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Friday 20 December 2013
Developer Sentenced to 12.5 Years in Prison for Orchestrating Massive Mortgage Fraud Involving over $7 Million in LossRead the Press Release
BOSTON – A Boston man was sentenced late yesterday on charges relating to a massive mortgage fraud that he orchestrated.
Sirewl R. Cox, 38, was sentenced by U.S. Judge Denise J. Casper to 150 months in prison and three years of supervised release. On Nov. 15, 2013, following a 16-day jury trial, Cox was convicted of wire fraud, bank fraud and conducting an unlawful monetary transaction.
In 2006 and 2007, Cox identified multiple-family buildings for sale and recruited straw buyers to purchase the buildings. Cox and others then recruited straw buyers to purchase individual units in buildings that Cox controlled. The straw buyers’ financing for the purchases was obtained by submitting mortgage loan applications and other documents that falsely represented key information, such as the buyers’ income, employment, assets, and/or intention to reside in the condominiums. Deals were closed with HUD-1 settlement statements that falsely represented that straw buyers had made down payments and paid other funds in connection with the property transactions, and that falsely represented how the proceeds of the mortgage loans were disbursed.
United States Attorney Ortiz said, “This case involved the largest mortgage fraud scheme perpetrated in the run up to the financial crisis by a convicted defendant in this district. Sham transactions like the ones in this case help drive up prices for legitimate homeowners, and the abandonment of properties to foreclosure that often results further victimizes the affected neighborhoods. So-called ‘white-collar’ crimes like this one have a profound and direct impact on the lives of innocent homeowners.”
Cox is the fourth defendant involved in this scheme to be sentenced. Three other defendants pleaded guilty and have been sentenced. In December 2012, Lord Allah was sentenced to 18 months in prison. In January 2013, Rebecca Konsevick was sentenced to 30 months in prison while Latonya Burnett was sentenced to three years of probation.
United States Attorney Carmen M. Ortiz; Thomas P. Baker, Acting Special Agent in Charge of the U.S. Secret Service; John G. Collins, Special Agent in Charge of Internal Revenue Service’s Criminal Investigation in Boston; Kevin M. Niland, Inspector in Charge of U.S. Postal Inspection Service; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.Detroit Man Sentenced to More Than 21 Years in PrisonFor Receipt and Possession of Child PornographyRead the Press Release
A Detroit man was sentenced today to 262 months in federal prison after having pleaded guilty to receipt and possession of child pornography, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Lawrence Flack, 54, of Detroit, Michigan was sentenced by United States District Judge Stephen J. Murphy, III.
Evidence established that Flack, who had previously been convicted of sexual battery against a minor, used a peer-to-peer file sharing program to locate and download images and videos of little girls, mostly ages 9 to 10 years old, being forced to engage in sexually explicit activities with adults. Agents from the Department of Homeland Security identified over 7,500 images and videos, some portraying sadistic or masochistic conduct.
In announcing the sentence, McQuade stated, "This case is not just about bad pictures. Real children suffer so that defendants like this one can look at child pornography. The children are physically abused and then virtually abused again and again forever."
“This significant sentencing against a convicted child predator should serve as a stark warning for those who target and prey on children,” said Marlon Miller, Special Agent in Charge for HSI Detroit. “The aggressive investigation and prosecution of child predators remains among HSI's highest priorities.”
This case was investigated by the Department of Homeland Security. It was prosecuted by Assistant United States Attorney Maggie Smith, of the General Crimes Unit.
Denver Man Sentenced to Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
DENVER – Albert Jesse Gallegos, Jr., of Denver, Colorado, was sentenced this week by U.S. District Court Judge Philip A. Brimmer to serve 78 months in federal prison for being a felon in possession of a firearm, United States Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Luke Franey announced. Following his prison sentence, Gallegos was ordered to spend 3 years on supervised release. The defendant, who appeared at the sentencing hearing in custody, was remanded at the hearing’s conclusion.
Gallegos was indicted by a federal grand jury in Denver on October 4, 2012. He pled guilty before Judge Brimmer on September 16, 2013. Gallegos was sentenced on December 16, 2013.
According to court records, including the stipulated facts contained in the defendant’s plea agreement, on September 13, 2012, officers from the Denver Police Department, Lakewood Police Department, and the Rocky Mountain Safe Streets Task Force were conducting surveillance in southwest Denver in an attempt to locate and arrest the defendant, Albert Jesse Gallegos, Jr. Defendant Gallegos was a known fugitive with an active arrest warrant out of Lakewood, Colorado.
Shortly before 4:00 pm, law enforcement officers saw Gallegos leave a Denver home. Gallegos was carrying a black backpack. Gallegos walked to a black Ford Expedition, opened the rear door and placed the backpack inside. Officers moved in to arrest Gallegos. Gallegos attempted to run, but was restrained by the officers. Gallegos resisted arrest and fought with the officers, but was eventually handcuffed and arrested.
Gallegos was searched incident to arrest. Officers found a glass smoking pipe and three clear plastic baggies containing methamphetamine in Gallegos’s pockets. Police impounded the vehicle and conducted an inventory search. Officers found the backpack behind the driver’s seat. Inside the backpack were two loaded semiautomatic handguns - a .40 caliber, Smith and Wesson pistol and a .9mm, FNP pistol - and ammunition. The Smith and Wesson was loaded with a magazine containing 7 rounds of .40 caliber ammunition. The FNP pistol was loaded with a magazine containing 13 rounds of .9mm ammunition. There was also a box of .40 caliber ammunition inside the backpack.
Gallegos was a felon and therefore a prohibited person. Prior to his September 13, 2012 possession of the firearms and ammunition, Gallegos had received six felony convictions, three in Colorado and three in Arizona, for crimes punishable by more than one year imprisonment. Following his arrest, Gallegos was convicted of two additional felonies in Colorado state court.
This case was investigated by the ATF, the Denver Police Department, and the Lakewood Police Department as part of Project Safe Neighborhoods.
Gallegos was prosecuted by Assistant U.S. Attorney Richard Hosley.
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Defendant Sentenced for Wire Fraud Involving Loss of Nearly $2,000,000Read the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that William Frazier, 43, of Midland, Georgia was sentenced on Thursday, December 19, 2013, to serve fifty one (51) months imprisonment for wire fraud. The sentence was handed down by the Honorable Clay D. Land, United States District Court Judge in Columbus, Georgia
Mr. Frazier entered a plea of guilty on August 16, 2013. In his plea agreement, the defendant admitted that on August 31, 2010, he made an unauthorized Omega Visa credit card purchase in the amount of $47,250 for a statue of a golfer. On January 27, 2010, he sent an unauthorized wire transfer in the amount of $75,312.87 from the state of Georgia to the states of Delaware and then to Maryland which he used to pay personal bills. The credit cards used in those transactions had been issued to Mr. Frazier by his employer for business use only but instead he used same to make personal purchases and to obtain funds for his personal use. The total amount of the fraud was $1,900,000.The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Mel Hyde.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Defendant Sentenced for StalkingRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that James Howard Wheeler, 46, of Imperial Beach, California, was sentenced on Thursday, December 19, 2013, to serve thirty (30) months imprisonment for interstate stalking. The sentence was handed down by the Honorable Clay D. Land, United States District Court Judge in Columbus, Georgia
Mr. Wheeler entered a plea of guilty on August 13, 2013. In his plea agreement, the defendant admitted that beginning in July, 2012, and continuing to February, 2013, he directed threatening and harassing communications from his home in California to the victim, who was an estranged family member living in Georgia, via telephone, text messages, e-mail, and Facebook. Many of the messages contained express and implied threats of coming to Georgia and harming the victim. Over 37 threatening voice mails were left on the victim’s phone in a three month period, as well as numerous Facebook and other public internet postings. All of the voice mails were left even after Mr. Wheeler had been confronted by agents of the Federal Bureau of Investigation (FBI) about his conduct.The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Crawford Seals.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Defendant Sentenced for Possession with Intent to Distribute CocaineRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Darrin Scott, 42, of Columbus, Georgia, was sentenced on Thursday, December 19, 2013, by the Honorable Clay D. Land, United States District Court Judge in Columbus, Georgia to serve sixty three (63) months imprisonment for possession with intent to distribute cocaine.
Mr. Scott entered a plea of guilty on August 13, 2013. In his plea agreement, the defendant admitted that between August 9, 2011 and March 7, 2012, he conspired with others to distribute 1981 grams of cocaine by shipping packages from California to Columbus, Georgia.
The case was investigated by the U.S. Drug Enforcement Administration and the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Mel Hyde.For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Defendant Sentenced for Possession of Methamphetamine and A Stolen HandgunRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Larry Eugene Yancey, aka “Ziggy”, 42, of an unknown address, was sentenced on Thursday, December 19, 2013, to serve two hundred twenty eight (228) months imprisonment for possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. The sentence was handed down by the Honorable Clay D. Land, United States District Court Judge in Columbus, Georgia
Mr. Yancey entered a plea of guilty on August 13, 2013. In his plea agreement, the defendant admitted that on April 24, 2012, he was apprehended by the Phenix City, Alabama Police and the Metro Narcotics Task Force with 343.3 grams of crystal methamphetamine and a stolen Smith and Wesson .38 special handgun.Said United States Attorney Michael J. Moore, “While federal drug crimes carry heavy sentences all by themselves, this is another case in which the possession of a firearm substantially increased this defendant’s time in prison.”
The case was investigated by the Columbus Police Department, the Metro Narcotics Task Force and the U.S. Drug Administration. The case was prosecuted by Assistant United States Attorney Mel Hyde.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Defendant Sentenced for Domestic ViolenceRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Robert Hielscher, 36, of Opelika, Alabama was sentenced on Thursday, December 19, 2013, to serve sixty (60) months imprisonment in a case of domestic violence resulting in substantial bodily injury. The sentence was handed down by the Honorable Clay D. Land, United States District Court Judge in Columbus, Georgia
Mr. Hielscher, an active military employee at the time of the incident, entered a plea of guilty on August, 14 2013. In his plea agreement, the defendant admitted that on April 28, 2013, he repeatedly assaulted the victim with his hands and fists in the presence of their two year old child. In addition, Mr. Hielscher cut the victim with a knife and assaulted her. The assault occurred in the parties’ residence at Ft. Benning, Georgia.The case was investigated by the Ft. Benning Criminal Investigation Division and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Crawford Seals.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Correctional Institution Employee Sentenced on Bribery Related OffenseRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today RASHONDA CROSS, 27,a formercorrectional officer at the Rivers Correctional Institution, Winton, North Carolina, was sentenced by United States District Judge Louise W. Flanagan for one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Section 371, to 3 years’ probation, 45 days intermittent confinement, and a $100 special assessment.
Investigation revealed that CROSS, while employed as a correctional officer at the Rivers Correctional Institution, accepted payments from inmates within the facility in return for smuggling in contraband items such as cell phones and cigarettes. It further showed that some inmates paid bribes to correctional officers to gain their cooperation in the scheme. Four others have been previously convicted and sentenced for their conduct in the scheme: former Rivers Correctional Officer RHONDA BOYD wassentenced in July 2013 to 20 months’ imprisonment; former Rivers Correctional Officer RAYE LYNN HOLLEY wassentenced in October 2013 to 20 months’ imprisonment; former Rivers’ inmate ROLAND BAZEMORE was sentenced in April 2013 to 30 months’ imprisonment; and former Rivers’ inmate KENNETH DODD was sentenced in October 2013 to 37 months’ imprisonment.
Investigation of this case was conducted by the Department of Justice, Office of Inspector General and the Federal Bureau of Investigation, with assistance provided by the United States Postal Inspection Service.
Convicted Sex Offender, Who Was Arrested in Oklahoma, Admits Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas— Glenn Wayne Baker, 60, formerly of Taylor County, Texas, appeared this morning in federal court, before U.S. District Judge Sam R. Cummings, and pleaded guilty to an indictment charging failure to register and update registration as a sex offender. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in August 1981, Baker was convicted by a jury of the felony offense of aggravated rape, in the District Court of Taylor County, Texas. Based on this conviction, he was a sex offender under the Sex Offender Registration and Notification Act (SORNA), and was required to register as a sex offender for life under state and federal law. On January 11, 2013, Baker registered as a sex offender, listing his address in Tye, Taylor County, Texas, and acknowledging his duty to register as a sex offender for life.
Beginning in January 2013, Baker lived with his sister in Tye after being paroled on his Texas aggravated rape conviction, and was registered as a sex offender while living there. On July 29, 2013, Baker cut off his electronic monitor and left his residence in Tye, and he did not provide any notice, before or after he left, to any authorities. He then traveled to Enid, Oklahoma, and moved in with his wife, who he had married several years earlier while he was in prison. He told her that he had been given permission by Texas authorities to move to Oklahoma. Baker lived in Enid, Oklahoma, from approximately August 1, 2013, until he was arrested in mid-August 2013.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Connecticut Man Sentenced to 27 Months in Prison for Stealing $390,000 Through Investment Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JONATHAN GRACIA, 25, formerly of Middletown, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 27 months of imprisonment, followed by three years of supervised release, for running an investment fraud scheme.
According to court documents and statements made in court, GRACIA falsely told friends and acquaintances that he was developing a website for which he had potential buyers, and that he had developed an “app” for the iPhone, and then solicited investments and loans from his victims in connection with both of these purported ventures. GRACIA regularly told the victims that they would receive outsized returns on their investments. As part of the scheme, GRACIA created bogus documents to deceive his victims, including fake checks, bogus bank account statements and a letter that he created on what appeared to be the letterhead of a prominent Connecticut hedge fund management company. Through this scheme, GRACIA defrauded his victims of $390,000.
GRACIA was ordered to pay full restitution to his victims.
GRACIA was arrested on March 18, 2013, and is currently detained. On June 18, 2013, he pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Branford and Stamford Police Departments. The case was prosecuted by Assistant U.S. Attorney Paul A. Murphy.
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[email protected]Camden, N.J., Man Arrested, Charged with Making Fake Green CardsRead the Press Release
CAMDEN, N.J. – A Camden man is charged in a scheme to produce and sell fake government documents after federal agents broke up his alleged fraudulent operation, U.S. Attorney Paul J. Fishman announced today.
Domingo Luna, 33, aka “Morro,” of Camden, N.J., was arrested by special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) on Dec. 12, 2013. A Mexican citizen not legally in the United States, he has been held in ICE administrative custody since that time. Luna was charged federally late yesterday in a criminal complaint with one count of making fake identification documents and one count of producing counterfeit permanent resident, or “green” cards.
Luna appeared this morning before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained.
According to the criminal complaint and statements made in court:
Federal law enforcement officers learned that a man nicknamed “Morro” was producing and selling false and fraudulent U.S. Social Security cards, permanent residence cards and driver’s licenses from a location in Camden. From early to mid-December 2013, “Morro,” who was later identified as Luna, sold an undercover law enforcement officer two fake social security cards, a fraudulent permanent residence card and a Pennsylvania driver’s license. Luna took pictures of the officer with a digital camera and produced the documents at the Camden address.
On Dec. 12, 2013, law enforcement officers executed a search warrant on Luna’s residence, where they found evidence of a sophisticated fraudulent document-making operation, including computer equipment, a digital camera, a laminating machine and at least 25 fake cards.
The charges of producing a false identification card and green card carry a maximum potential penalty of 15 years and 10 years in prison, respectively. Each charge also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees, and ICE Enforcement and Removal Operations, under the direction of Newark, N.J., Field Office Director John Tsoukaris, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
13-479Defense counsel: Assistant Federal Public Defender Tom Young Esq., Camden
Cairo, Illinois, Man Charged with Disaster Relief FraudRead the Press Release
A federal grand jury in Benton, Illinois, has charged Bernard F. Brown, 48, Cairo, Illinois, with false statements to federal officials and disaster relief fraud offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment charges Brown with four counts of making false statements and one count of disaster relief fraud during 2011 and 2012. The false statement charges carry a potential sentence of up to five years imprisonment, a $250,000 fine, and up to 3 years of supervised release. The disaster relief fraud charge carries a potential sentence of up to 30 years imprisonment, a $250,000 fine and up to 5 years supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Brown’s trial is set for February 21, 2014, at the U.S. District Court in Benton, Illinois.
The investigation in this case was conducted by the Department of Homeland Security and the case is being prosecuted by Assistant United States Attorney Thomas E. Leggans.
Broward Resident Sentenced for Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Mazincia Ductant, 37, of Sunrise, was sentenced today to 36 months in prison, followed by one year of supervised release. Ductant previously pled guilty to one count of tax fraud, in violation of Title 26, United States Code, Section 7206(2). Ductant was also ordered to pay $1,317,508 in restitution.
According to court documents, Ductant was the owner of Ninote Tax Services (“Ninote”), a tax preparation business in Margate, Florida. During the years 2007-2009, Ductant used Ninote to file hundreds of tax returns on behalf of her clientele. Ductant falsified a high percentage of the returns she prepared by inflating or completely fabricating Schedule A deductions, Schedule C losses, First Time Home Buyers' credits, and Household Help wages.
Court documents state that Ductant was responsible for preparing fraudulent tax returns for approximately 125 people, which resulted in a total tax loss to the government of approximately $1,317,508.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace. Jr.
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.
Brandenton Man Sentenced to 27 Years in Prison for Production of Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Estella D. (Washington) Wright and her husband, Dorian D. Wright, to 4 years, 3 months’ and 15 months’ imprisonment, respectively. The sentences were handed down in connection with the couple’s involvement in a tax refund scheme and Estella Wright’s conviction on seven counts of aggravated identity theft. The court also ordered the couple to pay restitution in the amount of $210,737.97, to the Internal Revenue Service, and $1,500.00 to a victim of the identity theft. The couple resides in Brunswick, Georgia.
Both pleaded guilty to the charges on June 26, 2013.
According to court documents, from at least September 2007 through 2008, Estella Wright stole the means of identification from individuals through her employment at a temporary staffing agency. Wright then provided these means of identification to her co-conspirators to fraudulently file tax returns and obtain income tax refunds. The fraudulently filed tax returns caused a total of $816,384.00 to be directly deposited into bank accounts held in either Estella Wright’s or Dorian Wright’s name.
The case was investigated by Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
Bradenton Man Sentenced to 27 Years in Prison for Production of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Heriberto Pena-Salazar (25, Bradenton) to 27 years in federal prison for production of child pornography. As part of his sentence, he was also ordered to serve a 15-year term of supervised release, following his incarceration, and to register as a sex offender.
Salazar was found guilty on October 2, 2013.
According to court documents, in May 2012 Pena-Salazar persuaded a pre-pubescent female to engage in sexually explicit conduct for the purpose of producing a visual depiction of the act. In a video recovered on Pena-Salazar’s cellular phone, his face is visible, as he is seen pulling back the victim’s pants and underwear and performing sexual acts on her. During an interview, he admitted that he abused the child and stated that he did so in order to trade the video for child pornography from others.
A forensic review of the computer laptops and hard drive seized from Pena-Salazar revealed 600 videos and 400 images of child pornography, including files depicting pre-pubescent children and sadomasochistic conduct. Pena-Salazar, a Mexican national, was illegally present in the United States.“The exploitation of children is one of the most heinous crimes we investigate,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “This case was especially egregious, and as a result, this man will serve nearly 30 years in prison. Let this case serve as a warning to individuals who prey on innocent children – we will find you, arrest you and ensure you are prosecuted to the fullest extent of the law.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement and Removal Operations, the Florida Department of Law Enforcement, the Manatee County Sheriff’s Office, and the Bradenton Police. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Amanda C. Kaiser.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Boca Raton Resident Sentenced for Filing False Tax Returns, Access Device Fraud, and Aggravated Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Harvey Zitron, 62, of Boca Raton, was sentenced to 81 months in prison, to be followed by three years of supervised release.
Zitron was previously convicted by a federal jury on all ten counts charged in the indictment. According to the indictment, Zitron was charged with filing fraudulent IRS United States Individual Income Tax Returns, Forms 1040, for 2004 and 2005 (Counts 1 and 2), and Amended Individual Income Tax Returns, Forms 1040X for 2003, 2004 and 2005 (Counts 3-5), all in violation of Title 26, United States Code, Section 7206(1). In addition, he was charged with three counts of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2) (Counts 6, 8 and 10), and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1) (Counts 7 and 9).
According to the evidence presented at trial, Zitron used companies to write checks to friends or acquaintances who cashed the checks and returned the cash to Zitron. Zitron then failed to declare this income on his tax returns. He also opened credit card accounts in the names of his son and ex-wife, and charged more than $1,000 in a single year on those accounts without their authorization or knowledge.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case was prosecuted by Assistant U.S. Attorney Harry Wallace and Department of Justice Tax Division Attorney Kevin C. Lombardi.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bank Employee Sentenced to Prison for Failing to File Currency Transaction Reports on Drug ProceedsRead the Press Release
Accepted Payment from Drug Dealer for Converting Proceeds from Small Bills to $100 Bills
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, today to one month in prison, followed by eight months of home detention, for failing to file currency transaction reports on suspected drug proceeds. Judge Bredar also ordered Fitts to perform 250 hours of community service and to forfeit $5,000 she was paid by a drug dealer for converting the drug proceeds.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to Fitts’ plea agreement, Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions over a period of two to three years, Fitts converted the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills, on behalf of the leader of drug trafficking organization. The amounts involved in each transaction ranged from $50,000 to $100,000 and Fitts converted the bills without filing or having anyone else at the bank file a currency transaction report or suspicious activity report, as she was required by law to do. For example, on April 18, 2013, the drug dealer called Fitts to arrange to convert $100,000, gave Fitts $100,000 in small denomination bills in a bag or backpack, and returned later the same day to retrieve the $100 bills. On each occasion, the drug dealer paid Fitts one percent of the amount involved as her fee. Fitts admitted she received $5,000 from the drug dealer.As head teller at the bank, Fitts was familiar with the currency transaction reporting requirements, and in fact had attended anti-money laundering training annually since at least 2009.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stefan D. Cassella, who prosecuted the case.Baltimore Man Pleads Guilty to Producing Child Pornography and Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
His Ex-Wife Pleads Guilty to Distribution of Child Pornography
Baltimore, Maryland – David Ralph Fisher, age 43, of Baltimore, pleaded guilty today to producing child pornography and attempting to coerce and entice a minor to engage in sexually explicit activity. His ex-wife, Lori Fisher, age 46, of St. Cloud, Florida, pleaded guilty to distribution of child pornography.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, after repeated requests from David Fisher, Lori Fisher produced multiple sexually explicit photographs of two minor females, on at least two occasions between August and December of 2008. Lori Fisher took the photographs with her cell phone, then sent the images electronically to David Fisher via text message.
On November 4, 2012, the Baltimore Police Department (BPD) received information that images and videos of child pornography were observed on David Fisher’s external hard drive, located at his residence. The external hard drive was provided to the BPD and examined. Multiple files depicting minors engaged in sexually explicit conduct were found. A search warrant was subsequently executed at David Fisher’s residence on November 20, 2012, and computers, cell phones and other items were seized and forensically examined. Sexually explicit email messages with attachments were recovered in which Fisher solicited child pornography from other individuals, and shared child pornography from his collection. Also, in February 2013, law enforcement confirmed that some of the sexually explicit images found on David’s computer and cell phone were images of the two minor girls that Lori Fisher had photographed and sent to David. In all, over 2200 images and 100 videos of minors engaged in sexually explicit conduct, including prepubescent minors, were recovered.
On March 14, 2013, a BPD detective working in an undercover capacity contacted David Fisher on his Facebook profile posing as a 14 year old female. Between March 14 and April 11, 2013, David Fisher communicated with the undercover detective through Facebook and email. For many of these communications, Fisher was using a computer at a public library because his computer was seized during the search of his residence in November 2012. David Fisher asked the undercover detective to send him sexually explicit photographs and sent the undercover detective sexually explicit photographs of himself. In addition, Fisher gave the undercover detective his cell phone number and proposed meeting to engage in sexual activity. A meeting was arranged for April 11, 2013. Fisher was arrested when he arrived at the meeting location at the appointed time.
As part of their plea agreements, David and Lori Fisher will be required to register as a sex offender in the place where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
David Fisher faces a minimum mandatory sentence of 15 years and a maximum of 30 years in prison for production of child pornography, and a minimum of 10 years in prison and a maximum of life in prison for coercing and enticing a minor to engage in sexually explicit conduct. Lori Fisher faces a minimum of five years and a maximum of 20 years in prison for distribution of child pornography. U.S. District Judge James K. Bredar has scheduled sentencing for David Fisher on April 3, 2014 at 3:00 p.m. and for Lori Fisher on June 11, 2014 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Army National Guard Colonel and Sergeant Indicted<br /> for Allegedly Defrauding Recruiting Assistance ProgramRead the Press Release
A retired colonel and a sergeant in the Army National Guard have been charged in a nine-count indictment in Albuquerque, N.M., for allegedly defrauding the National Guard Bureau and its contractor of approximately $12,000 by fraudulently obtaining recruiting bonuses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Retired Colonel Isaac Alvarado, 74, of Albuquerque, N.M. was charged with one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of aggravated identity theft in an indictment that was filed this week in the U.S. District Court for the District of New Mexico. Sergeant First Class Travis Nau, 40, also of Albuquerque, N.M., was charged with one count of conspiracy to commit wire fraud, three counts of wire fraud and three counts of aggravated identity theft.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that was designed to offer monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts. The rules prohibited Army National Guard recruiters from participating in the G-RAP.
According to court documents, between approximately November 2007 and February 2012, Alvarado participated as a recruiting assistant in the G-RAP. Nau, who worked in a recruiting office and is Alvarado’s son-in-law, allegedly provided Alvarado with the names and Social Security numbers of potential soldiers. This enabled Alvarado to claim that he was responsible for referring these potential soldiers to join the military, when in fact he did not recruit any of them. In addition, Nau advised at least two potential soldiers to falsely report that Alvarado had assisted in their recruitment even though he had not. As a result, Alvarado allegedly received a total of approximately $12,000 in fraudulent recruiting bonuses.
An indictment is merely a charge and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face up to five years in prison on the conspiracy count. Each wire fraud count carries a maximum penalty of 20 years in prison. Each count of aggravated identity theft carries a mandatory two-year sentence in prison. Each charged count carries a maximum fine of up to $250,000, or twice the gross gain.
The case is being investigated by special agents from the Fort Bliss Army Criminal Investigation Command. The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Mark J. Cipolletti and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section.ADM Subsidiary Pleads Guilty to<br /> Conspiracy to Violate the Foreign Corrupt Practices ActRead the Press Release
A subsidiary of Archer Daniels Midland Company (ADM) pleaded guilty today and has agreed to pay more than $17 million in criminal fines to resolve charges that it paid bribes through vendors to Ukrainian government officials to obtain value-added tax (VAT) refunds, 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 James A. Lewis of the Central District of Illinois and Special Agent in Charge David A. Ford of the FBI’s Springfield Division made the announcement.
“As today’s guilty plea shows, paying bribes to reap business benefits corrupts markets and undermines the rule of law,” said Acting Assistant Attorney General Raman. “ADM’s subsidiaries sought to gain a tax benefit by bribing government officials, and then attempted to deliberately conceal their conduct by funneling payments through local vendors. ADM, in turn, failed to implement sufficient policies and procedures to prevent the bribe payments, although ultimately ADM disclosed the conduct, cooperated with the government, and instituted extensive remedial efforts. Today’s corporate guilty plea demonstrates that combating bribery is and will remain a mainstay of the Criminal Division’s mission. We are committed to working closely with our foreign and domestic law enforcement partners to fight global corruption.”
Alfred C. Toepfer International Ukraine Ltd. (ACTI Ukraine), a subsidiary of ADM, pleaded guilty in the Central District of Illinois to one count of conspiracy to violate the anti-bribery provisions of the FCPA and agreed to pay $17.8 million in criminal fines. The Department of Justice also entered into a non-prosecution agreement (NPA) with ADM in connection with the company’s failure to implement an adequate system of internal financial controls to address the making of improper payments both in Ukraine and by an ADM joint venture in Venezuela.
In a parallel action, ADM consented with the U.S. Securities and Exchange Commission (SEC) to a proposed final judgment that orders the company to pay roughly $36.5 million in disgorgement and prejudgment interest, bringing the total amount of U.S. criminal and regulatory penalties to be paid by ADM and its subsidiary to more than $54 million.
According to the charges, from 2002 to 2008, ACTI Ukraine, a trader and seller of commodities based in the Ukraine, together with Alfred C. Toepfer International G.m.b.H. (ACTI Hamburg), another subsidiary of ADM, paid third-party vendors to pass on bribes to Ukrainian government officials to obtain VAT refunds. The charges allege that, in total, ACTI Ukraine and ACTI Hamburg paid roughly $22 million to two vendors, nearly all of which was to be passed on to Ukrainian government officials to obtain over $100 million in VAT refunds, resulting in a benefit to ACTI Ukraine and ACTI Hamburg of roughly $41 million.
According to the NPA with ADM, a number of concerns were expressed to ADM executives, including an e-mail calling into question potentially illegal “donations” by ACTI Ukraine and ACTI Hamburg to recover the VAT refunds, yet nonetheless failed to implement sufficient anti-bribery compliance policies and procedures to prevent corrupt payments.
In addition to the monetary penalty, ADM and ACTI Ukraine also agreed to cooperate with the department, to periodically report the companies’ compliance efforts, and to continue implementing enhanced compliance programs and internal controls designed to prevent and detect FCPA violations.
The agreements acknowledge ADM’s timely, voluntary and thorough disclosure of the conduct; ADM’s extensive cooperation with the department, including conducting a world-wide risk assessment and corresponding global internal investigation, making numerous presentations to the department on the status and findings of the internal investigation, voluntarily making current and former employees available for interviews, and compiling relevant documents by category for the department; and ADM’s early and extensive remedial efforts.
The department acknowledges and expresses its appreciation for the cooperation and assistance of German law enforcement authorities, which, in a parallel investigation, reached a resolution with ACTI Hamburg regarding its role in the bribery scheme.
In addition, the department acknowledges and expresses its appreciation for the significant assistance provided by the SEC’s Division of Enforcement.
This ongoing investigation is being conducted by the FBI. The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eugene Miller of the Central District of Illinois, with significant assistance from the Criminal Division’s Office of International Affairs.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .13-Year Fugitive Doctor Convicted for Federal Income Tax FraudRead the Press Release
HOUSTON – A former doctor who was a fugitive for more than 13 years has been convicted of filing a false income tax return, announced United States Attorney Kenneth Magidson. Steven Louis Price pleaded guilty late yesterday after a lengthy hearing to making false statements on a federal income tax return.
Price became a fugitive when he failed to appear in court on this case on Dec. 16, 1999. He remained a fugitive until his surrender to the U.S. Marshals Service on March 20, 2013.
The investigation established Price willfully made materially false statements in his 1992 federal income tax return by understating gross income derived from his medical practice and falsely claiming entitlement to a married joint filing status. Price was never married. The Investigation further determined Price willfully understated Schedule C gross receipts derived from his medical practice on his federal income tax return by at least $98,315. Price received the majority of this income from attorneys and insurance companies paying worker’s compensation or automobile accident claims. In order to conceal this income, Price cashed many of the checks and used the proceeds to purchase cashier’s checks.
U.S. District Judge Nancy F. Atlas, who accepted the guilty plea, has set sentencing for Feb. 26, 2014. At that time, he faces up to 36 months in prison and a possible $100,000 fine. Price has been in custody since his surrender on March 20, 2013, where he will remain pending that hearing.
The investigation was conducted by Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Daniel C. Rodriguez.
Thursday 19 December 2013
West Point Cadet Arrested for PossessionAnd Distribution of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Office of the United States Department of Homeland Security (“DHS”), Homeland Security Investigations (“HSI”), announced today the arrest of RICKY PATRICK HESTER for possession and distribution of child pornography. HESTER, a cadet at the United States Military Academy at West Point, was arrested by HSI agents today on the West Point campus and presented in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, Ricky Patrick Hester possessed and distributed illegal child pornography, a crime that victimizes the most vulnerable members of our society. Thanks to the efforts of Homeland Security Investigations, Hester’s alleged illicit conduct was brought to light, and he will now have to answer to these serious charges.”
HSI Special Agent-in-Charge James T. Hayes, Jr. stated: "Few crimes are more damaging and disturbing than the willful possession and distribution of explicit sexual images of children. This is not a victimless crime and HSI will work tirelessly to target and arrest those who enable exploitation by purchasing child pornography."
According to the allegations in the criminal Complaint filed today in White Plains federal court:
From at least as early as February 2013, and up to on or about September 29, 2013, on a number of occasions, HESTER possessed and distributed images and videos containing child pornography. According to the Complaint, during their investigation, DHS agents learned that HESTER used an email account to exchange numerous videos with other internet users that contained what appeared to be minor children engaging in sexually explicit conduct. When HESTER was questioned in his barracks yesterday, he admitted that he sent and received numerous images and videos containing child pornography using a private email account.
HESTER, 23, of Granger, Indiana, is charged with one count of receiving or distributing child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and one count of possessing child pornography, which carries a maximum sentence of 10 years in prison. Both counts also carry a maximum fine of $250,000 or twice the gross gain or loss from the offense.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security. He also thanked the Army Criminal Investigation Command for their assistance in the investigation. He added that the investigation is continuing.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. Investigators staff this hotline around the clock. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com
The prosecution is being overseen by the Office’s White Plains Unit. Assistant United States Attorney Daniel P. Filor is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Waterford Man Sentenced to 51 Months in Rison for Leading Extensive Mortgage Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE GUZMAN, 53, of Waterford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by three years of supervised release, for operating an extensive mortgage fraud scheme in eastern Connecticut.
According to court documents and statements made in court, GUZMAN operated a fraudulent mortgage business first with Maurizio Lancia at Royal Financial Services, and then later with Stacey Petro at First Source Financial Services. GUZMAN also owned and operated J.G. Property and Investment Management Company, which was a real estate property management company located in New London. In addition, GUZMAN, Lancia, and William Athan formed and operated Broad Street Investment Group, which was purportedly a Real Estate Investment Company. Through these companies, GUZMAN, Lancia, Athan, Petro and others arranged for individuals (“borrowers”) to purchase real estate, primarily residential housing properties located in New London County, by obtaining funding from various mortgage companies and mortgage originators after submitting false information on the borrowers’ mortgage loan applications. The fraudulent information included information regarding the borrowers’ income, assets, employment, rent history, as well as the borrowers’ intention to make the properties their primary residence. The borrowers, who typically were individuals who had good credit but were of modest means with low levels of income, were compensated for participating in the scheme.
For certain transactions, GUZMAN and his co-conspirators caused escrow checks to be issued to a contracting company purportedly to pay for work that had been done on the property prior to the closing, when no work had been performed. The checks were converted to cashier’s checks, which were used during the closing as down payments from the borrower.
Through this conspiracy, GUZMAN and his co-conspirators collected large commissions and fees, and kept part of the money advanced by the lenders, which was intended to be used to finance the purchase of the properties, but instead was used for the benefit of GUZMAN, his co-conspirators and their various companies.
In addition, GUZMAN and others also falsified closing records that showed that money obtained from the financing would be used to improve the properties. GUZMAN and his co-conspirators represented to the borrowers that they would properly manage the purchased properties, but failed to do so. Instead, they converted the rent money to their own use, rather than use the money to pay the mortgages.
GUZMAN and his co-conspirators caused more than 200 mortgages to be funded during the period of the conspiracy. As a result of defaults on the mortgages, the lenders suffered losses of more than $9 million.
As part of his sentence, Judge Covello ordered GUZMAN to pay restitution of approximately $7.8 million.
On September 9, 2008, GUZMAN pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud. Sixteen other individuals, including Lancia, Athan and Petro, have pleaded guilty to various charges stemming from this scheme. Lancia and Petro are currently serving prison terms of 27 months and 41 months, respectively. Athan awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and David T. Huang.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]VA Employee Charged with Theft of Government FundsRead the Press Release
ATLANTA - Zerry Feaster, a/k/a Zerry Travis, a/k/a Zerry West has been arraigned on federal charges of theft of government funds and making false statements. Feaster was indicted by a federal grand jury on December 17, 2013.
“This defendant is charged with abusing her position with the VA by repeatedly using her government credit card to steal over $80,000,” said United States Attorney Sally Quillian Yates. “Money intended to support the men and women who have served our country was instead used by the defendant for gambling and at luxury stores.”
Monty Stokes, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, said “We are disappointed in Feaster’s alleged betrayal of public trust. She was hired to help veterans, but allegedly elected to abuse her position for her own personal gain. We are committed to safeguarding VA programs and resources to ensure veterans are afforded the care they have earned.”
According to United States Attorney Yates, the charges, and other information presented in court: Feaster was employed as a secretary in the Police Services division at the Department of Veteran Affairs Medical Center in Atlanta. From February 2010 through February 2012, Feaster allegedly engaged in a scheme to steal over $80,000 from the VA by misusing her government-issued credit card. The credit card was supposed to be used to purchase office supplies and other equipment for the Police Services division. Feaster instead allegedly misused her government credit card to purchase pre-paid gift cards, which she then used to buy personal items, such as luxury accessories and jewelry at stores such as Coach and Tiffany & Co., as well as to gamble. Feaster attempted to hide the gift card purchases by creating and submitting fake purchase orders to the VA, falsely claiming that she was using the government credit card to buy office supplies and equipment for Police Services.
The indictment charges Zerry Feaster, 45, of Ellenwood, Ga., with seven counts of theft of government funds and five counts of false statements. Each theft of government funds count carries a maximum sentence of ten years in prison and a fine of up to $250,000. Each false statement count carries a maximum sentence of five years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Veterans Affairs, Office of Inspector General.
Assistant United States Attorneys Mary L. Webb and Ryan Scott Ferber are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
U.s. Attorney Announces New Fraud Charges in Connection with Indianapolis Land BankRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced this afternoon the return of an indictment charging Reginald Walton, age 30, and Mark Harsley, age ##, with conspiring to defraud Indianapolis taxpayers with a wire fraud scheme involving a city mowing contract. This follows the indictment of Walton and four others connected with the Indianapolis Land Bank program on charges that they engaged in wire fraud and bribery in order to facilitate a number of fraudulent land purchases.
“It is time we began calling the waste and abuse of tax dollars exactly what it is – theft,” Hogsett said. “It steals teachers from our classrooms, officers from our streets, and federal law enforcement has had enough. If you violate the public trust, we will find you, we will investigate you, and we will hold you fully accountable in a court of law.”
According to a grand jury indictment unsealed this afternoon, the two defendants began their alleged scheme in February 2013. At the time, Walton was the Assistant Administrator of the Indianapolis Department of Metropolitan Development (DMD), and oversaw the operation of the Indianapolis Land Bank program. The indictment alleges that Walton solicited from Harsley gifts, payments, and other things of value, in exchange for favorable official action by the DMD.
As a result, the charging document alleges that Walton used his position to influence the DMD to award Harsley a contract to mow the lawns of DMD-held properties across the city. It is also alleged that Walton had accepted offers from Harsley to receive future kickbacks on the city contract. Harsley began submitting invoices and collecting payment for this corruptly obtained contract in the summer of 2013.
“Public corruption is the number one priority of our criminal program and the focus of the FBI’s Public Corruption Task Force,” said FBI Special Agent in Charge Robert A. Jones. “This case is the result of the tireless work of FBI Agents and an Indiana State Police Task Force Officer working with dedicated prosecutors from the United States Attorney’s Office.”
These new allegations follow the May 2013 indictment 0.of Walton and four others on charges that they engaged in wire fraud and bribery in an effort to defraud Indianapolis taxpayers. These defendants included John Hawkins, age 27, who was the Senior Project Manager for the DMD during the alleged conspiracy.
The purpose of the Indianapolis Land Bank is to acquire abandoned and tax delinquent properties in Indianapolis and make them available for sale to non-profit and for-profit real estate developers. For-profit investors interested in purchasing real estate from the Land Bank must meet or exceed a property appraisal in their purchase price. Non-profit purchasers, however, may bypass the auction process, purchasing real estate for a price between $1,000 and $2,500 per parcel, regardless of the appraised value of the property.
The May indictment alleges that Walton and Reed accepted bribes and “kick-backs” to facilitate fraudulent property sales to non-profit entities that would then sell the property to for-profit businesses. After these “pass-through” transactions had taken place, Walton and Hawkins would receive kickback payments from the non-profit organizations from the proceeds of the property sales. The investigation into the pair also included the use of an undercover agent, and Walton accepted $500 from that agent in return for his agreement to fraudulently transfer at least ten parcels of land to the agent for $1,000 each.
The May indictment charges David Johnson, age 47, Executive Director of the Indianapolis Minority AIDS Coalition, as well as Randall K. Sargent, age 57, president of New Day Residential Development, with participating in the scheme.
Prior indictments have also charged Aaron Reed, age 35, with wire fraud and bribery. Reed is the registered agent for the Naptown Housing Group, a for-profit real estate corporation. It is alleged that Reed would solicit for-profit investors to obtain real estate currently held by the Land Bank. After the investors obtained the property from one of the “pass-through” non-profit organizations, Reed would obtain profits, which he would share with Walton through payments and kickbacks. The indictment further alleges that Reggie Walton, while working at the DMD and heading up the Land Bank program, became a silent partner in the Naptown Housing Group.
These indictments come as the U.S. Attorney’s Office has prioritized the investigation and prosecution of fraud, waste and abuse on the part of public officials and those in positions of trust. As part of this effort, in 2012 the Office created its first Public Integrity Working Group to assist in the investigation and prosecution of cases involving public corruption and white collar crimes. This case is the result of an investigation by the Federal Bureau of Investigation and the Indiana State Police, both active members of the Working Group.
According to Special Litigation Counsel Bradley A. Blackington, today’s new wire fraud charges carry a maximum penalty of twenty years in prison. An indictment is only a charge and is not evidence of guilt. Defendants are presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Army Soldier Charged with Attempting to Sell Stolen C-4 Explosive MaterialRead the Press Release
A federal criminal complaint was unsealed today that charges 23–year-old U.S. Army soldier Tyler Glen Patrick with possession and transportation of stolen explosive material announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
According to the criminal complaint, on December 17, 2013, federal authorities arrested Patrick in Copperas Cove, TX, after he attempted to sell a one-and-a-quarter-pound block of C-4 explosive which he previously stole following a field exercise on Fort Hood, TX.
Patrick, who remains in federal custody, faces up to ten years in federal prison and a maximum $250,000 fine upon conviction.
This case is being investigated by the Federal Bureau of Investigation together with the U.S. Army Criminal Investigation Division. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the Government.Two Men Sentenced for Interstate Stolen Credit Card Scheme and Bank FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two men convicted by a Harrisburg jury of stealing over a hundred credit card numbers from over 25 banks and credit unions were sentenced Wednesday to federal prison.
According to United States Attorney Peter J. Smith, Wednesday, Chief Judge Christopher C. Conner sentenced Ramil Kismat, of New York, to 64 months in prison, as well as a period of two years of supervised release following incarceration. Previously, Chief Judge Conner had sentenced the co-defendant, Sergey Sorokin, of New Jersey, to 58 months of incarceration followed by two years of supervised release. Sorokin faces deportation to Russia following service of his sentence.
In November 2012, a jury convicted Kismat and Sorokin of fraudulently obtaining over 100 credit card and debit card numbers from a variety of banks and credit unions. These stolen credit card numbers were embossed on cards for use in retail establishments. Between June and October 2010, Kismat and Sorokin used these credit and debit card numbers at of stores throughout the Mid-Atlantic states.
The scheme was initially discovered by investigators for Target Stores in the Harrisburg area. They observed two individuals repeatedly entering their stores, attempting to purchase gift cards with multiple credit cards, many of which were regularly declined. Through a comprehensive investigation conducted with the United States Secret Service, the scheme was uncovered and Kismat and Sorokin were identified and charged. The evidence revealed their activities took place primarily at Target stores in New Jersey, Pennsylvania, and Maryland. Evidence also showed that credit cards were used at other retailers. The potential loss from the defendants’ use of these fraudulent credit cards in this four-month period was over half a million dollars.
Although the primary victims in this case were the 25 financial institutions and over a hundred citizens whose accounts were compromised, Target Stores provided substantial investigative resources in solving and prosecuting this case. The U.S. Attorney’s Office also acknowledged the efforts of the United States Secret Service, Silver Spring Township Police, Swatara Township Police, and Wegman's Stores for their efforts.
The case was prosecuted by Assistant U.S. Attorney Michael A. Consiglio.
Two Elizabeth, N.J., Women Plead Guilty to Operating Counterfeit Check SchemeRead the Press Release
NEWARK, N.J. – Two Elizabeth, N.J., women admitted today to conspiring to commit bank fraud by depositing more than half a million dollars in counterfeit checks into different TD Bank accounts, U.S. Attorney Paul J. Fishman announced.
Latisha White, 28, and Synethia Bland, 30, each pleaded guilty before U.S. District Judge William J. Martini to one count of bank fraud conspiracy in the superseding indictment against them.
According to documents filed in this case and statements made in court:
Between October 2009 and May 2012, White created counterfeit checks on her computer using commercially available check-writing software. White and Bland deposited the counterfeit checks into multiple accounts at TD Bank. In addition, Bland recruited others to use their own accounts or open new accounts to deposit the counterfeit checks.
White and Bland employed a variety of methods to withdraw the fraudulent funds, including making ATM cash withdrawals, submitting cash withdrawal slips and making debit card purchases on merchandise and postal money orders.
White and Bland each admitted they arranged the deposit of more than 150 counterfeit checks into more than 120 different bank accounts. They also each admitted that they deposited counterfeit checks that totaled more than $500,000.
The charge to which White and Bland pleaded guilty carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for April 24, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; postal inspectors, under the direction of Inspector in Charge Maria L. Kelokates; and investigators at the Union County Prosecutor=s Office, under the direction of Acting Prosecutor Grace H. Park, and the Morris County Prosecutor’s Office, under the direction of Acting Prosecutor Fredric M. Knapp.
The government is represented by Assistant U.S. Attorney Bohdan Vitvitsky of the U.S. Attorney’s Office Economic Crimes Unit in Newark.13-478
Defense counsel:
Bland: Rubin Sinins Esq., Springfield, N.J.
White: Ruth Liebesman Esq., Paramus, N.J.
Bland, Synethia and White, Latisha Superseding Indictment
Trinidad and Tobago Woman Sentenced <br /> for Her Role in Kidnapping SchemeRead the Press Release
A woman from Trinidad and Tobago was sentenced today to serve 20 years in prison for her role in the 2005 kidnapping of naturalized U.S. citizen Balram “Balo” Maharaj, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office.
Doreen Alexander, 47, of Arima, Trinidad and Tobago, was sentenced by U.S. District Judge Emmet G. Sullivan in the District of Columbia. Alexander pleaded guilty on Oct. 3, 2013, to conspiracy to commit hostage taking, a lesser included offense under count one of the indictment, which charged conspiracy to commit hostage taking that resulted in death. Judge Sullivan also sentenced Alexander to serve five years of supervised release to follow her prison term.
Alexander was the last charged co-conspirator involved in the kidnapping of Maharaj, Alexander’s former boyfriend and the father of one of her sons. The other 12 co-conspirators were previously extradited and prosecuted by the U.S. Attorney’s Office for the District of Columbia.
According to court documents, Alexander initiated the April 2005 kidnapping of Maharaj and provided information that allowed the kidnappers to identify, locate and track Maharaj. Alexander alerted the kidnappers to Maharaj’s visits to Trinidad and Tobago; gave them information on his wealth, which was used to calculate the ransom; and reassured the kidnappers that they had the right man after the ransom negotiations went awry. Maharaj died as a result of the kidnapping.
The case was investigated by the FBI’s Miami Division Extraterritorial Squad with the assistance of the Criminal Division’s Office of International Affairs and the FBI’s Legal Attache’s Office in Port of Spain, Trinidad and Tobago. Special assistance was further provided by the Trinidad & Tobago Police Service Anti-Kidnapping Squad and Homicide Bureau.
The case is being prosecuted by Senior Trial Attorneys Matthew C. Singer and Teresa A. Wallbaum of the Criminal Division’s Human Rights and Special Prosecutions Section.Three Men from Toledo Area Indicted for $23 Fraud SchemeRead the Press Release
A federal grand indicted three men from the Toledo area for their roles in the operation of a $23 million fraud scheme involving the sale of Iraqi dinar currency and two non-existent hedge funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office.
Those indicted are: Bradford L. Huebner, 66, of Ottawa Hills, Ohio; Charles N. Emmenecker, 66, of Sylvania, Ohio, and Michael L. Teadt, 67, of Maumee, Ohio.
Rudolph M. Coenen, age 47, of Jacksonville, Florida, has already pleaded guilty to crimes related to his role in the conspiracy.
The men are charged with conspiracy to commit wire fraud and wire fraud. Huebner is also charged with multiple counts of money laundering, structuring and willful failure to file currency and transaction reports.
As a result of the defendants’ conduct, investors lost about $23.8 million from dinar sales and more than $700,000 from the sale of non-existent hedge fund “seats” and “placements,” according to the indictment.
“These defendants made false statements time and again to convince people to part with their savings and hard-earned cash,” Dettelbach said. “The fact that they falsely claimed one member of the conspiracy was wounded while fighting in Iraq is particularly egregious.”
“Illegal activity involving the investment industry has brought financial ruin to many Americans,” Enstrom said. “IRS Criminal Investigation is committed to unraveling complex investment schemes to ensure that the promoters of these schemes do not use the financial-services industry for personal gain.”
The indictment charges that beginning about August 2010, Huebner, Coenen, Emmenecker and Teadt conspired to operate “BH Group” in Toledo and “Bayshore Capital Investments” in Jacksonville in order to defraud investors through investments in the Iraqi dinar currency and two non-existent hedge funds.
The conspirators promoted the dinar and non-existent hedge funds through the dissemination of a series of material falsehoods conveyed primarily through weekly interstate conference calls and through the conspirators’ web site, according to the indictment.False claims included statements about the U.S. Treasury Department’s holdings of dinar and involvement in the Iraqi dinar investment market, according to the indictment.
Additional material false statements made by all the defendants include, but are not limited to, portrayal of Coenen as a former vice president at JP Morgan Chase and a former Marine who was awarded the Purple Heart after being wounded in Iraq during Operation Desert Storm.
Coenen worked for JP Morgan Chase for one day as an account executive/loan officer. He never served in the first Gulf War, was never wounded in combat and never received a Purple Heart, according to the indictment.
If convicted, the defendants’ sentence will be determined by the court after a review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violation. The sentence will not exceed the statutory maximum and in most cases will be less than the maximum.
This case is being handled by Assistant United States Attorneys Gene Crawford and Matthew W. Shepherd following an investigation by the Internal Revenue Service – Criminal Investigation.
An indictment is only a charge and is not evidence of guilty. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Individuals Convicted on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA – Three individuals entered pleas of guilty before Judge Frederick P. Stamp, Jr.
U.S. Attorney William J. Ihlenfeld, II, announced that
SYLVESTER WALKER, also known as "COOP", age 21, of Wheeling, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Luau Manor” and NICOLE MARIE GUST, age 20, of Bellaire, Ohio, entered a plea of guilty to “Aiding and Abetting the Distribution of Crack Cocaine.” WALKER, who is in custody pending sentencing, faces up to 40 years in prison and GUST, who is in custody pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Randolph J. Bernard and was investigated by the Ohio Valley Drug & Violent Crime Task Force, consisting of officers from the Wheeling Police Department, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
MICHAEL HURST, age 27, of Moundsville, West Virginia, entered a plea of guilty to “Aiding and Abetting the Distribution of Oxycodone within 1,000 Feet of Moundsville Middle School.” HURST, who is free on bond pending sentencing, faces up to 40 years in prison. This case was prosecuted by Assistant U.S. Attorney Robert H. McWilliams, Jr. and investigated by the Marshall County Drug Task Force includes officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department, and the Drug Enforcement Administration.
Third Defendant Sentenced in Murder of U.S. Border Patrol Agent Robert RosasRead the Press Release
SAN DIEGO – Jose Luis Ramirez-Dorantes was sentenced today to 55 years in prison for his participation in the July 2009 robbery and murder of United States Border Patrol Agent Robert Rosas, Jr.
Ramirez, a 46-year-old Mexican national, pleaded guilty on January 10, 2013, admitting he was one of five armed individuals who conspired to rob a Border Patrol agent of his night vision device, which resulted in Agent Rosas being fatally shot during a struggle. He pleaded guilty to conspiracy to commit robbery and kidnaping and use and carrying of a firearm during the commission of a crime of violence.
Court filings indicate that in July 2009, Ramirez and four others plotted to rob a Border Patrol agent of his night vision device. On July 23, 2009, the group, bearing firearms, traveled by car and foot to the international border near Campo, California. Ramirez stood watch on the Mexican side of the border while three co-conspirators sneaked into the United States at night and waited for a Border Patrol agent to arrive in the area. After Agent Rosas arrived in the area and exited his vehicle, he was detained at gunpoint. Agent Rosas resisted and, during the ensuing struggle, Ramirez’s co-conspirators shot Agent Rosas multiple times, killing him. The coconspirators then stole the agent’s firearm, night vision device, and other equipment and fled back to Mexico.
In June 2010, Mexican officials arrested Ramirez in Naucalpan, Mexico, near Mexico City, at the request of the United States. Ramirez was extradited to the United States in December 2010.
Ramirez is the third defendant to be sentenced for Agent Rosas’s murder. In April 2010, United States District Judge M. James Lorenz sentenced Christian Daniel Castro-Alvarez to 40 years of imprisonment. On November 14, 2013, he sentenced Marcos Rodriguez-Perez to 56 years to run consecutive to a two-year sentence Rodriguez is currently serving for violating his supervised release from a prior alien smuggling conviction. One other defendant, Emilio Samyn Gonzales- Arenazas, has pleaded guilty to participating in the murder and is scheduled to be sentenced on January 23, 2014. The last defendant, Jose Juan Chacon-Morales, remains a fugitive, and there is a reward of up to $100,000 for information leading to his arrest or location.
After Ramirez’s sentencing, United States Attorney Laura E. Duffy expressed her condolences to Agent Rosas’s family and colleagues at the Border Patrol: “We hope that in some small way, these successful prosecutions can make a difference to members of the Rosas family who have suffered such a tragic, irreparable loss. Ramirez and the others will pay a high price for their unconscionable actions that terrible night.”
Duffy also expressed her gratitude to the Federal Bureau of Investigation and Homeland Security Investigations who conducted the investigation. “Since July 2009, the investigating agents have displayed exceptional diligence and tenacity to bring these four men to justice, despite the length and complexity of this cross-border investigation. The expertise and resolve of the agents in this case, demonstrate that if a law enforcement officer is harmed in any way, the United States will dedicate its full resources to catching the perpetrators and bringing them to justice.”
Chief Patrol Agent Paul A. Beeson of the U.S. Border Patrol’s San Diego Sector said, “On behalf of all Border Patrol agents, we extend our deepest appreciation for the resolve and professionalism of the U.S. Attorney’s Office for their work on the prior convictions and this sentencing. We will always remember Border Patrol Agent Robert Rosas as a good father, loving husband, and a patriot to his country.”
FBI Special Agent in Charge, Daphne Hearn, commented, "Today's sentencing sends a message that the FBI is committed to bringing to justice those responsible for the death of U.S. Border Patrol Agent, Robert Rosas. Agent Rosas served his country with dedication, honor and courage and was killed while protecting our nation's borders. The FBI recognizes that no punishment will lessen Agent Rosas' death, but we hope today's sentencing will help bring some closure to the family.”
DEFENDANT Criminal Case No. 10CR1793-L Jose Luis Ramirez-Dorantes SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371: Conspiracy to commit robbery and kidnaping
Count 5: Title 18, United States Code, Section 924(c)(1): Discharging firearms during and in relation to a crime of violence
INVESTIGATING AGENCIESFederal Bureau of Investigation
Homeland Security InvestigationsThird Defendant Sentenced in False Tax Return and Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Behrmann Desenclos, 43, of Lauderhill, was sentenced for his participation in a scheme to file false tax returns and use stolen identities to claim fraudulent tax refunds. Desenclos was sentenced to 108 months in prison, followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,358,156.76. Desenclos previously pled guilty to one count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, Desenclos, Rachelle Beaubrun, and Louis Richard Nemorin were involved in a scheme to unlawfully enrich themselves by submitting false refund claims on federal income tax returns, causing the IRS to issue refunds which the defendants diverted to their own benefit and use. The defendants prepared various federal income tax returns falsely claiming refunds: (a) on behalf of foreign nationals who had previously been deported from the United States and who were ineligible to receive any refund; (b) based on jobs with companies that had no employees; (c) based on employment with companies or offices where the taxpayer named on the return did not work; (d) utilizing Schedule C to falsely claim deductions for nonexistent business expenses; and (e) by claiming First Time Homebuyer Credits for residences which the taxpayers named on the returns did not actually purchase.
Court documents state that Beaubrun and Desenclos also acquired stolen identification information such as names, dates of birth, and social security numbers, from Nemorin. The defendants prepared fraudulent federal income tax returns through Divine Tax and Financial Services and Global-Tech Financial Management, LLC.
For tax years 2008 and 2009, the defendants caused the submission of federal income tax returns which falsely claimed refunds amounting to more than $2.6 million.
On August 20, 2013, Rachelle Beaubrun, 42, of Lauderhill, and Louis Richard Nemorin, a/k/a Richard Nemorin, a/k/a Louis Nemorin, 35, of Riviera Beach, were sentenced for their participation in the schemes. Beaubrun was sentenced to 102 months in prison, to be followed by three years of supervised release. Nemorin was sentenced to 60 months in prison, to be followed by three years of supervised release. Both defendants pled guilty to one count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
Mr. Ferrer commended the investigative efforts IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Karen Rochlin.
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.
Third City of Buffalo Employee Guilty of Stealing Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Francis Tronolone, 33, of Buffalo, N.Y., pleaded guilty to stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
“Today’s developments mean that three different employees of the same City Department have now been convicted of collectively stealing hundreds of thousands of dollars from the residents of this area,” said U.S. Attorney Hochul. “These crimes occurred day in and day out over many months and years. This Office will continue to pursue this investigation until all who may have abused their positions are identified and caught.”
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that from November 2003 to the present, the defendant was employed as a coin collector and later a parking meter mechanic in the City of Buffalo Department of Parking Enforcement. In this capacity, Tronolone was responsible for collecting coins deposited into parking meters and repairing malfunctioning meters.
During the period of his employment, the defendant stole approximately $9,000 in coins from city parking meters, money that was supposed to be deposited into the city treasury. Some of the money was stolen from parking meters that had been rigged by other parking meter mechanics. Tronolone kept a small cooler in the back of his vehicle where he would conceal the stolen coins.
Tronolone is the third employee of the Department of Parking Enforcement to be convicted in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison on August 16, 2013. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and was sentenced to six months and prison and ordered to pay $15,000 in restitution. A fourth employee, Franklin Lopez, is charged also charged with stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Tennessee Cardiologist to Pay $1.15 Million to Settle Allegations <br /> That He Performed Medically Unnecessary Heart ProceduresRead the Press Release
Cardiologist Dr. Elie H. Korban will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today. Korban owns Delta Clinic, with offices in Jackson, Tenn., and Lexington, Tenn., and has privileges at Jackson-Madison County General Hospital and Regional Hospital of Jackson, both in Jackson, Tenn.
“ Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and can harm patients ,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “ Protecting public funds and safeguarding Medicare beneficiaries continues to be a Department of Justice priority .”Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open during the treatment of coronary heart disease. The government contends that, from January 1, 2005, through December 31, 2008, Korban placed cardiac stents in Medicare and Medicaid patients when the stents were not medically necessary . The government also claims that Korban improperly billed Medicare for work performed by substitute doctors when he was available to perform the services himself.
“This case is one of many that underscores our commitment to holding accountable those who would cheat the health care system for their own personal profit,” said U.S. Attorney for the Western District of Tennessee Edward L. Stanton III. “We will continue to vigorously protect citizens from schemes that damage the ability of health care providers and patients to participate in a system free of false claims and dishonesty.”
As part of the settlement, Korban entered into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General intended to deter wrongful conduct in the future. The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.“Too many recent frauds involve medically unnecessary heart stents,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General region including Tennessee. “Providers are warned that they can be aggressively investigated and held accountable for falsely billing federal health programs.”
Assistant Attorney General Delery thanked the Department of Health and Human Services Office of Inspector General, the Tennessee Bureau of Investigation, the U.S. Attorney’s Office for the Western District of Tennessee and the Commercial Litigation Branch of the Justice Department’s Civil Division for the collaboration that resulted in the settlement.
The allegations resolved by the settlement were first raised in a lawsuit filed against Korban under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Dr. Wood M. Deming, will receive a share of the settlement amount. Deming’s share has not been determined.
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 case is captioned United States ex rel. Wood M. Deming v. Jackson-Madison County General Hosp., et al., Case No. 07-1116-BBD (W.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Tennessee Cardiologist to Pay $1.15 Million to Settle Allegations That He Performed Medically Unnecessary Heart ProceduresRead the Press Release
Jackson, TN – Cardiologist Dr. Elie H. Korban will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today. Korban owns Delta Clinic, with offices in Jackson, Tenn., and Lexington, Tenn., and has privileges at Jackson-Madison County General Hospital and Regional Hospital of Jackson, both in Jackson, Tenn.
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“Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and can harm patients,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Protecting public funds and safeguarding Medicare beneficiaries continues to be a Department of Justice priority.”
Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open during the treatment of coronary heart disease. The government contends that, from January 1, 2005, through December 31, 2008, Korban placed cardiac stents in Medicare and Medicaid patients when the stents were not medically necessary. The government also claims that Korban improperly billed Medicare for work performed by substitute doctors when he was available to perform the services himself.
“This case is one of many that underscores our commitment to holding accountable those who would cheat the health care system for their own personal profit,” said U.S. Attorney for the Western District of Tennessee Edward L. Stanton III. “We will continue to vigorously protect citizens from schemes that damage the ability of health care providers and patients to participate in a system free of false claims and dishonesty.”
As part of the settlement, Korban entered into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General intended to deter wrongful conduct in the future. The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.
“Too many recent frauds involve medically unnecessary heart stents,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General region including Tennessee. “Providers are warned that they can be aggressively investigated and held accountable for falsely billing federal health programs.”
Assistant Attorney General Delery thanked the Department of Health and Human Services Office of Inspector General, the Tennessee Bureau of Investigation, the U.S. Attorney’s Office for the Western District of Tennessee and the Commercial Litigation Branch of the Justice Department’s Civil Division for the collaboration that resulted in the settlement.
The allegations resolved by the settlement were first raised in a lawsuit filed against Korban under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Dr. Wood M. Deming, will receive a share of the settlement amount. Deming’s share has not been determined.
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 case is captioned United States ex rel. Wood M. Deming v. Jackson-Madison County General Hosp., et al., Case No. 07-1116-BBD (W.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Tampa Man Sentenced on Fraud ChargesRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatAdnan Ali Sabla, 50, of Tampa, Florida, was sentenced today by United States District Judge Robert Hinkle to serve 27 months in prison for fraud charges. Sabla will serve a three-year term of supervised release after his incarceration and is required to pay $112,861.12 in restitution.
Sabla was arrested on March 18, 2013, when he arrived in Tallahassee with 24 stolen and fraudulently-obtained Treasury checks. He admitted that he had delivered wrongfully-obtained checks on other occasions. Sabla was sentenced based on a total of 59 checks, in a total amount of $254,832.54.
The majority of these checks were obtained by the filing of income tax returns, which falsely claimed that refunds were due. Sabla also delivered some stolen Social Security and Veteran’s Benefits checks. In the pleas entered in court Sabla was described as a middleman who transported the checks between the persons who obtained them and persons who could cash them.
U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the U.S. Secret Service and the Internal Revenue Service.
The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
Tampa Man Sentenced to 7 Years in Federal Prison for Tax Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Quincy Wimberly (29, Tampa) to seven years in federal prison for theft of government property and aggravated identity theft. Quincy Wimberly pleaded guilty on September 5, 2013.
According to court documents, from at least as early as January of 2011, Wimberly engaged in stolen identity tax refund fraud. He was responsible for over sixty fraudulently filed tax returns and fraudulently obtained tax refunds in excess of $175,000.
Wimberly’s co-conspirators, Nikia Williams and Porscha Williams, were previously sentenced to 6 ½ years and 4 years in prison, respectively, for their roles in the scheme.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.
Stephen Leon Williams Sentenced to 90 Months on Federal Drug and Gun ChargesRead the Press Release
GREENEVILLE, Tenn. – Stephen Leon Williams, 62, of Kingsport, Tenn., was sentenced on Dec. 18, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 90 months in federal prison. Williams was convicted for his participation in an oxycodone conspiracy centered in the Kingsport, Tenn., area of the Eastern District of Tennessee and for selling a firearm to an undercover agent.
In February 2013, Williams sold 55 oxycodone pills to an individual working on behalf of law enforcement. In March 2013, Williams sold another 5 oxycodone pills to this individual and in a subsequent transaction on the same day, sold a .38 caliber handgun and a clip with six rounds to an undercover law enforcement agent. Overall, Williams stipulated that he conspired to distribute approximately 2,250 (30 mg) oxycodone pills between June 2011 and June 2013.
Williams was on parole at the time he committed these offenses from a 1981 first degree murder conviction in Hawkins County. Within a fairly short amount of time after being granted parole on the murder conviction, Williams became involved in the trafficking of oxycodone. After completing his 90 month federal sentence, Williams still faces revocation of his parole on his murder conviction.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Williams include the Bureau of Alcohol, Tobacco and Firearms, Sullivan County Sheriff’s Office and Kingsport Police Department, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
U.S. Attorney William C. Killian stated, “We are pleased with the sentence in this case and believe it reflects the seriousness of the crimes committed.”
St. Louis Man Sentenced for Home Invasion Robbery ConspiracyRead the Press Release
St. Louis, MO -- TRAY FERGUSON of Saint Louis, Missouri, was sentenced to 18 years imprisonment on December 18 by the Honorable Catherine D. Perry. Ferguson pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine and one count of possession of a firearm in furtherance of drug trafficking in July 2013. Ferguson is the first of five defendants to be sentenced in connection with an April 2013 conspiracy in which the five men agreed to, among other things, arm themselves, make entry into a house located in south Saint Louis City, and rob between 22 and 30 kilograms of cocaine from inside the residence.
In preparation for the robbery, Ferguson armed himself with a Springfield Armory make, Model XD, .45 caliber pistol loaded with 14 rounds of ammunition; an additional .45 caliber magazine loaded with 13 rounds of ammunition; and a Glock make, Model 22, .40 caliber pistol with an extended magazine loaded with 21 rounds of ammunition. Ferguson also obtained and provided to co-defendant Ricky Turner a Colt, Model Python, .357 caliber revolver; 15 rounds of ammunition; and a loaded Hi Point, Model C9, nine millimeter caliber pistol. Co-defendant James Clark possessed a Glock make, Model 19, nine millimeter caliber pistol with an extended magazine loaded with 33 rounds of ammunition.
Sentencing for each of the remaining four co-defendants has been set as follows: Tramaine Ellis: January 2, 2014; Ahmad Britton: February 11, 2014; Rickey Turner: February 6, 2014; and James Clark: March 4, 2014.
Ferguson’s sentencing comes as a result of the proactive investigation initiated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Louis Metropolitan Police Department in the Spring of 2013 to reduce violent crime within the City of Saint Louis.Six Chinese Nationals Indicted for Conspiring to Steal Trade Secrets from U.S. Seed CompaniesRead the Press Release
DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced the indictment on December 17, 2013, of six Chinese nationals for conspiracy to steal trade secrets from U.S. seed companies. The indictment alleges that from on or about April of 2011, to on or about December of 2012, Mo Hailong, Li Shaoming, Wang Lei, Wang Hongwei, Ye Jian and Lin Yong conspired to steal the trade secrets of several U.S. based seed manufacturing companies, and transport those trade secrets to China for the benefit of their China-based seed company. Mo Hailong was previously charged by criminal complaint on Tuesday, December 10, 2013.
Mo Hailong is employed as the Director of International Business of the Beijing Dabeinong Technology Group Company, which is part of DBN Group. DBN Group is believed to be a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed.
Li Shaoming is Chief Executive Officer of Beijing Kings Nower Seed S & T Co., Ltd. Beijing Kings Nower Seed S & T, Co. (BKN) is the wholly owned seed subsidiary of DBN. Beijing Kings Nower Seed is headquartered in Beijing, China.
Wang Lei is a citizen and resident of China, and the Vice Chairman of Beijing Kings Nower Seed S & T CO., LTD.
Wang Hongwei is believed to be a resident of Quebec, Canada. Wang Hongwei is believed to be a citizen of both Canada and China.
Ye Jian is a citizen and resident of China, and a research manager for Beijing Kings Nower Seed S & T Co., Ltd.
Lin Yong is a citizen and resident of China, and an employee for Beijing Kings Nower Seed S & T Co., Ltd.
The defendants are alleged to have conspired to steal inbred corn seed from Dupont Pioneer, Monsanto, and LG Seeds. This “inbred” or “parent” line of seed constitutes valuable intellectual property of a seed producer. After stealing the inbred corn seed, the conspirators attempted to covertly transfer the inbred corn seed to China. The estimated loss on an inbred line of seed is approximately 5-8 years of research and a minimum of 30-40 million dollars.
The public is reminded that an indictment is merely a charge, and that the defendants are presumed innocent until and unless proven guilty.
(Download Press Release )
Six Arrested, 4.4 Kilograms of Heroin and $127,000 Seized by Law Enforcement During Heroin Distribution InvestigationRead the Press Release
TULSA, Okla. — On December 17, 2013, six people were arrested after search warrants were served by federal, state, and local law enforcement in a concerted effort to reduce the distribution of heroin in Tulsa County. Five of the six arrested were found to be unlawfully in the United States. The multiagency law enforcement effort seized approximately 4.4 kilograms of heroin, $127,971 in cash, three vehicles, and 27 mobile phones. This amount of heroin has an approximate value of $700,000 on the street.
Heroin is an opioid drug that is made from morphine and has powerful pain-relieving properties. The short-term effects of heroin include clouded thinking and shortness of breath. Users may also contract HIV/AIDS or hepatitis from a shared needle, slip into a coma, or death.
This is part of an ongoing investigation of the distribution of heroin in the Tulsa County area by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance by the Tulsa Police Department; Tulsa County Sheriff’s Office; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigation; Drug Enforcement Administration; and the Broken Arrow Police Department.
Each person arrested is presumed innocent and the facts presented must be proven in a court of law beyond a reasonable doubt.
Shiprock Man Pleads Guilty to Federal Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Elvan Hovel, 42, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty today to a voluntarily manslaughter charge under a plea agreement with the U.S. Attorney’s Office.
Hovel was arrested in Aug. 2013, based on a criminal complaint charging him with second degree murder and subsequently charged in an indictment in Sept., 2013 with voluntary manslaughter. According to court filings, on July 22, 2012, Hovel pushed a 48-year-old Navajo woman who was intoxicated into an irrigation canal where the victim drowned.
In his plea agreement, Hovel admitted killing the victim on July 22, 2012, in a location within the Navajo Indian Reservation. Hovel pushed the victim into an irrigation canal at a time when the two were intoxicated and arguing. Hovel did not make any effort to rescue the victim as he watched her float away in the canal and go under.
Under the terms of the plea agreement, Hovel will be sentenced to five years in federal prison followed by a term of supervised release to be determined by the court. He remains in custody pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Seven High Desert Residents Arrested by Members of Federal-State Task Force for Allegedly Selling MethamphetamineRead the Press Release
RIVERSIDE, California – An investigation by the High Desert Gang Impact Team this morning resulted in the arrest of seven defendants who face charges in federal and state court for distributing methamphetamine in the High Desert region.
The arrests this morning mark the culmination of a two-year investigation by the High Desert Gang Impact Team, which is made up of agents and deputies with the Federal Bureau of Investigation and the San Bernardino County Sheriff’s Department. Task Force members are continuing to search for two defendants who face federal charges.
A federal grand jury on November 27th returned five indictments in United States District Court that charge a total of six defendants. The federal indictments charge these defendants with distributing, and conspiring to distribute, methamphetamine.
The federal defendants, three of whom are expected to be arraigned this afternoon in United States District Court in Riverside, are:
- Christian Alejandro Navarro, 29, of Hesperia;
- Aldo Serna-Avila, 28, of Apple Valley;
- Johnnie Zuniga, 37, of Apple Valley;
- Candelario Vasquez, 49, of Apple Valley; who is in state custody on an unrelated charge;
- Jessica Enriquez, 29, of Apple Valley, who is currently a fugitive; and
- Virginia Gomez, 46, of Apple Valley, who is also being sought by authorities.
The federal defendants arrested today are expected to make their initial court appearances this afternoon in the United States District Court in Riverside. The six federal defendants, if convicted, each face a five-year mandatory minimum sentence and a statutory maximum sentence of 40 years.
Three defendants were charged by the San Bernardino County District Attorney’s Office with state narcotics offenses. The three defendants facing state charges are:
- Sally Oporto, 35, of Apple Valley;
- Nelly Rodriguez, 76, of Apple Valley; and
- Lucia Martinez, 46, of Victorville.
An indictment or complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
FBI agents with the Victorville resident agency; sheriff’s deputies from the Victorville, Apple Valley, Hesperia, and Adelanto sheriff’s stations; and officers from the San Bernardino County Probation Department participated in the execution of arrest warrants this morning.
Release No. 13-150
Sentences for December 13 – 19, 2013Read the Press Release
Rachel Marie Essley, 33, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 19, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 50 grams of methamphetamine. Essley was arrested in Cheyenne, Wyoming. She received 84 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Steven Wayne Hancock, 25, of Green River, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 18, 2013, for conspiracy to possess with intent to distribute, and to distributing 50 grams or more of methamphetamine. Hancock was arrested in Rock Springs, Wyoming. He received 151 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Natalie A. Taylor, 46, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 18, 2013, for being a felon in possession of a firearm. Taylor was arrested in Cheyenne, Wyoming. She received 32 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Richard Wiberg, 38, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 17, 2013, for conspiracy to possess with intent to distribute, and to distributing 252 grams of methamphetamine. Wiberg was arrested in Casper, Wyoming. He received 72 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Jerry Lee Burkholder, 32, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 13, 2013, for distribution of buprenorphine resulting in death. Burkholder was arrested in Rock Springs, Wyoming. He received 78 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Rock Springs Police Department.
Erick Romero-Badillo, 25, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 13, 2013, for illegal re-entry of a previously deported alien into the United States. Romero-Badillo was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Joshua James Palmer, 28, of Douglas, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 13, 2013, for being a felon in possession of a firearm. Palmer was arrested in Douglas, Wyoming. He received 13 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Douglas Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mark A. Seiley, 41, of Morrill, Nebraska, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 13, 2013, for failure to register as a sex offender. Seiley was arrested in Cheyenne, Wyoming. He received time served, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Michael Olbekson, 41, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 13, 2013, for attempted online enticement of a minor. Olbekson was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years or supervised release, and was ordered to pay a $100.00 special assessment and a $1,000.00 fine. This case was investigated by the Federal Bureau of Investigation.
Raymond Anthony Lewis, 45, of Englewood, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 13, 2013, for conspiracy to possess with intent to distribute, and to distributing 200 grams of methamphetamine. Lewis was arrested in Casper, Wyoming. He received 262 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $2,500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Seed Company Owner Charged with Stealing Employee Pension FundsRead the Press Release
Andrew Sweeney, 66, of Wayne, Pennsylvania, was charged today by indictment with theft from an employee retirement fund, announced United States Attorney Zane David Memeger. According to the indictment, Sweeney, the President of Sweeney Seed Company, failed to pay monies, withheld from employees’ paychecks, to the employees’ IRA accounts and, instead, used the funds for unauthorized purposes. Sweeney allegedly embezzled $41,165.18 intended for the Sweeney Seed Company employee retirement account.
If convicted, Sweeney faces a maximum possible sentence of five years in prison, restitution, a $250,000 fine, and three years of supervised release.
The case was investigated by Department of Labor and the United States Secret Service and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Seattle Area Men Charged with Insider Trading Based on Microsoft Internal InformationRead the Press Release
Two Seattle area men were charged today in U.S. District Court in Seattle with 35 counts of insider trading related to their purchases and sales of stock options related to Microsoft Corporation, announced U.S. Attorney Jenny A. Durkan. One of the men, BRIAN JORGENSON, 32, of Lynnwood, Washington was employed as a Senior Manager in Microsoft’s Treasury Group. The other, SEAN STOKKE, 28, of Seattle was a day trader who had previously worked with JORGENSON at an asset management company. The complaint alleges that the two used non-public information from JORGENSON’s employment at Microsoft to profit on the movement of Microsoft stock and the stock of related companies. The men are scheduled to appear in U.S. District Court in Seattle at 3:00 this afternoon.
“For every stock market winner, there is a loser, and trading on confidential inside information is a cheaters way of gaining at the expense of others,” said U.S. Attorney Jenny A. Durkan. “This conduct hurts companies, hurts individuals, and shakes faith in our financial markets. We will vigorously investigate and prosecute this type of conduct.”
According to the criminal complaint, the men allegedly profited on three distinct instances of insider information: Microsoft’s investment in Barnes and Noble; Microsoft’s failure to meet earnings estimates in the fourth quarter of fiscal 2013; and Microsoft’s increased first quarter earnings in fiscal 2014. The men allegedly shared their profits by STOKKE providing JORGENSON with envelopes of cash in approximately $10,000 increments.
Through his employment, JORGENSON became aware in early April 2012 that Microsoft was considering an investment in Barnes and Noble for its digital and college business. Beginning April 18 and continuing, phone records show JORGENSON and STOKKE were in frequent contact. STOKKE opened an online options account and on April 20, 2012 began accumulating options on Barnes and Noble stock. On April 30, Microsoft announced the investment in Barnes and Noble, and the Barnes and Noble stock jumped 49%. STOKKE sold all his options that day for a profit of more than $184,000.
In early July 2013, JORGENSON learned through his employment that Microsoft would not meet its earnings estimate. Phone records show his contact with STOKKE. Beginning in mid-July, STOKKE bought “put” options on Microsoft stock – essentially betting it would go down. When Microsoft announced the lower than expected earnings on July 18, the stock did drop and the “put” options resulted in a profit to the two men of more than $195,000.
The final instance of insider trading charged in the complaint relates to trading in advance of the announcement of better than expected first quarter 2014 earnings. In October 2013, because of his employment, JORGENSON learned that Microsoft would announce a 17 percent increase in earnings per share over the prior year. One day before the announcement, STOKKE used brokerage accounts controlled by the two men to purchase call options of a technology sector fund that is influenced by the price of Microsoft stock. Following the earnings announcement, Microsoft stock and thus the sector fund went up. The men executed their options and sold the shares for a profit of nearly $13,000.
“The high density of publicly traded companies in Seattle affords a large number of people access to insider information that can unfairly benefit their investment decisions,” said FBI Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle field office. “While most employees will never exploit that knowledge, our FBI office is particularly attentive to uncovering when and where this type of fraud occurs. We have seen many types of schemes and evasion techniques by inside traders, but they all share an erroneous belief that they’ll never be caught.”
JORGENSON is no longer employed by Microsoft.
Insider trading is punishable by up to 20 years in prison and up to a $5,000,000 fine.
The Securities and Exchange Commission (SEC) is also filing a civil action against the men today.
The case was investigated by the FBI and the SEC. The case is being prosecuted by Assistant United States Attorney Katheryn Kim Frierson.
Salem Man Indicted for Attempt to Interfere with Administration of IRSRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Federal Grand Jury also returns three additional indictments
ELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, announced that an investigation by the Internal Revenue Service-Criminal Investigations has led to a federal indictment being returned this week in Elkins.
DUANE PHILIP MCATEE, age 43, of Salem, West Virginia, was charged with one count of “Attempt to Obstruct or Impede the Due Administration of Justice.” If convicted, MCATEE faces up to three years in prison. This case will be prosecuted by Assistant U.S. Attorney Paul T. Camilletti.
In the three separate cases:
ALFONSO CRUZ-GREGORIO, age 39, an inmate at FCI Gilmer, was named in a two-count Indictment charging him with “Assault with a Dangerous Weapon with Intent to do Bodily Harm” and “Possession of a Prohibited Object [Weapon].” If convicted, CRUZ- GREGORIO faces up to fifteen years in prison. This case will be prosecuted by Assistant U.S. Attorney Brandon S. Flower and was investigated by the Special Investigations Section at FCI Gilmer.
RONALD SNYDER, age 39, of Buckhannon, West Virginia, was named in a one-count Indictment charging him with “Failure to Update Sex Offender Registration” as required by the Sex Offender Registration and Notification Act. If convicted, SNYDER faces up to ten years in prison. This case will be prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the U.S. Marshals Service.
JOSE SANTOS NATIVI-REYES, age 33, was named in a one-count Indictment charging him with entering the United States, after having been previously deported, without obtaining the express consent of the Secretary of Homeland Security or the Attorney General of the United States to reapply for admission to the United States. NATIVI-REYES was found in Berkeley County, West Virginia, on September 13, 2013. If convicted, NATIVI-REYES faces up to two year in prison and deportation. The case will be prosecuted by Assistant United States Attorney Paul T. Camilletti and was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Rutland Man Sentenced to Nine Years Imprisonment for Federal Conviction for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on December 18, 2013, Chief Judge Christina Reiss, of the United States District Court, sentenced Calvin Alexander, 31, of Rutland to nine years imprisonment for conspiring to distribute heroin and crack cocaine in the Rutland area. Alexander previously pled guilty to this offense and had agreed to a nine-year sentence.
According to court records, two weeks before the federal drug charges were brought in February 2013, the defendant was charged in state court with a home invasion in Rutland. According to state court records, this home invasion allegedly involved four male subjects, including the defendant (also known as “Drama”), storming into a Rutland residence with pepper spray and a firearm and attempting to rob the occupants of drugs and cash. Two of the occupants were injured in the assault. The defendant allegedly actively participated in this home invasion, including kicking in the door. In consideration of the defendant’s plea to a nine-year federal sentence, the United States Attorney’s Office agreed to recommend to the State Attorney’s Office that the state charges be dismissed.
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by Assistant Federal Public Defender Steven Barth. This case was jointly investigated by the Vermont Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, & Explosives.