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Thursday 9 January 2014
Mansfield Man Sentenced to Nearly Four Years in Prison for $1 Million FraudRead the Press Release
A Mansfield man was sentenced to nearly four years in prison for fraud and insurance embezzlement, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Willard C. Lee, 52, previously pleaded guilty to 12 counts of wire fraud and one count of insurance embezzlement.
Lee, who was employed by the Allstate Insurance Company between 1996 and 2011, admitted that he embezzled approximately approximately $1 million from Allstate customer annuity accounts between July 2007 and December 2011.
Lee forged customer signatures on withdrawal requests to Allstate and Lincoln Benefit Life, a company wholly owned by Allstate which sells annuities. Once fraudulent paperwork was submitted, Lee had the proceeds wire-transferred into bank accounts he controlled in Mansfield, according to court documents.
U.S. Districy Judge Sara Lioi sentenced Lee to 46 months in prison and ordered him to pay restitution in the amount of $1,052,559.80 to Allstate, along with a special assessment amount of $1,300.00.
This case was prosecuted by Assistant U.S. Attorney James V. Moroney, following an investigation by the Mansfield and Canton offices of the Federal Bureau of Investigation, and the Investigative Services Unit of Allstate Insurance Company.
Mansfield Man Sentenced to More Than 11 Years in Prison for Mortgage FraudRead the Press Release
A Mansfield man sentenced to more than 11 years in prison and ordered to pay $767,462 in restitution for his role a mortgage fraud scheme which caused approximately $1.3 million in losses to five lending institutions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
David R. Sharrock, age 71, pleaded was sentenced to 135 months in prison by U.S. District Judge Donald Nugent.
Sharrock was previously found guilty of 26 counts, including conspiracy, bank fraud, wire fraud, bankruptcy fraud and making false statements for his actions, which caused losses to Geauga Savings Bank, J.P. Morgan Chase Bank, Washington Mutual Bank, Interbaby Funding, LLC, and Suntrust Mortgage, Inc.
His daughter, Rhonda J. McElroy, 51, of Bellville, Ohio,was sentenced to six months incarceration followed by six months of home confinement and ordered to pay $65,415 in restitution.
Ronald L Kightlinger, 51, of Crestline, Ohio, and Richard W. Balliett, 45, of Bucyrus, Ohio, were previously sentenced after pleading guilty to crimes related to their roles in the conspiracy.
Balliet was sentenced two years and one month in prison and ordered to pay $169,627 in restitution while Kightlinger was sentenced to six months confinement and ordered to pay $278,000 in restitution.
Sharrock, Balliett, and McElroy sold homes in the cities of Mansfield, Marion, Galion, Plymouth, Shelby, and Bucyrus, Ohio. The sellers made fraudulent misrepresentations to the mortgage lenders by providing undisclosed down payment assistance to the buyers and by submitting fictitious purchase agreements and verifications of deposits. As a result, the sellers signed false settlement statements at closing, according to court documents.
Kightlinger acted as a straw buyer in purchasing a commercial building from David R. Sharrock in Mansfield, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and M. Kendra Klump, following an investigation by the Federal Bureau of Investigation.
Los Angeles Gang Member, Quenshey Mitchell, Convicted of Heroin Conspiracy and Obstruction of Justice Involving Murder of A Federal WitnessRead the Press Release
QUENSHEY MITCHELL, a/k/a “Ripper” “Baby Ripper”, “Q”, age 36, from Los Angeles, California, was convicted today of all six counts of a superseding indictment which included charges of conspiracy to distribute in excess of a kilogram of heroin, multiple conspiracies to obstruct justice, including conspiracies to obstruct justice through murder and two counts of obstruction of justice through murder in federal court following a four day trial, announced U.S. Attorney Kenneth Allen Polite, Jr.
The trial evidence showed Mitchell to be the Los Angeles source of supply of multiple kilograms of heroin being transported to New Orleans by female couriers. Cristina S. Williams, who had previously been charged in this District for her role in transporting heroin, was murdered in Los Angeles on July 29, 2010, as the Drug Enforcement Administration’s (DEA) investigation progressed to identify the leaders of the heroin conspiracy. After Ms. Williams’s murder, Mitchell, a member of the Rollin Sixty Crip gang in Los Angeles was indicted in New Orleans for his role in the heroin conspiracy and following an investigation by the Los Angeles Police Department and DEA’s investigation of Ms. Williams’s murder, Mitchell was indicted in the six count superseding indictment.
MITCHELL faces the following terms of imprisonment:
- Counts 1 (heroin conspiracy) – life imprisonment as a result of Mitchell’s two prior felony drug convictions;
- Counts 2 and 4 (conspiracy to obstruct justice through murder) – life imprisonment for each count;
- Counts 3 and 5 (obstruction of justice through murder) – life imprisonment for each count; and
- Count 6 (conspiracy to obstruct justice) – maximum term of 20 years imprisonment.
Sentencing is scheduled for April 10, 2014, before U.S. District Judge Eldon E. Fallon.
The case was investigated by Special Agents of the Drug Enforcement Administration and Detectives with the Los Angeles Police Department. The case was prosecuted by Assistant U. S. Attorneys William J. Quinlan, Jr. and Harry W. McSherry.
Lincoln Man Sentenced for Possession of a Firearm by a Drug UserRead the Press Release
On January 9, 2014, Allen E. Peithman, Jr., age 35 of Lincoln, was sentenced to 18 months in prison for being a drug user or addict in possession of a firearm. Following the prison term, Peithman will serve three years on supervised release.
On December 11, 2012, Peithman was a passenger in a car which was stopped by a Lincoln Police Department officer for a traffic violation. Officers learned there was marijuana in the car, and both the driver and Peithman were asked to get out of the car. Peithman told an LPD officer that he had a gun in the left sleeve of his coat. An officer found a loaded .45 caliber pistol in the sleeve of Peithman’s coat. During a search of Peithman's person, officers found a plastic bag containing a small amount of methamphetamine in a pants pocket. Peithman was arrested and taken to the Lancaster County Jail where a corrections officer found a marijuana cigarette in Peithman's coat pocket and an additional plastic bag containing a small amount of methamphetamine in a pants pocket. Peithman told officers he had the gun with him because he carried it at his business. Peithman said the methamphetamine belonged to him and admitted to being a user of methamphetamine.
This case was investigated by the Lincoln Police Department.
Largo Woman Sentenced to 4 Years in Prison for Tax and Student Loan FraudRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Covington today sentenced Katherine Rumph-Smith (44, Largo) to four years in federal prison for defrauding student financial aid and filing false claims with the Internal Revenue Service (IRS). The Court also ordered Rumph-Smith to make restitution to the IRS, in the amount of $110,971, and to the Federal Stafford Loan Program, in the amount of $22,350.
Rumph-Smith pleaded guilty on October 10, 2013.
According to court documents, Rumph-Smith had previously procured several student loans with outstanding balances, then had the balances discharged due to a disability. In order to obtain further student loans, she submitted physician forms, with the physician’s signature forged by her, saying that her condition had improved, and agreeing to repay her prior loan balances. Rumph-Smith then applied for additional student loans to attend Walden University, which she did not attend, and obtained over $27,000 in loans, from which a total of $22,350 was disbursed to her.
In connection with the IRS, Rumph-Smith created four fictitious Florida corporations and then filed corporate tax returns claiming over $500,000 in refundable tax credits on behalf of the corporations. Also, she opened bank accounts in the names of the corporations, where refunds from the fraudulent corporate tax returns were directly deposited. She used these funds for personal expenses and admitted that these corporations were created solely for the purpose of filing false corporate tax returns and were not operational in any manner whatsoever.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Department of Education – Office of Inspector General. It was being prosecuted by Assistant United States Attorneys Kelley C. Howard-Allen and Sara Sweeney.
Kyle Man Sentenced for Assaulting an OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man convicted of Assaulting, Resisting, or Impeding a Federal Officer was sentenced on January 7, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Richard D. Red Owl, age 46, was sentenced to time served, 1 year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Red Owl pled guilty to the charge on November 22, 2013. The conviction relates to an incident where Red Owl swung a large tree branch at an officer and then pulled a knife blade on him on June 7, 2013, near Kyle.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Kansas Federal Gun Prosecutions Ranked Third in Nation in FY 2013Read the Press Release
KANSAS CITY, KAN. – Kansas ranked third in the nation in fiscal year 2013 in the number of federal firearms cases prosecuted, U.S. Attorney Barry Grissom said today.
Justice Department statistics show that among the 94 judicial districts nationwide only the District of Puerto Rico and the Western District of Missouri filed more federal firearms cases is FY 2013.
“Fighting gun violence and protecting the safety of our law enforcement officers are two of our top priorities,” Grissom said.
In FY 2013, Grissom’s office filed a total of 298 firearms cases, compared to 291 cases in FY 2012, when the District of Kansas also ranked third in the nation. In FY 2011, the District of Kansas ranked first in the nation with a total of 279 firearms cases filed.
Justice Department statistics show that in FY 2013 the District of Puerto Rico filed 349 firearms cases and the Western District of Missouri filed 299 firearms cases.
The totals include charges filed under federal statutes 18 U.S.C. 922 and 924, which prohibit convicted felons from possessing firearms and make it a federal crime to possess firearms in furtherance of drug trafficking or crimes of violence.
Justice Department Collects More Than $8 Billion in Civil and Criminal Cases in Fiscal Year 2013Read the Press Release
Attorney General Eric Holder today announced that the Justice Department collected at least $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013.
“The department’s enforcement actions not only help to ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The statistics indicate that in FY 2013, approximately $5.9 billion was collected by the department’s litigating divisions and the U.S. Attorneys’ offices in individually and jointly handled civil actions. The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct and collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. This number includes approximately $3.2 billion related to health care fraud and more than $430 million related to environmental cases. In addition, civil debts were collected on behalf of several federal agencies, including the Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
The Justice Department’s litigating divisions and U.S. Attorneys’ offices are also responsible for enforcing and collecting criminal debts owed to the U.S. and criminal debts owed to federal crime victims. In FY 2013, the total amount collected in criminal actions totaled approximately $2.2 billion in restitution, criminal fines and felony assessments. This total included more than $450 million in criminal fines associated with health care fraud, more than $600 million in antitrust violation fines, more than 390 million in fines for environmental violations and more than $42 million in fines for tax fraud violations.
The approximately $8.1 billion taken in by the department as a whole in FY 2013 represents nearly three times the approximately $2.76 billion of the department’s direct appropriations that pay for the 94 U.S. Attorneys’ offices and its main litigating divisions.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $5.48 billion in payments made directly to the Justice Department, and $2.61 billion in indirect payments made to other federal agencies, states and other designated recipients.
In measuring collections recovered in FY 2013, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2013.FY 2013 Collections Highlights
Health Care Fraud - Abbott, Amgen (Civil Division; U.S. Attorneys Offices)
As in previous years, the largest collections related to health care fraud. For example, the Justice Department collected more than $800 million of its total $1.5 billion settlement with Abbott Laboratories resolving criminal and civil allegations that Abbott illegally promoted the drug Depakote to treat agitation and aggression in elderly dementia patients and schizophrenia when neither of these uses was approved as safe and effective by the FDA. Of the total, Abbott paid a $500 criminal fine in FY 2012 following its guilty plea (the total $1.5 billion settlement also includes nearly $200 million in forfeited assets). In another major pharmaceutical case, the U.S. collected more than $748 million from its total $762 million settlement (including $14 million in forfeited assets) with biotech giant Amgen Inc. to settle allegations including Amgen’s illegal promotion of Aranesp, a drug used to treat anemia, in doses not approved by the FDA and for off-label use to treat non-anemia-related conditions. For details, see Abbott , Abbott sentencing , and Amgen .
Deepwater Horizon (Criminal Division; Environment and Natural Resources Division; Civil Division; U.S. Attorneys Offices)
Among other major collections in FY 2013 were penalties and fines collected from BP Exploration and Production Inc., and Transocean Deepwater Inc., stemming from their roles in the disastrous April 2010 Deepwater Horizon rig explosion in the Gulf of Mexico that cost 11 men their lives and resulted in the largest oil spill in U.S. history.
Out of the $4 billion total criminal settlement with BP, the U.S. collected $256 million in criminal fines in FY 2013 following January 2013 convictions for manslaughter, obstruction of justice and environmental crimes. The U.S. will recover an additional $1 billion in criminal fines from the resolution over the next four years under the court schedule. An additional $2.39 billion in non-fine criminal penalties is dedicated to environmental and wildlife conservation efforts in the Gulf, as well as $350 million in spill prevention and response efforts. During FY 2013, BP made initial payments of $105 million towards these additional obligations, and will pay the rest over the next four years, under the court’s schedule.
In FY 2013, the department collected $100 million in criminal fines owed by Transocean for its role in the oil spill. Transocean also paid $60 million towards an additional $300 million in non-fine criminal penalties slated for Gulf conservation, spill prevention and response efforts, and it paid $404 million of $1 billion in civil penalties imposed under the Clean Water Act.
The efforts to hold accountable those responsible for the disaster continue. For details, see BP and Transocean settlements.Price Fixing and Bid Rigging – AU Optronics (Antitrust Division)
Some of the department’s largest collections related to the Antitrust Division’s criminal prosecutions of international conspiracies to fix prices, rig bids and allocate markets. For example, in FY 2013, the Justice Department collected more than $326 million from its total of $1.39 billion in criminal fines resulting from its investigation into price fixing of thin-film transistor liquid crystal display (LCD) panels. For instance, $250 million was collected in FY 2013 from LCD manufacturer AU Optronics’ $ 500 million total fine for its conviction after an eight-week trial . For details, see LCD . In addition, the United States collected more than $124 million in criminal fines in FY 2013 related to the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry, out of a total of more than $1.6 billion in fines obtained in the investigation through FY 2013. For details, see Auto Parts .Tax Conspiracy – Wegelin & Co. (Tax Division)
The U.S. collected more than $42 million in restitution and fines in a single tax case involving Wegelin & Co., a Swiss private bank that pleaded guilty to conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret Swiss bank accounts and the income generated in these accounts from the Internal Revenue Service (IRS). As part of its guilty plea, Wegelin agreed to pay approximately $20 million in restitution to the IRS and to pay a $22.05 million fine. In addition, Wegelin agreed to the civil forfeiture of an additional $15.8 million, representing the gross fees earned by the bank on the undeclared accounts of U.S. taxpayers.Jefferson City Man, Woman Plead Guilty to $100,000 Student Loan FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man and woman pleaded guilty in federal court today to engaging in a bank fraud scheme in which they unlawfully received more than $100,000 in student loans under their child’s name.
Lisa Kay Baker, 53, and David Waymon Baker, 56, both of Jefferson City, each pleaded guilty in separate appearances before U.S. Magistrate Judge Matt J. Whitworth to two counts of bank fraud. Lisa and David Baker (who at the time of the criminal conduct was employed by the Missouri Commission on Human Rights) were married during the criminal scheme but divorced in 2009.
By pleading guilty today, Lisa and David Baker each admitted that they received 11 student loans, totaling $102,088, in the name of their child (identified in the indictment as “RLB”) without his/her knowledge or consent from July 2005 to September 2007. Each application that was submitted was filled out by at least one or both of the defendants, and then one or the other (or a third person at their direction) forged the signature of RLB.
RLB attended William Woods University from 2003 through 2007, then graduated from the University of Missouri with a master’s degree in 2009. RLB obtained student loans from Sallie Mae to pay for tuition, room and board, and books for both his/her undergraduate and master’s degrees. Sallie Mae submitted the proceeds from RLB’s student loans directly to the schools RLB was attending; her parents did not help RLB pay for any college expenses.
At the end of 2011, RLB began receiving telephone calls from a collection agency, claiming that payments were not being made on RLB’s student loans. In January 2012, RLB examined his/her credit report and found that there were multiple student loans on RLB’s credit history that had not been obtained by RLB.
The Bakers admitted that they made no payments on the student loans. Lisa Baker’s mother, who was listed as a co-borrower on some of the fraudulent loans, made some payments on the loans. Sallie Mae charged off all 11 student loans obtained by the Bakers, with an aggregate principal balance of $95,752.
Under federal statutes, each of the Bakers is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $2 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 Anthony P. Gonzalez. It was investigated by the FBI, the Cole County, Mo., Prosecuting Attorney’s Office and the Jefferson City, Mo., Police Department.Illinois Man Operated Website for the Illegal Distribution of Peptides, HGHRead the Press Release
PITTSBURGH – An Illinois resident pleaded guilty in federal court to charges of mail fraud, distribution of human growth hormone and money laundering, United States Attorney David J. Hickton announced today.
Ronald J. DeFranco, 54, pleaded guilty to 3 counts before United States District Judge Donetta Ambrose.
In connection with the guilty plea, DeFranco maintained a web-site for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body builders for muscle enhancement. DeFranco deceived the Internet service provider and the FDA by falsely representing on the web-site that he was selling these substances "for research purposes only . . . not for human consumption." In addition to sales of peptides, DeFranco also sold human growth hormone (HGH) without the required physician's prescriptions. During the period from May 2010, until January 2011, DeFranco paid $94,777.40 in Western Union and bank wire transfers to acquire these substances from suppliers in the People’s Republic of China.
Judge Ambrose scheduled sentencing for 10 a.m. on May 13, 2014. The law provides for a maximum total sentence of 20 years in prison and a fine of $250,000 on the mail fraud count; 5 years in prison and a $250,000 fine on the HGH distribution count; and 20 years in prison and a fine of $500,000 on the money laundering count. 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.
Pending sentencing, the court modified defendant’s bond to include home detention with electronic monitoring.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The prosecution arose from the combined efforts of agents with the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA.
INDICTMENT, EXHIBITS & RELATED LETTER: U.S. V. Devyani KhobragadeRead the Press Release
U.S. v. Devyani Khobragade Indictment Exhibits
U.S. v. Devyani Khobragade Indictment
U.S. v. Devyani Khobragade Govts 1.9.2014 Letter to Judge ScheindlinHartford Man Sentenced to Eight Months in Prison for Escaping from Halfway HouseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ENRIQUE LUCIANO, also known as “Pucho,” 26, of Hartford, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to eight months imprisonment for escaping from a halfway house in Hartford.
According to court documents and statements made in court, on May 27, 2010, LUCIANO was sentenced in Hartford federal court to 60 months of imprisonment for possession of a firearm by a convicted felon. On February 20, 2013, he was transferred to Watkinson House Residential Reentry Center, a halfway house in Hartford. On July 11, 2013, after being denied a job search pass by Watkinson staff, LUCIANO was seen leaving the facility with most of his belongings. He did not return.
On July 19, 2013, LUCIANO was arrested by the U.S. Marshals Service. At the time of his escape, LUCIANO had a projected release date of August 18, 2013.
LUCIANO has been detained since his arrest. On September 19, 2013, he pleaded guilty to one count of escape from the custody of the Attorney General.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Jonathan S. Freimann.
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[email protected]Hansel Bailey Sentenced to Five Years in Prison for Tax Fraud ConspiracyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Hansel Bailey, 36, of Orange County, California, to five years in prison for conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands, announced United States Attorney Ronald W. Sharpe and Internal Revenue Service Special Agent in Charge Jose A. Gonzalez. The Court also sentenced Bailey to three years of supervised release, and ordered him to pay restitution to the Virgin Islands Bureau of Internal Revenue in the amount of $821,094, and to the Internal Revenue Service in the amount of $1,104,741. Bailey was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing.
According to the evidence presented during the jury trial of Bailey and co-conspirator, David Haddow, in 2004, Bailey incorporated a business in St. Thomas called Compass Diversified, and in 2005, that company was granted Economic Development Commission tax benefits. Bailey and another co-conspirator marketed a tax-savings scheme that would allow clients of Compass Diversified to claim bogus business deductions on their income tax returns by making payments to Compass, allegedly for management or consulting services. The clients would then recoup a substantial portion of the payment made to Compass in the form of a tax-free gift from a Virgin Islands-born resident. The scheme consisted of nothing more than a three-step circuitous money flow.
According to the evidence, in the first step, Compass clients made payments to Compass or wired money directly into Compass’ bank account. In step two, co-conspirator Haddow, at the direction of Bailey, transferred by check a substantial portion of that money into the personal bank account of a Compass employee. The last step consisted of a substantial portion of the original payment being returned by check or wire transfer to the Compass clients who made the payments to Compass on the front end of the transaction. As part of their scheme, Bailey and Haddow convinced a Virgin Islands-born resident to open a personal bank account for the sole purpose of sending tax-free gifts back to Compass clients. Compass Diversified never offered consulting or management services to any of their clients even though the clients were encouraged to claim deductions on their tax returns.
The jury also convicted co-conspirator Haddow of conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands. Haddow’s sentencing has been continued without a date. A second co-conspirator, Dwight Padilla, pleaded guilty in June 2013 to conspiracy to defraud the United States and was sentenced to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $1,296,941 to the Internal Revenue Service.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by Assistant U.S. Attorneys Bryan E. Foreman and Kim L. Chisholm.
Georgia Husband and Wife Tax Return Preparers Plead Guilty to Tax CrimesRead the Press Release
Detrick and Natashia Tucker, a husband and wife who owned and operated a tax preparation business named T&T Express Tax located in Pine Mountain, Ga., pleaded guilty today to crimes relating to the preparation of false tax returns, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Specifically, Detrick Tucker pleaded guilty to aiding and assisting in the preparation of false tax returns, and Natashia Tucker pleaded guilty to conspiring to defraud the United States in the assessment and collection of federal income taxes.
According to court documents, Natashia Tucker admitted that she conspired with Detrick Tucker to fraudulently inflate refunds on their clients’ tax returns in order to increase the popularity of T&T Express Tax and secure more business. Detrick Tucker contributed to the conspiracy by registering T&T Express Tax with the Internal Revenue Service (IRS) so that the false returns could be electronically filed and by performing managerial duties. He also applied for an Electronic Filing and Identification Number and a Preparer Tax Identification Number rather than Natashia Tucker because she is a convicted felon. Detrick Tucker then knowingly allowed Natashia Tucker to use these IRS registration numbers to file tax returns for clients as well as for her own 2010 and 2011 false tax returns. Natashia Tucker was the main tax return preparer at T&T Express Tax, and she prepared the majority of the false tax returns at the business primarily by abusing the Earned Income Tax Credit and by creating false business information for her clients. During its three years of operation, T&T Express Tax filed over 2,200 federal tax returns that claimed over $1,000,000 in false refunds.
Detrick Tucker faces a statutory maximum potential sentence of three years in prison for his conviction for aiding and assisting in the preparation of false tax returns. Natashia Tucker faces a statutory maximum potential sentence of five years in prison for her conspiracy conviction. They are both also subject to fines and mandatory restitution. U.S. District Judge Clay Land scheduled the Tuckers’ sentencing for Mar. 25, 2014.
The case was investigated by special agents of the IRS-Criminal Investigation and the Georgia Department of Revenue. Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Former Union President Sentenced for Failture to Maintain RecordsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mark Valerio, 57, of Macedon, N.Y., who was convicted of violating the Labor Management Reporting and Disclosure Act , was sentenced to one year probation, 500 hours of community service, and was ordered to repay more than $39,000 in restitution to the International Brotherhood of Electrical Workers. The defendant was also barred from holding a leadership role in a labor organization for a period of 13 years.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that between 2003 and 2012, the defendant was President of the International Brotherhood of Electrical Workers (IBEW) Union, Local 249, in Geneva, N.Y. As Local 249 President, Valerio also held a position as an officer on the executive board of IBEW System Council U-7, a labor organization affiliated with four IBEW locals in matters of collective bargaining and contract negotiations. During this time, the defendant prepared and submitted false claims for reimbursement of travel expenses to both Local 249 and IBEW System Council U-7. Valerio also claimed reimbursement from the unions for instances when he was already being compensated by his employer. The defendant knew that he had an obligation to submit true and accurate documentation regarding his expense records and that he recklessly disregarded that obligation.
As a result, Valerio obtained reimbursements from the IBEW in the amount of $39,049 to which he was not entitled. The defendant resigned as the President of Local 249 in 2012 as a result of the federal investigation.
“Today’s sentencing – besides bringing closure to this successful prosecution - means that union members who work so hard for their wages will now be made whole,” said U.S. Attorney Hochul. “Similar to public officials, union officers have a fiduciary duty to their organization and members, and this Official will certainly not tolerate any breach of that duty.”
The sentencing is the culmination of an investigation on the part of Investigators with the United States Department of Labor, Office of Labor Management Standards, under the direction of District Director Mark Neylon.Former Tennessee Mayor and Associate Sentenced <br /> for Running Illegal Gambling BusinessRead the Press Release
A former mayor of South Pittsburg, Tenn., and an associate were sentenced today in Chattanooga, Tenn., for managing an illegal gambling business, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Kenneth L. Moore of the FBI’s Knoxville Division.
Former South Pittsburg Mayor James Michael Killian, 56, was sentenced by U.S. District Judge Curtis L. Collier in the Eastern District of Tennessee to serve six months in prison, followed by 12 months of home confinement. In addition to his prison term, Killian was sentenced to serve two years of supervised release and ordered to pay a fine of $30,000. His associate in the gambling operation, Robert Barry Cole, 53, of South Pittsburg, was sentenced to serve three months in prison, followed by six months of home confinement. He will serve two years of supervised release and was ordered to pay a $3,000 fine.
Killian was mayor of South Pittsburg from 2005 until 2012. During that time, he conducted a gambling operation that involved video gambling machines located at a convenience store he owned in South Pittsburg. Killian also managed an illegal lottery, in which bettors placed illegal bets on legal state lotteries. In addition, Killian ran an illegal sports betting ring in partnership with Cole. Cole received sports bets, collected wagers and paid successful bettors their winnings, and Killian and Cole split the proceeds of the operation.
This case was investigated by the FBI and prosecuted by Trial Attorney Mark Angehr of the Criminal Division’s Public Integrity Section.Former Sacramento Area Loan Officer Pleads Guilty to Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Alexander A. Romaniolis, 48, of Irvine, pleaded guilty today to mortgage fraud, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the three-count indictment on March 21, 2013, charging Romaniolis with mail fraud.
According to court documents, Romaniolis recruited five straw buyers to purchase eight California residential properties in Rocklin, Roseville and San Clemente. Romaniolis assisted the straw buyers in providing false information to lenders about their employment, income, assets, and intent to occupy properties as primary residences. In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. He was responsible for the origination of more than $5 million in residential mortgage loans in the scheme. All of the properties were foreclosed on, resulting in a total loss of more than $2 million.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Attorney General’s Mortgage Fraud Task Force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
Romaniolis is scheduled to be sentenced on March 27, 2014. He faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Pooler Police Officer Indicted on Chargers Related to Drug ConspiracyRead the Press Release
Savannah, GA – John William Stanley, 46, of Pooler, Georgia, was indicted this week by a federal grand jury sitting in Savannah on charges related to a conspiracy involved in the illegal possession and distribution of numerous controlled substances. Stanley was charged with aiding and abetting that conspiracy, with assisting the conspirators in order to prevent their apprehension, and with concealing the conspirators’ crimes instead of reporting those crimes to the appropriate authorities. At the time of the charged crimes, Stanley was an officer with the City of Pooler Police Department.
United States Attorney Edward Tarver stated, “Those charged with enforcing the law are not above it. This office remains committed, with our law enforcement partners, to prosecuting public corruption, so that the citizens of this district can be confident in the true loyalties of those sworn to protect and defend them.”
No initial appearance in court has been scheduled. The most serious of the charges against Stanley carries a 20-year maximum prison sentence. Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Chatham Savannah Counter Narcotics Team, with assistance from the U. S. Drug Enforcement Agency. The City of Pooler Police Department cooperated fully with the investigation. FBI Special Agent Christopher B. Blair is the lead case agent. First Assistant United States Attorney James D. Durham and Assistant United States Attorney R. Brian Tanner are prosecuting the case on behalf of the United States.
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption cases, by their very nature, are serious breaches of the public’s trust that require and receive priority investigative handling by the FBI. Those investigations involving police officers engaged in criminal conduct take on an even greater sense of urgency. The FBI will continue to make such cases a priority and asks that anyone with information regarding such activity to contact their nearest FBI field office.”
Pooler Police Chief Mark Revenew stated: “The City of Pooler Police Department fully cooperated with the investigation and is committed to eradicating corruption from the law enforcement profession. We want to ensure the public that allegations such as the ones here will not be tolerated.”
For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Ottawa County Sheriff Charged with Using Law Enforcement Money for Personal ItemsRead the Press Release
The former Ottawa County sheriff was charged with improperly spending about $5,000 that was to be used for law enforcement purposes to instead pay for for personal items including Cedar Point tickets, clothing and prescription medicine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Robert Bratton, 60, of Genoa, Ohio, was charged in a criminal information with one count of theft concerning programs receiving federal funds.
“Money that was supposed to help the men and women in law enforcement was instead diverted and spent on personal items, including tickets to an amusement park,” Dettelbach said. “That is hardly amusing to the rest of us. Those who are trusted to enforce the law, above all, cannot place themselves above it.”
Anthony said: “A sheriff who chooses to ignore his sworn oath to uphold the law and engage in criminal behavior is totally unacceptable. The FBI will investigate those who violate the public’s trust, no matter what position that individual holds.”
Bratton served as Ottawa County sheriff from 2004 until his resignation in September 2011. In 2010, the sheriff’s office received approximately $27,290 from the Furtherance of Justice Fund (FOJ Fund), which provided law enforcement entities to pay for expenses relating to official law enforcement duties and in the furtherance of justice, according to the information.
The Ohio Auditor provided guidance to county sheriffs in 2007 under the heading “Permissable Expenditures of F.O.J. Funds.” It read, in part, that an “expenditure must be both in the performance of the officer’s official duties and in furtherance of justice to be allowable.” The bulletin also stated, “There is always the additional requirement that the expenditure must be for a proper public purpose,” according to the information.
Bratton, as the county sheriff, was a fiduciary over F.O.J. Fund money provided to his office.
In 2010, Bratton used approximately $2,865 in F.O.J. Fund cash and also used a credit card linked to the F.O.J. Fund to purchase various personal items, including Cedar Point tickets, prescription medicine and clothing, all of which were non-permitted expenses under F.O.J. Fund rules and regulations, according to the information.
As of Dec. 31, 2010, Bratton reimbursed the F.O.J. Fund for some of the money he used for personal items, but failed to replace all the F.O.J. Fund money by that date, according to the information.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Antoinette T. Bacon and following investigation by the Federal Bureau of Investigation.
Former Local Resident Pleads Guilty to Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Trent Ashley Willis, 37, has pleaded guilty to distributing child pornography, announced United States Attorney Kenneth Magidson. The plea was entered yesterday in federal court in Corpus Christi before Senior U.S. District Judge Janis Graham Jack.
Willis came to the attention of law enforcement after multiple pornographic images of children were posted to several websites. The investigation led to the identity of Willis who had been posting and exchanging child pornography in Corpus Christi between May and October of 2012 via legitimate websites with other users who were similarly interested. Willis resided in Corpus Christi during parts of 2012, but left the area sometime during late 2012. He was eventually discovered and arrested without incident in Petersberg, Va., in October 2013.
The ongoing investigation has linked Willis to numerous occurrence of Internet-based child pornography related activities in multiple states.
Judge Jack has set sentencing for March 19, 2014, at which time he faces a minimum of five and up to 20 years in federal prison. Upon completion of any prison term imposed, Willis also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children. He will also have to register as a sex offender. Willis has been in custody since his arrest where he will remain pending that hearing.
The FBI investigated with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant United States Attorney Lance Duke, 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."Former Hialeah Police Officer and Wife Sentenced for Dealing in Firearms Without A LicenseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Scott J. Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Rafael Oscar Valdes and Tammy Lynn Valdes, of Miami, Florida, were sentenced today in connection with the unlawful sale of hundreds of firearms without a federal firearms license. Rafael Oscar Valdes was sentenced to 60 months in prison, to be followed by three years of supervised release. Tammy Lynn Valdes was sentenced to 42 months in prison, to be followed by three years of supervised release. Both defendants were ordered to pay restitution in the amount of $6,613.51.
After a two week trial and over 300 items of admitted evidence, a jury convicted Rafael Valdes with dealing in firearms without a license (18 U.S.C. § 922(a)(1)(A)), making a false statement to a federal firearms dealer (18 U.S.C. § 922(a)(6)), interstate transportation of stolen property (18 U.S.C. § 2314), and filing false tax returns for years 2008 – 2011 (26 U.S.C. § 7206(1)). The jury also convicted Tammy Valdes with dealing in firearms without a license and filing false tax returns for years 2008 – 2011.
According to the court record and evidence presented at trial, Rafael Valdes was employed as a police officer with the City of Hialeah, Florida since 2004. Tammy Valdes was also once employed as a police officer with the City of West Miami, Florida, from 2004 until 2008 and the Town of Golden Beach, Florida, from 2008 through 2009. Neither defendant ever possessed a federal firearms license.
The Valdeses were initially indicted on December 13, 2012, for dealing in firearms without a license. Starting as early as July 2005, and continuing through June 2012, the defendants sold hundreds of firearms. In November 2008, the defendants began buying and selling firearms under the fictitious name of Custom Weapons Systems. The defendants advertised and sold over 100 firearms via the Internet to persons across the nation. The defendants also attended over 100 gun shows in the Southern and Middle Districts of Florida, during which they purchased over 400 firearms and sold over 500 firearms. At times, their purchase and subsequent sale of firearms took place on the same day. Additionally, the defendants sold nine firearms to undercover agents, solicited the purchase of firearms from undercover agents, and offered to acquire firearms for undercover agents on a repetitive basis.
As part of the initial indictment, Rafael Valdes was charged with making a false statement to a licensed firearms dealer in December 2008 when he purchased three AR-15 serialized lower receivers. Evidence admitted during trial proved that Rafael Valdes purchased those receivers for the sole purpose of building and selling completed rifles to three other officers after taking deposits. Rafael Valdes then falsely stated on an ATF Form 4473 that all three receivers were his, when in fact he was acquiring those receivers for other persons.
On July 31, 2013, a superseding indictment added tax charges against both defendants for filing false tax returns from 2008 – 2011, in that they failed to report their total income which included money derived from firearm sales. During trial, evidence was presented that the Valdeses failed to report over $350,000.00 in gross receipts during 2008 - 2011.
The superseding indictment also charged Rafael Valdes with transporting stolen firearm parts from the Hialeah Police Department where he was employed in the training section. During trial, the evidence showed that Rafael Valdes took apart firearms that were in evidence at the Hialeah Police Department and deemed to be destroyed. Rafael Valdes then advertised those parts for sale on the internet and later transported those parts to buyers located across the United States, including; New York, California, Utah, and Missouri. Rafael Valdes then deposited the proceeds into his personal bank account. In addition to selling parts of firearms that were once in evidence, Rafael Valdes also sold machine gun parts taken from six different Heckler and Koch, MP-5 machine guns which had been utilized by the Hialeah Police Department SWAT team.
Mr. Ferrer commended the investigative and cooperative efforts of ATF, IRS-CI, BSO, PBSO, Miami-Dade Police Department, Miami Beach Police Department, City of Miami Police Department, Virginia Gardens Police Department, Hialeah Police Department, FDLE, FBI and HSI. The case was prosecuted by Assistant U.S. Attorneys Adam McMichael and John McMillan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Employee Pleads Guilty to StealingRead the Press Release
More Than $26,000 from Naval Research Laboratory
-Defendant Sold Stolen Equipment to Pawn Shops-WASHINGTON – Joyce Dawn Ferrell, 42, a former secretary at the Naval Research Laboratory, pled guilty today to stealing more than $26,000 in equipment from her employer and then selling the items to pawn shops, U.S. Attorney Ronald C. Machen Jr. announced.
Ferrell, of Indian Head, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of theft of government property. The Honorable Rudolph Contreras scheduled sentencing for April 7, 2014. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that the likely range is a sentence of up to six months of incarceration and a fine of up to $10,000. As part of the plea agreement, Ferrell has agreed to pay $26,029 in restitution to the Naval Research Laboratory. She also has agreed to a forfeiture money judgment, also of $26,029.
According to the government’s evidence, Ferrell was a secretary in the Optical Sciences Division of the Naval Research Laboratory in the District of Columbia. In July 2012, she took responsibility for making authorized purchases with her government-wide commercial purchase card. Starting that month, and continuing until about May 2013, she made a number of unauthorized purchases with the card at the Naval Research Laboratory’s commissary. Among other things, she bought computer equipment, drills, and thermal imagers. She then sold these items to pawn shops in Virginia and Maryland. In an effort to cover up her activities, Ferrell submitted falsified order forms to her supervisors at the Naval Research Laboratory.
In announcing the plea, U.S. Attorney Machen commended the work of the Naval Criminal Investigative Service, which investigated the case. He also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD), and he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Intelligence Specialist Sharon Johnson and Paralegal Specialists Donna Galindo and Shanna Hays. Finally, he thanked Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues, and Assistant U.S. Attorney Phil Selden, who is prosecuting the case.
14-4Former Desoto County, Fla., Sheriff’s Deputies Indicted for Civil Rights and Obstruction Violations Regarding the Assault of an InmateRead the Press Release
A federal grand jury in Fort Myers, Fla., indicted former Desoto County Sheriff’s Office deputies Steven Rizza and Jonathan Mause today for charges related to the violation of the civil rights of an inmate who was assaulted by Rizza at the Desoto County Jail and the ensuing obstruction of the investigation into that offense.
The six-count indictment charges Rizza with one count of violating the civil rights of another, and charges both Rizza and Mause with one count of falsifying records in a federal investigation, one count of obstruction of justice and one count of perjury to a grand jury. Additionally, the indictment charges Mause with one count of making a false statement to a federal investigator.
The indictment alleges that on May 25, 2013, Rizza assaulted an inmate at the Desoto County Jail. Further, according to the indictment, on May 26 and 27, Rizza and Mause falsified an incident about the assault by changing the incident report to conceal Rizza’s conduct. The indictment also alleges that Rizza subsequently made false statements about the May 25 incident to a Desoto County Sheriff’s Office investigator and to a federal grand jury. According to the indictment, Mause made false statements about the May 25 incident to a federal grand jury and a federal investigator.
If convicted, Rizza could face a statutory maximum sentence of 10 years on the civil rights violation count. Both Rizza and Mause could each face a statutory maximum of 20 years for the obstruction of justice and falsification of records counts and a maximum of five years for the perjury count. Further, Mause could face a maximum of five years for the count of making a false statement to a federal investigator.
The Federal Bureau of Investigation and the Florida Department of Law Enforcement are investigating this case with the assistance of the Desoto County Sheriff’s Office. Chief Assistant U.S. Attorney Jesus M. Casas of the Middle District of Florida and Trial Attorney Douglas Kern of the Civil Rights Division are prosecuting this case.
An indictment is merely an accusation, and all defendants are presumed innocent unless and until proven guilty.
Former Desoto County, FLA., Sheriff's Deputies Indicted for Civil Rights and Obstruction Violations Regarding the Assault of an InmateRead the Press Release
WASHINGTON – A federal grand jury in Fort Myers, Fla., indicted former Desoto County Sheriff’s Office deputies Steven Rizza and Jonathan Mause today for charges related to the violation of the civil rights of an inmate who was assaulted by Rizza at the Desoto County Jail and the ensuing obstruction of the investigation into that offense.
The six-count indictment charges Rizza with one count of violating the civil rights of another, and charges both Rizza and Mause with one count of falsifying records in a federal investigation, one count of obstruction of justice and one count of perjury to a grand jury. Additionally, the indictment charges Mause with one count of making a false statement to a federal investigator.
The indictment alleges that on May 25, 2013, Rizza assaulted an inmate at the Desoto County Jail. Further, according to the indictment, on May 26 and 27, Rizza and Mause falsified an incident about the assault by changing the incident report to conceal Rizza’s conduct. The indictment also alleges that Rizza subsequently made false statements about the May 25 incident to a Desoto County Sheriff’s Office investigator and to a federal grand jury. According to the indictment, Mause made false statements about the May 25 incident to a federal grand jury and a federal investigator.
If convicted, Rizza could face a statutory maximum sentence of 10 years on the civil rights violation count. Both Rizza and Mause could each face a statutory maximum of 20 years for the obstruction of justice and falsification of records counts and a maximum of five years for the perjury count. Further, Mause could face a maximum of five years for the count of making a false statement to a federal investigator.
The Federal Bureau of Investigation and the Florida Department of Law Enforcement are investigating this case with the assistance of the Desoto County Sheriff’s Office. Chief Assistant U.S. Attorney Jesus M. Casas of the Middle District of Florida and Trial Attorney Douglas Kern of the Civil Rights Division are prosecuting this case.
An indictment is merely an accusation, and all defendants are presumed innocent unless and until proven guilty.
Foley Chiropractor Pleads Guilty to Healthcare FraudRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that defendant Richard Rizzuto has pled guilty to engaging in a healthcare fraud scheme. Rizzuto is a chiropractor who serviced patients at his chiropractic clinic, Chiro Partners, Inc. (formerly Back on Track Chiropractic), located in Foley, Alabama.
In his plea agreement, Rizzuto admitted that from April 2009 through September 2013, he knowingly and intentionally billed Blue Cross/Blue Shield of Alabama for certain exercise procedures that were not actually performed on patients at his clinic. During the relevant time period, Rizzuto received nearly $400,000 in reimbursements for the exercise treatments he billed to BC/BS. At sentencing, the Court will determine how much of that total amount is attributable to Rizzuto’s fraud scheme.
This case was investigated by FBI—Mobile and is being prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Florida Residents Sentenced for Defrauding and Threatening Spanish-Speaking ConsumersRead the Press Release
Two individuals charged with running a telemarketing operation that defrauded Spanish-speaking consumers were sentenced today in Miami federal district court, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced. Daniel Carrasco, 54, was sentenced to serve 121 months in federal prison, and Federico Martin Gioja, 45, was sentenced to serve 108 months in federal prison, for their operation of telemarketing companies in Argentina whose representatives consistently lied to consumers about products they would receive and threatened consumers with consequences of failure to pay for their shipments. In addition to their sentences of imprisonment, Carrasco and Gioja were ordered to forfeit a variety of assets, including approximately 20 pieces of real property, an automobile, motorcycles, a boat, a jet ski and firearms.
“The Department of Justice is committed to protecting all consumers from fraud, regardless of the language they speak,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
Carrasco’s and Gioja’s telemarketers promoted products such as vitamins, lotions and English-language training products. They also promised buyers would receive valuable gifts such as expensive watches and perfumes, gift cards and medical assistance and insurance. However, the companies frequently did not deliver products ordered by consumers. Since the companies did not have many of the products they promised to send to consumers, they sent other products instead. Then, after consumers refused delivery of the companies’ shipments, the Argentinian phone room telemarketers called and falsely threatened consumers with arrest, deportation or fines on their gas and electric bills.“Fraud is unacceptable,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Fraud by threat and intimidation is particularly troublesome because it targets the perceived, but oftentimes real, vulnerabilities of those preyed upon. In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation or fines when the consumers refused delivery for products they had not ordered. Such tactics are intolerable. My office is committed and stands united with the department’s Civil Division, Consumer Protection Branch to stem such fraud.”
As part of their guilty pleas, Carrasco and Gioja admitted they routinely changed the names of the companies under which they did business to evade consumer complaints, regulators and law enforcement. A variety of state agencies contacted the businesses regarding their illicit practices. Those working with Carrasco and Gioja referred to these companies tainted by complaints as “burnt.” Rather than changing the “burnt” companies’ practices, Carrasco and Gioja incorporated new companies and started the same illegal practices again.
Also in pleading guilty, Carrasco and Gioja admitted their telemarketers falsely represented to consumers that they were affiliated with Spanish-language television networks. This fraud first came to light when the Spanish language network Univision informed the USPIS they believed a company was involved in a fraud scheme in which it misrepresented its affiliation with the network. Subsequently, USPIS investigated the case, submitted the affidavit in support of the criminal complaint and arrested the defendants.
“Sadly, these types of crimes create a distrust in people and leave victims feeling ashamed for falling for a scam,” said Inspector In Charge Ronald Verrochio for the U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service remains committed to pursuing crimes that are furthered via the U.S. mail and building trust with consumers. Postal Inspectors will investigate and bring the criminals to justice.”
Carrasco and Gioja were originally charged by criminal complaint and arrested on June 26, 2013. Both defendants were later indicted on July 25, 2013, and pleaded guilty on September 24, 2013. Carrasco and Gioja, and a third individual, Romino Tasso, also were named in a civil suit filed by the Justice Department. In the civil case, the Justice Department requested and obtained from the court a preliminary injunction barring further lies to consumers and freezing the assets of Carrasco, Gioja, Tasso and companies under their control.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the civil case. The criminal case was prosecuted by Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
Five Columbia Residents Among 10 Defendants Indicted for Conspiracy to Distribute a Ton of MarijuanaRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than 2,200 pounds of marijuana in Boone County, Mo.
Richard Marieo Hunter, 47, Maneka Rochon Germany, 37, Brian Christopher Young, 31, Marlin Deandrea Allen, 41, and Sharod Oneal Clark, 36, all of Columbia, Mo., Gene Edward Rodgers, Jr., 40, of Kansas City, Mo., Jesus Guzman-Vazquez, 33, of Kansas City, Kan., Wendell Eugene Woodson, 36, of St. Louis, Mo., Jorge Alberto Cabada-Lopez, 49, of San Luis, Ariz., and Jennifer Wall, 42, address unknown, were charged in a 14-count indictment that was returned under seal on Oct. 3, 2013, by a federal grand jury in Jefferson City, Mo. The indictment was unsealed and made public today upon the arrests and initial court appearances of Hunter, Germany and Woodson in Jefferson City and of Guzman-Vazquez in Kansas City, Mo.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute 1,000 kilograms or more of marijuana in Boone County from February 2010 to March 2013.
In addition to the conspiracy, Hunter, Cabada-Lopez, Guzman-Vazquez and Germany were charged together in one count of possessing 100 kilograms or more of marijuana with the intent to distribute on Jan. 24, 2013.
Hunter is also charged in 12 counts of using a telephone to facilitate the drug-trafficking conspiracy. Allen, Young, Wall, Cabada-Lopez, Germany and Woodson are each charged along with Hunter in two of those counts.
The federal indictment also contains a forfeiture allegation, which would require Hunter to forfeit to the government any property derived from the proceeds of the alleged drug-trafficking conspiracy, or used to facilitate the commission of the alleged drug-trafficking conspiracy, including his residence.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.Federal Judge Sentences Keshena Man to 11 Years ImprisonmentRead the Press Release
United States Attorney James L. Santelle announced today that Federal District Court Judge William C. Griesbach sentenced Keshena resident Jacob J. Zhuckkahosee, age 20, to 135 months of imprisonment, followed by a term of life on supervised release. The sentence was the result of a guilty plea by Zhuckkahosee on October 15, 2013, to a federal indictment charging him with the sexual abuse of a person under the age of 16 years.
The investigation revealed that on a date between June 15, 2013, and July 17, 2013, Jacob Zhuckkahosee, an enrolled member of the Menominee Indian Tribe of Wisconsin, sexually abused a four-year-old female child at a residence on the Menominee Indian Reservation. Law enforcement interviewed Zhuckkahosee and he admitted that he was alone in the residence when the unattended victim arrived. Zhuckkahosee stated that he unclothed the child and penetrated her anal opening with his right index finger. According to Zhuckkahosee, he stopped the assault when the child started to cry. Zhuckkahosee stated that he was sorry for his actions and was interested in getting treatment for his problem.
The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Benjamin L. Whittemore.
Eastern District of Oklahoma U.S. Attorney's Office Collects $1,174,439 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Muskogee, Oklahoma - U.S. Attorney Mark Green announced today that the Eastern District of Oklahoma collected $1,174,439 in criminal and civil actions in Fiscal Year 2013. Of this amount, $380,400 was collected in criminal actions and $794,039 was collected in civil actions.
Additionally, the Eastern District of Oklahoma worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $184,251,500 in cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Collection of monies due the United States of America in both criminal and civil matters is a responsibility of this U.S. Attorney’s office as well as those across our nation. We here in the Eastern District of Oklahoma are committed to fulfilling that responsibility,” said U.S. Attorney Mark Green.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of Oklahoma, working with partner agencies and divisions, collected $576,950 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
District of Maine U.S. Attorney’s Office Collects over $2.5 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced
today that the District of Maine collected $2,534,846.68 in criminal and civil actions in Fiscal
Year 2013. Of this amount, $1,360,891.94 was collected in criminal actions and $1,173,954.74
was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department
collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept.
30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the
appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating
divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also
deliver a valuable return to the American people,” said Attorney General Holder. “It is critical
that Congress provide the resources necessary to match the department’s mounting caseload. As
these figures show, supporting our federal prosecutors is a sound investment.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are
responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal
debts owed to federal crime victims. The law requires defendants to pay restitution to victims of
certain federal crimes who have suffered a physical injury or financial loss. While restitution is
paid to the victim, criminal fines and felony assessments are paid to the department’s Crime
Victims’ Fund, which distributes the funds to state victim compensation and victim assistance
programs.The largest civil collections were from affirmative civil enforcement cases, in which the
United States recovered government money lost to fraud or other misconduct or collected fines
imposed on individuals and/or corporations for violations of federal health, safety, civil rights or
environmental laws. In addition, civil debts were collected on behalf of several federal agencies,
including the U.S. Department of Housing and Urban Development, Health and Human Services,
Internal Revenue Service, Small Business Administration and Department of Education.Additionally, the U.S. Attorney’s office in the District of Maine, working with partner
agencies and divisions, collected $462,493 in asset forfeiture actions in FY 2013. Forfeited
assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore
funds to crime victims and for a variety of law enforcement purposes.District of Delaware U.S. Attorney’s Office Collects $1,725,357.29 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
WILMINGTON, Del. – U.S. Attorney Charles M. Oberly, III announced today that the District of Delaware collected $1,725,357.29 in criminal and civil actions in Fiscal Year 2013. Of this amount, $448,253.63 was collected in criminal actions and $1,277,103.66 was collected in civil actions.
Additionally, the District of Delaware worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $304,172.89 in cases pursued jointly with these offices. Of this amount, $304,172.89 was collected in civil actions.
Moreover, the District of Delaware, working with partner agencies and divisions, collected $3,587,857.00 in asset forfeiture actions in FY 2013. Specifically, in the case of United States v. Bruce E. Costa, the district recovered almost $2.5 million. Costa, a former pharmacist and former owner of Renaissance Family Pharmacy in Claymont, Delaware, was found guilty of unlawfully distributing approximately 45,000 oxycodone pills. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“During this time of economic recovery, these collections are more important than ever,” said U.S. Attorney Oberly. “The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from their illegal activities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Criminal Immigration Charges Brought Against Seven Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced today that charges have been brought this week against the following:
Erik Samuel Coyoc, age 22, a native and citizen of Guatemala, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Coyoc, an alien previously arrested and deported, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.
If convicted, Coyoc, faces a maximum sentence of up to 2 years imprisonment and a $250,000 fine.
Alberto Bautista-Sanchez, age 30, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Bautista-Sanchez, an alien with previous criminal convictions in California, and who had been previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Franklin County, Pennsylvania.
If convicted, Bautista-Sanchez faces a maximum sentence of up to 20 years of imprisonment and a $250,000 fine.
Victor Bautista-Marquez, age 25, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Bautista-Marquez, an alien with prior criminal convictions, and previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Adams County, Pennsylvania.
If convicted, Bautista-Marquez faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
Rigoberto Osornio-Gomez, age 29, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Osornio-Gomez, an alien who had been previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in New Oxford, Adams County, Pennsylvania.
If convicted, Osornio-Gomez faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
Maria Gutierrez-Contreras, age 34, a native and citizen of Mexico, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Gutierrez-Contreras, an illegal alien, was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Gutierrez-Contreras faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Norberto Castillo-Lopez, age 24, a native and citizen of Mexico, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Castillo-Lopez, an illegal alien, was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Castillo-Lopez faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Juan Antonio Perez-Agion, age 35, a native and citizen of El Salvador, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Perez-Agion, an illegal alien, was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Perez-Agion faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Colorado Woman Indicted for Drug ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Colorado Springs, Colorado, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Barbara Olson, age 52, was indicted on November 19, 2013. She appeared before U.S. Magistrate Judge Veronica L. Duffy on January 6, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
Beginning no later than the summer of 2012, Olson conspired with others to distribute more than 500 grams of methamphetamine in the District of South Dakota.
The charge is merely an accusation and Olson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotic Enforcement Team, and the Drug Enforcement Administration. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Olson was released on bond pending trial. A tentative trial date has been set for March 11, 2014.
Colorado Man Indicted for Flying More Than 70 Pounds of Cocaine to Baton RougeRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Walt Green announced today the indictment of a Colorado man charged with attempting to transport more than seventy (70) pounds of cocaine through Baton Rouge on a private aircraft.
A federal grand jury has returned a two-count indictment charging VINCENT SALZANO, also known as Vincenzo Salzano, age 55, of Aurora, Colorado, with conspiring to possess with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 846, and possession with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 841(a)(1). If convicted of both counts, SALZANO faces a maximum sentence of life imprisonment and up to $20,000,000 in fines. SALZANO also faces the forfeiture of the airplane involved in the criminal activity and any proceeds derived from such activity.
The indictment arises from SALZANO’s arrest this past fall at the Baton Rouge Metropolitan Airport. The indictment alleges that on October 7, 2013, SALZANO met with other individuals and boarded a private plane that SALZANO controlled and that had been flown to Atlanta at SALZANO’s direction. The following day, SALZANO allegedly flew from Atlanta to the McAllen, Texas area, where he deplaned, left the airport, and obtained approximately 30 packaged bundles of cocaine. SALZANO and another individual then allegedly re-boarded the plane, carrying the cocaine and intending to travel back to Atlanta. According to the indictment, SALZANO’s plane stopped in Baton Rouge for fuel, at which point SALZANO was contacted by law enforcement agents and arrested.
The ongoing investigation is being conducted by the United States Attorney’s Office, the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Customs and Border Protection, and the Louisiana State Police, with assistance from the West Baton Rouge Parish Sheriff’s Department, the Federal Aviation Administration, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Child Sex Trafficker Sentenced to Nine Years ImprisonmentRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that U.S. District Judge James Brady sentenced ERICK BANKS, age 32, of Baton Rouge, Louisiana, to 108 months imprisonment for conspiring to traffic a child in the commercial sex trade. BANKS was also sentenced to five years supervised release after imprisonment and ordered to pay the victim $1,200 in restitution.
During his guilty plea hearing last year, BANKS admitted that in January 2011, he enticed the victim, a 15 year old girl, to engage in acts of prostitution. Several days earlier, the victim ran away from a Baton Rouge home for teenage girls. BANKS placed several ads on an online service often utilized by those in the commercial sex trade. BANKS used the moniker “Sinsational” or “Blonde Bunny” to describe the victim in the ads. BANKS instructed the victim how to engage in telephone conversations with potential customers and how to determine if a customer was a law enforcement officer.
On January 27, 2011, in five separate transactions, the victim engaged in sexual activity in exchange for money. Each of these transactions was coordinated by BANKS and occurred in a hotel in Baton Rouge. The victim was paid approximately $1,200, all of which BANKS took from her.
Acting United States Attorney Walt Green stated: “We will not tolerate the sexual exploitation and trafficking of vulnerable, young teenagers, and hope this significant sentence serves notice to others inclined to engage in such despicable conduct. We appreciate the strong work of the FBI and the Baton Rouge Police Department and commend the Middle District Human Trafficking Task Force for its efforts in educating law enforcement and the public in general about this issue. We are also inspired by the courage of the victim in this case and hope it inspires other victims of sex trafficking to come forward.”
This investigation was conducted by the FBI and Baton Rouge Police Department. The matter is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Susan C. Amundson.
Chicago U.S. Attorney’s Office Collected $78.1 Million in Civil and Criminal Actions in Fiscal Year 2013Read the Press Release
CHICAGO ― The U.S. Attorney's Office for the Northern District of Illinois collected $78.1 million in fiscal year (FY) 2013, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today. These collections included more than $31.8 million in criminal debts, more than $31.8 million in civil actions, and $14.5 million in forfeited assets, resulting in the office’s total collections exceeding well more than twice its budget of approximately $33.8 million in FY 2013. Over the last 10 fiscal years combined, the office has collected more than $915 million on behalf of the United States.
In addition, in FY 2013, a court-appointed special master distributed $50 million in restitution to more than 7,000 victims in a criminal investment fraud case against a defendant who owned properties in Mexico and Panama. This amount was not included in the U.S. Attorney’s Office’s direct collection figures because it was handled by the special master, but it resulted from the office’s prosecution of this defendant.
In addition to the $63.6 million collected through criminal and civil cases, the office collected $14.5 million through asset forfeiture proceedings. The largest amount in this category, approximately $9.2 million in net liquidated proceeds, came from the forfeited assets of Rita Crundwell, the former comptroller of Dixon, Ill., who is serving a sentence of 19 years and five months in prison for embezzling $53 million from the town over two decades. The $9.2 million in forfeiture proceeds was restored to the City of Dixon last month.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“This news is more important now than ever,” Mr. Fardon said. “During fiscal year 2013, despite historically challenging circumstances, we collected more than double what we cost. The men and women of this office ― especially in our Civil Division, Financial Litigation Unit, and Asset Forfeiture Section ― have demonstrated once again our commitment to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We seek to keep those we prosecute from profiting from their crimes. In pursuit of that goal, we have provided a substantial net financial benefit to the citizens of our district,” Mr. Fardon added.
During FY 2013, the U.S. Attorney’s Financial Litigation Unit in Chicago collected $31,812,252.86 in criminal actions, including more than $1.8 million in criminal fines; more than $16.7 million in restitution owed to the federal government; and more than $12.9 million in nonfederal restitution owed to victims, including the victims of various financial frauds and Ponzi schemes.
Among the criminal collections was $10.27 million in restitution to the Internal Revenue Service that was paid last August by two business owners who received prison terms for failing to report as income and pay personal and corporate taxes on more than $22 million they diverted from their business and divided equally. Already in In FY 2014, the U.S. Attorney’s Office has collected a $53 million civil penalty on behalf of the IRS from a different business owner who is awaiting sentencing after pleading guilty to failing to report income from a secret foreign bank account.
In civil actions, the office collected $31,817,946.56, including amounts of $12.9 million, $2.93 million, and $2.4 million to settle civil health care fraud cases under the False Claims Act.
Civil collections typically were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
The U.S. Attorney's Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. When defendants are convicted and sentenced in criminal cases, judges must impose restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. The U.S. Attorney's Offices are authorized to make efforts to collect criminal debts for 20 years after defendants are released from custody.
While restitution is paid by Courts directly to the victim, criminal fines and felony assessments are paid to the Justice Department's Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Liquidated assets obtained through criminal and civil forfeiture proceedings are deposited into either the Department of Justice Asset Forfeiture Fund or the Department of Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Charleston Man Sentenced to Nearly 5 Years in Prison on Federal Drug ChargeRead the Press Release
Police found a total more than 3,700 wrapped doses of heroin and cocaine during traffic stop
CHARLESTON, W.Va. – A 28-year-old man who had thousands of individually wrapped doses of heroin and cocaine during a June 2013 traffic stop in Charleston was sentenced today to four years and nine months in federal prison, U.S. Attorney Booth Goodwin announced. William Charles Landon, IV, of Charleston, previously pleaded guilty in October 2013 to possession with intent to distribute heroin and cocaine. The sentence was handed down by United States District Court Judge Thomas E. Johnston in Charleston.
On June 16, 2013, police conducted a traffic stop of Landon’s vehicle along Interstate 79 in Charleston. Landon later consented to a search of the vehicle. During the search, police seized approximately 3,747 individually wrapped doses of heroin and nearly 100 grams of cocaine. Landon told police that the cocaine and heroin belonged to him.
This case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks handled the prosecution.
Central District of Illinois’ U.S. Attorney’s Office Collects $11.5 Million in Criminal & Civil Actions in FY 2013Read the Press Release
Springfield, Ill. - U.S. Attorney Jim Lewis announced today that the Central District of Illinois collected $11.5 million for taxpayers in criminal and civil actions in fiscal year 2013. Of this amount, $1,535,380 was collected in criminal actions by the Central District alone; an additional $2,600,849 was collected in criminal actions by the District with other Department of Justice entities. In civil actions, the District collected $3,963,535 alone, and another $3,400,000 with other DOJ entities.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“We hold people accountable when the law says that they should be accountable,” said U.S. Attorney Lewis. “We collect restitution for victims of crime, we collect damages if there has been fraud in government programs, we collect debts owed to the government, and we protect federal funds and the public treasury. We do our very best to make sure that justice is done.”For just one example, the Central District recovered $1,199,629 in delinquent taxes and $2,596,194 in restitution for victims of a bank fraud and money laundering case relating to Bloomington-based Wildwood Industries, Inc., and defendants Gary and Toni Jo Wilder.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.Additionally, the U.S. Attorney’s office in the Central District of Illinois, working with partner agencies and divisions, collected $528,000 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Central Alabama Violent Gang Safe Streets Task Force CreatedRead the Press Release
Montgomery, Alabama - The Central Alabama Violent Gang Safe Streets Task Force has been created to combat the increase in violence in Central Alabama, announced Chief Paul Register, Auburn Police Department; Chief Greg Benton, Dothan Police Department; Sheriff Bill Franklin, Elmore County Sheriff’s Office; Sheriff Andy Hughes, Houston County Sheriff’s Office; Director Christopher Murphy, Montgomery Department of Public Safety; Chief Kevin Murphy, Montgomery Police Department; Sheriff D.T. Marshall, Montgomery County Sheriff’s Office, FBI Special Agent in Charge Stephen E. Richardson and U.S. Attorney George L. Beck, Jr..
The Central Alabama Violent Gang Safe Streets Task Force was created to identify, target, arrest and convict criminals who commit drug trafficking, money laundering, alien smuggling, murder, aggravated assault, robbery, and other violent crimes. This Safe Streets Task Force will help federal, state, and local law enforcement combat violent crime by combining federal, state and local resources and using these resources to most effectively investigate, arrest, and convict these dangerous criminals.
Each police department or sheriff’s office involved in the new Central Alabama Violent Gang Safe Streets Task Force has assigned an experienced investigator to serve full time with the task force. The U.S. Department of Justice will provide funding to the task force for officer overtime, office space, vehicles, and other equipment necessary for the arrest and conviction of dangerous criminals. This Safe Streets Task Force is similar to those that have been established in Mobile, Birmingham, and Atlanta. Those with information on violent criminals and gangs should contact the FBI Safe Streets Gang Task Force members at the Montgomery and Dothan offices of the FBI.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Carefusion to Pay the Government $40.1 Million to Resolve Allegations That Include More Than $11 Million in Kickbacks to One DoctorRead the Press Release
WASHINGTON – CareFusion Corp. has agreed to pay the government $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses that were not approved by the Food and Drug Administration, the Justice Department announced today. CareFusion, a California-based medical technology company, develops, manufactures and sells pharmaceutical products, including products sold under the trade name ChloraPrep.
“When companies pay kickbacks to doctors, especially doctors involved in setting standards for the health care industry, they undermine the integrity of the health care system,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Corrupting the standard-setting process through kickbacks can affect the health care treatment choices that doctors and hospitals may make for patients.”
The settlement resolves allegations that, under agreements entered into in 2008 by Carefusion’s predecessor, CareFusion paid $11.6 million in kickbacks to Dr. Charles Denham while Denham served as the co-chair of the Safe Practices Committee at the National Quality Forum, a non-profit organization that reviews, endorses and recommends standardized health care performance measures and practices. The government contends that the purpose of those payments was to induce Denham to recommend, promote and arrange for the purchase of ChloraPrep by health care providers. ChloraPrep has been approved by the Food and Drug Administration for the preparation of a patient’s skin prior to surgery or injection.
This settlement also resolves allegations that, during the period between September 2009 and August 2011, CareFusion knowingly promoted the sale of ChloraPrep for uses that were not approved by the Food and Drug Administration, some of which were not medically accepted indications, and made unsubstantiated representations about the appropriate uses of ChloraPrep.
“Health care fraud drives up the cost of health care and jeopardizes the strength of our health care system,” said U.S. Attorney for the District of Kansas Barry Grissom. “This case demonstrates that our fight against health care fraud is helping to protect all Americans, including the elderly, the disabled and the most vulnerable among us.”
The settlement resolves a lawsuit filed by Dr. Cynthia Kirk, a former vice president of regulatory affairs for the Infection Prevention Business Unit of CareFusion, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to file suit on behalf of the government and to share in any recovery. The whistleblower’s, or relator’s, share in this case is $3.26 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with CareFusion was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Kansas, the U.S. Department of Health and Human Services Office of Inspector General and the Food and Drug Administration Office of the Chief Counsel.
The lawsuit is captioned United States ex rel. Kirk v. CareFusion et al., No. 10-2492 (D. Kan.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
CareFusion to Pay the Government $40.1 Million<br /> to Resolve Allegations That Include More Than $11 Million in Kickbacks to One DoctorRead the Press Release
CareFusion Corp. has agreed to pay the government $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses that were not approved by the Food and Drug Administration, the Justice Department announced today. CareFusion, a California-based medical technology company, develops, manufactures and sells pharmaceutical products, including products sold under the trade name ChloraPrep.
“When companies pay kickbacks to doctors, especially doctors involved in setting standards for the health care industry, they undermine the integrity of the health care system,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Corrupting the standard-setting process through kickbacks can affect the health care treatment choices that doctors and hospitals may make for patients.”
The settlement resolves allegations that, under agreements entered into in 2008 by CareFusion’s predecessor, CareFusion paid $11.6 million in kickbacks to Dr. Charles Denham while Denham served as the co-chair of the Safe Practices Committee at the National Quality Forum, a non-profit organization that reviews, endorses and recommends standardized health care performance measures and practices. The government contends that the purpose of those payments was to induce Denham to recommend, promote and arrange for the purchase of ChloraPrep by health care providers. ChloraPrep has been approved by the Food and Drug Administration for the preparation of a patient’s skin prior to surgery or injection.
This settlement also resolves allegations that, during the period between September 2009 and August 2011, CareFusion knowingly promoted the sale of ChloraPrep for uses that were not approved by the Food and Drug Administration, some of which were not medically accepted indications, and made unsubstantiated representations about the appropriate uses of ChloraPrep.
“Health care fraud drives up the cost of health care and jeopardizes the strength of our health care system,” said U.S. Attorney for the District of Kansas Barry Grissom. “This case demonstrates that our fight against health care fraud is helping to protect all Americans, including the elderly, the disabled and the most vulnerable among us.”
The settlement resolves a lawsuit filed by Dr. Cynthia Kirk, a former vice president of regulatory affairs for the Infection Prevention Business Unit of CareFusion, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to file suit on behalf of the government and to share in any recovery. The whistleblower’s, or relator’s, share in this case is $3.26 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with CareFusion was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Kansas, the U.S. Department of Health and Human Services Office of Inspector General and the Food and Drug Administration Office of the Chief Counsel.
The lawsuit is captioned United States ex rel. Kirk v. CareFusion et al., No. 10-2492 (D. Kan.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
Buffalo Man Pleads Guilty to Bank RobberyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jason Berg, 22, Buffalo, N.Y., pleaded guilty to bank robbery before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Sentencing is scheduled for April 18, 2014 at 12:30 p.m. before Judge Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that the defendant robbed the First Niagara Bank, located at 1000 Elmwood Avenue in Buffalo, on April 26, 2013. Berg then robbed the M&T Bank, located at 788 Tonawanda St. in Buffalo, on May 16, 2013 and the M&T Bank, located at 1580 Hertel Avenue in Buffalo, on June 12, 2013. The defendant passed notes to the bank tellers indicating he possessed a firearm and demanded specific amounts of money.
The plea is the result of a joint investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
Brotherly Love Ambulance EMT Charged in Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - Neel Jackson, 35, of Philadelphia, PA, was charged today by Information with Health Care Fraud and aiding and abetting health care fraud, announced United States Attorney Zane David Memeger.
In July 2010, Feda Kuran, who is charged elsewhere and has pleaded guilty, began operating Brotherly Love Ambulance, Inc. with a co-schemer. According to the Information, Jackson, an Emergency Medical Technician (EMT) employed by Brotherly Love, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. It is further alleged that Jackson and others completed paperwork, including “run sheets,” representing that patients needed ambulance services, when he knew that they were able to walk or to be transported by public transportation or para-transit van. In addition, it is alleged that Jackson gave envelopes he understood to contain cash or other payments to induce patients to allow Brotherly Love to transport them and/or to induce them to remain with Brotherly Love. Finally, it is alleged that Jackson received payments for referring patients to Feda Kuran and/or Brotherly Love. According to the Information, as a result of Jackson’s actions, the Medicare program paid more than $200,000 in inappropriate bills. As a result of the overall scheme at Brotherly Love, it is alleged that the Medicare program paid more than $2 million in inappropriate bills.
If convicted, the defendant faces a maximum possible sentence of 10 years of in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and an order of restitution and forfeiture.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Matthew J.D. Hogan and Paul W. Kaufman.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Boston Man Pleads Guilty to ATM BurglaryRead the Press Release
BOSTON – A Boston man was convicted today for the 2012 robbery of an ATM in Boston’s South End.
Terry K. Leigh, 47, pleaded guilty to bank burglary. He is scheduled to be sentenced by Judge F. Dennis Saylor on April 3, 2014.
On Aug. 11, 2012, federal agents and detectives were conducting surveillance on a Bank of America ATM located at 465 Columbus Avenue, Boston, in regards to an ongoing investigation of ATM burglaries. At approximately 9:45 p.m. the agents observed two individuals enter the lobby of an apartment building located next to the ATM. Access to the ATM’s “money room” is gained through a locked security door within the apartment building’s lobby. One of the individuals, later identified as Leigh, was carrying a green duffle bag and wearing a blue hat, a gray shirt, dark sweatpants and what appeared to be a fake black beard. After a few minutes, both individuals left the apartment building’s lobby and exited onto Columbus Avenue. Leigh then reentered the apartment building. The agents, believing that the ATM was about to be robbed, gained access to the building’s lobby and observed Leigh exiting the ATM’s “money room.” Leigh fled up an adjoining staircase and was captured a short time later on the building’s roof. Following Leigh’s arrest, the agents located the green bag containing various cutting tools, the blue hat and the fake beard which Leigh had been wearing. The ATM, which sustained significant damage, contained in excess of $240,000.
Leigh faces a maximum penalty of 20 years in prison, three years of supervised release, a $250,000 fine, and restitution for the damage to the ATM.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Birmingham Man Sentenced to Nearly Three Years in Prison for Multi-Million Dollar Tax SchemeRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to nearly three years in prison and ordered him to repay the government $1.3 million for his scheme to collect millions of dollars from the Internal Revenue Service on false tax returns, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge L. Scott Coogler sentenced DOUGLAS ERVIN DENT, 67, to 33 months in prison on 20 counts of false claims against the government. Dent must serve three years of supervised release after completing his prison sentence. A federal grand jury indicted Dent in April. He pleaded guilty to the charges in August.
"This defendant will now go to prison for the $11 million worth of false tax returns he submitted to the IRS," Vance said. "The tax fraud he perpetrated is both a crime and an affront to the millions of hard-working Americans who pay their justly owed taxes each year. Criminals who scheme to avoid paying taxes or to steal money from the U.S. Treasury will be prosecuted."
“Today’s sentence of Mr. Dent should serve as a deterrent to individuals who attempt to manipulate our nation’s tax system,” Hyman-Pillot said. “As we approach tax filing season, individuals should be aware of the consequences of filing false claims, as evidenced today. IRS Criminal Investigation will continue its aggressive pursuit of those individuals who devise schemes to defraud the federal government.”
Dent was convicted of filing 20 false income tax returns in his own name and on behalf of others between April 2008 and October 2009. Dent knew that he and the other taxpayers were not entitled to the $11 million in refunds he claimed, according to court records. Each false tax return claimed that money was earned by the taxpayer and withheld by various financial institutions on behalf of the taxpayer during the tax year, and that the taxpayer was entitled to refund of those withholdings from the IRS. In truth, no such earnings and withholdings had occurred.
Among the 20 false returns, Dent filed four in his name and one in the name of his deceased mother. As a result of one of the false returns, Dent received a tax refund of $533,673 from the IRS.
In accordance with Dent's plea agreement with the government, prosecutors recommended a 33-month prison sentence, based on Dent's cooperation in the case.
Baltimore Armed Robber Sentenced to over 12 Years in Prison for Committing A Dozen Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Tavon McPhaul, age 22, of Baltimore, Maryland today to 145 months in prison, followed by five years of supervised release, for a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Kevin Davis.According to his plea agreement, from May 2012 through July 4, 2012, McPhaul, Quindell Gardner and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.
McPhaul admitted that he committed approximately 12 armed robberies, with Gardner going into the store to commit the robbery and McPhaul driving the getaway vehicle. Between June 28 and July 4, 2012, Gardner and McPhaul robbed five Baltimore area convenience stores, including a convenience store in the 6300 block of Eastern Avenue in Baltimore on July 4, 2012, with Gardner using a short-barreled shotgun in each of the robberies.
Gardner was arrested following two convenience store robberies on July 4, 2012, after a car chase. Gardner’s clothing matched that of the individual who participated in both robberies that day. McPhaul, who was driving the getaway car, escaped on foot. While running, McPhaul attempted to wipe the firearm clean with a blanket. A sawed-off shotgun was recovered along the path of McPhaul’s escape. The vehicle driven by McPhaul during the robbery was found to be stolen.
Quindell Ryeshawn Gardner, age 22, also of Baltimore, previously pleaded guilty to the same charges and is awaiting sentencing. Gardner and the government have agreed that if the Court accepts his plea agreement, he will be sentenced to between 15 and 25 years in prison.
United States Attorney Rod J. Rosenstein praised the FBI, the Baltimore City and Baltimore County Police Departments and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Benjamin M. Block, who is prosecuting the case.
Amarillo Anesthesiologist Sentenced to 45 Months in Federal Prison on Federal Tax Evasion ChargesRead the Press Release
Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas
AMARILLO — Edgar A Lockett, Jr., was sentenced this morning by U.S. District Judge Mary Lou Robinson to serve 45 months in federal prison and three years of supervised release following his conviction at trial in September 2013 on six felony tax evasion charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lockett must pay restitution that amounts to interest and penalty and taxes that are definitively determined or adjudicated to be the losses resulting from the crimes of conviction.
After a four-day trial, before U.S. District Judge Mary Lou Robinson, a federal jury in Amarillo, Texas, convicted Edgar A Lockett, Jr., on all six counts of the indictment charging tax evasion.
The government presented evidence at trial that Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Lockett most recently billed under the name of Medical & Health Alliance Ministries.
According to evidence the government presented, Lockett has not filed income tax returns since 1999, except for a joint return filed with his spouse for tax year 2007. He owes the United States $1,432,740 in unpaid income taxes for tax years 2000 through 2010.
The government presented further evidence that Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.
The investigation was conducted by IRS Criminal Investigation.
Alcoa World Alumina Agrees to Plead Guilty to<br /> Foreign Bribery and Pay $223 Million in Fines and ForfeitureRead the Press Release
Alcoa World Alumina LLC, a majority-owned and controlled global alumina sales company of Alcoa Inc., has agreed to plead guilty later today and pay $223 million in criminal fines and forfeiture to resolve charges that it paid millions of dollars in bribes through an international middleman in London to officials of the Kingdom of Bahrain, in violation of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania, Chief Richard Weber of IRS—Criminal Investigation (IRS-CI), and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“Alcoa World Alumina today admits to its involvement in a corrupt international underworld in which a middleman, secretly held offshore bank accounts, and shell companies were used to funnel bribes to government officials in order to secure business,” said Acting Assistant Attorney General Raman. “The law does not permit companies to avoid responsibility for foreign corruption by outsourcing bribery to their agents, and, as today’s prosecution demonstrates, neither will the Department of Justice.”
“Today’s case shows that multinational corporations cannot get away with using middlemen to structure sham business arrangements that funnel kickbacks to government officials,” said U.S. Attorney Hickton.
Alcoa World Alumina has agreed to plead guilty in the Western District of Pennsylvania to one count of violating the anti-bribery provisions of the FCPA in connection with a 2004 corrupt transaction, to pay a criminal fine of $209 million, and to administratively forfeit $14 million. As part of the plea agreement, Alcoa Inc. (Alcoa) has agreed to maintain and implement an enhanced global anti-corruption compliance program.
In a parallel action, Alcoa settled with the U.S. Securities and Exchange Commission (SEC) and will pay an additional $161 million in disgorgement, bringing the total amount of U.S. criminal and regulatory penalties to be paid by Alcoa and Alcoa World Alumina to $384 million.
“This case is the result of unraveling complex financial transactions used by Alcoa World Alumina LLC’s agent to facilitate kickbacks to foreign government officials,” said Chief Richard Weber of IRS-CI. “IRS-CI will not be deterred by the use of sophisticated international financial transactions as we continue our ongoing efforts to pursue corporations and executives who use hidden offshore assets and shell companies to circumvent the law.”
“Corrupt kickback payments to foreign government officials to obtain business diminish public confidence in global commerce,” said Assistant Director in Charge Parlave. “There is no place for bribery in any business model or corporate culture. Today’s plea demonstrates the FBI and our law enforcement partners are committed to curbing corruption and will pursue all those who try to advance their businesses through bribery.”
Today’s court filings allege that Alcoa of Australia, another Alcoa-controlled entity, originally secured a long-term alumina supply agreement with Aluminium Bahrain B.S.C. (Alba), an aluminium smelter controlled by the government of Bahrain. At the request of certain members of Bahrain’s Royal Family who controlled the tender process, Alcoa of Australia inserted a London-based middleman with close ties to certain Royal Family members as a sham sales agent and agreed to pay him a corrupt commission intended to conceal bribe payments, according to court papers. Over time, Alcoa of Australia expanded the relationship with the middleman, identified as Consultant A in today’s court filings, to begin invoicing increasingly larger volumes of alumina sales through his shell companies, which permitted Consultant A to make larger bribe payments to certain government officials, according to today’s filings.
As admitted in the charging documents, in 2004, Alcoa World Alumina corruptly secured a long-term alumina supply agreement with Alba by agreeing to purportedly sell over 1.5 million metric tons of alumina to Alba through offshore shell companies owned by Consultant A. The sham distributorship permitted Consultant A to mark up the price of alumina by approximately $188 million from 2005 to 2009, the duration of the corrupt supply agreement. Court filings allege that Consultant A used the mark-up to pay tens of millions in corrupt kickbacks to Bahraini government officials, including senior members of Bahrain’s Royal Family. To conceal the illicit payments, Consultant A and the government officials used various offshore bank accounts, including accounts held under aliases, at several major financial institutions around the world, including in Guernsey, Luxembourg, Liechtenstein and Switzerland.
In addition to the monetary penalty, Alcoa and Alcoa World Alumina agreed to cooperate with the department in its continuing investigation of individuals and institutions involved in these matters.
The plea agreement and related court filings acknowledge Alcoa’s current financial condition as a factor relevant to the size of the criminal fine, as well as Alcoa’s and Alcoa World Alumina’s extensive cooperation with the department, including conducting an extensive internal investigation, making proffers to the government, voluntarily making current and former employees available for interviews, and providing relevant documents to the department. Court filings also acknowledge subsequent anti-corruption remedial efforts undertaken by Alcoa.
The department acknowledges and expresses its appreciation for the cooperation and assistance of the Office of the Attorney General of Switzerland, the Guernsey Financial Intelligence Service and Guernsey Police, the Australian Federal Police, the U.K.’s Serious Fraud Office, and other law enforcement authorities in the department’s investigation of this matter. The department also acknowledges and expresses its appreciation for the significant assistance provided by the SEC’s Division of Enforcement.
The investigation is being conducted by Special Agents and analysts with the IRS-Criminal Investigation’s Washington Field Office and the FBI’s Washington Field Office. The case is being prosecuted by Deputy Chief Adam G. Safwat and Trial Attorneys Andrew Gentin, Allan J. Medina and Andrew H. Warren of the Criminal Division’s Fraud Section, with the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs also provided significant assistance during this investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Alcoa World Alumina Agrees to Plead Guilty to Foreign Bribery and Pay $223 Million in Fines and ForfeitureRead the Press Release
WASHINGTON – Alcoa World Alumina LLC, a majority-owned and controlled global alumina sales company of Alcoa Inc., has agreed to plead guilty later today and pay $223 million in criminal fines and forfeiture to resolve charges that it paid millions of dollars in bribes through an international middleman in London to officials of the Kingdom of Bahrain, in violation of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania, Chief Richard Weber of IRS—Criminal Investigation (IRS-CI), and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“Alcoa World Alumina today admits to its involvement in a corrupt international underworld in which a middleman, secretly held offshore bank accounts, and shell companies were used to funnel bribes to government officials in order to secure business,” said Acting Assistant Attorney General Raman. “The law does not permit companies to avoid responsibility for foreign corruption by outsourcing bribery to their agents, and, as today’s prosecution demonstrates, neither will the Department of Justice.”
“Today’s case shows that multinational corporations cannot get away with using middlemen to structure sham business arrangements that funnel kickbacks to government officials,” said U.S. Attorney Hickton.
Alcoa World Alumina has agreed to plead guilty in the Western District of Pennsylvania to one count of violating the anti-bribery provisions of the FCPA in connection with a 2004 corrupt transaction, to pay a criminal fine of $209 million, and to administratively forfeit $14 million. As part of the plea agreement, Alcoa Inc. (Alcoa) has agreed to maintain and implement an enhanced global anti-corruption compliance program.
In a parallel action, Alcoa settled with the U.S. Securities and Exchange Commission (SEC) and will pay an additional $161 million in disgorgement, bringing the total amount of U.S. criminal and regulatory penalties to be paid by Alcoa and Alcoa World Alumina to $384 million.
“This case is the result of unraveling complex financial transactions used by Alcoa World Alumina LLC’s agent to facilitate kickbacks to foreign government officials,” said Chief Richard Weber of IRS-CI. “IRS-CI will not be deterred by the use of sophisticated international financial transactions as we continue our ongoing efforts to pursue corporations and executives who use hidden offshore assets and shell companies to circumvent the law.”
“Corrupt kickback payments to foreign government officials to obtain business diminish public confidence in global commerce,” said Assistant Director in Charge Parlave. “There is no place for bribery in any business model or corporate culture. Today’s plea demonstrates the FBI and our law enforcement partners are committed to curbing corruption and will pursue all those who try to advance their businesses through bribery.”
Today’s court filings allege that Alcoa of Australia, another Alcoa-controlled entity, originally secured a long-term alumina supply agreement with Aluminium Bahrain B.S.C. (Alba), an aluminium smelter controlled by the government of Bahrain. At the request of certain members of Bahrain’s Royal Family who controlled the tender process, Alcoa of Australia inserted a London-based middleman with close ties to certain Royal Family members as a sham sales agent and agreed to pay him a corrupt commission intended to conceal bribe payments, according to court papers. Over time, Alcoa of Australia expanded the relationship with the middleman, identified as Consultant A in today’s court filings, to begin invoicing increasingly larger volumes of alumina sales through his shell companies, which permitted Consultant A to make larger bribe payments to certain government officials, according to today’s filings.
As admitted in the charging documents, in 2004, Alcoa World Alumina corruptly secured a long-term alumina supply agreement with Alba by agreeing to purportedly sell over 1.5 million metric tons of alumina to Alba through offshore shell companies owned by Consultant A. The sham distributorship permitted Consultant A to mark up the price of alumina by approximately $188 million from 2005 to 2009, the duration of the corrupt supply agreement. Court filings allege that Consultant A used the mark-up to pay tens of millions in corrupt kickbacks to Bahraini government officials, including senior members of Bahrain’s Royal Family. To conceal the illicit payments, Consultant A and the government officials used various offshore bank accounts, including accounts held under aliases, at several major financial institutions around the world, including in Guernsey, Luxembourg, Liechtenstein and Switzerland.
In addition to the monetary penalty, Alcoa and Alcoa World Alumina agreed to cooperate with the department in its continuing investigation of individuals and institutions involved in these matters.
The plea agreement and related court filings acknowledge Alcoa’s current financial condition as a factor relevant to the size of the criminal fine, as well as Alcoa’s and Alcoa World Alumina’s extensive cooperation with the department, including conducting an extensive internal investigation, making proffers to the government, voluntarily making current and former employees available for interviews, and providing relevant documents to the department. Court filings also acknowledge subsequent anti-corruption remedial efforts undertaken by Alcoa.
The department acknowledges and expresses its appreciation for the cooperation and assistance of the Office of the Attorney General of Switzerland, the Guernsey Financial Intelligence Service and Guernsey Police, the Australian Federal Police, the U.K.’s Serious Fraud Office, and other law enforcement authorities in the department’s investigation of this matter. The department also acknowledges and expresses its appreciation for the significant assistance provided by the SEC’s Division of Enforcement.
The investigation is being conducted by Special Agents and analysts with the IRS-Criminal Investigation’s Washington Field Office and the FBI’s Washington Field Office. The case is being prosecuted by Deputy Chief Adam G. Safwat and Trial Attorneys Andrew Gentin, Allan J. Medina and Andrew H. Warren of the Criminal Division’s Fraud Section, with the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs also provided significant assistance during this investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Albuquerque Man Sentenced to More Than Fifteen Years in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Maximiliano Cordova, 20, of Albuquerque, N.M., was sentenced this afternoon to 188 months in federal prison followed by a lifetime of supervised release for his child pornography conviction. Cordova also was ordered to pay $500 to the identified victim in his count of conviction. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Cordova was arrested by the FBI on May 6, 2013, on a criminal complaint alleging that he distributed, received and possessed visual depictions of minors engaged in sexually explicit conduct. Cordova subsequently was indicted and charged with two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography.
The investigation leading to Cordova’s arrest was initiated in mid Jan. 2013, after an FBI agent who was working in an undercover capacity in New Jersey signed onto a publicly available peer-to-peer (P2P) file sharing network that was being used by individuals who were sharing child pornography images. The agent learned that one of the individuals sharing child pornography images on the P2P network was using an IP Address subscribed to Cordova’s residential address. On May 3, 2013, the FBI executed a search warrant at Cordova’s residence.
While executing the search warrant, FBI agents observed a laptop computer on Cordova’s bed that was running and displaying information for the P2P network that was used for sharing child pornography. The FBI seized the laptop computer, other computers and other computer-related media from Cordova’s residence. A forensic of the laptop computer confirmed that it contained child pornography images.
On Oct. 1, 2013, Cordova entered a guilty plea to one count of distribution of child pornography. In his plea agreement, Cordova admitted that he had been using a file sharing program to distribute, receive and possess child pornography for approximately six months prior to his arrest. Cordova also acknowledged that a forensic examination of his computers and computer-related media revealed that Cordova possessed more than 1000 child pornography images and videos.
This case was investigated by FBI and the New Mexico Regional Forensic Lab, and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga. It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.