”
The indictments in the case, returned in April 2011, followed a 15-month investigation by the FBI and MPD into people suspected of acting as wholesale distributors of cocaine in the metropolitan area. The investigation determined that from January 2009 through April 2011, the defendants and others maintained a drug trafficking organization that supplied distribution amounts of cocaine and crack cocaine to dealers in the District of Columbia and Maryland.
The investigation revealed that Edwards and Bowman obtained large quantities of cocaine from sources in the Los Angeles area, which they transported back to the Washington, D.C. area for redistribution to wholesale traffickers, including Williams.
In April 2011, investigators learned that members of the defendants’ organization had arranged for a large shipment of cocaine to the area, and that they were storing it in a storage facility in Hyattsville, Md. After obtaining a search warrant, law enforcement searched the locker and recovered 29.5 kilograms of cocaine, nearly two kilograms of crack cocaine, several firearms, including an assault rifle, and packaging material, which included wrappings with cocaine residue that indicated that at least 60 additional kilograms of cocaine had passed through the storage facility and onto the streets of the Metropolitan Washington area. The cocaine had an estimated wholesale value of $1 million and an estimated street value of more than $3 million.
All told, 11 people have pled guilty to charges in the investigation. Edwards, Bowman, and Williams were the only defendants to stand trial.
During the trial, evidence was developed that Edwards was engaging in unauthorized and improper communications with a juror in attempt to influence the juror’s deliberations. As a result, the judge today imposed a sentencing enhancement on Edwards for obstruction of justice.
The prosecution grew out of the efforts of the federal Organized Crime Drug Enforcement Task Force, a multi-agency team that conducts comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the nationwide program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier commended the work of the FBI and MPD members of the task force who investigated the case. They also thanked the U.S. Attorney’s Office for the District of Maryland, the FBI’s Baltimore Division, and the Prince George’s County and Montgomery County police departments, which provided assistance. They cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeanette Litz, Regan Gibson, and Starla Stolk; former Paralegal Specialist Jeremy Stoller; and Litigation Support Specialist Ron Royal.
Finally, they acknowledged the work of Assistant U.S. Attorneys Debra Long-Doyle and Steven B. Wasserman of the Violent Crime and Narcotics Trafficking Section, and Zia M. Faruqui, of the Asset Forfeiture and Money Laundering Section, who prosecuted the case.
14-049Martinsburg Man Receives 87 Month Sentence for Cocaine TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – A Martinsburg man has been sentenced to federal prison for cocaine distribution.
United States Attorney William J. Ihlenfeld, II announced that DERRICK WAYNE WELLS, JR., a/k/a “JO JO,” age 24, of Martinsburg, was sentenced to 87 months in prison and three years of supervised release for “Possession with Intent to Distribute Crack Cocaine.” WELLS 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 Jarod J. Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.
Ihlenfeld also announced that SANDRA KUHNS, age 60, of Martinsburg, entered a plea of guilty to “False Bankruptcy Declaration.” Between December of 2009 and June of 2012, KUHNS intentionally under-reported the fees she charged and received as a bankruptcy petition preparer on more than 40 bankruptcy petitions. KUHNS, who is free on bond pending sentencing, faces up to 5 years in prison. This case was prosecuted by Assistant U.S. Attorney Andrew R. Cogar and was investigated by the Federal Bureau of Investigation.
Local Men Face Federal Drug ChargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that two men facing drug charges appeared in federal court in Beckley today before United States District Judge Irene Berger. Michael Harshaw Jr., 37, of Hinton, West Virginia, pled guilty to using a telephone to facilitate a felony drug offense and to possessing alprazolam (Xanax) without a prescription. Harshaw admitted that on October 3, 2012, he had a telephone conversation with an individual cooperating with law enforcement authorities in which they set up a meeting to do a drug deal. Later that day the two met in Hinton, and Harshaw sold the individual five oxycodone pills. Harshaw also admitted that on October 10, 2012, authorities searched his home in Hinton and found that he had 17 Xanax pills containing alprazolam, a highly addictive controlled substance. Harshaw did not have a prescription for the pills. He faces up to ten years in prison and a fine of $500,000 when he is scheduled on June 26, 2014. The case was investigated by the West Virginia State Police Bureau of Criminal Investigations.
William Smith, 40, of Crab Orchard, was sentenced to one year and two months in prison for distributing oxycodone. Smith pled guilty in November of 2013, admitting that on January 3, 2013, he sold two oxycodone pills to a person cooperating with law enforcement authorities. The drug deal took place at Smith’s residence in Crab Orchard. The case was investigated by the Raleigh County Sheriff’s Office Drug and Narcotic Investigative Unit and the Beckley Police Department Narcotics Unit.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Local Businessman Sentenced to 87 Months for Misappropriation of Federal Funds, Fraud and Money LaunderingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that today, Senior U.S. District Court Judge Sylvia H. Rambo today sentenced David R. Dodd, II, age 45, of Mechanicsburg, Pennsylvania, to 87 months imprisonment for misappropriation of federal funds and money laundering.
Dodd was also ordered to pay restitution totally approximately $21 million to suppliers, sub-contractors, Metro Bank, the City of Harrisburg and Dauphin County.
Assistant U.S. Attorney William A. Behe told the Court that Dodd’s conduct reflected far more than bad judgment. It contained false statements, hidden conflicts of interest and repeated deceptive acts. Senior Judge Rambo agreed to the Government’s request that Dodd be taken into custody by U.S. Marshals immediately after the sentencing.
According to United States Attorney Peter Smith, Dodd pleaded guilty in November 2011. He was charged in two separate indictments returned by federal grand juries in June 2010 and January 2011, both involving fraudulent real estate and business deals associated with the Capital View Commerce Center (CVCC), a failed construction project in Harrisburg.
Dodd utilized a business he owned known as Industrial Design and Construction, Inc. (IDC) as part of the Capital View Commerce Center (CVCC) project to purchase pre-cast concrete forms for use in the construction of the building.
Dodd concealed his own personal interest in IDC in violation of federal conflict of interest requirements and, through that concealment, wrongfully obtained over one million dollars of funds from HUD through programs administered by the City of Harrisburg and Dauphin County. These funds were placed into a brokerage account at Dodd’s direction to conceal the existence and ownership of the misappropriated funds.
Dodd was also paid $860,454 in HUD funds through programs administered by the City of Harrisburg and Dauphin County to pay contractors who performed and completed work on the CVCC project. Although Dodd, through his business Cameron Real Estate, LP, received that money, Dodd kept the money and did not pay the contractors as he was obligated to do.
After five days of hearings to establish the amount of the loss resulting from Dodd’s conduct, Judge Rambo filed a 37-page opinion on October 15, 2013 awarding $20,943,635.13 in restitution as follows: H&R Mechanical, $1,255,468.62
Weaver Glass, $594,890.00
Stone Fire Protection, $308,755.40
Scheadler Yesco, $390,767.05
Stewart-Amos Steel, $622,146.52
Ciesco, $118,218.11
Macri Concrete, $323,057.70
H.W. Nauman, $31,672.47
Herre Brothers, Inc., $1,265,237.50
Metro Bank, $9,489,864.88
Dauphin County, $2,752,450.64
City of Harrisburg, $3,512,777.70 and $308,328.54Victims’ statements were read into the record of the sentencing hearing by the former owner of Herre Brothers, a contractor that went out of business as a result of Dodd’s conduct, and the City of Harrisburg.
Judge Rambo concluded that Dodd was responsible for the projects demise and the loss to the contractors.
As part of the plea agreement with the Government, Dodd agreed to forfeit to the Government $1,151,037 seized from Wells Fargo brokerage accounts, a 2008 BMW X5 vehicle, a 2008 Mercedes Benz and $58,041 in cash.
The joint investigation was conducted by the HUD’s Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation and the Dauphin County District Attorney’s Office. The case was prosecuted by Assistant United States Attorney William A. Behe. Support was provided by the U.S. Attorney’s Office Victim Rights and Asset Recovery Unit.
****Leader of Methylone Trafficking Ring Sentenced to 78 MonthsRead the Press Release
RICHMOND, Va. – Trever Tutwiler, 22, of Henrico, Va., was sentenced today to 78 months in prison, followed by 5 years of supervised release, for his leadership role in conspiring to import a kilogram of methylone into the United States from China.
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 (HSI) Washington; and Douglas A. Middleton, Chief of the Henrico County Police Division, made the announcement after sentencing by United States District JudgeJohn A. Gibney.
Tutwiler pled guilty on November 18, 2013. According to court documents, Tutwiler served as the leader of a suburban drug trafficking group that imported methylone from China. As part of the conspiracy, Tutwiler pooled money from his co-conspirators and ordered a kilogram of methylone off the website of a business located in China. Upon entering the United States, the package of methylone was discovered by law enforcement. Subsequently, law enforcement conducted a controlled delivery of the methylone to Tutwiler’s residence. After taking possession of the methylone, Tutwiler left his residence, and was apprehended by police.
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.
This case was investigated by ICE HSI and the Henrico County Police Division. Assistant United States Attorney Erik S. Siebert and Special Assistant United States Attorney Matthew Ackley prosecuted the case on behalf of the United States.Laie Woman Sentenced to 12 Months Imprisonment for Bankruptcy FraudRead the Press Release
HONOLULU – Senior United States District Judge Helen Gillmor today sentenced Michelle Malufau, age 47, of Laie, Oahu, to 12 months and 1 day imprisonment, 400 hours of community service, 3 years supervised release, a $200 special penalty assessment, and restitution to her various creditors in the amount of $33,252.14 for two counts of bankruptcy fraud related to the Chapter 7 bankruptcy that she filed in 2011. During today’s sentencing hearing, Judge Gillmor found that Malufau had repeatedly lied when she testified before the jury during her criminal trial. A jury convicted Malufau on November 12, 2013, of making false statements under penalty of perjury on documents filed in that 2011 bankruptcy, and also of testifying falsely under oath at a hearing in that same proceeding.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the evidence presented at trial showed that Malufau knowingly and fraudulently concealed at least three assets that she owned and/or controlled during her 2011 bankruptcy: a house on the North Shore of Oahu, which had over $322,000 in equity in it; a bank account; and rental income. Malufau received a discharge of over $1 million of debt through that proceeding.
The charges resulted from an investigation conducted by the Internal Revenue Service - Criminal Investigation, with assistance from the Federal Bureau of Investigation. Assistant United States Attorneys Michael Nammar and Andrea Hattan handled the prosecution.
Laguna Pueblo Man Sentenced to Thirty Months in Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Dennis George Cheresposy, 49, a member and resident of the Pueblo of Laguna, was sentenced this morning to 30 months in federal prison followed by three years of supervised release for his conviction on two assault charges. The court deferred ruling until a later time the amount of restitution Cheresposy will be required to pay to cover the costs of medical treatment for the victims.
The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Cheresposy was arrested on Jan. 18, 2013, on a two-count indictment charging him with assault with a dangerous weapon, and assault resulting in serious bodily injury. According to the indictment, Cheresposy used his fists and boots to assault a man on Oct. 20, 2011, and caused the victim to suffer serious injuries.
On July 30, 2013, Cheresposy pled guilty to Count 2 of the indictment, charging him with assault resulting in serious bodily injury, and a felony information charging him with using his hands and feet to assault a second man on May 3, 2012. During his plea hearing, Cheresposy admitted that on Oct. 20, 2011, he kicked and punched a Laguna Pueblo man, who suffered multiple rib fractures as a result of the assault. He also admitted that on May 3, 2012, he kicked and punched another Laguna Pueblo man who suffered a fractured eye orbit and bulging disc as a result of the assault. Both assaults occurred within the Pueblo of Laguna.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Police Department and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Kyle Man Charged with Health Care FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Theft in Connection with Health Care, Health Care Fraud, False Statements Relating to Health Care Matters and Acquiring Controlled Substances by Fraud.
Dean L. Hodges, age 59, was indicted on February 19, 2014. He 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 is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Hodges, while a pharmacist at the Indian Health Services Pharmacy, falsifying pharmacy records and taking Hydrocodone and Codeine for his own use between January and October 2013.
The charges are merely accusations and Hodges 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 Kathryn N. Rich is prosecuting the case.
Hodges was released on bond pending trial. A trial date has been set for April 29, 2014.
KC Man Pleads Guilty to Stealing $330,000 from ATMsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to stealing more than $330,000 from automated teller machines (ATMs) that he was hired to maintain.
Anthony T. Civella, Jr., 46, of Kansas City, waived his right to indictment by a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to bank larceny and money laundering.
From 2011 through 2013, Civella owned and operated a company called C Management Group, LLC, which serviced ATMs in the Kansas City, Mo., metropolitan area. The money in the ATMs belonged to U.S. Bank.
By pleading guilty today, Civella admitted that he stole money from the ATMs by obtaining a maintenance code to access the machines. The government believes that Civella stole approximately $330,040. Civella moved money between the ATM machines in order to conceal the theft.
Civella comingled the stolen money from the ATMs by depositing most of the cash into his personal checking account at the Holy Rosary Credit Union. Civella admitted that he deposited money from the bank larceny scheme into his personal checking account in order to conceal or disguise the location and source of the proceeds of the bank larceny.
Under federal statutes, Civella is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $750,000 and an order of restitution. Civella must forfeit to the government a $330,040 money judgment. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI, IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Johnson County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn February 27, 2014, Aaron M. Trover, 32, of Vienna, Illinois, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Trover, who had previously pled guilty to the methamphetamine offense, was sentenced to 188 months in prison, 4 years of supervised release, and fined $400. The offense occurred between June 2010, and March 2012, in Johnson, Jackson, Saline, and Williamson Counties. Evidence at the plea and sentencing hearings established that Trover was involved with others in the manufacture of methamphetamine. Trover manufactured methamphetamine and was also involved in obtaining anhydrous ammonia to be used to manufacture methamphetamine. The district court determined that Trover was responsible for the manufacture of approximately 840 grams of methamphetamine. Trover received an enhanced sentence based on his classification as a Career Offender.
The ongoing investigation is being conducted by the Johnson County Sheriff’s Office, Jackson County Sheriff’s Office, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
James Lee Bishop Pleads Guilty to Bank Fraud in One-Count Criminal InformationRead the Press Release
Memphis, TN – James Lee Bishop, 47, of Memphis, TN, pleaded guilty today to a one-count criminal information charging him with bank fraud against Community Bank in Jackson, TN, announced U.S. Attorney Edward L. Stanton III.
According to the facts revealed during the plea hearing and alleged in the criminal information, from October 2007 through July 2010, Bishop conspired with Clay McCormack, a closing attorney in Jackson, to produce fraudulent documents as part of a scheme to defraud Community Bank and First South Bank.
Bishop admitted that on or about July 17, 2009, as part of the scheme to defraud Community Bank, a residential loan was closed on a piece of property located at 319 Fairmont, Jackson, TN by McCormack. To further their scheme, McCormack created or directed the creation of a fraudulent HUD-1 showing that the first mortgage to the Bank of Jackson, in the amount of $36,000, was being paid in full.
McCormack ordered a check to be written to the Bank of Jackson in the amount of $36,000, and then on July 20, 2009, McCormack ordered an employee to void the check and instead to write a $36,000 check payable to Bishop, who deposited the check.
On December 8, 2009, McCormack created or directed the creation of a letter to Community Bank. This letter fraudulently advised Community Bank that the bank was now in “a first (1st) mortgage lien against the tract.”
McCormack then allowed Bishop to provide “cash from borrower” in the amount of $8,613.83 through his company, Premier Funding Group LLC. On the HUD-1, McCormack indicated that Cash from Borrower payment had originated from H&H Properties. In this document, McCormack indicated that the payoff of the first mortgage loan to the Bank of Jackson had occurred.
This case was investigated by the FBI Memphis, Jackson Resident Office and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney David Henry on behalf of the government.
The charges and allegations contained in the information are merely accusations, and the defendants are considered innocent unless and until proven guilty.James Lee Bishop Pleads Guilty to Bank Fraud in One-Count Criminal InformationRead the Press Release
Memphis, TN – James Lee Bishop, 47, of Memphis, TN, pleaded guilty today to a one-count criminal information charging him with bank fraud against Community Bank in Jackson, TN, announced U.S. Attorney Edward L. Stanton III.
According to the facts revealed during the plea hearing and alleged in the criminal information, from October 2007 through July 2010, Bishop conspired with Clay McCormack, a closing attorney in Jackson, to produce fraudulent documents as part of a scheme to defraud Community Bank and First South Bank.
Bishop admitted that on or about July 17, 2009, as part of the scheme to defraud Community Bank, a residential loan was closed on a piece of property located at 319 Fairmont, Jackson, TN by McCormack. To further their scheme, McCormack created or directed the creation of a fraudulent HUD-1 showing that the first mortgage to the Bank of Jackson, in the amount of $36,000, was being paid in full.
McCormack ordered a check to be written to the Bank of Jackson in the amount of $36,000, and then on July 20, 2009, McCormack ordered an employee to void the check and instead to write a $36,000 check payable to Bishop, who deposited the check.
On December 8, 2009, McCormack created or directed the creation of a letter to Community Bank. This letter fraudulently advised Community Bank that the bank was now in “a first (1st) mortgage lien against the tract.”
McCormack then allowed Bishop to provide “cash from borrower” in the amount of $8,613.83 through his company, Premier Funding Group LLC. On the HUD-1, McCormack indicated that Cash from Borrower payment had originated from H&H Properties. In this document, McCormack indicated that the payoff of the first mortgage loan to the Bank of Jackson had occurred.
This case was investigated by the FBI Memphis, Jackson Resident Office and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney David Henry on behalf of the government.
The charges and allegations contained in the information are merely accusations, and the defendants are considered innocent unless and until proven guilty.Jamaican Woman Pleads Guilty to Passport Fraud and Identity TheftRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Roxanne Williams, 31, a native and citizen of Jamaica who had been residing in the Philadelphia, Pennsylvania area, pleaded guilty before U.S. Chief District Court Judge William M. Skretny, to making false statements in connection with a fraudulent passport application and aggravated identity theft. The false statement charges carry a maximum penalty of 10 years in prison, a fine of $250,000 or both. The aggravated identity theft carries a mandatory minimum sentence of two years in prison to be imposed consecutive to any sentence imposed for the false statement charges.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that in July 2012, the defendant submitted an application for a United States Passport claiming to be a United States citizen and using the name of an unwitting person. As part of the application, Williams included copies of the other person’s birth certificate, social security card, and Florida driver’s license. An alert passport officer noted that some of information in the application was not consistent with information in a prior passport application under the same name which had been submitted a year earlier in Florida. The officer notified criminal investigators of the potential fraud.
When the defendant returned the next day to pick-up her passport, she was questioned by investigators. Initially, Williams maintained her fraudulent persona, but later admitted the fraud when a fingerprint check revealed her true identity and that there were warrants for her arrest in New York City and New Jersey for credit card fraud offenses. Upon her arrest, a search of the defendant’s vehicle revealed numerous credit cards and identity documents issued in the names of many other persons, along with a notebook containing personal information regarding the individuals whose names appeared on the credit cards.
Sentencing is scheduled for June 18, 2014, before Chief Judge Skretny.
The plea is the culmination of an investigation on the part of Special Agents of the United States Department of State, under the direction of Special Agent in Charge Roy Stillman.Jackson County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn February 27, 2014, Larry J. Dowdy, Jr., 36, of Murphysboro, Illinois, was sentenced on a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Dowdy, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 100 months in federal prison, 3 years of supervised release and fined $200. The offense occurred between 2012 and March 2013 in Jackson County. Evidence at the plea and sentencing hearings established that Dowdy was involved with others in the manufacture of methamphetamine. Dowdy manufactured methamphetamine and also obtained pseudoephedrine to be used by others to manufacture methamphetamine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration. The Carbondale Police Department also assisted in the investigation.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Incarcerated Fayette County Man Charged with Threatening the President and His FamilyRead the Press Release
PITTSBURGH - A resident of West Leisenring, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of threats against the President and the members of the immediate family of the President, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Feb. 25, named Joseph H. Savage, 34.
According to the indictment, on or about Oct. 26, 2012, while incarcerated and awaiting disposition on state charges, Savage wrote a graphic letter to the White House threatening to kill the President and the President’s family.
The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
IRS and Federal Prosecutors Crack Down on Fraud as Tax Season ApproachesRead the Press Release
TALLAHASSEE, FLORIDA — United States Attorney Pamela C. Marsh and Special Agent in Charge James D. Robnett of the Tampa Field Office of Internal Revenue Service Criminal Investigation joined today to announce their increased efforts to enforce federal income tax laws as the nation begins the tax-filing season.
From Pensacola to Gainesville, legal actions for violations of tax and monetary laws have surged. Recent trials found two guilty in Panama City of more than $500,000 in stolen identity refund fraud; six defendants throughout the district pleaded guilty in separate cases involving more than $3 million in tax fraud; and judgments of eight defendants in Pensacola, Panama City, and Tallahassee netted sentences ranging from 24 to 78 months, more than $6 million in forfeiture, and an estimated $900,000 in restitution. These recent activities, along with the indictment of five more individuals, make up part of the increased enforcement efforts over the recent weeks.
Ms. Marsh cautioned would-be fraudsters, “As the number of crooks willing to steal identities and tax dollars has grown, so has our ability to track, investigate, arrest, and prosecute these cases. We will pursue criminal prosecutions of all who engage in these illegal activities, with intensity. Further, to those who contemplate filing fraudulent tax returns, the recent sentences handed down by our courts should serve as a warning that offenders face serious punishment. Honest, hardworking taxpayers are entitled to this protection by law enforcement. We are ready for tax season.”
SAC Robnett warned tax cheats, “Beware! As filing season approaches, many of you may believe you can get away with committing tax fraud. But be warned: the tenacious investigators of the IRS will not stop in their pursuit of those responsible for stealing from the federal government and the American people.” In addressing the taxpaying public, SAC Robnett stated, “Our office, in partnership with prosecutors and law enforcement officers throughout the state, will dedicate the necessary resources to make an impact in the fight against fraud. You, the taxpaying members of the public, should have confidence that those who do not pay their fair share of taxes, and who steal your hard earned money, will be held accountable.”
Over the last year, here are some examples of notable tax cases in our District:Pensacola:
January 31, 2014: Douglas Edward Henderson, 51, of Fort Walton Beach, Florida, pleaded guilty to an Information charging him with five counts of submitting a false tax return, two counts of aiding in the preparation of a false tax return, one count of mail fraud, and one count of conspiracy to commit mail and wire fraud. As the president of Henderson Electric Heat and Air Conditioning and Henderson Electric, Inc., Henderson caused personal expenses to be paid from business accounts for the years 2008 through 2010, and caused their false classification as business expenses associated with contracts between his companies and MacDill Air Force base. These items were then falsely deducted on corporate tax returns and the personal income was never reported on his individual income tax return, for which he later provided false invoices to the IRS in an attempt to conceal the crime. Henderson also engaged in a fraudulent short-sale of a condominium causing the mortgage company to lose nearly $500,000. Henderson is scheduled to be sentenced by Chief U.S. District Court Judge M. Casey Rodgers on April 17, 2014, at 9 a.m.
Panama City:
February 6, 2014: Angel Done, 54, of New York, New York, was sentenced by United States District Judge Richard Smoak to 78 months in prison and was ordered to pay restitution to the IRS in conjunction with other defendants in the amount of $245,747.32. Done was the last of five defendants sentenced to federal prison for various federal tax violations. Previously, Judge Smoak sentenced Wilson Calle, 55, of New York, New York, and Blaine Johnston, 62, of Marianna, Florida, each to 78 months in prison; Wilfredo Rodriguez, 53, of Miami, Florida, to 27 months in prison; and Diana Gonzalez, 63, of Miami, Florida, to 63 months in prison. Between 2008 and 2009, the defendants prepared and filed fraudulent tax returns seeking more than $19 million in refunds.
February 6, 2014: Versiah M. Taylor, 33, and Tracy L. Collier, 48, both of Panama City, Florida, were found guilty by a federal jury on multiple counts of tax fraud, wire fraud, and identity theft. Between September 9, 2011, and August 15, 2012, the defendants prepared and filed fraudulent tax returns seeking more than $500,000 in refunds using the personal identifying information (PII) of inmates of the Florida Department of Corrections, Bay County residents, and others. Collier, who was incarcerated during the conspiracy, provided the personal information of inmates by disguising the social security numbers and dates of birth as legal case citations and then mailing them to Taylor. Taylor orchestrated the filing of multiple tax returns using false employment information and the PII of other individuals. Sentencing for both defendants is scheduled for May 7, 2014, before United States District Judge Richard Smoak.
Tallahassee:
January 23, 2014: Jerry Samuel Joseph, 33, originally of Tallahassee, Florida, pleaded guilty to conspiracy to file false tax claims for refund, theft of government property, mail fraud, and aggravated identity theft. Joseph filed at least 71 false tax returns totaling more than $315,000. Joseph is scheduled to be sentenced before U.S. District Court Judge Robert L. Hinkle on April 29, 2014. Rose Vernet, a co-conspirator who helped cash some of the refund checks produced by this fraudulent scheme, received a term of probation and was ordered to pay $20,714.45 in restitution on November 14, 2013.
February 4, 2014: Ashley Assgill Glover, 28, of Miami, Florida, pleaded guilty to one count of theft of government property, one count of possession of unauthorized devices, and one count of aggravated identity theft. Following a traffic stop by the Tallahassee Police Department, Glover was found with the PII of more than 800 victims and debit cards loaded with tax refunds linked to fraudulent tax returns. Glover was stopped two more times in the following eight months by various state and local law enforcement agencies, each time in the possession of the PII of hundreds of victims. To date, the IRS has identified fraudulent tax returns using that PII, which claim approximately $369,848 in fraudulent tax refunds. Glover is scheduled to be sentenced before U.S. District Court Judge Mark E. Walker on April 18, 2014.
February 11, 2014: Ricardo Jean-Louis, 24, of North Miami, Florida, pleaded guilty to theft of government funds, unlawful use of an access device, and aggravated identity theft. Between January and February 2012, Jean-Louis obtained six pre-paid debit cards that had been loaded with fraudulently obtained tax refunds totaling more than $50,000. The tax returns had been filed in the names of unwitting victims. Jean-Louis used several of the cards at Tallahassee banks and retailers to obtain more than $10,000 in cash and merchandise. He is scheduled to be sentenced by U.S. District court Judge Robert L. Hinkle on May 2, 2014 at 9 a.m.
February 14, 2014: U.S. District Court Judge Robert L. Hinkle sentenced William “Geri” Eaton, 60, to 27 months in prison for tax evasion and making false statements in a matter involving a health care benefit program. Between August 2010 and December 2011, Eaton willfully evaded payment of more than $650,000 in federal income taxes by concealing the nature, location, and extent of his assets, by making false and misleading statements and material omissions concerning the existence of IRS liens on his property, and by opening a bank account using a false social security number. Eaton also admitted making false statements and submitting false documents in a matter involving Sacred Heart Health System.
Gainesville:
February 13, 2014: Ricardo Jacinto Rodriguez, 37, of Tampa, Florida, pleaded guilty to charges of conspiracy to file false tax claims for refund, possession of unauthorized access devices, and aggravated identity theft. Rodriguez admitted to providing PII of more than 100 patients from the Veteran’s Administration, where he worked as a volunteer, to his co-defendant, Andropolis Mitchell, who already pleaded guilty to his participation in the fraudulent tax scheme. The investigation determined that an estimated 65 false claims for tax refunds were filed in an attempt to obtain more than $550,000, of which the defendants received approximately $212,000. Rodriguez is scheduled to be sentenced on May 19, 2014, before U.S. District Court Judge Mark E. Walker.
These cases were the result of investigations by the Special Agents of the IRS-Criminal Investigation, its federal, state, and local law enforcement partners, and prosecuted by Assistant United States Attorneys of the Northern District of Florida.
Hombres De Sacramento Acusados Por La Fabricacion Ilegal Y Venta De Rifles De AsaltoRead the Press Release
SACRAMENTO, Calif. — Un gran jurado federal acusó hoy a los hermanos Luis Cortez-Garcia, 44, y Emiliano Cortez-Garcia, 37, de Sacramento, de fabricar ilegalmente y vender armas de fuego, conspirar para fabricar ilegalmente y vender armas de fuego, y varios cargos cada uno relacionado con la posesión, fabricación ilegal y venta de rifles de cañón corto, ametralladoras y silenciadores, anunció el procurador federal del distrito oriental deCalifornia Benjamin B. Wagner; el agente especial encargado Joseph M. Riehl de la Oficina de Alcohol, Tabaco, Armas de Fuego y Explosivos; el agente especial asistente encargado de las Investigaciones de Seguridad Nacional Daniel Lane; el jefe de la Oficina de Armas de Fuego del Departamento de Justicia de California Stephen Lindley. Ambos demandados estàn acusados de ser extranjeros en posesión de armas de fuego, y Emiliano Cortez-Garcia es también acusado de ser un criminal en posesión de armas de fuego.
Durante el curso de una investigación conjunta de la Oficina de Alcohol, Tabaco, Armas de Fuego y Explosivos de los Estados Unidos (ATF), los cuerpos de Seguridad de Inmigración y Aduanas (ICE) e Investigaciones de Seguridad Nacional (HSI) de los Estados Unidos y el Departamento de Justicia de California, Oficina de Armas de Fuego (BOF), los agentes clandestinos y al menos un condenado por delito grave les compraron armas de asalto fabricadas bajo pedido a los demandados. Estas armas de fuego no tenían ninguna marca del fabricante ni números de serie, lo que las convierte en ilocalizables si se vieran implicadas en una actividad criminal. Las compras se hicieron en metàlico, sin chequeo de antecedentes, período de espera y sin completar la transacción de documentos requerida.
De acuerdo con las órdenes de registro abiertas hoy, Luis Cortez-Garcia y Emiliano Cortez-Garcia son parte de una red de individuos involucrados en la fabricación ilegal y venta de armas de fuego. El 9 de octubre de 2013, once lugares fueron registrados en Sacramento, Sacramento Occidental, Antelope, Auburn, Ione, Placerville y Fresno. Durante esos registros, los agentes se apropiaron de 345 armas, incluyendo múltiples rifles de asalto totalmente automàticos, rifles ilegales de cañón corto y silenciadores.
“La conducta alegada en este caso implica la evasión sistemàtica de las leyes federales de armas de fuego, con ànimo de lucro, de un modo que creó una amenaza real a la seguridad pública”, dijo el procurador federal Wagner. “Las armas de fuego no registradas e ilocalizables creadas y vendidas por estos demandados incluyeron múltiples rifles de asalto del tipo AR-15, similares a las armas usadas en los tiroteos de Newtown, Connecticut y Aurora, Colorado. Nuestra investigación continua y esperamos acusar a màs personas implicadas en ventas comerciales similarmente peligrosas de armas ilegales.”
“La fabricación y venta de armas sin marcas es ilegal y presenta un grave peligro para nuestras comunidades”, dijo Riehl, agente especial encargado de ATF . “Estas armas de fuego sin marcas usadas en crímenes violentos son difíciles si no imposible de rastrear su origen a los autores de la ofensa.”
“Las regulaciones federales relacionadas con la fabricación, venta y exportación de armas de fuego estàn diseñadas para asegurar que las pistolas y otras armas no terminen en las manos de criminales u otras personas empeñadas en hacernos daño”, dijo Daniel Lane, agente especial ayudante encargado de las Investigaciones de Seguridad Nacional ICE en Sacramento. “Como este caso demuestra, HSI, junto con nuestros socios de las fuerzas de seguridad, estàn reunidos en el esfuerzo de identificar aquellos que buscan lucro eludiendo estas leyes sin importarles la seguridad pública.”
De acuerdo con nuestros registros, los demandados operaron varias tiendas en Sacramento y Fresno y fabricaron y vendieron pistolas y rifles estilo AR-15. Los demandados no tenían una licencia para fabricar ni vender armas de fuego. Màs aún, los demandados vendieron armas de fuego sin completar los informes requeridos de transacción de armas de fuego ATF o BOF ni someter al comprador a un chequeo de antecedentes o período de espera. Adicionalmente, como extranjeros ilegales y criminales, a los demandados les estaba prohibido poseer armas de fuego.
De acuerdo con la ley federal, una persona puede fabricar un arma de fuego para uso personal sin incluir un número de serie en el arma de fuego, siempre y cuando el arma de fuego no sea vendida o transferida a otra persona. De otro modo, para fabricar un arma de fuego se requiere una licencia de ATF. Un arma de fuego que se transfiere a otra persona debe llevar un número de serie.
La mayoría de las piezas de armas de fuego no estàn sujetas a la regulación de ATF y pueden comprarse y venderse sin reportar las ventas y sin requerir un chequeo de antecedentes. De acuerdo con los documentos del tribunal, los demandados y otros involucrados en el esquema vendieron las piezas necesarias para producir un arma de fuego. Las piezas incluían una pieza de metal fundida de un armazón inferior llamado un “blanco”, que ATF no la considera como arma de fuego. El blanco se convierte eventualmente en un armazón inferior usando una taladradora hidràulica o màquina automatizada que crea la forma y espacio necesarios para que el armazón inferior acepte las piezas que permitiràn el disparo de un proyectil. Estas piezas (por ej., el martillo, perno o palanca de cierre ART, y mecanismo de disparo) son las partes mecànicas internas que se combinan con un gatillo, aguja de percusión y otras piezas para formar un arma de fuego en funcionamiento. Una vez que el blanco es fresado para producir un completo armazón inferior, se le considera un arma de fuego por estatuto, incluso si no existe barril, mango ni gatillo, y està sujeto a regulación federal.
De acuerdo con la declaración jurada de orden de registro, una vez que un cliente compró las piezas del arma de fuego incluyendo un armazón inferior ‘blanco’, se le indicó ir a Emiliano Cortez-Garcia que operaba la taladradora hidràulica. Una vez que Emiliano Cortez-Garcia había completado de maquinar el armazón inferior, él o Luis Cortez-Garcia montarían el AR-15 completo. Los clientes pagaban en metàlico para recibir un arma de fuego completa que no llevaba número de serie. No se completaron documentos de ATF ni chequeo de antecedentes. Durante el curso de la investigación, ATF llevó a cabo siete compras clandestinas de armas de fuego AR-15.
La investigación continúa. Ayer se ejecutaron otras órdenes de registro adicionales en tres lugares en Sacramento, Rancho Cordova y Orangevale. Se anticipa que seràn acusados otros demandados en conexión con la conducta bajo investigación.
Este caso es el producto de una investigación de ATF, HSI y el BOF del Departamento de Justicia de California, con la asistencia del Departamento de Policía de Sacramento, el Departamento del Alguacil del Condado de Sacramento y la Guardia Civil de Tràfico de California. El ayudante del procurador federal Justin Lee està procesando el caso.
Hombres De Sacramento Acusados Por La Fabricacion Ilegal Y Venta De Rifles De AsaltoRead the Press Release
SACRAMENTO, Calif. — Un gran jurado federal acusó hoy a los hermanos Luis Cortez-Garcia, 44, y Emiliano Cortez-Garcia, 37, de Sacramento, de fabricar ilegalmente y vender armas de fuego, conspirar para fabricar ilegalmente y vender armas de fuego, y varios cargos cada uno relacionado con la posesión, fabricación ilegal y venta de rifles de cañón corto, ametralladoras y silenciadores, anunció el procurador federal del distrito oriental deCalifornia Benjamin B. Wagner; el agente especial encargado Joseph M. Riehl de la Oficina de Alcohol, Tabaco, Armas de Fuego y Explosivos; el agente especial asistente encargado de las Investigaciones de Seguridad Nacional Daniel Lane; el jefe de la Oficina de Armas de Fuego del Departamento de Justicia de California Stephen Lindley. Ambos demandados estàn acusados de ser extranjeros en posesión de armas de fuego, y Emiliano Cortez-Garcia es también acusado de ser un criminal en posesión de armas de fuego.
Durante el curso de una investigación conjunta de la Oficina de Alcohol, Tabaco, Armas de Fuego y Explosivos de los Estados Unidos (ATF), los cuerpos de Seguridad de Inmigración y Aduanas (ICE) e Investigaciones de Seguridad Nacional (HSI) de los Estados Unidos y el Departamento de Justicia de California, Oficina de Armas de Fuego (BOF), los agentes clandestinos y al menos un condenado por delito grave les compraron armas de asalto fabricadas bajo pedido a los demandados. Estas armas de fuego no tenían ninguna marca del fabricante ni números de serie, lo que las convierte en ilocalizables si se vieran implicadas en una actividad criminal. Las compras se hicieron en metàlico, sin chequeo de antecedentes, período de espera y sin completar la transacción de documentos requerida.
De acuerdo con las órdenes de registro abiertas hoy, Luis Cortez-Garcia y Emiliano Cortez-Garcia son parte de una red de individuos involucrados en la fabricación ilegal y venta de armas de fuego. El 9 de octubre de 2013, once lugares fueron registrados en Sacramento, Sacramento Occidental, Antelope, Auburn, Ione, Placerville y Fresno. Durante esos registros, los agentes se apropiaron de 345 armas, incluyendo múltiples rifles de asalto totalmente automàticos, rifles ilegales de cañón corto y silenciadores.
“La conducta alegada en este caso implica la evasión sistemàtica de las leyes federales de armas de fuego, con ànimo de lucro, de un modo que creó una amenaza real a la seguridad pública”, dijo el procurador federal Wagner. “Las armas de fuego no registradas e ilocalizables creadas y vendidas por estos demandados incluyeron múltiples rifles de asalto del tipo AR-15, similares a las armas usadas en los tiroteos de Newtown, Connecticut y Aurora, Colorado. Nuestra investigación continua y esperamos acusar a màs personas implicadas en ventas comerciales similarmente peligrosas de armas ilegales.”
“La fabricación y venta de armas sin marcas es ilegal y presenta un grave peligro para nuestras comunidades”, dijo Riehl, agente especial encargado de ATF . “Estas armas de fuego sin marcas usadas en crímenes violentos son difíciles si no imposible de rastrear su origen a los autores de la ofensa.”
“Las regulaciones federales relacionadas con la fabricación, venta y exportación de armas de fuego estàn diseñadas para asegurar que las pistolas y otras armas no terminen en las manos de criminales u otras personas empeñadas en hacernos daño”, dijo Daniel Lane, agente especial ayudante encargado de las Investigaciones de Seguridad Nacional ICE en Sacramento. “Como este caso demuestra, HSI, junto con nuestros socios de las fuerzas de seguridad, estàn reunidos en el esfuerzo de identificar aquellos que buscan lucro eludiendo estas leyes sin importarles la seguridad pública.”
De acuerdo con nuestros registros, los demandados operaron varias tiendas en Sacramento y Fresno y fabricaron y vendieron pistolas y rifles estilo AR-15. Los demandados no tenían una licencia para fabricar ni vender armas de fuego. Màs aún, los demandados vendieron armas de fuego sin completar los informes requeridos de transacción de armas de fuego ATF o BOF ni someter al comprador a un chequeo de antecedentes o período de espera. Adicionalmente, como extranjeros ilegales y criminales, a los demandados les estaba prohibido poseer armas de fuego.
De acuerdo con la ley federal, una persona puede fabricar un arma de fuego para uso personal sin incluir un número de serie en el arma de fuego, siempre y cuando el arma de fuego no sea vendida o transferida a otra persona. De otro modo, para fabricar un arma de fuego se requiere una licencia de ATF. Un arma de fuego que se transfiere a otra persona debe llevar un número de serie.
La mayoría de las piezas de armas de fuego no estàn sujetas a la regulación de ATF y pueden comprarse y venderse sin reportar las ventas y sin requerir un chequeo de antecedentes. De acuerdo con los documentos del tribunal, los demandados y otros involucrados en el esquema vendieron las piezas necesarias para producir un arma de fuego. Las piezas incluían una pieza de metal fundida de un armazón inferior llamado un “blanco”, que ATF no la considera como arma de fuego. El blanco se convierte eventualmente en un armazón inferior usando una taladradora hidràulica o màquina automatizada que crea la forma y espacio necesarios para que el armazón inferior acepte las piezas que permitiràn el disparo de un proyectil. Estas piezas (por ej., el martillo, perno o palanca de cierre ART, y mecanismo de disparo) son las partes mecànicas internas que se combinan con un gatillo, aguja de percusión y otras piezas para formar un arma de fuego en funcionamiento. Una vez que el blanco es fresado para producir un completo armazón inferior, se le considera un arma de fuego por estatuto, incluso si no existe barril, mango ni gatillo, y està sujeto a regulación federal.
De acuerdo con la declaración jurada de orden de registro, una vez que un cliente compró las piezas del arma de fuego incluyendo un armazón inferior ‘blanco’, se le indicó ir a Emiliano Cortez-Garcia que operaba la taladradora hidràulica. Una vez que Emiliano Cortez-Garcia había completado de maquinar el armazón inferior, él o Luis Cortez-Garcia montarían el AR-15 completo. Los clientes pagaban en metàlico para recibir un arma de fuego completa que no llevaba número de serie. No se completaron documentos de ATF ni chequeo de antecedentes. Durante el curso de la investigación, ATF llevó a cabo siete compras clandestinas de armas de fuego AR-15.
La investigación continúa. Ayer se ejecutaron otras órdenes de registro adicionales en tres lugares en Sacramento, Rancho Cordova y Orangevale. Se anticipa que seràn acusados otros demandados en conexión con la conducta bajo investigación.
Este caso es el producto de una investigación de ATF, HSI y el BOF del Departamento de Justicia de California, con la asistencia del Departamento de Policía de Sacramento, el Departamento del Alguacil del Condado de Sacramento y la Guardia Civil de Tràfico de California. El ayudante del procurador federal Justin Lee està procesando el caso.
High Level International Drug Trafficker, Efrain Urbina Grimaldo, Convicted on Violation of the Federal Controlled Substances ActRead the Press Release
EFRAIN URBINA GRIMALDO aged 33, a citizen of Mexico, was convicted today on conspiracy to possess and distribute 5 kilograms or more of cocaine before U.S. District Court Judge Sarah S. Vance. GRIMALDO’s organization distributed hundreds of kilograms of cocaine throughout United States, to include Jackson, Mississippi, Pensacola, Florida, New York City, New York, and Houma, Louisiana.
According to court documents, in September 2009, Drug Enforcement Administration Agents seized cocaine hydrochloride in Houma, Louisiana and April of 2010, the Drug Enforcement Administration conducted a controlled purchase of cocaine hydrochloride from the defendant in Beaumont, Texas.
GRIMALDO was arrested in July 2012, based on a warrant from the Eastern District of Louisiana in Houston, Texas. At the time of arrest, GRIMALDO was found in possession of false identification documents out of Louisiana, and had surgically altered his fingerprints, in what appeared to be an effort to conceal his identity from law enforcement.
The defendant faces a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for June 11, 2014.
The case was investigated by the Drug Enforcement Administration New Orleans Office, DEA Houston HIDTA Task Force, Terrebonne Parish Sheriff’s Office, Louisiana State Police Troop C, Houma Police Department and Lafourche Parish Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorneys John F. Murphy and Theodore Carter.Georgia Man, Daniel Nolan Devor, Pleads Guilty to Conspiracy to Produce Child PornographyRead the Press Release
DANIEL NOLAN DEVOR, age 40, a resident of Brunswick, Georgia, pled guilty today before U.S. District Judge Nannette Jolivette Brown, to conspiracy to produce child pornography, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to court documents, in November 2013, DEVOR was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that DEVOR was responsible for creating and posting videos depicting the sexual exploitation of children on the Internet. DEVOR has been in custody since his arrest.
Sentencing is scheduled for July 17, 2014. Conspiracy to produce child pornography carries a mandatory minimum sentence of not less than fifteen (15) years and a maximum penalty of thirty (30) years imprisonment, supervised release of not less than five years up to life, and DEVOR will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
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Four Individuals Indicted and Arrested for Health Care FraudRead the Press Release
SAN JUAN, P.R. – Yesterday, February 26, a Federal grand jury returned a fourteen count-indictment against four individuals for health care fraud and causing the misbranding and adulteration of prescription medications with intent to mislead and defraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendants are facing a forfeiture allegation of $225,929.21.
According to the indictment, from on or about January 1, 2010 through on or about September 24, 2011, Family Pharmacy submitted at least 554 false and fraudulent claims to Medicare, through MCS, totaling approximately $309,456.81, seeking reimbursement for adulterated/misbranded Levalbuterol and Budesonide, causing Medicare, through MCS, to disburse approximately $225,929.21.
Defendant Francisco A. Rivera-Gonzàlez was the President and owner of Family Pharmacy, located in the Municipality of Añasco, PR. As part of the business activities of Family Pharmacy he submitted claims to Medicare, through MCS Classicare. Rivera-Gonzàlez caused the adulteration/misbranding of Levalbuterol and Budesonide provided to Medicare beneficiaries and subsequently billed to Medicare. Luis Roberto Jiménez-Feliciano was the owner and president of RJ Medcare, Inc. He facilitated and caused the adulteration/misbranding of Levalbuterol and Budesonide provided to Medicare beneficiaries.
Defendant Francisco J. Cintrón-Acevedo was a licensed pharmacist and owner of Farmacia Cintrón, located in the municipality of Utuado, PR., and the Resident Agent in Charge of Franseb Inc. Cintrón-Acevedo facilitated and caused the adulteration/misbranding of Levalbuterol and Budesonide provided to the Medicare beneficiaries which were subsequently billed to Medicare. Defendant Derilyn Serrano-Bernacet was a pharmacy technician at Farmacia Cintrón. She illegally compounded Levalbuterol and Budesonide provided to Medicare beneficiaries, which were subsequently billed to Medicare.
“As part of the nation’s health care system, Medicare serves vulnerable citizens, specifically our elderly,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “Today’s arrests show that we will not tolerate criminals who engage in fraudulent schemes which threaten and harm people’s lives and deplete the Medicare program of funds which are destined for our senior citizens, in order to enrich themselves.”
“The Food and Drug Administration, Office of Criminal Investigations will continue to vigorously protect the health and safety of consumers from misbranded or adulterated drugs,” said Ralph Culkin, Resident Agent in Charge of FDA, Office of Criminal Investigations in Puerto Rico.
“HHS-OIG will continue to support these types of investigations, especially when misbranded and adulterated drugs pose a threat to the public and are billed to the Medicare program”, said Thomas O'Donnell, Special Agent in Charge of the Office of Inspector General's New York Regional Office which also covers Puerto Rico.
The investigation was led by the Food and Drug Administration-Office of Criminal Investigations, with the collaboration of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG).The case is being prosecuted by Special Assistant U.S. Attorney Wallace A. Bustelo. If found guilty, the defendants could face a possible sentence of (10) years in prison for the Health Care Fraud offense and fines of up to $250,000. A criminal indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Fort Hall Man Admits Abusive Sexual Contact of MinorRead the Press Release
POCATELLO — Austin Del Broncho-Timbana, 21, of Fort Hall, Idaho, pleaded guilty today in United States District Court to abusive sexual contact, U.S. Attorney Wendy J. Olson announced. Broncho-Timbana was charged by information on January 17, 2014.
According to the plea agreement, Broncho-Timbana admitted that on January 20, 2013, he had abusive sexual contact with a 14-year-old girl at a residence on the Fort Hall Indian Reservation. According to the plea agreement, a relative contacted police after finding the girl partially unclothed in a back bedroom. Broncho-Timbana left the house through the bedroom window. He was later contacted by police at his home.
Broncho-Timbana faces up to two years in prison, a maximum fine of $250,000.00, and five years to lifetime supervised release.
Sentencing is set for May 20, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Fort Benning Employee Allegedly Steals Military Identities to Commit Multi-Million Dollar Tax Refund FraudRead the Press Release
Tracy Mitchell, a resident of Phenix City, Ala., was indicted for her involvement in a stolen identity refund fraud scheme, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.
Mitchell is charged with eight counts of wire fraud and eight counts of aggravated identity theft. According to the indictment, Mitchell worked at the hospital on the Fort Benning Army Base in Georgia, where she had access to the means of identification of military personnel, including soldiers who were deployed to Iraq and Afghanistan. Mitchell stole the identities of military personnel and used those identities to file over 1,000 false tax returns from her home. These false tax returns claimed over $2.2 million in fraudulent refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a statutory maximum potential sentence of 20 years in prison for each wire fraud count and a statutory mandatory two-year sentence for each aggravated identity theft count. The defendant is also subject to fines, forfeiture and restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Army – Criminal Investigation Division. Trial Attorney Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Related Materials:
United States v. Tracy Mitchell
IndictmentFormer Union Official Charged with Embezzling Money from UnionRead the Press Release
ALBUQUERQUE – Leonard Bridge, II, 43, of Albuquerque, N.M., was arraigned this morning on an indictment charging him with 20 counts of embezzlement of assets from a labor organization. Bridge entered a not guilty plea and was placed on conditions of release pending trial, which has yet to be scheduled.
The indictment alleges 20 separate occasions of embezzlement between April 2009 and Aug. 2011 by Bridge of money belonging to the International Union of Elevator Constructors, Local 131. According to the indictment, Bridge perpetrated his embezzlement scheme by writing checks on the Union’s bank account, making case withdrawals with a debit card, and making cash withdrawals from the bank account. Bridge was employed as the business manager of the Union from Jan. 2009 through Nov. 2011.
If convicted, Bridge faces a maximum penalty of five years in prison and a $10,000 fine on each of the 20 counts in the indictment.
This case was investigated by the Office of Labor-Management Standards of the U.S. Department of Labor and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
Former Office Manager Sentenced to 37 Months in Prison for Embezzling More Than $400,000 from Law Firm-Defendant Handled Payroll and Accounts Payable for Firm-Read the Press Release
WASHINGTON – Bernard Chung, 31, of Falls Church, Va., was sentenced today to a 37-month prison term for embezzling more than $400,000 from a law firm where he worked as an office manager, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Chung pled guilty to a charge of wire fraud in October 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Thomas F. Hogan. Upon completion of his prison term, Chung will be placed on three years of supervised release. He also must pay $407,062 in restitution and the same amount in a forfeiture money judgment.
According to the government’s evidence, Chung worked from 2009 until August 2012 as the office manager for North Star Intellectual Property Law, LLC, a law firm that is based in downtown Washington, D.C. His duties included setting up the firm’s computer systems and network, creating a paperless environment, payroll, and bill payments.
Beginning in February 2010, and continuing until July 2012, Chung devised a scheme to defraud the firm, ultimately embezzling $407,062. He generated the money by issuing excessive salary payments to himself, inflating his regular paychecks, and other means. He was able to hide his activities in large part because his employment position authorized him to handle the payroll and accounts payable, creating a mechanism that he could exploit for his own financial benefit.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the FBI’s Washington Field Office, which investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of former Assistant U.S. Attorney Sherri L. Schornstein, and Assistant U.S. Attorney Ephraim (Fry) Wernick, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with asset forfeiture issues.
14-050Former New Castle Resident Indicted on Bank Robbery ChargesRead the Press Release
WILMINGTON, Del. – Blair Thomas, Jr., 29, formerly of New Castle, Del., was indicted by a federal grand jury today on one count of bank robbery, announced Charles M. Oberly, III, United States Attorney for the District of Delaware.
According to the indictment, on January 23, 2014, Thomas robbed the M&T Bank located at 4899 Limestone Road in Wilmington, of $17,531. The defendant faces a maximum penalty of 20 years imprisonment, up to three years of supervised release, a fine of up to $175,000 and a $100.00 special assessment, if convicted.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania indicted Thomas on similar charges today (go to www.justice.gov/usao/pae for more information).
The case is being investigated by the Wilmington Field Office of the FBI with the assistance of the Delaware State Police and the Philadelphia Division of the United States Postal Inspection Service. Special Assistant United States Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.
Indictments are only charges and are not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Former HUD-OIG Special Agent in Charge IndictedRead the Press Release
ATLANTA - Herschell Harvell, Jr. made his initial appearance in federal court on charges of making false statements to a bank to obtain a mortgage loan and conspiring to obstruct an investigation into his real estate transactions by the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG). Until he was terminated last year, Harvell was the Special Agent in Charge of HUD-OIG’s Atlanta office, which encompasses several southeastern states. Harvell’s co-defendant and nephew, Tavus A. Wright also made his initial appearance on federal charges of conspiracy, obstruction of justice, and perjury.
“As a federal law enforcement officer, Harvell was entrusted with supervising mortgage fraud investigations," said United States Attorney Sally Quillian Yates. “It is particularly troubling that someone responsible for investigating mortgage fraud is charged with committing it and with obstructing justice to cover up his crimes.”
“It is a regrettable day for the dedicated, hard-working men and women of our organization. We cannot tolerate or condone the abuse of trust and the violation of the very laws that Mr. Harvell was sworn to investigate and that is why I brought this matter to the attention of the U.S. Attorney,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development. “I am profoundly disappointed at that break down of our former employee’s ethical and moral compass.”
According to United States Attorney Yates, the charges, and other information presented in court: Between 2007 and 2012, Harvell served as a supervisory Special Agent in several HUD-OIG offices, including as a Special Agent in Charge in Fort Worth and Atlanta. Harvell also owned residential homes in the Atlanta area as investment properties. During 2007 and 2008, he acquired and refinanced several more homes with mortgage loans. In addition, in January and February 2008, Harvell purchased a Precision Tune automobile care franchise, incurring significant expenses in connection with that purchase.
On March 25, 2008, Harvell refinanced one of his rental homes and received over $23,000 in cash. Harvell’s loan application represented that he had a $70,000 certificate of deposit and that he received $6,180 in monthly rental income from six residential homes. The indictment alleges that these representations were false. It is alleged that Harvell had cashed in the certificate of deposit more than a month before, during the time period that he was purchasing the Precision Tune Franchise. In addition, it is alleged that Harvell’s houses were not rented or producing the rental income as stated on his loan application. For example, it is alleged that Harvell in fact received less than $900 in rent in March 2008 and for the year to date, had received less than $6,000 total in rental income.
The indictment alleges that during the course of the HUD-OIG investigation of the accuracy of Harvell’s loan application, Harvell’s nephew, Tavus Wright, provided false information to agents and perjured himself before the grand jury about whether he had signed a document used to demonstrate to Harvell’s lender that one of his houses was rented.
Harvell, 53, of Conyers, Ga., and Wright, 32, of Milledgeville, Ga., were indicted by a federal grand jury on February 25, 2014. Harvell and Wright are charged with one count of conspiring to obstruct justice under 18 U.S.C. § 371 and two counts of obstruction of justice under 18 U.S.C. § 1505. Wright also is charged with three counts of perjury under 18 U.S.C. § 1623. Harvell also is charged with two counts of making a false statement to a bank under 18 U.S.C. § 1014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Housing and Urban Development, Office of Inspector General, Special Investigations Division, Washington, DC.
Assistant United States Attorney Douglas W. Gilfillan is 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/.
Former Fort Benning Employee Steals Military Identities to Commit a Multi-Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - Tracy Mitchell, of Phenix City, Alabama, was indicted by a federal grand jury for her involvement in a stolen identity refund fraud scheme, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama and Kathryn Keneally, Assistant Attorney General of the Justice Department's Tax Division.
Mitchell was charged with several counts of wire fraud and aggravated identity theft. According to the indictment, Mitchell worked at the hospital at Fort Benning, Georgia. As a hospital employee, Mitchell had access to the identification data of military personnel, including soldiers who were deployed to Iraq and Afghanistan. Mitchell stole these service member’s identities and used their information to file false tax returns. Mitchell filed over 1,000 false returns claiming over $2.2 million from her home in Phenix City, Alabama. During the investigation, federal agents executed a search warrant at Mitchell’s residence in Phenix City and found over $300,000 in cash stored in a safe.
“Identity theft is a horrible crime, but stealing identities from those who are serving our country is absolutely deplorable,” stated U.S. Attorney Beck. “While the defendant is presumed innocent, my office will vigorously prosecute those who prey on our military.”
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum potential sentence of 20 years in prison for each wire fraud count and a mandatory two-year sentence for the aggravated identity theft counts. The defendant is also subject to fines, forfeiture, and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the United States Army – Criminal Investigation Division. Trial Attorney Michael Boteler of the Department's Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Dublin Resident Pleads Guilty to Fraud, Money Laundering, Tax Crimes for $10 Million Real Estate ScamRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS -- Haider Zafar, 36, formerly of Dublin, Ohio, pleaded guilty in U.S. District Court to multiple wire fraud, money laundering and federal income tax charges relating to his $10 million fraud scheme involving false representations about investments in Pakistani real estate.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office announced the pleas entered today before U.S. District Judge Edmund A. Sargus Jr.
Zafar pleaded guilty to 19 counts of wire fraud, seven counts of money laundering, one count of filing a false federal income tax return and three counts of failing to file federal income tax returns.
According to court documents, Zafar, who also resided in south Florida, told the primary victim of his scheme that his uncle was the Minister of Defence of Pakistan and was responsible for acquiring land on behalf of the Pakistani government. Zafar solicited the victim to be his partner in acquiring the land prior to the Pakistani government purchasing it then selling land to the government at a greatly inflated price. Between January 2008 and February 2010, Zafar caused his victim to wire $10,115,000 into accounts Zafar controlled. Zafar used the money to support a lavish lifestyle, including purchases of luxury automobiles and watches.
Zafar reported a taxable income of zero on his 2007 federal income tax return, omitting $221,500 in taxable income. Zafar earned more than $10 million between 2008 and 2010, but did not file income tax returns.
IRS Special Agents arrested Zafar at Port Columbus Airport on May 25. He has been in custody since his arrest.
Under terms of the plea agreement, Zafar will file income tax returns and pay taxes for 2007 through 2010. He also agreed to a forfeiture money judgment of $10,115,000.
Wire fraud is punishable by up to 20 years in prison and a fine of $250,000. Money laundering is punishable by up to 10 years in prison and a fine of $250,000. Filing a false income tax return with the IRS is punishable by up to three years in prison and a fine of $250,000. Willfully failing to file an income tax return with the IRS is punishable by up to one year in prison and a fine of $25,000. Judge Sargus will schedule a date for sentencing.
U.S. Attorney Stewart acknowledged the investigation by special agents of IRS-Criminal Investigation and the assistance of the FBI office in Miami, Florida as well as Assistant United States Attorney Dale Williams who is representing the United States in this case.
# # #Former Blackfeet TANF Director Pleads Guilty to Massive Welfare Fraud After Guardians Uncover Almost $300,000 in Losses Sandra Marie SandervilleRead the Press Release
The United States Attorney's Office announced that the former Director of the Blackfeet Tribe's Temporary Assistance to Needy Families (TANF) Program, SANDARA MARIE SANDERVILLE, 58, of Browning, entered a plea of guilty to embezzlement and fraud before U.S. Magistrate Judge Keith Strong in Great Falls on February 27, 2014. She faces a possible 10 years in prison and a $250,000. Assistant U.S. Attorney Carl Rostad told the Court that his office would be seeking over $297,000 in restitution.
In an Offer of Proof, the prosecutor told the Court that in 2006, Sanderville became the Director of the Blackfeet Tribe's TANF (Temporary Assistance to Needy Families) program. TANF is a federally funded welfare program designed to help needy families achieve self-sufficiency. States receive block grants to design and operate programs that accomplish one of the purposes of the TANF program. Federally recognized Indian tribes can apply for funding to administer and operate their own TANF programs.
Between 2006 and 2010 (the time period of the indictment), the Blackfeet Tribe received over $3,000,000 annually in TANF monies, for a total of over $12,000,000.
Between April 2006 and her dismissal in November of 2010 (although she was suspended with pay and was not terminated until the following year), Sanderville engaged in a variety of schemes designed to overpay TANF clients who would then cash the illicit TANF checks and provide Sanderville with a cash kick back of a portion of the overpayment. The scheme involved both providing TANF funds to ineligible recipients and overpaying eligible recipients. The overpayments were accomplished by adding children and grandchildren to the payment calculation, some real and others completely fabricated, failing to remove household residents who she knew were no longer in the household, and paying ineligible non-tribal members. Sanderville was able to conceal the scheme in part because she could, as Director, "restrict" access to accounts thereby preventing any other TANF office staff from seeing the computer file. Sanderville's scheme covered a four year period and involved approximately 16 to 20 TANF beneficiaries. Federal auditors have established the loss to the TANF program was over $297,612.
When Sanderville became the subject of an investigation by the Blackfeet Tribe's Internal Affairs Office, Sanderville went into the computer system and attempted to delete or destroy all files relating to the fraudulent scheme. A back-up computer file existed at an out-of-state location which allowed investigators to identify and recreate the transactions which were part of Sanderville's "split-check" schemes.
Sanderville was interviewed and admitted that she had designed and profited from the scheme. Initially, Sanderville alleged that she had only kept a small portion ($100) of each fraudulent overpayment, but when confronted with the statements of the known beneficiaries, Sanderville admitted that she had received the majority of the ill-gotten proceeds. Sanderville explained that she had developed a gambling problem and was gambling hundreds of dollars a week. Sanderville claimed sole responsibility for the scheme, and insisted that no one else in the TANF office knew of or participated in the overpayment scheme. She also claimed that she had misled the beneficiaries by telling them that the additional money was "extra" money from a grant or other fund. She also, according to her statement, advised beneficiaries that the money they were returning to her was going back into the TANF program.
The case was pursued by the Department of Health and Human Services' Office of Inspector General. That agency was partnered with the other agencies from the U.S. Attorney's Guardians Project, including the Federal Bureau of Investigation and the Department of Agriculture's Office of Inspector General. The HHS OIG also received substantial assistance from the Blackfeet Tribe's Internal Affairs office.
U.S. Attorney Mike Cotter lauded the work of the Guardians in the Sanderville case as well as the myriad other cases investigated and prosecuted since the project was disclosed in 2013.
Rarely does government produce such an effective anti-corruption team as has been created by the agents of the Guardians Project. Abandoning the traditional model of "You work your case and I'll work mine", these agencies have committed themselves to mutual cooperation. Working closely together-providing each other with time, resources, and expertise-has made these investigators champions of Indian Country communities eager to rid themselves of corruption and the abuses of trust and power."
Former Bank Employee Pleads Guilty to $650,000 Bank Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former UMB Bank employee pleaded guilty in federal court today to embezzling more than $650,000 in a bank fraud conspiracy.
Lisa L. Taylor, 54, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a June 20, 2013, federal indictment.
Taylor was employed by UMB Bank from May 2006 until October 2010 as a closing account specialist. Taylor was terminated when a corporate fraud investigation discovered she had fraudulently embezzled UMB funds. Taylor admitted today that she used her position to generate 377 fraudulent checks totaling $650,659.
In addition to Taylor, 11 friends and family members have also pleaded guilty to their roles in the bank fraud conspiracy: Kara L. Williams, 33, Shameeka N. Whitehead, 31, Rodney C. Austin, 49, Johnnie L. Coleman, 52, Roshana A. Franklin, 22, Antonio O. Malone, 25, and Ralph Broadus, 59, all of Kansas City, Mo., William D. Moore, 24, of Grandview, Mo., Stephen A. Combs, 27, and Geoffrey N. King, 30, both of Olathe, Kan., and Lakisha S. Weathers, 29, of Springfield, Mo.
As part of Taylor’s job duties at UMB she was responsible for collecting “charge off” amounts when a former customer’s account had been closed. Occasionally a deposit would come in for a closed account and be deposited to a general UMB account. Taylor was responsible for requesting a refund check to be issued from the general UMB account and sent to the former customer at their last known address. These refund checks were sent in the form of cashier checks that required approval of a bank officer. Taylor mixed in fraudulent refund check requests with these legitimate refund requests.
Over the course of the fraud scheme, which lasted virtually the entire time she worked at the bank, Taylor requested checks payable to her friends and family, who cashed or deposited the checks. They kept a portion of the proceeds and returned a portion to Taylor.
Taylor also had checks made payable to fictitious names, to which she forged the signatures and deposited into her bank account. UMB records revealed that Taylor personally negotiated 66 fraudulent UMB bank checks for a total of $96,793.
Under the terms of today’s plea agreement, Taylor must forfeit to the United States a $650,659 money judgment. Under federal statutes, Taylor is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Secret Service.
Five San Francisco Police Officers and A Former Officer Indicted for Civil Rights and Other Federal Law ViolationsRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted three San Francisco Police Department (SFPD) officers, each formerly assigned to the Southern Station, with conspiracy against civil rights and deprivation of rights under color of law. Two of the officers were also charged with falsification of records. Separately, a federal grand jury indicted three men, two SFPD officers and a former SFPD police officer, all formerly assigned to the Mission Station, with conspiracies to distribute controlled substances, against civil rights, and to commit theft concerning federally-funded programs. One SFPD officer was also charged with extortion.
“Southern Station Defendants”
- Officer Arshad Razzak, 41, of San Francisco;
- Officer Richard Yick, 37, of San Francisco; and
- Officer Raul Eric Elias, 44, of San Mateo.
According to the indictment, the Southern Station Defendants are alleged to have conspired to injure, oppress, threaten and intimidate occupants of single room occupancy hotel rooms by entering hotel rooms without legal justification. Defendants Razzak and Yick are also alleged to have falsified a payment slip to an informant, and each of them is also separately alleged to have falsified police reports to conceal their unlawful activities.
The maximum statutory penalties are as follows:
- Count 1: Civil rights conspiracy, 18 U.S.C. § 241 – 10 years/$250,000;
All Southern Station Defendants - Count 2: Deprivation of rights under color of law, 18 U.S.C. § 242 – 1 year/$250,000;
Defendants Razzak and Yick - Count 3: Deprivation of rights under color of law, 18 U.S.C. § 242 – 1 year/$250,000;
All Southern Station Defendants - Count 4: Falsification of records, 18 U.S.C. § 1519 – 20 years/$250,000;
Defendants Razzak and Yick - Count 5: Falsification of records, 18 U.S.C. § 1519 – 20 years/$250,000;
Defendant Razzak - Count 6: Falsification of records, 18 U.S.C. § 1519 – 20 years/$250,000;
Defendant Yick
“Mission Station Defendants”
- Sergeant Ian Furminger, 47, of Pleasant Hill;
- Officer Edmond Robles, 46, of Danville; and
- Reynaldo Vargas, 45, of Palm Desert, California.
According to the indictment, the Mission Station Defendants are alleged to have engaged in multiple criminal conspiracies, namely, to distribute controlled substances; to steal money and other valuable items, such as computers, electronic devices, and gift cards, from suspects; and to steal money, drugs and other valuable items that were seized on behalf of the City of San Francisco. Defendant Furminger is also alleged to have extorted property from an individual.
The maximum statutory penalties are as follows:
- Count 1: Drug conspiracy, 21 U.S.C. § 846 – 20 years/$1,000,000;
All Mission Station Defendants - Count 2: Drug distribution, 21 U.S.C. § 841(a) – 20 years/$1,000,000;
All Mission Station Defendants - Count 3: Civil rights conspiracy, 18 U.S.C. § 241 – 10 years/$250,000;
All Mission Station Defendants - Count 4: Federal program theft conspiracy, 18 U.S.C. § 371 – 5 years/$250,000;
All Mission Station Defendants - Count 5: Federal program theft, 18 U.S.C. § 666(a)(1)(A) – 10 years/$250,000;
All Mission Station Defendants - Count 6: Extortion under official right, 18 U.S.C. § 1951 – 20 years/$250,000;
Defendant Furminger
Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The federal investigation began shortly after San Francisco District Attorney George Gascõn referred the matter to federal authorities citing a conflict of interest. In March 2011, San Francisco Public Defender Jeff Adachi had released hotel surveillance videos from a hotel in the Tenderloin neighborhood of several SFPD plainclothes officers entering hotel rooms that, according to Mr. Adachi, were inconsistent with police reports and sworn police testimony. Mr. Gascõn was the SFPD Chief of Police at the time of the police officers’ conduct. Federal authorities, in partnership with SFPD Internal Affairs Criminal Division, launched investigations into select SFPD officers’ conduct in the Mission and Southern Districts culminating in two separate indictments.
Defendants Razzak and Yick of the Southern Station Defendants and all three Mission Station Defendants were each issued a federal summons and will make their initial appearances on Friday, February 28, 2014 at 9:30 a.m. before the Honorable Elizabeth D. Laporte, United Sates Magistrate Court Judge in federal court in San Francisco. Defendant Vargas will appear before Judge Laporte at 2:00 p.m. today.
This case is being prosecuted by Assistant U.S. Attorneys in the Special Prosecutions and National Security Unit of the United States Attorney’s Office.
Please note, an indictment contains only allegations and, as with all defendants, the defendants in this case must be presumed innocent unless and until proven guilty.
(SFPD Southern indictment )
(SFPD Mission indictment )
Federal Jury Finds Belen Man Guilty on Bank Fraud and Conspiracy ChargesRead the Press Release
ALBUQUERQUE – A federal jury returned a verdict today finding Raymundo Silva, 35, guilty of a conspiracy charge and five bank fraud charges after a four-day trial. The jury acquitted Silva on two other bank fraud charges. The verdict was announced Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of HSI in El Paso, and Chief Roy E. Melnick of the Los Lunas Police Department.
In announcing the jury’s verdict, Acting U.S. Attorney Steven C. Yarbrough commended HSI and the Los Lunas Police Department for their outstanding investigative work on a case that affected numerous citizens victimized as a result of the scheme perpetuated by Silva and his two co-defendants. Mr. Yarbrough also expressed his appreciation to the prosecutors who successfully prosecuted all three members of the bank fraud scheme.
"HSI is committed to use its ample and unique investigative authority to uncover this type of fraudulent activity,” said Dennis A. Ulrich, Special Agent in Charge of HSI El Paso. “Bank fraud victimizes innocent people, and part of the HSI mission is to prevent financial crimes and protect the privacy and identity of our citizens.”
Chief Roy E. Melnick of the Los Lunas Police Department said, “The Los Lunas Police Department is grateful to the U.S. Attorney’s Office and the Albuquerque office of HSI for being such strong partners with our Department in working together to bring about justice in this major bank fraud scheme. I also have praise for the Los Lunas Police officers and detectives who initiated this case, followed up this investigation thoroughly, gathering critical evidence and working very closely with Homeland Security Investigations agents to bring about a successful conclusion to this case. In addition, I have praise for the U.S. Attorney’s Office for bringing about a successful prosecution of this case. This criminal case demonstrates when local and federal law enforcement agencies work closely together, we can make a difference.”
Silva, and co-defendants Patricia Diaz, 35, of Los Lunas, N.M., and Christina Knight, 29, of Albuquerque, were indicted in Aug. 2013, on conspiracy, bank fraud and aggravated identity theft charges. The trio subsequently was charged in a 31-count superseding indictment alleging conspiracy to commit bank fraud; 24 counts of bank fraud, including eight counts against Silva (including one count that was dismissed by the United States before trial), three counts against Diaz, and 13 counts against Knight; and six counts of aggravated identity theft against Knight. The superseding indictment generally charged Silva, Diaz and Knight with engaging in a scheme to commit bank fraud between Dec. 2011 and April 2013.
On Oct. 28, 2013, Diaz entered a guilty plea to the bank fraud conspiracy and three substantive bank fraud charges, and on Feb. 20, 2014, Knight entered guilty pleas to the bank fraud conspiracy, 13 substantive bank fraud charges, and one count of aggravated identity theft. Silva proceeded to trial on the bank fraud conspiracy and seven substantive bank fraud charges against him.
Trial commenced on Feb. 24, 2014, and concluded this afternoon when the jury returned a verdict of guilty on the conspiracy count and five of the seven bank fraud counts in the superseding indictment against Silva, and not guilty on two bank fraud counts. The trial evidence established that Silva, Diaz and Knight perpetuated a bank fraud scheme by stealing checks from residential mailboxes, altering the names of payees and the amounts on the checks, and cashing the checks using either their own identities or, in the case of Knight, the identities of others.
In Dec. 2011, a Los Lunas police officer investigating a check washing and identity theft ring targeted a sedan seen leaving a Los Lunas bank following a failed attempt to cash a fraudulent check. In Feb. 2012, after surveillance established that the sedan frequently visited a residence in Belen, Los Lunas police officers executed a search warrant at the residence and seized chemicals and other products commonly used to wash and alter checks, several driver’s licenses, college IDs and Social Security cards, bank receipts and other evidence.
Investigation by HSI and the Los Lunas Police Department identified Silva, Diaz and Knight as the members of the bank fraud scheme in late 2012, following the theft of five checks from the mailbox of a Los Lunas residence. Silva cashed one of the checks on Dec. 26, 2012, and between Dec. 20, 2012 and Jan. 4, 2013, Knight cashed three of the checks by using the identification of another person. Each of these four checks had been altered by changing the name of the payee and amount. Laboratory analysis by HSI revealed that the chemicals seized from Silva’s residence were used to wash the checks.
Silva has been in federal custody since his arrest in Aug. 2013. He remains detained pending his sentencing hearing, which has yet to be scheduled. Silva faces a maximum penalty of five years in prison on the conspiracy charge and 13 years in prison on each of the eight bank fraud charges.
Diaz and Knight also are in custody pending their sentencing hearings. Each faces a maximum of five years in prison on the conspiracy charge and 13 years on each of their bank fraud charges. Knight also faces a two-year prison sentence which must be served consecutively to any prison sentence imposed on the conspiracy and bank fraud charges to which she pleaded guilty.
This case was investigated by HSI Albuquerque and the Los Lunas Police Department and is being prosecuted by Assistant U.S. Attorneys Norman Cairns and Paul Mysliwiec.
Federal Correctional Officer Pleads Guilty to Bribery ChargeRead the Press Release
ABINGDON, VIRGINIA – A former correctional officer at United States Penitentiary Lee County pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to charges that she smuggled tobacco and other products into the federal correctional facility in exchange for cash.
Kimberlee Crabtree, 43, of Jonesville, Va., waived her right to be indicted and pled guilty today to a one-count Information charging her with accepting a bribe as a public official. Crabtree faces a potential maximum sentence of up to fifteen years imprisonment and a potential fine of up to $250,000.
“Ms. Crabtree accepted bribes from a federal prisoner and provided him with contraband including tobacco products and a cellular telephone,” United States Attorney Timothy J. Heaphy said today. “Her actions threatened institutional security and put staff and inmates at risk. We will do all we can to ensure that our federal prisons are safe and secure and aggressively pursue both inmates and correctional officers who violate the rules.”
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between August 2013 and November 2013, Crabtree was employed as a correctional officer and nurse for the United States Bureau of Prisons at United States Penitentiary Lee County, Virginia, in Jonesville, Virginia. During this time, Crabtree received multiple monetary payments, totaling at least $2,500, from an inmate at the penitentiary in return for Crabtree smuggling tobacco products and a cellular telephone into the penitentiary. These items were then provided to the inmate in violation of Bureau of Prisons regulations.
Sentencing has been set for May 27, 2013 in the United States District Court for the Western District of Virginia in Abingdon.
The investigation of this case was conducted by the Federal Bureau of Investigation, United States Bureau of Prisons Special Investigative Service at United States Penitentiary Lee County, and the United States Department of Justice Office of the Inspector General. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
FBI Undercover Operation Nets Seven Defendants in Securities Kickback SchemeRead the Press Release
BOSTON – Federal charges have been filed in U.S. District Court in Boston against seven individuals alleged to have been involved in a microcap stock kickback scheme.
According to the charges, the schemes involved secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in certain companies. The kickbacks were to be concealed through the use of sham consulting agreements. What the defendants did not know was that the purported investment fund representative was actually an undercover government agent.The charges follow a lengthy investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap stock market is of increasing concern to regulators as such markets tend to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the U.S. Securities and Exchange Commission.
U.S. Attorney Carmen Ortiz stated that, “Secret deals like the ones alleged today harm hard working Americans who invest their savings in the financial markets. Illegal kickbacks undermine fair competition, and ultimately destabilize financial markets. For the sake of the investing public, it is critical to protect the integrity of the financial markets and promote fair play by combatting the types of illegal agreements alleged in these cases.”
“Market manipulators should know that our law enforcement team has a proven track record of high-returns in rooting out fund representatives, CEOs, traders, fund managers, equities analysts, lawyers and publicists who illegally tilt the playing field against honest investors,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau Investigation’s Boston Division. “The FBI's undercover investigation of the illegal manipulation of microcap stocks has resulted in the conviction of 15 people to date and those who believe they can get away with manipulating the markets should be running scared.”
The following individuals have been charged:
Shmuel Shneibalg, 43, formerly of Brooklyn, N.Y. (President and Chief Operating Officer of Safetek International, Inc.), charged with mail fraud and wire fraud;
Gerard Haryman, 70, of Lake Worth, Fla. (consultant for, and investor in, A Clean Slate, Inc.), charged with mail fraud and wire fraud;
Ronald Lawrence Schuman, 58, of Palm City, Fla. (President and Chief Executive Officer of Connectyx Technologies Corp.), charged with conspiracy to commit wire fraud;
Barry Hawk, 45, of Woodmere, N.Y. (President and Chief Executive Officer of Arctic Enterprises, Inc. and Strategic Rare Earth Metals, Inc.), charged with wire fraud;
Hadi Aboukhater, 42, of Haymarket, Va. (in the business of finding funding for public companies), charged with wire fraud;
Sandip Shah, 40, of Chino, Calif. (stock promoter), charged with wire fraud; and
Shailesh Shah, 47, of Chino, Calif. (President and Chief Executive Officer of SOHM, Inc. and Costas, Inc.), charged with mail fraud and wire fraud.
If convicted, the defendants each face up to 20 years in prison to be followed by three years of supervised release and a $250,000 fine on each count. The initial appearances in U.S. District Court in Boston have not yet been scheduled.
U.S. Attorney Ortiz and FBI Special Agent in Charge Lisi made the announcement today. U.S. Attorney Ortiz expressed appreciation for the significant assistance her office received from the U.S. Securities and Exchange Commission. The criminal cases are being prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Ryan M. DiSantis, and Mark Balthazard of Ortiz’s Economic Crimes Unit, and Trial Attorney Alexander H. Berlin of the U.S. Department of Justice.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Escrow Company Executive Allegedly Misused Customers’ Funds; Employee Charged Separately with Stealing from CompanyRead the Press Release
CHICAGO — The co-founder and president of a defunct mortgage escrow company was indicted on federal fraud charges for allegedly misappropriating more than $500,000 of customer funds for his own personal use, as well as to pay operating expenses of two other businesses. The defendant, DEREK LURIE, who controlled American Escrow LLC until it collapsed in March 2009, was charged with five counts of mail fraud in an indictment returned by a federal grand jury yesterday and announced today. Lurie also allegedly engaged in a Ponzi-type scheme in which American Escrow made the property tax and insurance payments for some customers ahead of other customers.
Separately, a former American Escrow employee, JACQUELINE CRUZ, was indicted earlier this month for allegedly fraudulently obtaining more than $400,000 from the company.
Lurie, 40, of Highland Park, was ordered to appear for arraignment on March 11 in U.S. District Court. Cruz, 38, formerly of Highland Park and currently residing in Okinawa, Japan, pleaded not guilty on Feb. 19 to three counts of mail fraud, following her indictment on Feb. 5.
According to the Lurie indictment, American Escrow ― which had offices on West Randolph and North May streets in Chicago ― fraudulently obtained and managed more than $5 million of customer escrow funds, and purported that it would hold the money in secured FDICinsured accounts to make timely tax and insurance payments for customers. Instead, between 2003 and March 2009, Lurie used approximately $554,000 for such personal expenses as parking tickets, car payments, and renovating a condominium in Miami, as well as to operate his other business interests, American Tax Reporting, Inc., and Woodland Technologies, Inc., the charges allege.
Lurie allegedly knew that all of the customers’ escrow funds were not FDIC-insured, that American Escrow was operating at a deficit, and that the funds were being used for unauthorized purposes. As a result of the deficit, Lurie made Ponzi-type payments to satisfy earlier customers’ tax and insurance debts with more recent customers’ escrow funds, and concealed the scheme from his customers, the indictment alleges.
Cruz, whose duties included accounting, issuing company checks, and overseeing the payment of customers’ property taxes and private mortgage insurance, allegedly misappropriated approximately $412,000 from American Escrow. Between May 2005 and March 2009, she wrote 122 company checks to herself, knowing that they were unauthorized and she was not entitled to the funds, according to her indictment. It alleges that she either forged Lurie’s signature or signed the check herself.
Both indictments seek forfeiture of the alleged fraud proceeds: $554,000 against Lurie and $412,000 against Cruz.
In both cases, each count of mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictments were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Jessica Romero.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Lurie Indictment
Cruz IndictmentEnergy, Illinois, Woman Convicted of Methamphetamine OffensesRead the Press Release
Follow @SDILNewsOn February 25, 2014, a jury in the United States District Court in Benton, Illinois, convicted Dana L. Gulley, 42, of Energy, Illinois, of buying pseudoephedrine for others knowing the pseudoephedrine would be used to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The evidence during trial showed that Gulley had purchased cold pills on 8 occasions between September of 2011 and February of 2012 that were used by others in Williamson County to make finished methamphetamine. Pharmacy records demonstrated that Gulley had bought the cold pills at three different pharmacies in Williamson County. The jury deliberated for approximately 30 minutes before returning its verdict. Gulley now faces up to 20 years in prison, a $500,000 fine, and up to 6 years of supervised release.
The investigation was conducted by the Illinois State Police, Southern Illinois Drug Task Force, Drug Enforcement Administration, United States Marshals Service, Franklin County Sheriff’s Office, Jackson County Sheriff’s Office, Southern Illinois Enforcement Group, Christopher Police Department, Sesser Police Department, West City Police Department, and Zeigler Police Department. The trial was presented on behalf of the Government by Assistant United States Attorney Thomas E. Leggans.
Dunlap Tenants Charged with Drug and Firearm CrimesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against two brothers, Rudy Alberto Gonzalez-Rocha, 28, and Eloy Damian Gonzalez-Rocha, 32, both of Jalisco, Mexico, charging them with three marijuana cultivation crimes, being aliens in possession of firearms, and possessing a firearm with an obliterated serial number, United States Attorney Benjamin B. Wagner announced. Eloy Gonzalez-Rocha was also charged with being a deported alien found in the United States.
According to court documents, on January 8, 2014, Fresno County Sheriff deputies investigated complaints about a strong smell of marijuana and various activities at a property in Dunlap in Fresno County. They found the brothers, who are undocumented, in a rented mobile home on the property. After obtaining a search warrant, narcotics detectives found 260 marijuana plants, more than 200 pounds of processed marijuana, $15,160 in cash, and three firearms, one of which was reported stolen from Arkansas and another having an obliterated serial number. Eloy Gonzalez-Ramirez had been deported from the United States nearly one year before he was found in Dunlap. Under federal law, illegal aliens are prohibited from possessing firearms.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Fresno County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Both defendants have been ordered detained pretrial following a finding by a U.S. Magistrate Judge that the men are a flight risk and danger to the community. They are scheduled for arraignment and plea on the indictment on February 28, 2014.
If convicted of the drug offenses, the defendants face a sentence of five to 40 years in prison and a $5 million fine. They face a maximum term of 10 years in prison and a $250,000 fine for being illegal aliens in possession of firearms, and five years in prison and a $250,000 fine for possessing a firearm with an obliterated serial number. Eloy Gonzalez-Rocha faces a maximum prison term of two years in prison and a $250,000 fine if convicted of being a deported alien found in the U.S. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
District Man Found Guilty of Murder Charges in 2008 Shooting That Killed Two People-Targeted One Victim in Dispute; Other Was Innocent Bystander-Read the Press Release
WASHINGTON – Arvel Crawford, 23, of Washington, D.C., has been found guilty by a jury of first-degree murder, second-degree murder, and related weapons charges for the slayings of two people in 2008, U.S. Attorney Ronald C. Machen Jr. announced today.
Crawford was found guilty of the charges on Feb. 24, 2013, following a trial in the Superior Court of the District of Columbia. The Honorable Jennifer Anderson scheduled sentencing for May 16, 2014. Crawford faces a potential sentence of life in prison.
At trial, the government’s evidence established that on Aug. 14, 2008, at about 10 a.m., Crawford snuck up on Johnquan Wright, 18, in front of a building in the unit block of K Street NW and shot him multiple times in the back. One of the shots went through Mr. Wright and hit Nolan Cooper, 61, an innocent bystander. In the months preceding the murders, a dispute had arisen between two groups of young men in the Sursum Corda neighborhood, leading to multiple homicides. Crawford and Mr. Wright were on opposite sides of this dispute.
In a separate case, Crawford is serving an 18-year prison sentence for killing his father on Dec. 1, 2009 in a robbery conspiracy gone awry.
In announcing the verdict, U.S. Attorney Machen commended the work of the detectives, officers, and evidence technicians who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Meridith McGarrity and Kwasi Fields; Victim/Witness Advocate Tamara Ince; Intelligence Specialist Zachary McMenamin, and Litigation Technology Specialists Anisha Bhatia and Paul Howell.
Finally, he acknowledged the work of Assistant U.S. Attorney Laura Bach, who investigated the case, and Assistant U.S. Attorneys Magdalena Acevedo and Glenn Kirschner, who prosecuted the case at trial.
14-051Davenport, Iowa Man to Serve More Than 11 Years in Prison for Conspiring to Import Synthetic EcstasyRead the Press Release
Rock Island, Ill. – A Davenport, Iowa man, Christopher B. Engelbrecht, 27, was sentenced to more than 11 years in federal prison yesterday for conspiracy to import a synthetic form of ecstasy, 4-MEC, also known as ‘shrimp.’ Engelbrecht was ordered to serve 135 months (11 years, 3 months) in prison followed by three years of supervised release. Engelbrecht has been in the custody of the U.S. Marshals Service since his arrest in October 2012.
On Sept. 16, 2013, Engelbrecht entered open pleas of guilty to the three charges alleged in the indictment returned in October 2012 by the grand jury: from August 2011 to October 12, 2012, conspiracy to import into the U.S. 4-MEC, a synthetic drug with properties and effects on users similar to ecstasy or MDMA; conspiracy to distribute and possession with intent to distribute 4-MEC; and on Sept. 7, 2012, attempt to import into the U.S. 4-MEC.
The charges resulted from an investigation by the Quad City Metropolitan Enforcement Group; the Moline Police Department and the Drug Enforcement Administration. The case was prosecuted by Supervisory Assistant U.S. Attorney John K. Mehochko.Conspirators Plead Guilty to Scheme Using Medical Patients’ Identities to Fraudulently Obtain MerchandiseRead the Press Release
Stole Personal Identifying Information of over 100 Individual Victims to Obtain Over $993,000 of Merchandise
Baltimore, Maryland – Denise W. Wearing, age 37, of Philadelphia, Pennsylvania, pleaded guilty today to conspiracy to commit bank fraud and aggravated identity theft in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients. Michelle Jernell Cole, age 27, of Baltimore, pleaded guilty to the same offenses on February 20, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, Michelle Cole’s sister, Chanell Cole, met Wearing between 2004 and 2005 while both were serving fraud-related sentences in the Maryland Department of Corrections. Chanell introduced Michelle to Wearing.
From 2008 through approximately May 2010, Chanell Cole worked for a rheumatologist who had an office at Good Samaritan Hospital in Baltimore. Using her access to the physician’s patient files, Cole unlawfully obtained the personal identifying information (PII) of numerous patients, including names, addresses and social security numbers, which she provided to Wearing.
From 2010 through February 2012, Michelle Cole worked at a medical practice in Laurel, Maryland. From February 2012 through February 2013, she worked for a rheumatologist who had an office in Glen Burnie, Maryland. Michelle Cole fraudulently obtained the PII of numerous patients at these medical facilities which she provided to Wearing.
From 2010 to February 2013, the conspirators used the stolen PII to fraudulently open credit accounts and assume control of existing credit accounts at Macy’s, Bloomingdale’s and Nordstrom. The conspirators used the accounts to purchase merchandise in the names of the unknowing victims without intending to pay for the goods. The conspirators kept the goods; sold the goods to others in exchange for cash; or returned the goods to the retail stores for merchandise credit and for credit on the accounts of the conspirators. Over the course of the scheme, the identities of over 100 individual victims were used to obtain over $993,000 of merchandise.
Wearing and Michelle Cole face a maximum penalty of 30 years in prison for the bank fraud conspiracy and a mandatory minimum of two years in prison consecutive to any sentence for the conspiracy. Wearing and Cole have agreed to pay restitution of at least $993,772.43. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Wearing on June 18, 2014, and for Cole on June 16, 2014.
Chanell Y. Cole, age 30, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty on January 3, 2014 to the conspiracy. Judge Hollander has scheduled sentencing for Chanell Cole on April 4 and for Welch on April 25, 2014. Linda Nguyen, age 28, of Philadelphia, pleaded guilty to her role in the conspiracy on January 24, 2014 and her sentencing is scheduled for May 9, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Connecticut Man Sentenced in Connection with Tax Free Property Exchange BusinessRead the Press Release
BOSTON – A Connecticut man who victimized exchangors in Massachusetts was sentenced yesterday for his role in a mail and wire fraud scheme involving a tax free property exchange business.
Daniel E. Carpenter, 59, of Simsbury, Conn., was sentenced by U.S. District Court Judge George A. O’Toole to 36 months in prison, three years of supervised release and a $100,000 fine. In June 2008, Carpenter was convicted of 19 counts of mail and wire fraud following a 13-day jury trial.
Carpenter was charged with mail and wire fraud in connection with his handling of money entrusted to him by clients who engaged in tax-deferred real estate exchange transactions from August to December 2000. Under the relevant federal tax code provision, sellers of investment real estate were permitted to defer capital gains taxes on sale proceeds, provided they purchased a like property within six months and did not take possession of the sale proceeds during the interim. Carpenter owned a company, Benistar, which acted as an intermediary for these exchanges, holding clients’ money pursuant to escrow agreements until they purchased a replacement property. Carpenter, through Benistar, marketed his services as a qualified intermediary using materially false and misleading statements in marketing materials and contracts. The documents omitted critical information about Carpenter’s risky investment strategy, while at the same time emphasizing the importance of the safety and security of the funds and representing that Benistar would “invest” the exchangors’ money in low-yield “escrow” accounts for the exchangors’ benefit at established financial institutions. Carpenter obtained millions of dollars from clients engaged in these property exchanges and, without telling them, used their money to trade in high-risk stock options in an attempt to earn substantial profits for himself and Benistar, even as the exchangors’ earnings were capped at the modest rates of return reflected in the agreements.Carpenter’s high-risk strategy was unsuccessful, and he lost over $9 million of the exchangors’ money. As Carpenter’s options trading losses mounted, Benistar’s available funds fell millions of dollars short of the sums needed to repay clients as they redeemed their escrow funds. Carpenter’s actual use of the escrow funds came to light when clients who needed to complete their property exchanges discovered their money was gone.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by First Assistant United States Attorney Jack W. Pirozzolo.
Columbus Man Who Burglarized Hebron Gun Store Sentenced to 151 Months in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Charles H. Morrison III, 26, of Columbus, was sentenced in U.S. District Court to 151 months in prison for burglarizing a gun store in Hebron and stealing 18 guns on March 20, 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge for the Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Hebron Police Chief D. James Dean announced the sentence handed down yesterday by Senior U.S. District Judge George C. Smith.
James Allen Banks, 24, of Marion was sentenced by Senior U.S. District Judge James L. Graham on January 3, 2014 to 50 months in prison for his role in the same crime.
Banks pleaded guilty Monday, September 23. Morrison pleaded guilty on September 26, 2013.
Each man pleaded guilty to one count of possession of a firearm by a convicted felon and possession of stolen firearms. Each man also pleaded guilty to one count of possession of three firearms with obliterated serial numbers and unlawful burglary of a licensed firearm dealer.According to court documents, Morrison and Banks went into Buckeye Outdoors in Hebron on March 20, 2013. Morrison attempted to hide in the ceiling, but left the store after an employee saw him. Morrison later broke the back glass door to gain entry to the store. ATF agents and Hebron police officers reviewed surveillance video and obtained search warrants for two residences used by Morrison and Bank’s residence. They recovered three of the firearms, ammunition, and tools that could be used to obliterate serial numbers on firearms.
ATF agents arrested both men on April 30, 2013. Both have been in custody since their arrests. Morrison was also ordered to pay restitution of $5,333.47.
U.S. Attorney Stewart commended the cooperative investigation by federal and local law enforcement agencies, as well as Assistant U.S. Attorney J. Michael Marous, who prosecuted the case.
# # #Chester County Landscaping Business Charged in Immigration CaseRead the Press Release
C. M. Jones, Inc., a landscaping business located in Chester County, PA, was charged today by Information with one count of conspiracy to make a false statement in an immigration matter, announced United States Attorney Zane David Memeger.
If convicted the owner of C. M. Jones, Inc. faces a maximum possible sentence of five years of probation, a $500,000 fine, and a $100 special assessment
The case was investigated by the Department of Homeland Security and the Department of Labor, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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, 215-861-8525Casselberry Man Sentenced to Life for Aggravated Sexual Abuse of MinorsRead the Press Release
Orlando, Florida - U.S. Attorney Robert E. O'Neill announces that U.S. District Chief Judge Anne C. Conway today sentenced Paul C. Lorenz, III (62, Casselberry, Florida) to life in federal prison for aggravated sex abuse of minors, production of child pornography and possession of child pornography. The court also ordered Lorenz to pay more than $72,000 in restitution to the victims of the offenses and to forfeit his interest in the computers and video cameras that he used to commit the offenses.
Lorenz pleaded guilty on September 24, 2012. “Today’s sentence sends a clear message about the priority that we place upon protecting our children from criminals like this,” said U.S. Attorney Robert O’Neill. “Together, along with our law enforcement partners, we will continue to vigorously investigate and prosecute serious offenses such as these, and work to pursue the stiffest penalties under the law.” According to court documents, Lorenz babysat several children while employed as a maintenance technician at a Church in Pasadena, Maryland. During this time, he sexually abused a young girl under his care over the course of approximately six years, beginning when she was five years-old. Lorenz recorded the abuse using his digital camera and video recorder and stored the pictures and videos on his hard drive. He moved to Casselberry, Florida in October, 2011 and brought the videos with him. Last year, in January, 2012 and March, 2012, Lorenz returned to Maryland to assist with family issues. While in Maryland, he babysat another five year-old girl and sexually abused her. As he had done with his previous victim, Lorenz recorded the abuse and stored the pictures and videos on his computer.
Lorenz returned to Florida in April 2012. A few weeks later, law enforcement officers learned of the abuse, obtained a search warrant for Lorenz’s home and seized his computers and cameras. A computer forensics examiner located over 14,000 pictures and 1,500 videos documenting Lorenz’s abuse of the two children on Lorenz’s electronic storage devices. In addition, the examiner located thousands of images of child pornography documenting the sexual abuse of unidentified children on Lorenz’s storage devices. Lorenz told investigators that he had downloaded the child pornography images from the Internet during the previous fifteen years.
This case was investigated by the Seminole County Sheriff”s Office, the Anne Arundel County Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Cambria County Man Sentenced to 46 Months in Prison for Money Laundering ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to 46 months in prison and three years supervised release on his conviction of conspiracy to commit money laundering, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Gerald G. Lowmaster, 67.
According to information presented to the court, from March 2008 to May 9, 2011, Gerald G. Lowmaster conspired to commit money laundering. In addition, evidence presented to the Court at the time of Gerald G. Lowmaster's sentencing reflected that he conspired with George M. Lowmaster and others to conduct financial transactions involving proceeds generated through George M. Lowmaster's drug distribution organization with the intent to conceal the source of the proceeds and with the intent to promote the carrying on of George M. Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Gerald G. Lowmaster. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.