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7 February 2014
Sanborn Map Co. Pays $2.1 Million to Resolve Allegations of False <br /> Claims for Map Work Related to United States Military Convoy <br /> Routes in Iraq and Marine Corps Bases in United StatesRead the Press Release
Sanborn Map Company Inc. has agreed to pay $2.1 million to the U.S. government to resolve allegations that it submitted false claims in connection with U. S. Army Corps of Engineers contracts, the Justice Department announced today. Sanborn, headquartered in Colorado Springs, Colo., provides photogrammetric mapping and geographic information system services.
“We are committed to defending the integrity of our public contracting process,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “ The Department of Justice will not hesitate to pursue companies that knowingly fail to comply with their contractual obligations, particularly obligations involving the protection of our national security interests.”From 2005 to 2011, Sanborn contracted with the U.S. Army Corp of Engineers to produce maps for U.S. convoy routes in Iraq, Marine Corps bases in the U. S. and other military and civilian projects. Allegedly, in an effort to save money, Sanborn used unapproved foreign subcontractors on three projects, which violated contractual obligations and caused delays on these projects. Sanborn also allegedly used unapproved domestic subcontractors when Sanborn was required to complete all map work in-house and charged unrelated work to the government contracts.
"We applaud the hard work and dedication of our agents and partners at the Department of Justice and other fellow law enforcement agencies," said Director Frank Robey of the U. S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "Our specially trained agents will doggedly pursue all who would undermine the needs and resources of the military.”The allegations arose from a lawsuit filed by a former Sanborn employee, James Peterson, in a federal court in St. Louis, Mo., under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private individuals known as “relators” to sue on behalf of the government and to share in the proceeds of any settlement or judgment. Peterson’s share of today’s settlement has not been determined.
The settlement was the result of a coordinated effort among the Commercial Litigation Branch, Civil Division, Department of Justice; the U. S. Attorney’s Office for the Eastern District of Missouri and the U. S. Army Corps of Engineers. The U.S. Army Criminal Investigation Command – Major Procurement Fraud Unit; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and Defense Contract Audit Agency assisted in the investigation.
The case is United States ex rel. James Peterson v. Sanborn Map Company Inc., 4:11CV000902 AGF (E.D. Mo.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Romanian Man Pleads Guilty to Role in International Fraud Scheme Involving Online Market Place WebsitesRead the Press Release
Alexandru Stanciu, 34, of Bucharest, Romania pleaded guilty today to one count of conspiracy to commit bank and wire fraud for his role in moving approximately $320,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to testimony at the plea hearing, members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as Autotrader and eBay. When potential buyers expressed interest in purchasing the vehicles, co-conspirators sent e-mails that directed the buyers to wire payments to certain bank accounts. In total, 17 individuals sent approximately $321,389 to accounts opened by Stanciu. None of the victims ever received the vehicles for which they paid.
“International online marketplace fraud schemes pose a serious threat to consumers and to Internet commerce,” said U.S. Attorney David Rivera. “Foreign-based criminals believe they can flee safely back to their home countries and avoid the consequences of the crimes they commit here. They are mistaken. Federal, state, local, and foreign law enforcement officials increasingly are working together to investigate, arrest and prosecute the people responsible for these schemes. The safe havens for these criminals are shrinking thanks to these coordinated efforts. Prosecutions like this one reinforce that message.”
According to testimony, beginning at least as early as December 2011 and continuing to as late as July 2013, Stanciu opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit passports. Stanciu opened 10 such accounts, under nine different names. Stanciu subsequently sent the bulk of the money to other co-conspirators located abroad
Stanciu was apprehended in July 2013 at Miami International Airport, from which he was scheduled to travel to Bucharest, Romania by way of London. At the time of his arrest Stanciu had $1,850 U.S. Dollars and 4,600 Euros in cash in his possession.
Stanciu is scheduled to be sentenced on June 2, 2014. He faces a maximum of thirty years in prison and a $1,000,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones with the Middle District of Tennessee and Trial Attorney Mysti Degani with the Criminal Division’s Computer Crime and Intellectual Property Section.
Rochester Tax Preparer Sentenced for Filing Fraudulent ReturnsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jorge Laurido, 54, of Rochester, N.Y., who was convicted of assisting in the preparation of false tax returns, was sentenced to five years probation and a fine of $10,000 by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant prepared and filed false income tax returns for tax filers in Rochester. Specifically, the defendant filed tax returns for the years 2007 through 2010 that falsely represented the taxpayers' earned amounts of self-employment income. This allowed Laurido's clients to be eligible for larger Earned Income Credits. The false returns resulted in the taxpayers receiving larger refunds than they were entitled to. The Internal Revenue Service determined that the false tax returns prepared and filed by the defendant resulted in losses totaling $116,139.00.
The sentencing was the culmination of an investigation on the part of Special Agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Toni Weirach.Robertsdale Woman Sentenced to Serve 10 Years in Prison for Distributing Methamphetamine IceRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama announced that Lacey Lynn Freeman, age 49, of Robertsdale, Alabama, was sentenced today by Chief United States District Judge William H. Steele to serve 120 months in federal prison in connection with her guilty plea to two counts involving her possession with intent to distribute 98% pure methamphetamine, commonly known as “ice”. The 120- month sentence was the mandatory minimum sentence required by federal statute.
This case was investigated by the Baldwin County Sheriff’s Office and the Department of Homeland Security. The case was prosecuted by Donna B. Dobbins of the United States Attorney=s Office for the Southern District of Alabama.
Ringleader of Large-Scale ATM Skimming Scheme Extradited to United States to Face Multiple ChargesRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Sweden is scheduled to make his initial court appearance today following his extradition to face charges that he directed a large-scale ATM skimming scheme targeting New Jersey bank customers, U.S. Attorney Paul J. Fishman announced.
Marius Vintila, a/k/a “Dan Girneata,” 31, is scheduled to appear before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court on a six-count criminal complaint charging him with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, possession of 15 or more counterfeit access devices, conspiracy to possess access device-making equipment, and possession of access device-making equipment. In July 2013, as federal agents arrested various members of Vintila’s large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden.
According to documents filed in this and other cases and statements made in court:
Vintila was allegedly the ringleader of an extensive ATM skimming scheme that defrauded Wells Fargo, Citibank, TD Bank and multiple other financial institutions out of at least $5 million. Vintila and his conspirators installed skimmers and pinhole cameras at bank ATMs in order to steal thousands of customer bank account numbers and PIN codes. Each skimmer would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers.
Vintila and another conspirator, Bogdan Radu, 30, who was charged separately and is also in custody, created and constructed the homemade skimming devices and taught others how to install them on bank ATMs. The homemade devices were installed on multiple ATMs in New Jersey, New York, Connecticut, and Florida, and were used to steal thousands of bank account numbers and personal identification numbers. After the account information was stolen, Vintila and his conspirators created false and fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. During the course of the conspiracy, Vintila produced and transferred hundreds of fraudulent ATM cards. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles, and rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds.
Vintila’s alleged ATM skimming operation is one of the largest ever uncovered by law enforcement. In total, to date, 12 others have been charged in connection with the skimming scheme. Many of the conspirators are Romanian nationals who lived in and around Queens, N.Y. Other charged conspirators, recruited by Vintila, included Radu, Constantin Ginga, 53; Marius Cotiga, 35; Constantin Pendus, 30; Emil Revesz, 30; Florin Apetrei, 18; Ioan Leusca, 30; Dezso Gyapias, 29; Luis Franco, 23; Mirel Hadzalic, 24; Enes Causevic, 23; and another individual charged as “FNU LNU,” (first name unknown, last name unknown) a/k/a “Chioru.” These conspirators installed the devices designed by Vintila and Radu and used the stolen bank account information to withdraw millions of dollars from bank customers’ accounts.
With the arrest of Vintila, 12 of the 13 conspirators charged in connection with Vintila’s ATM skimming scheme to date are in custody in New Jersey and are being held without bail. Leusca and Gyapias have pleaded guilty to separate informations charging each with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. They await sentencing on Feb. 20, 2014. Ginga also previously pleaded guilty to conspiring to commit bank fraud and aggravated identity theft and awaits sentencing on Feb. 26, 2014.
Vintila is charged with six counts, as described below, which carry the following maximum penalties and fines:
Count
Offense
Maximum Penalty
Maximum Fine
Conspiracy to Commit Bank Fraud
Thirty years in prison
$1 million
2
Aggravated Identity Theft
Mandatory, consecutive penalty of two years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
3
Conspiracy to Possess Fifteen or More Counterfeit Access Devices
Five years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
4
Possession of Fifteen or More Counterfeit Access Devices
Ten years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
5
Conspiracy to Possess Access Device-Making Equipment
Seven and one-half years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
6
Possession of Access Device-Making Equipment
Fifteen years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to Vintila’s arrest and extradition. U.S. Attorney Fishman also thanked the U.S. Secret Service London Field Office, HSI Frankfurt, the Swedish National Bureau of Investigation, Fugitive Active Search Team, and the Police Authority of Skåne, Malmo Division, for their assistance in locating and apprehending Vintila in Sweden. The Office of International Affairs from the Justice Department’s Criminal Division provided assistance with the extradition.The charges in the complaint against Vintila are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
14-044
Vintila Complaint
Raleigh County Man Sentenced for Roll in Check Cashing SchemeRead the Press Release
McGann Dummied Up Invoices For Coal Operators As Part Of A Tax Evasion Scheme
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin announced that Donald R. “Duke” McGann, 62, of Hinton, West Virginia, was sentenced to three years of probation, the first two of which are to be served on home confinement. McGann was previously convicted of tax evasion and structuring cash withdrawals from various banks in southern West Virginia as part of a larger check cashing scheme orchestrated with several coal operators. “Structuring” involves the breaking down of cash transactions in amounts of $10,000 or less for the purpose of avoiding a financial institution’s reporting requirements to the Internal Revenue Service (IRS).
As part of the scheme, McGann would provide a coal operator a bogus invoice reflecting the delivery of goods or services. The coal operator then provided McGann a check, which was deposited into McGann’s checking account. Sometimes with the aid of others, McGann withdrew the cash from his checking account in increments of $10,000 or less to avoid the bank’s reporting requirement. McGann returned the cash to the coal operator less a ten-percent fee. The cash was used to pay cash wages or otherwise kept by the coal operator as a tax-free windfall.
In 2009 alone, McGann cashed over $770,000 checks for three different coal operators.
This case was investigated by the IRS Criminal Investigative Division that focused on James Trent, 53, of Rock View, Wyoming County and others in a larger tax evasion and structuring scheme. Trent was sentenced on November 15, 2013 to three years in prison for tax evasion. Assistant United States Attorney Thomas Ryan handled the prosecution.
Prince Frederick Physician Admits to Illegal Drug Distribution and Health Care Fraud SchemeRead the Press Release
Prescribed Drugs Without a Medical Exam and Knowing That His Patients Were Selling or Abusing the Drugs; Filed Fraudulent Insurance Claims for Services That Were Not Rendered or Medically Necessary
Greenbelt, Maryland - Physician George Mathews, age 76, of Prince Frederick, Maryland, pleaded guilty today to the illegal distribution of drugs and health care fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas Frost of the U.S. Postal Service Office of Inspector General, Major Fraud Investigations Division; Special Agent in Charge William R. Jones, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Calvert County Sheriff Mike Evans; St. Mary=s County Sheriff Tim Cameron; Charles County Sheriff Rex Coffey; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“Today’s guilty plea serves as a warning to those who would defraud the Department of Labor’s Office of Workers’ Compensation Programs by charging for medical services that were not rendered or not medically necessary,” said Bill Jones, Special Agent-in-Charge of the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. “The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature.”
“The workers’ compensation program benefits thousands of Postal Service employees who have received legitimate on-the-job injuries,” said Thomas Frost, Special Agent in Charge, U.S. Postal Service Office of Inspector General, Major Fraud Investigations Division. “By submitting false claims to this program, Dr. Mathews undermined the system and contributed to the growing epidemic of health care fraud. This resolution marks a significant effort in the on-going battle against workers’ compensation fraud. We appreciate the partnership of the DEA, the U. S. Department of Labor- OIG, and the U.S. Attorney’s Office, District of Maryland on this case.”
According to his plea agreement, Mathews had medical offices in Prince Frederick and in Waldorf, Maryland. From January 2007 to July 2011, Mathews repeatedly wrote prescriptions for drugs that he knew were without any legitimate medical purpose. On a number of occasions, Mathews prescribed drugs after being made aware that his patients were either selling or abusing the prescribed drugs. In addition, numerous patients stated that Mathews performed little or no examination before writing the prescriptions.
In April 2011, a DEA undercover law enforcement officer walked in to Mathews’ Prince Frederick medical office without an appointment. After paying the receptionist an office visit fee of $120, Mathews saw the undercover officer and gave him a prescription for 60 pills of oxycodone. Mathews explained that he had a problem with his DEA registration and told the undercover officer that he could only get his prescription filled at a particular pharmacy. Mathews never performed any type of routine medical testing of the undercover officer before filling out the prescription.
During the time that Mathews filled prescriptions without any legitimate medical purpose, Mathews billed the Department of Labor Office of Workers’ Compensation Programs (OWCP) and other health care benefit programs for services that were not rendered or were not medically necessary. Mathews billed all of his “repeat” patients to a particular medical code 99214, regardless of the actual content of the medical visit or examination. Most of Mathews’ patients’ repeat visits lasted no more than five minutes and involved no physical examination. OWCP provides guidance to physicians that a patient visit which can be properly billed at a code 99214 will typically involve approximately 25 minutes face to face with the patient.
As a result of the criminal conduct, Mathews received at least $615,000 from either patients who received drugs without there being a medical necessity, or from OWCP and other health care benefit programs for services that were not rendered or were not medically necessary.
Mathews and the government have agreed that if the Court accepts the plea agreement, Mathews will be sentenced to two years of probation with a condition requiring home detention for all two years. Mathews has also agreed to forfeit $615,000. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for April 21, 2014, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the DEA – Washington Division Office, Tactical Diversion Squad; U.S. Postal Service - OIG; Department of Labor - OIG; Charles, St. Mary=s and Calvert County Sheriff’s Offices, Defense Criminal Investigative Service, OPM-OIG and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao, Mushtaq Z. Gunja and Sujit Raman, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Peter Hoffman and Michael Arata Indicted for Fraudulent Film Tax Credit SchemeRead the Press Release
PETER M. HOFFMAN, age 63, of Los Angeles, California and MICHAEL P. ARATA, age 47, of New Orleans, Louisiana, were charged in a six count Indictment by a Federal Grand Jury with conspiracy and wire fraud, announced United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, the Louisiana Motion Picture Incentive Act (LMPIA) was enacted to provide incentives for and encourage the filming of motion pictures and television programs in Louisiana. Under the LMPIA, companies making motion pictures were eligible to receive tax credits which were calculated as a percentage of the companies’ qualified expenditures in Louisiana. Qualified expenditures upon which companies could receive tax credits included expenditures on infrastructure. Infrastructure expenditures only included the purchase, construction and use of facilities that were directly related to and utilized for motion picture production in Louisiana. In order to qualify for infrastructure tax credits, all funds had to be actually expended, and such expenditures had to be verified by an independent Louisiana Certified Public Accountant. Businesses that applied to the State for infrastructure tax credits were entitled to receive an amount equal to 40% of their qualified and audited infrastructure expenditures. Once this amount was certified by the State of Louisiana, the applicants could then sell the certification to local businesses and individuals. Such sale of tax credits provided for a significant source of cash for film projects.
The defendant, PETER M. HOFFMAN, was the Chief Executive Officer of Seven Arts Entertainment, Inc., a company that was primarily involved in the motion picture and entertainment industry in California. As Chief Executive Officer of Seven Arts Entertainment, Inc., his duties included the selection and production of major motion pictures, strategic planning, business development, operations, financial administration and accounting. HOFFMAN was also an attorney and participated as a lawyer and executive in numerous financial and tax-preferred financings over a period of more than twenty-five years. HOFFMAN also owned, operated and controlled numerous companies related to and affiliated with Seven Arts Entertainment, Inc.
The co-defendant, MICHAEL P. ARATA, was a Louisiana attorney and businessman who also owned and operated companies involved in the movie and entertainment industry. Through their respective companies, HOFFMAN and ARATA were partners in different movie-industry business ventures.
Through their respective companies, HOFFMAN and ARATA purchased property located at 807 Esplanade, New Orleans, Louisiana. 807 Esplanade was an old mansion, located in the Faubourg Marigny neighborhood on the edge of the French Quarter, which had fallen into a severe state of disrepair over many years. The proposed reason for purchasing the property was to renovate the mansion and turn it into a film post-production facility.
After purchasing the property, HOFFMAN and ARATA submitted an application and supporting documents to the State of Louisiana in order to receive film infrastructure tax credits for money the defendants fraudulently claimed had been spent on 807 Esplanade. On or about June 19, 2009, the State of Louisiana issued approximately $1,132,480.80 in tax credits to the 807 Esplanade partnership.
The Indictment charges that HOFFMAN and ARATA fraudulently submitted materially false and misleading documents and information regarding 807 Esplanade expenditures to the auditors and to the State of Louisiana in order to receive infrastructure tax credits.
“The United States Attorney’s Office, the FBI and the Louisiana Office of the Inspector General stand committed to protecting the economic interests of the United States and the State of Louisiana,” stated U.S. Attorney Polite. “The State of Louisiana has provided significant incentives to the film and entertainment industry in order to develop business and employment in Louisiana. Such an important effort will not be criminally exploited.”
“Those who brazenly steal from the taxpayers and abuse tax credit programs should know that we will relentlessly pursue and hold them criminally accountable wherever possible,” stated Louisiana Inspector General Stephen Street. “We remain committed to working with the FBI and United States Attorney to root out this sort of corruption wherever it may exist.”
HOFFMAN and ARATA face a maximum term of imprisonment of five (5) years with respect to Count 1, and twenty (20) years with respect to each of Counts 2 through 6. The defendants also face a maximum fine of $250,000 with respect to each count, and supervised release of three (3) years.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that guilt of the defendants must be proven beyond a reasonable doubt.
The case is being investigated by Special Agents of the Federal Bureau of Investigation and the Louisiana Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys G. Dall Kammer and Jordan Ginsberg.
(Download Indictment )
Pension Administrator Sentenced to Prison for Embezzling FundsRead the Press Release
PITTSBURGH – An Allegheny County man has been sentenced in federal court to 25 months in prison and $1,190,957.86 in restitution on his conviction of false statements and concealing information on pension plan documents, U.S. Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence yesterday on Merrill J. Druggs, 67, of Gibsonia, Pa.
According to the information presented to the court, Druggs was a Tax Manager for Oerlikon USA Holding, Inc., and a Plan Administrator and Trustee of an Oerlikon employee pension plan covering 1,400 persons. In 2011, after 34 years of employment with Oerlikon, Druggs was fired when the embezzlements were discovered. Druggs embezzled monies in several ways: by diverting Oerlikon monies to bank accounts using addresses of post office boxes that he created and controlled and his personal residence; by setting up an unauthorized 401(k) plan for his benefit and the benefit of two employess who he directly supervised, and used Oerlikon's money to fund it; and by using Oerlikon checks and a company American Express card to pay for his personal expenses. Druggs was able to embezzle $718,518 over a period of several years. The restitution ordered by the court included an additional amount of $472,439.86 to reimburse Orelikon and the pension plan for lost earnings on the embezzled monies.
Before imposing sentence the court said that this was a “carefully calculated plan” and that Druggs used his “education, experience and learning” to steal from Oerlikon and the pension plan. The court noted that Druggs was a trusted fiduciary of Oerlikon and the pension plan, and further explained that in order to function, our “system of commerce relies upon the trust we place in fiduciaries” such as Druggs. By abusing that trust Druggs conduct was “by any measure a very serious offense”.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the U.S. Department of Labor, Pension Benefit Welfare Administration, for the investigation leading to the successful prosecution of Merrill J. Druggs.
Operation Bloodline Defendant Sentenced to 10 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRITT MARTIN, also known as “Big Baby,” 30, formerly of Northford, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 120 months of imprisonment, followed by four years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
One target of the investigation was Christopher “White Boy Chris” Morley, who operated a large-scale drug trafficking operation in the greater New Haven area, involving cocaine, crack cocaine, marijuana, and oxycodone. The investigation revealed that MARTIN conspired with Morley to obtain large quantities of cocaine and marijuana from sources of supply in New York City. Some of the cocaine was converted to crack, and the drugs were sold to customers and other drug distributors in and around New Haven.
MARTIN’s criminal history includes an arrest on December 21, 2011, when law enforcement officers conducted a motor vehicle stop of a car in which MARTIN was a passenger and found him in possession of approximately eight ounces of marijuana. A subsequent search of a residence connected to MARTIN revealed more than two pounds of marijuana, approximately $18,500 in cash and a loaded revolver that had been stolen.
MARTIN has been detained since his federal arrest on May 22, 2012. On November 12, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine.
Morley has pleaded guilty and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Oakland Man Sentenced to over Five Years in Prison for Robbing Five Banks and Attempting to Rob Two Banks in the East BayRead the Press Release
OAKLAND – Amanuel Moreno was sentenced yesterday to 70 months in prison for bank robbery and attempted bank robbery, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Moreno admitted to robbing or attempting to rob the following banks:
Date
Bank
Location
Amount Stolen
06/29/2012
Bank of the West
24299 Southland Drive, Hayward
$25
12/06/2012
Bank of the West
4900 Telegraph Avenue, Oakland
$506
12/06/2012
Chase Bank
2270 Otis Drive, Alameda
Attempt
12/13/2012
Wells Fargo Bank
950 South Holland Drive, Hayward
$1,541
12/18/2012
Chase Bank
32101 Union Landing, Union City
Attempt
12/18/2012
U.S. Bank
1585 East 14th Street, San Leandro
$724
01/16/2013
Bank of the West
4900 Telegraph Avenue, Oakland
$3,321
In his robberies and attempted robberies, Moreno entered the banks and passed the victim tellers threatening notes demanding money. The notes informed the tellers that Moreno had a gun, and in the last three incidents Moreno threatened to shoot the tellers.
Moreno, 21, of Oakland, was arrested on January 25, 2013, by local law enforcement and remained in local custody pursuant to a probation violation. He has been in federal custody since July 5, 2013. The superseding indictment charging Moreno with five counts of bank robbery and two counts of attempted bank robbery was filed on August 1, 2013. Moreno pleaded guilty to all seven counts on October 23, 2013.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI, Hayward Police Department, Oakland Police Department, Alameda Police Department, Union City Police Department, and San Leandro Police Department.
(Moreno superseding indictment )
Northern Nevada Man Convicted of Distributing Synthetic DrugsRead the Press Release
RENO, Nev. – In the first federal jury trial of its kind in Nevada involving synthetic drugs commonly referred to as “spice,” a Reno, Nevada man has been convicted of multiple counts related to the distribution and possession of the dangerous substances, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Iqbal Singh-Sidhu, 33, was convicted on Thursday, Feb. 6, 2014, of 16 counts of possession with intent to distribute or distribution of controlled substances, and controlled substance analogues intended for human consumption, and one count of maintaining a drug-involved premise as to his business. Singh-Sidhu was originally charged and arrested in March 2013, and the jury trial started on Monday.
“Purchasing and using these compounds is extremely dangerous and can be equated to playing Russian roulette,” said U.S. Attorney Bogden. “The chemicals used to make the drugs are continually altered and the substance you get one day will not be the same one you get the next day. Persons, including youth, are increasingly ingesting these dangerous combinations of chemicals. We are working diligently with our local, state and federal law enforcement partners to investigate these cases, and will use federal laws to prosecute persons who recklessly distribute these substances.”
According to the court records and evidence introduced at trial, on four separate occasions in September 2012, Singh-Sidhu knowingly and unlawfully distributed controlled substances, and analogues intended for human consumption, in violation of the Controlled Substances Act and the Controlled Substance Analogue Enforcement Act. The spice he distributed over the course of these four occasions was labeled “Diablo,” “Hayze,” “White Rhino,” and “Smokin Dragon.”
On Feb. 5, 2013, federal search warrants were executed at his business, Grab n Go Food n Liquors, located at 1801 West 4th Street, in Reno, and at his residence located at 3101 Platte River Drive, in Reno. Dozens of packages of several varieties of “spice” were found at his business, and three boxes and a garbage bag containing hundreds of packages of various types of “spice” were recovered at his home. The overall street value of the “spice” recovered at these premises containing controlled substances or analogues intended for human consumption was approximately $20,000.
The synthetic drugs Singh-Sidhu sold, and later possessed with intent to distribute at his business and his home in February 2013, contained one or more of the controlled substances, JWH-018, JWH-073, JWH-081, and AM2201, and/or one or more of the analogues intended for human consumption, UR-144, XLR11, and 5-MeO-DALT. Synthetic drugs containing these substances have hallucinogenic effects on the central nervous system. The physiological effects these substances cause are stronger and more potent than those caused by marijuana.
Singh-Sidhu also unlawfully maintained the business of Grab n Go Food n Liquors for the purpose of distributing “spice” with these controlled substances, and analogues intended for human consumption.
Singh-Sidhu faces up to 20 years in prison and a $1 million fine on each count, except for the maintaining a drug-involved premises count, which carries a maximum fine of $500,000. Singh-Sidhu is scheduled to be sentenced in Reno on June 9, 2014, at 2:00 p.m. by U.S. District Judge Robert C. Jones.
According to the Office of National Drug Control Policy, synthetic drugs are a rapidly emerging threat and there is an increasingly expanding array of synthetic drugs available. Use of synthetic drugs is alarmingly high, especially among young people. The contents and effects of synthetic drugs are unpredictable due to a constantly changing variety of chemicals used in manufacturing processes devoid of quality controls and government regulatory oversight. Health warnings have been issued by numerous public health authorities and poison control centers describing the adverse health effects associated with the use of synthetic drugs. The Administration has been working with federal, congressional, state, local, and non-governmental partners to put policies and legislation in place to combat this threat, and to educate people about the tremendous health risk posed by these substances. For more information on the risks and dangers of synthetic drugs, go to http://www.whitehouse.gov/ondcp/ondcp-fact-sheets/synthetic-drugs-k2-spice-bath-salts.
The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Carla Higginbotham and investigated by the Drug Enforcement Administration (DEA), including its Office of Diversion Control, Drug and Chemical Evaluation Section, in Arlington, Virginia.
North Miami Man Sentenced in Mail Fraud and Identity Theft CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge of the Atlanta Regional Office, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity, announce the sentencing of Guy Robert Nalien, 26, of North Miami, after a plea of guilty on November 6, 2013, to mail fraud and aggravated identity theft. On February 5, 2014, U.S. District Court Judge Marcia G. Cooke sentenced Nalien to 32 months in prison, followed by three years of supervised release, and restitution to the State of Florida in the amount of $29,815.
According to the indictment, Nalien utilized the personal identification of others to falsely represent to the Florida Department of Economic Opportunity Unemployment Compensation Program that such individuals were unemployed and eligible to obtain Florida unemployment compensation benefits. The indictment further alleged, that Nalien used the U.S. Postal Service to receive these fraudulently obtained benefits for his own personal use.
Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the State of Florida’s Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
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.
Nineteen Face Federal Methamphetamine ChargesRead the Press Release
A federal grand jury in Benton, Illinois, has charged nineteen individuals with methamphetamine related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Those charged are Delbert Bargo, Jr., 53, of Thompsonville, IL, Kathryn Ann Medlin, 43, of Thompsonville, IL, Caleb S. Hoffard, 36, of Marion, IL, Jamie L. Hughey, 36, of Mt. Vernon, IL, Traci L. Jackson, 36, of West Frankfort, IL, Amber D. Mulkins, 31, of Marion, IL, Jeffrey Morneweg, 49, of Johnston City, IL, Weldon A. Poole, 29, of Marion, IL, Jamie R. Sneed, 31, of West Frankfort, IL, Kevin Spurlock, 42, of DuQuoin, IL, Regina K. Spurlock, 41, of DuQuoin, IL, Amber R. Duckworth, 37, of Hurst, IL, Justin C. Phillips, 27, of Elizabethtown, IL, Scotie M. Slaten, 26, of West Frankfort, IL, Jason K. Wells, 30, of Marion, IL, Jessica M. Peters, 34, of West Frankfort, IL, and Laura L. Coker, 51, of Carterville, IL. Two of those indicted remain at large.
All those charged face up to 20 years in prison and up to a $250,000 fine.
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.
The investigation in these cases was conducted by the Illinois State Police, Southern Illinois Drug Task Force, United States Marshals Service, Franklin County Sheriff’s Office, West City Police Department, Christopher Police Department, Zeigler Police Department, Sesser Police Department, Drug Enforcement Administration, Jackson County Sheriff’s Office, Jackson County State’s Attorney, Franklin County State’s Attorney, Williamson County Sheriff’s Department, Southern Illinois Drug Enforcement Group, Pope County Sheriff’s Office, and the Pope County State’s Attorney.
“Federal investigations into methamphetamine actives in Franklin, Williamson, and Pope Counties have thus far resulted in the indictment of over 90 individuals, and we are not finished - the investigations are ongoing.” said United States Attorney Wigginton.
These cases are being prosecuted by Assistant United States Attorney Tom Leggans.
Newport News Man Convicted for His Involvement in Hampton ShootoutRead the Press Release
NEWPORT NEWS, Va. – Ryan Fultz, 33, of Newport News, Va., was convicted today by a federal jury of possessing and discharging a firearm during a drug trafficking crime, possession with intent to distribute cocaine, and felon in possession of a firearm.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and, Terry L. Sult Hampton Police Chief, made the announcement after the verdict was accepted by United States District Judge Henry C. Morgan, Jr.
Fultz was indicted on March 13, 2013 on charges of possession with intent to distribute cocaine base, commonly known as “crack” cocaine, possession, brandishing and discharging a firearm during a drug trafficking crime, and felon in possession of a firearm.
According to court records, and evidence at trial, on December 27, 2011, Fultz was present during a planned drug deal in the Wal Mart parking lot located at Cunningham Drive, Hampton, Va. Fultz provided back-up to a drug dealer and when a dispute arose, he participated in a shootout with two other individuals. Fultz discharged a Bushmaster AR-15 high powered rifle during the shooting in which more than 30 shots were exchanged as evidenced by shell casings recovered at the scene. Fultz is the third participant federally prosecuted as a result of this incident. Fultz faces a minimum of ten years on his firearm conviction but due to his status as a career criminal, he faces a maximum sentence of life in prison when he is sentenced on May 22, 2014.
This case was investigated by the FBI Safe Streets Task Force, Hampton Police Division and ATF’s Washington Field Division. Special Assistant United States Attorney Timothy R. Murphy prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
New York Man Sentenced to over 24 Years for Violent Sex TraffickingRead the Press Release
Defendant used brutal tactics to victimize multiple women and girls into prostitution
ALEXANDRIA, Va. – Taleek Sherrod Swinney, also known as “Kash da Pimp,” age 26, of Jamaica Queens, New York, was sentenced today to 294 months in prison, followed by 20 years of supervised release, for operating a sex trafficking ring using violence, force, and threats to victimize multiple women and girls. Swinney also was ordered to pay to the victims over $500,000 in restitution.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington; and Stafford County Sherriff Charles E. Jett, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
“Swinney was one of the most violent sex traffickers ever found in the Eastern District of Virginia,” said Acting U.S. Attorney Boente. “My office will continue working to bring to justice sex traffickers who use violence to prey upon vulnerable women, and I thank our partners at Homeland Security Investigations and the Stafford County Sheriff’s Office for their commitment to this issue.”
“This sentencing marks the end of a life of misery inflicted on the victims of Swinney’s heinous sex trafficking operation. Swinney will be held accountable for his victimization and exploitation of these vulnerable women,” said Scot R. Rittenberg, Acting Special Agent in Charge, HSI Washington.
“Stafford County Sheriff’s Office Deputies have received extensive training in the signs and indicators of sex trafficking,” said Stafford County Sheriff Charles Jett. “This one case clearly illustrates that a strong partnership with law enforcement agencies nationwide, both federal and local, can bring violent criminals such as Swinney to justice.”
On November 4, 2013, Swinney pleaded guilty to one count of sex trafficking. According to court documents, Swinney has been prostituting women since at least 2006. He started in New York City, but later sex trafficked women and girls in multiple states along the East Coast from Connecticut to Florida, including in Virginia, Maryland, and Washington. As part of his operation, Swinney utilized the website Backpage.com to advertise the women and obtain commercial sex customers. At least one of his victims was a juvenile when Swinney began prostituting her.
Swinney required the women he prostituted to give him all of the money that they earned. Swinney frequently set a quota for the women, and those who failed to meet the quota were not allowed to eat.
As detailed in the statement of facts entered at Swinney’s plea, Swinney’s violence included beating one of his victims almost daily. On one occasion, Swinney used a metal rod to beat this victim, stopped to film the victim naked and bleeding, and then continued beating her. During this beating, Swinney fractured the victim’s nose and jaw. Swinney later showed this video to other pimps, including a co-conspirator known as “Prince Charming.”Swinney often would beat victims in the presence of the other women that he was prostituting as a means of instilling fear in all of them. In one instance, Swinney lacerated a victim’s face and ear with a box cutter. When another victim became pregnant, Swinney forced the woman to obtain an abortion. In another instance, when one of Swinney’s victims refused to get out of his vehicle and walk the streets to obtain customers, Swinney threw her out of the moving vehicle. Later, when Swinney found out that one of the victims was cooperating with the government, he threatened her and her family with violence.
This case was investigated by HSI Washington and the Stafford County Sheriff’s Office, with assistance from HSI New York and the New York Police Department. Assistant United States Attorney Michael J. Frank prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Mexico Farmer Sentenced to Prison for Tax Fraud, Fraudulently Collecting Farm SubsidiesRead the Press Release
Bill Melot, a farmer from Hobbs, N.M., was sentenced to serve 14 years in prison today to be followed by three years of supervised release for tax evasion, program fraud and other crimes, the Justice Department, Internal Revenue Service (IRS) and U.S. Department of Agriculture’s (USDA) Office of Inspector General announced today. Melot was also ordered to pay $18,469,998 in restitution to the IRS and $226,526 to the USDA.
Melot was previously convicted of tax evasion, failure to file tax returns, making false state ments to the USDA and i mpeding the IRS following a four-day jury trial in Albuquerque, N.M. According to court documents and evidence presented at trial and at sentencing, Melot has not filed a personal inco me tax return since 1986, and owes the IRS more than $25 million in federal taxes and more than $7 million in taxes to the state of Texas. In addition, Melot has i mproperly collected more than $225,000 in federal farm subsidies from the USDA by furnishing false infor mation to the agency. Specifically, Melot provided the USDA with a false Social Security nu mber (SSN) and a fictitious e mployer identi fication nu mber (EIN) to collect federal farm aid.
According to court documents and evidence presented at trial, Melot took nu merous steps to conceal his ownership of 250 acres in Lea County, N.M., including notarizing forged deeds and titling the property in the na me of no minees. The evidence also showed that Melot used false SSNs and fictitious EINs to hide his assets from the IRS. Additionally, Melot maintained a bank account with Nordfinanz Zurich, a Swiss financial institution, which he set up in Nassau, Baha mas, in 1992, and failed to report the account to the U.S. Treasury Depart ment as required by law.
Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division and Acting U.S. Attorney Steven C. Yarbrough for the District of New Mexico co mmended the investigative efforts of IRS - Cri minal Investigation and the USDA’s Office of Inspector General, as well as Tax Division Trial Attorney Jed Silvers mith and Assistant U.S. Attorney George Kraehe, who prosecuted the case. Assistant Attorney General Keneally and Acting U.S. Attorney Yarbrough also thanked the Cri minal Investigation Division of the Texas Co mptroller of Public Accounts for assistance in prosecuting this matter.
More infor mation about the Justice Depart ment’s Tax Division and its enforce ment efforts is available at the website
New Mexico Farmer Sentenced to Prison for Tax Fraud, Fraudulently Collecting Farm SubsidiesRead the Press Release
ALBUQUERQUE – Bill Melot, a farmer from Hobbs, N.M., was sentenced to serve 14 years in prison today to be followed by three years of supervised release for tax evasion, program fraud and other crimes, the Justice Department, Internal Revenue Service (IRS) and U.S. Department of Agriculture’s (USDA) Office of Inspector General announced today. Melot was also ordered to pay $18,469,998.51 in restitution to the IRS and $226,526 to the USDA.
Melot was previously convicted of tax evasion, failure to file tax returns, making false statements to the USDA and impeding the IRS following a four-day jury trial in Albuquerque, N.M. According to court documents and evidence presented at trial and at sentencing, Melot has not filed a personal income tax return since 1986, and owes the IRS more than $25 million in federal taxes and more than $7 million in taxes to the state of Texas. In addition, Melot has improperly collected more than $225,000 in federal farm subsidies from the USDA by furnishing false information to the agency. Specifically, Melot provided the USDA with a false Social Security number (SSN) and a fictitious employer identification number (EIN) to collect federal farm aid.
According to court documents and evidence presented at trial, Melot took numerous steps to conceal his ownership of 250 acres in Lea County, N.M., including notarizing forged deeds and titling the property in the name of nominees. The evidence also showed that Melot used false SSNs and fictitious EINs to hide his assets from the IRS. Additionally, Melot maintained a bank account with Nordfinanz Zurich, a Swiss financial institution, which he set up in Nassau, Bahamas, in 1992, and failed to report the account to the U.S. Treasury Department as required by law.
Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division and Acting U.S. Attorney Steven C. Yarbrough for the District of New Mexico commended the investigative efforts of IRS - Criminal Investigation and the USDA’s Office of Inspector General, as well as Tax Division Trial Attorney Jed Silversmith and former Assistant U.S. Attorney George Kraehe, who prosecuted the case. Assistant Attorney General Keneally and Acting U.S. Attorney Yarbrough also thanked the Criminal Investigation Division of the Texas Comptroller of Public Accounts for assistance in prosecuting this matter.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.
New Indictment Stemming from Civil Rights Investigation into L.A. County Sheriff’s Department Alleges Two Deputies Abused InmateRead the Press Release
LOS ANGELES – Two Los Angeles Sheriff’s deputies who were assigned to the Men’s Central Jail have been indicted on federal civil rights charges that accuse them of illegally using force against an inmate, and then attempting to cover up the incident with false reports that formed the basis of a false prosecution initiated against the victim.
A federal grand jury late yesterday returned a four-count indictment against two deputies who were assigned to the 3000 floor of the jail.
The indictment charges Joey Aguiar, 26, and Mariano Ramirez, 38. Both men will be issued summonses directing them appear in federal court for arraignments on March 6.
According to the indictment, Aguiar and Ramirez illegally used force against the victim – who is identified in the indictment as “BP” – during an incident in the jail on February 11, 2009. While the victim was handcuffed and secured with a “waist chain,” the deputies allegedly punched and kicked the victim before using pepper spray on him. The defendants also are accused of striking him with flashlight.
Soon after the attack, the deputies allegedly wrote false reports designed to cover up the illegal use of force. Those bogus reports formed the basis of a referral to the Los Angeles County District Attorney’s Office for potential criminal prosecution of the victim.
The indictment charges both defendants with conspiring to violate civil rights and with deprivation of rights under color of law that caused bodily injury. Each of these charges carry a statutory maximum penalty of 10 years in federal prison.
The indictment also charges Aguiar with one count of falsification of records for submitted a report that allegedly “falsely stated, among other things, that victim-inmate BP had attempted to head butt deputy Aguiar’s face and that victim-inmate BP violently kicked at deputy Aguiar” when the victim had done neither. Ramirez is also charged with falsification of records for submitting a report that falsely stated the victim had “viciously kicked his legs at deputies.” The charge of falsification of records carries a statutory maximum penalty of 20 years in prison.
Previously in this investigation, 18 current and former Los Angeles County Sheriff’s Deputies were indicted on various corruption and civil rights offenses (see: http://www.justice.gov/usao/cac/Pressroom/2013/143.html). All of those previously charged have pleaded not guilty and are scheduled for trial later this year.
The investigation into the Los Angeles County Sheriff’s Department, which is ongoing, is being conducted by the Federal Bureau of Investigation.
Release No. 14-017
New Hampshire Man Sentenced for Gun TrafickingRead the Press Release
BOSTON - A New Hampshire male was sentenced today for being a previously convicted felon in possession of firearms.
Sean Meola, 42, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 70 months in prison and three years of supervised release. In October 2013, Meola pleaded guilty to being a previously convicted felon in possession of firearms.
On January 14, 2013, Meola negotiated with an undercover federal agent for the sale of a number of firearms. Meola and another individual arrived at a prearranged location and sold the undercover agent three semi-automatic handguns and two shotguns for which Meola received $1,200. Further investigation revealed that the weapons had been recently stolen from a home in New Hampshire.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Moore County Residents, Company Indicted for Conspiracy to Defraud the United States GovernmentRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that Craig Stanford Eury, Jr., Sarah Elizabeth Farrell, and International Labor Management Corporation (ILMC) were indicted by a federal grand jury in Greensboro, North Carolina, for allegedly (1) obtaining Visas by fraud, (2) encouraging and inducing aliens to enter and reside in the United States for commercial advantage or private financial gain, and (3) performing monetary transactions with criminal proceeds. Eury and Farrell served as officers of ILMC.
The indictment alleges that Eury, Farrell, and ILMC engaged in fraudulent practices in obtaining H-2B Visas and H-2A Agricultural Visas. The H-2B Visa Program includes a statutory numerical limit, or "cap," which provides that a maximum number of 66,000 aliens may be issued a visa or otherwise provided H-2B status (including through a change of status) during any fiscal year. ILMC allegedly avoided the operation of the cap by obtaining extra visas. These extra visas were allegedly used to provide H-2B workers to employers who were barred by the cap from employing alien workers. As set forth in the Indictment, ILMC profited by charging clients both for obtaining the visas for the original employer and then “transferring” the visas to a new, cap-barred employer. By acquiring extra visas, ILMC allegedly gained an unfair market advantage on H-2B Visas, as those visas were then not available for employers who complied with the law.
“This Indictment against International Labor Management Corporation founder and owner Craig Stanford Eury, Jr., and President Sarah Elizabeth Farrell sends a strong message to those who would attempt to commit these types of crimes. Diplomatic Security is firmly committed to working with the U.S. Attorney’s Office, the Department of Labor, the Internal Revenue Service, as well as other law enforcement agencies, to investigate and bring those who commit these crimes to justice,” said Niall Meehan, Special Agent in Charge of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.
The case is being investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of State’s Diplomatic Security Service, and the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Frank Chut.
An Indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monroe Woman Convicted of Federal Drug and Firearms ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Darlene
Ford, 58, of Monroe, was found guilty in U.S. District Court yesterday after a 3 day jury trial of conspiracy to manufacture marijuana, maintaining a drug involved premises, and aiding and abetting a felon in possession of a firearm.Court proceedings revealed that in November 2011 a search warrant was executed at the defendant’s home in Monroe where agents found a large and sophisticated indoor marijuana growing operation and two rifles. Trial evidence revealed that defendant and other family members conspired to grow hundreds of marijuana plants at the residence. The defendant also aided and abetted her husband’s illegal possession of a firearm.
Ford faces 40 years in prison and a $5,000,000 fine, or both, on the conspiracy charge; 20 years and a $500,000 fine, or both, on the drug premises charge; and 10 years and a $250,000 fine, or both, on the firearms charge. She also faces forfeiture of her residence. She will be sentenced after the completion of a presentence investigation report by the United States
Probation Office.The investigation was conducted by the Maine Drug Enforcement Agency, the Bureau of
Alcohol, Tobacco, Firearms and Explosives, the Waldo County Sheriff’s Office and the Maine
State Police.Mobile County Man Sentenced to 48 Months for Robbery of BBVA BankRead the Press Release
The United States Attorney Kenyen Brown announces that Leslie Todd, Jr., a 52 year old, Mobile, Alabama resident, was sentenced today to 48 months incarceration for robbing the BBVA Compass bank On Royal Street Downtown Mobile, Alabama
In detail, on August 6, 2013, Todd entered the bank and handed the teller a note asking for all of the money in her drawer. The teller complied and Todd fled the bank. Based on a tip, officers located and arrested Todd while he was hiding at a local hotel. Todd was ordered to pay restitution in the amount of $1846.00.
The Mobile Police Department and the Federal Bureau of Investigation investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Massachusetts Man Arrested for On-line Activity with Albany County ChildRead the Press Release
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew W. Vale of the Federal Bureau of Investigation, Albany Division, and Colonie New York Police Chief Steven Heider announced the arrest today of a Massachusetts man charged with enticing a 10 year old Albany County child to produce sexually explicit videos of himself and to then send those videos to him by email.
A criminal complaint unsealed in United States District Court this afternoon alleges that Brian Belanger, 21, of Worcester, Massachusetts, using the nickname “zombieshadow,” met the child on-line through Playstation 3. While talking through the game’s headset feature, Belanger told the child that someone was trying to kill Belanger, and that the child could help him by providing sexually explicit videos of himself that Belanger could in turn give to the other person. It is alleged that Belanger directed the child what to do in the videos, and that over the course of approximately three months the child emailed Belanger numerous times, attaching video files to the emails that depict the child engaged in sexually explicit conduct.1
Law enforcement was alerted on January 25, 2014, when the child’s father found the emails and videos on the child’s iPad. The investigation culminated with Belanger’s arrest today at his Worcester, Massachusetts residence. He made his initial appearance this afternoon in United States District Court in Albany before United States Magistrate Judge Hon. Randolph F. Treece, and was ordered detained pending a detention hearing scheduled for 2PM, Monday February 10, 2014. Belanger faces a mandatory minimum penalty of 15 years imprisonment, with a maximum penalty of 30 years, potential fines of up to $250,000, and a required term supervised release of at least 5 years, and up to life. A conviction would also require Belanger to register as a sex offender. Members of the community in the Worcester, Massachusetts area who have concerns or information regarding this case should call (508)-792-0214. Those in the Albany, New York area with information or concerns should call either (518) 431-0247, or 1-(888) 539-4535.
The investigation and arrest of Belanger is the result of an investigation by the Colonie New York Police Department, the Federal Bureau of Investigation, Albany Division, the New York State Police, the Worcester Massachusetts Police Department and the Federal Bureau of Investigation, Boston Field Division as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse.
Launched in May 2006 by the Department of Justice, and led by United States Attorneys' Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
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1The charges are merely accusations and Belanger is presumed innocent until and unless proven guilty.
Maryland Man Pleads Guilty to Voluntary Manslaughter in Traffic Fatality, Admits Striking Pedestrian in Crosswalk-Driver Was Under Influence of PCP-Read the Press Release
WASHINGTON – Woodrow R. Johnson, Jr, 52, of Capitol Heights, Md., pled guilty today to a charge of voluntary manslaughter stemming from a recent traffic fatality in which he struck a pedestrian while he was on PCP, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson entered the plea in the Superior Court of the District of Columbia. The Honorable Rhonda Reid Winston scheduled sentencing for May 15, 2014. Under the plea agreement, contingent upon the Court’s approval, Johnson faces seven years in prison.
According to the government’s evidence, on Friday, Nov. 8, 2013, at about 6:10 p.m., Johnson drove his employer’s van northbound on Benning Road SE. Johnson drove at a high rate of speed and without using his headlights, although night had fallen. Johnson collided with two other cars, causing damage to those cars and injuries to their occupants, but he did not stop.
Instead, Johnson continued to speed toward the intersection of East Capitol Street. As he approached the intersection, traffic in front of Johnson waited at the red light. Johnson swerved into the opposite lanes of traffic, that is, into the southbound lanes of Benning Road, and ran the red light at East Capitol Street. As he did this, he struck and killed Shamika Smith, 24, who was a pedestrian in a crosswalk of Benning Road, crossing from east to west. Ms. Smith suffered severe blunt impact trauma and was pronounced dead on the scene.
Johnson did not slow or stop to avoid striking Ms. Smith, or after striking her. He continued to speed northbound on Benning Road, colliding with an additional three vehicles, causing damages and injuries to their occupants.
With officers from the Metropolitan Police Department following Johnson, he left the roadway and crashed through the fence of a church’s parking lot, colliding with and damaging the church’s parked van. Officers apprehended Johnson, who was still behind the steering wheel. He was disoriented and appeared to veteran officers to be under the influence of PCP. Johnson was taken to a hospital, where he admitted that he had smoked PCP before driving.
In announcing the plea, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the Sixth District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jennifer Clark. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who is prosecuting the matter.
14-037Man Arrested for Defrauding the United States Army ReserveRead the Press Release
SAN JUAN, Puerto Rico – On February 5, a federal grand jury in the District of Puerto Rico returned a seven count indictment against Pedro A. Rodríguez-Colondres for wire fraud, false statement in application and use of passport, identity theft, aggravated identity theft, and false statement to a Department or Agency of the United States, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
Beginning in or about May 1984 and continuing through in or about October 2011 the defendant devised a scheme and artifice to defraud and for obtaining money by means of false and fraudulent pretenses and representations, that is by knowingly enlisting in the United States Army Reserve under the assumed name of Pedro Colondres-Rosa and then being discharged under this name; and then applying for and receiving benefits granted under the assumed name.
Rodríguez-Colondres received veteran’s benefits from the Veteran’s Administration from 1984; until 2011 under an assumed identity. The defendant enlisted in the US Army Reserve on April 26, 1974, and was discharged from the US Army Reserve on November 20, 1974. His discharge letter dated November 20, 1974 states, “You lack the motivation to become a productive soldier. You speak no English and have a great deal of trouble adapting to the Army. You lack the stamina to complete road marches. You are requesting this discharge and this would be to your and the Army’s advantage.” The letter also informed him that he would be ineligible for reenlistment.
On September 14, 1977, the defendant fraudulently enlisted using the name Pedro Colondres-Rosa. He was subsequently medically discharged for temporary disability on May 17, 1978. On May 22, 1978, the defendant completed a VA FORM 21526E applying for disability benefits from the Veterans Administration.
Rodríguez-Colondres devised a scheme to defraud the Department of Veterans Affairs by claiming to be entitled to benefits that he was in fact not entitled to. The defendant claimed to be Pedro Colondres-Rosa, when in truth and in fact, he was Pedro A. Rodriguez-Colondres. He then enlisted in the United States Army under this assumed identity and completed eight months and two days of active service. After the defendant was medically discharged, he and his wife applied for veteran’s benefits listing his service under the assumed identity of Pedro Colondres-Rosa.
The indictment lists 169 payments, a portion of the benefits he received illegally between the years 1997 to 2011 totaling $424,281.36. Also, the indictment shows the medical benefits the defendant received illegally between the years 2000-2011 totaling $81,984.00, and dependent educational benefits totaling $44,584.56.
The defendant was arrested today by agents from the US Department of State, Bureau of Diplomatic Security, and the Veteran’s Administration, who are in charge of the investigation. Rodríguez-Colondres appeared before US Magistrate Judge Camille L. Vélez-Rivé and was granted bail until the arraignment.
If convicted, the defendant faces up to 20 years imprisonment, two consecutive years for the aggravated identity theft charge, three years of supervised release, and a $250,000 fine. The case is being prosecuted by Assistant U.S. Attorney Michael C. Baggé.Local Dentist Pleads Guilty to Charges Involving Fraudulent Oxycodone PrescriptionsRead the Press Release
St. Louis, MO – DR. KURT MORGESTER pled guilty to fraudulently obtaining prescriptions for Oxycondone. According to court documents, on multiple occasions in December 2012 and January 2013, Dr. Morgester wrote and picked up prescriptions for his dental patients. The patients had no knowledge of these prescriptions.
Morgester, Fenton, MO, pled guilty to one felony count of possession of a controlled substance by subterfuge before United States District Judge Rodney W. Sippel. Sentencing has been set for May 8, 2014.
He now faces a maximum penalty of four years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney John T Davis is handling the case for the U.S. Attorney's Office.
Life Sentences for Former Gallatin County Sheriff Will Stand Says Federal Court of AppealsRead the Press Release
In an Order released yesterday, the Seventh Circuit Court of Appeals has affirmed the federal life sentences for former Gallatin County Sheriff Raymond M. Martin, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Martin, 52, was convicted in September 2010, following an eight day jury trial, of all 15 counts brought against him by a Federal Grand Jury stemming from his distribution of marijuana in office, carrying of a firearm during his drug trafficking offenses, and trying to have 2 witnesses against him in the drug case killed after he was arrested and was being held without bond in the Jackson County Jail. Martin, who remained sheriff while being held in federal custody because he refused to resign, was removed from office by the Gallatin County Board immediately following his convictions.
“Obviously, Martin failed to learn the most basic lesson of those holding office – that public service is a public trust.” said United States Attorney Wigginton. “The people of Gallatin County deserved better, and Martin, for all his corruption, deserves what he must face.”
Martin was originally sentenced in January 2011 to two consecutive life terms plus 10 years. He appealed the conviction and sentence. In August 2012, the Seventh Circuit Court of Appeals affirmed his conviction but vacated his sentence after it determined that an error in calculating his advisory sentencing range under the Federal Sentencing Guidelines had been committed. The appellate court remanded the case to the district court for resentencing.
At resentencing, the Court adopted and reiterated its statements and findings from the original sentencing hearing and also considered new information regarding the then-recent discovery that Martin had illegally obtained and smuggled prescription medication into the Williamson County Jail where he had been returned to await his resentencing. The Court again imposed the same two life sentences plus 10 years that it had previously given. The life sentences were imposed consecutively to each other and to the 10 year sentence.
In addition to the sentences of imprisonment, Martin was again ordered to forfeit his Junction, Illinois, residence (valued at over $200,000) and $76,090 in cash to the United States. He was also again ordered to pay the United States fines and special assessments totaling $51,500.
In their Order, the Seventh Circuit rejected any argument that the life sentences were unreasonable, noting that the district court offered an “exhaustive explanation for the . . . need to impose harsh punishment.” The Court further noted that the district court found in reimposing the life sentences that “Martin’s case was one of the ‘most severe’ it had ever seen and explained that, as a sheriff, Martin’s ‘betrayal of the public trust and the people that [he] was elected to serve . . . was unforgivable.” The Court also found significant that Martin’s “lack of remorse and refusal to accept responsibility for his crimes, as evidenced by his plotting to have witnesses murdered,” extended even to his post-sentencing efforts to smuggle illegal drugs into the Williamson County Jail. In light of all of this, the Court found that any argument that the sentences were unjustified would be “frivolous.”
Investigation into the drug aspect of the case was led by the Carmi office of the Illinois State Police/Southern Illinois Drug Task Force and the United States Attorney's Office with the assistance of the United States Drug Enforcement Administration, the Criminal Investigations Division of the Internal Revenue Service, the Mt. Vernon, Illinois Police Department, and the White County State's Attorney's Office.
Investigation into the witness tampering and financial structuring aspects of the case was led by the Jackson County Sheriff's Department and the United States Attorney's Office with the assistance of the Illinois State Police/Southern Illinois Drug Task Force, the IRS/CID, DEA, the Jackson County State's Attorney's Office, and the White County State's Attorney's Office.
Investigation into Martin's smuggling of prescription medication into the Williamson County Jail was conducted by the United States Marshals Service, the Illinois State Police, and the Williamson County Sheriff's Department.
The case was originally prosecuted by Assistant United States Attorneys James M. Cutchin and Michael C. Carr, who has since retired and is now the Jackson County States' Attorney. AUSA Cutchin handled the resentencing and Martin’s appeals.
Last of Armored Car Robbery Crew Pleads GuiltyRead the Press Release
ATLANTA - Quentin Booker who participated in five robberies of armored car couriers in the Metro Atlanta area, pleaded guilty today to the charges of aiding and abetting the armed robberies, and aiding and abetting the carrying and use of a firearm during the commission of those crimes of violence.
“These violent robberies terrorized the community,” said United States Attorney Sally Quillian Yates. “This is not the Wild West where robbers ride off into glory after a heist. This is reality. Violent criminals like these will be caught, and prosecuted, even the lookouts.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea brings some degree of closure to those many local, state and federal investigators and prosecutors who worked many long hours on this matter but the victims left in the wake of this violent robbery crew will live the rest of their lives with the scars inflicted by these robbers. The FBI will continue to work with its various law enforcement partners in ensuring that our streets are rid of such callous criminals.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant, Quentin Booker, was part of a group who robbed armored car couriers between October 7, 2010, and March 30, 2011. During the robberies, one or two gunmen would approach a courier after the courier made a cash pick-up from a location or as the courier was about to restock an ATM machine with cash. Other members of the robbery crew would act as lookouts during the robberies, with one being the designated getaway driver. Altogether, members of this crew were responsible for six robberies in which over $470,000 in cash was taken.
The evidence established that Booker specifically acted as a lookout during five robberies:
- The robbery of a Dunbar Armored courier just after he made a cash pick-up on October 7, 2010, at the Mex America Latino Services located in Marietta, Ga.
- The robbery of a Dunbar Armored courier who was restocking cash in an ATM machine on November 11, 2010, at a Bank of America located in Buford, Ga.
- The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on November 29, 2010, at a Wells Fargo Bank located in Snellville, Ga.
- The robbery of a Dunbar Armored courier who was heading to an ATM machine to restock it with cash inside the Mall of Georgia on December 7, 2010.
- The robbery of a Loomis Armored courier who was restocking cash in an ATM machine on January 21, 2011, at a Wells Fargo Bank located in Stone Mountain, Ga. This courier was shot and seriously injured during the robbery.
In addition to these robberies, members of this robbery group, Stacey Dooley and Ashley Henderson, along with Ronnie Little committed a sixth armed robbery on March 15, 2011, outside the Kroger’s Grocery Store located on LaVista Road in DeKalb County, Ga. During the commission of that robbery, Garda Cash Logistics courier Gary Castillo was fatally shot after making a cash pick-up of $11,000.
Booker, 36, of Douglasville, Ga., pleaded guilty to five counts of Hobbs Act robbery (armed robbery of the couriers), and two counts of carrying and using a firearm during the commission of a violent crime.
In addition to Booker, the following persons have also entered guilty pleas as a result of their role in the robberies:
- Ashley Henderson, 29, of Snellville, Ga., pleaded guilty to six counts of Hobbs Act Robbery, two counts of carrying and using a firearm during the commission of a violent crime, and one count of causing the death of another through the use of a firearm.
- Stacey Dooley, 37, of Snellville, Ga., pleaded guilty to six counts of Hobbs Act robbery, one count of carrying and using a firearm during the commission of a violent crime, and one count of causing the death of another through the use of a firearm.
- Edwin Thornton, 31, of Atlanta, Ga., pleaded guilty to three counts of Hobbs Act robbery and one count of carrying and using of a firearm during the commission of a violent crime.
- Derrick Powell, 26, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Michael Johnson, 31, of Atlanta, Ga., pleaded guilty to two counts of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Ronnie Little, 22, of Stone Mountain, Ga., pleaded guilty to one count of Hobbs Act robbery and one count of carrying and using a firearm during the commission of a violent crime.
- Veronica Bullard, 35, of Lithia Springs, Ga., pleaded guilty to one count of Hobbs Act robbery.
- Desiree Jones, 29, of Snellville, Ga., pleaded guilty to two counts of unlawfully transferring a firearm knowing it would be used in a crime of violence.
Booker’s sentencing is scheduled for May 19, 2014, before United States District Judge Thomas W. Thrash.This case is being investigated by the Federal Bureau of Investigation with significant assistance and resources provided by the Gwinnett Police Department. Other departments providing invaluable assistance were the Gwinnett County District Attorney's Office, DeKalb County Police Department, the DeKalb County District Attorney's Office, Marietta Police Department, and the Cobb County District Attorney's Office.
Assistant United States Attorneys Tracia M. King and Jill E. Steinberg 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/.
Justice Department Sues to Shut Down Chicago Tax PreparerRead the Press Release
The United States filed a lawsuit today to bar Barbara L. Garrett, a Chicago tax return preparer, from preparing federal tax returns for others, the Justice Department announced. The civil injunction suit alleges that Garrett, while working at multiple Chicago-area tax preparation businesses including Instant Tax Service, Preferred Financial and Income Tax Solutions, claimed fraudulent deductions and credits on her customers’ federal tax returns.
According to the complaint, Garrett prepared tax returns that falsely claimed deductions from fake businesses. In one case, the complaint alleges that Garrett prepared two tax returns for a Chicago Transit Authority bus driver that reported over $25,000 in combined losses from a non-existent transportation company Garrett asserted her customer owned. The customer did not own a transportation business, according to the complaint, or in fact any business, during the years Garrett prepared these returns.
Garrett also allegedly prepared tax returns for clients that included a number of other false or improper deductions for unreimbursed employee expenses, charitable contributions, medical expenses, childcare expenses, property taxes and education expenses. One example cited in the complaint includes a fake claim for childcare expenses which falsely identified Garrett as the childcare provider. In another example, Garrett allegedly claimed over $13,000 in fictitious medical expenses and over $2,200 in bogus property tax deductions on the same return.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2013. The IRS has tips for choosing a tax preparer on their website. In the past decade, the department's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Barbara L. Garrett
Complaint for Permanent Injunction and Other ReliefJustice Department Seeks to Shut Down Utah Tax PreparerRead the Press Release
The United States has asked a federal court in Salt Lake City to bar Rulon Sandoval, Andrea R. Acosta Hernandez and Latinos Office LLC from preparing tax returns for others, the Justice Department announced today. According to the complaint, the defendants have repeatedly prepared federal tax returns that understate their clients’ federal tax liabilities. The suit alleges that Sandoval, Acosta and persons working with them under the business name “Latinos Office” falsely claimed or inflated tax credits or fabricated deductions. The suit also alleges that the defendants submitted returns using false preparer identification numbers or otherwise improperly identified the returns’ preparers.
According to the complaint, the IRS has completed examinations of 47 returns prepared by Sandoval and his associates and that nearly all of those returns understated the filing taxpayer’s liability. The lawsuit alleges that the harm to the U.S. Treasury as a result of their conduct could be as much as $1 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Rulon Sandoval, et al.
Complaint for Permanent Injunction and Other ReliefJustice Department Files Lawsuit to Stop Delaware Woman from Preparing Tax ReturnsRead the Press Release
The Department of Justice filed a civil lawsuit in the federal court in Delaware today to enjoin Carmen J. Martinez and her business, CJM Bookkeeping and Taxes LLC, from preparing federal tax returns. According to the complaint, Martinez and her business, which is located in Wilmington, Del., have prepared more than 7,800 tax returns since 2010.
The complaint, filed with the U.S. District Court for the District of Delaware, alleges that Martinez understates her customers’ federal tax liabilities by preparing returns that contain false deductions, including unqualified dependents, the Child Tax Credit, the Additional Child Tax Credit and tax rate benefits derived from improper filing status as Head of Household or Married Filing Jointly. As a result, Martinez’s customers improperly received tax refunds of $5,000 each year on average. The complaint alleges that Martinez’s activities between 2010 and 2013 have cost the U.S. Treasury as much as $25 million in lost income tax revenue.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Carmen J. Martinez, et al.
Complaint for Preliminary and Permanent InjunctionJury Trial Cancelled as the Last of 39 Defendants Plead Guilty in Investigations of the Nuestra Familia Drug Trafficking OrganizationRead the Press Release
FRESNO, Calif. — The last five pending defendants in a series of huge cases targeting the Nuestra Familia organization pleaded guilty in U.S. District Court this week, U.S. Attorney Benjamin B. Wagner announced. Calixtro Israel Sanchez, aka Cali Killa, aka Cali, 26, of Hanford, pleaded guilty today to a drug trafficking offense. Jose Velez, aka Cisco, 31, of Delano; Felipe Ramirez, aka Casper, 33, of Visalia; Christopher Medrano, aka Bob, 32, of Hanford; and Florentino Acosta, of Mexico, all pleaded guilty earlier this week to drug trafficking offenses.
These five defendants are the last of 39 defendants to plead guilty to federal offenses in these coordinated cases. A jury trial that had been scheduled for March 11, 2014, has been vacated. All defendants were members or associates of the Nuestra Familia (NF). NF is a violent Hispanic prison gang based within the California prison system whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime throughout the Central Valley.
According to court documents, during 2009 and 2010, the NF trafficked in methamphetamine, distributing the drugs and collecting debts in Kings, Tulare, Kern, Stanislaus, Merced, Madera and Fresno Counties. The NF obtained large shipments of methamphetamine from Mexico and distributed it among NF regiments throughout California and elsewhere. Some of the profits of the trafficking funded NF members in prison in order to maintain the NF’s power structure within the prison system.
“Numerous federal, state and local law enforcement agencies in this region came together to take on one of the most dangerous gangs in California,” said U.S. Attorney Wagner. “That battle will continue, but the guilty pleas taken this week are a major step forward in protecting the communities of the Central Valley from the violent drug traffickers of the Nuestra Familia.”
“Organized prison gangs and other criminals who traffic drugs are responsible for increased violence in our communities,” stated Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “This investigation is a prime example of teamwork and superior collaboration among many law enforcement agencies with a successful investigative conclusion and prosecution.”
Twenty-six of the defendants who have pleaded guilty have already been sentenced to prison. Nine of them received sentences of between 10 and 16 years in prison, while the remaining 17 have received sentences of between four and 10 years in prison. Parole has been abolished in the federal system, and all defendants will be required to serve at least 85 percent of the prison time imposed.
This case is the product of an extensive series of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the DEA; Kings County Narcotic Task Force; the California Department of Justice; and the California Department of Corrections and Rehabilitation. Numerous local law enforcement agencies played key roles in the investigations, including the Police Departments of Hanford, Lemoore, Visalia, Los Banos, and Corcoran, the Kings County Sheriff’s Office, the California Highway Patrol, and the U.S. Marshals Service. Assistant United States Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, and Melanie L. Alsworth are prosecuting the cases.
Calixtro Sanchez is scheduled to be sentenced by Judge O’Neill on April 21, 2014. Jose Velez is scheduled to be sentenced by Judge O’Neill on April 28, 2014. Felipe Ramirez, Christopher Medrano, and Florentino Acosta are scheduled to be sentenced by Judge O’Neill on April 21, 2014. The defendants face a maximum statutory penalty of life in prison and a mandatory minimum of 10 years in prison and a $4 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Juicio Por Jurado Es Cancelado Pues El Ultimo De Los 39 Acusados Se Declara Culpable En Las Investigaciones De La Organizacion De Trafico De Drogas Nuestra FamiliaRead the Press Release
FRESNO, Calif. — Los últimos cinco acusados con juicio pendiente en una serie de casos importantísimos dirigidos a la organización Nuestra Familia se declararon culpables esta semana en el Tribunal Federal de Distrito de los EE.UU., anunció el procurador federal del distrito oriental de los EE.UU. Benjamín B. Wagner. Calixtro Israel Sanchez, alias Cali Killa, alias Cali, 26, de Hanford, se declaró culpable hoy de un delito de tràfico de drogas. Jose Velez, alias Cisco, 31, de Delano; Felipe Ramirez, alias Casper, 33, de Visalia; Christopher Medrano, alias Bob, 32, de Hanford y Florentino Acosta, de Mexico, todos se declararon culpables a principios de esta semana de delitos de tràfico de drogas.
Estos cinco acusados son los últimos entre 39 acusados que se han declarado culpables de delitos federales en estos casos coordinados. El juicio por jurado que estaba programado para el 11 de marzo de 2014 ha sido cancelado. Todos los acusados eran miembros o asociados de Nuestra Familia (NF). NF es una violenta ganga carcelaria hispana con base dentro del sistema de prisiones de California y cuyos miembros ejercen el control sobre los miembros de la ganga callejera Norteño que participan en el tràfico de drogas y crímenes violentos en toda la región de Central Valley.
De acuerdo con los documentos judiciales, durante el 2009 y 2010 la NF traficó metanfetamina por medio de la distribución de la droga y cobrando deudas en los condados de Kings, Tulare, Kern, Stanislaus, Merced, Madera y Fresno. La NF obtuvo grandes cargamentos de metanfetamina provenientes de México y los distribuyó entre los grupos de la NF en California y otros lugares. Algunas de las ganancias de este tràfico sirvieron de financiamiento para los miembros presos para poder mantener la estructura de poder dentro del sistema de prisiones.
“Muchas agencias federales, estatales y locales en esta región colaboraron para hacerle frente a una de las gangas màs peligrosas de California”, dijo Wagner, el procurador federal del distrito oriental de California. “Esa batalla continuarà, pero las declaraciones de culpabilidad tomadas esta semana son un paso importante para proteger a las comunidades del Central Valley de los violentos traficantes de la organización Nuestra Familia.”
“Las gangas carcelarias organizadas y otros criminales que trafican drogas son responsables por el aumento en la violencia en nuestras comunidades”, dijo Joseph M. Riehl, agente encargado especial de la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos. “Esta investigación es un ejemplo excelente del trabajo en equipo y colaboración superior entre muchas agencias del orden público con una conclusión exitosa de investigación y enjuiciamientos.”
Veintiséis de los acusados que se declararon culpables ya han sido sentenciados a prisión. Nueve de ellos recibieron sentencias de entre 10 y 16 años en prisión, mientras que los 17 restantes han recibido sentencias de entre cuatro y 10 años en prisión. En el sistema federal se ha abolido la libertad condicional, y todos los acusados tendràn que servir por lo menos el 85 por ciento del tiempo de prisión que se les ha impuesto.
Este caso es producto de una serie extensa de investigaciones de la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos; el FBI, la DEA; el Grupo de Trabajo de Narcóticos del condado de Kings; el Departamento de Justicia de California y el Departamento de Corrección y Rehabilitación de California. Muchas agencias del orden público locales tuvieron una función importante en las investigaciones, incluyendo los Departamentos de Policía de Hanford, Lemoore, Visalia, Los Banos, y Corcoran, la oficina del Alguacil del condado de Kings, la Patrulla de Carreteras de California y el Servicio de Alguaciles Federales de los EE.UU. Las ayudantes del procurador federal del distrito oriental de California, Kimberly A. Sanchez, Kathleen A. Servatius y Melanie L. Alsworth estàn procesando los casos.
La sentencia de Calixtro Sanchez està programada ante el Juez O’Neill quien lo sentenciarà el 21 de abril de 2014. La sentencia de Jose Velez està programada ante el Juez O’Neill quien lo sentenciarà el 28 de abril de 2014. Las sentencias de Felipe Ramirez, Christopher Medrano y Florentino Acosta estàn programadas ante el Juez O’Neill quien los sentenciarà el 21 de abril de 2014. Los acusados se enfrentan a una pena mandada por estatuto de un màximo de prisión de por vida y un mínimo obligatorio de 10 años en prisión y una multa de $4 millones. Sin embargo, las sentencias realmente impuestas se determinaràn a discreción del tribunal después de considerar los factores de sentencia mandados por estatuto que apliquen y las Guías Federales de Sentencia, que toman en cuenta ciertas variables.
Honduran Man Sentenced to 27 Years in Prison for Sex Offenses Against Two Native American FemalesRead the Press Release
TUCSON, Ariz – On Feb. 7, 2014, Hernan Ramirez-Ortega, 39, of Honduras was sentenced by U.S. District Judge Cindy K. Jorgensonto 27 years in prison as the result of his guilty pleas to one count each of aggravated sexual abuse and abusive sexual contact. Ramirez-Ortega admitted sexually assaulting an 11-year-old Tohono O’odham girl in March of 2010 while he was living on the Tohono O’odham Nation, and sexually abusing another adult female who is a member of, and was living on, the Gila River Indian Reservation in August of 2010.
“The United States takes very seriously the victimization of Native American women. The nearly three year effort to bring Mr. Ramirez-Ortega to justice is a reflection of that resolute commitment,” said U.S. Attorney John S. Leonardo.
After Ramirez-Ortega completes his 27 year prison sentence, he will be immediately deported to Honduras. He will also be placed on 20 years of federal supervision, which includes a prohibition against his return to the United States.
The investigation in this case was conducted by the Tohono O’Odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-2307-TUC-CKJ; CR-12-1295-TUC-CKJ
RELEASE NUMBER: 2014-010_Ramirez-OrtegaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Hillsborough County Man Charged in Federal Court for Transportation and Receipt of Child PornographyRead the Press Release
Tampa, FL –United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Jonathan Newhall (28, Brandon) with transportation and receipt of child pornography. If convicted, Newhall faces a mandatory minimum penalty of 5 years, up to a maximum penalty of 20 years in federal prison on each count.
According to the indictment, between May 2013 and January 2014, Newhall transported and received child pornography over the Internet. On January 10, 2014, a federal search warrant was executed at Newhall’s residence. Numerous images and videos of child pornography were found in his e-mail account, on his iPhone, and on his computer.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation, Hillsborough County Sheriff’s Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
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.
Herndon Man Charged with Theft of Insurance FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that criminal charges have been filed in U.S. District Court in Williamsport against Derl Knarr of Herndon, Pennsylvania.
According to United States Attorney Peter J. Smith, Knarr, age 55, is charged in a one-count felony Information with stealing insurance funds while he worked for Allstate Financial Services. The thefts are alleged to have occurred between 2006 and 2012, and total over $630,000.
The investigation was conducted by the Federal Bureau of Investigation, State College Resident Office. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine of over $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Hartford Woman Sentenced to 20 Months in Prison for Role in Heroin Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NORMA TORRES, 56, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 20 months of imprisonment, followed by three years of supervised release, for her role in a heroin trafficking ring.
According to court documents and statements made in court, this matter stems from “Operation Solid Sweep,” a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a drug trafficking organization headed by Angel Rosa, also known as “Little” and “Daddy, who is a member of the Los Solidos street gang. Rosa’s cousin, Angel Rosa, also known as “Mo Betta” and “Fab,” supervised the daily operations of the organization, which distributed heroin and other narcotics in the Zion Street area.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that TORRES assisted the conspiracy by allowing her apartment, located at 592 Zion Street, to be used as a “stash house,” storing five to 15 stacks of heroin at her residence every day. A stack of heroin consists of 100 dose bags, with each bag containing approximately .025 grams of heroin.
TORRES was arrested on April 11, 2013. On November 14, 2013, she pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute heroin.
Angel Rosa, aka “Little” and “Daddy,” and Angel Rosa, aka “Mo Betta” and “Fab,” have each pleaded guilty and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hartford Crack Dealer Sentenced to Eight Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUSTIN POWELL, also known as “Jus,” 32, of Hartford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 96 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, one of the main targets of the investigation was Dementrius Nave, a member of the AVE street gang with a lengthy criminal history. POWELL, who is not believed to be a member of the AVE, conspired with Nave and others to distribute crack cocaine and other narcotics in Hartford’s Northeast neighborhood. POWELL and Nave would pool money to acquire narcotics and would serve customers for each other.
POWELL has been detained since his arrest on February 10, 2012. On that date, investigators conducted a traffic stop of a vehicle in which POWELL was a passenger after they observed what appeared to be a narcotics exchange. POWELL was on state parole at the time and was wearing a monitoring bracelet. A subsequent search of POWELL’s residence revealed 63 bags of heroin, which were stamped “Super Bowl XLVI,” and a scale with white-powder residue that tested positive for the presence of cocaine.
On November 4, 2013, POWELL pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
POWELL’s criminal history includes multiple convictions for sale of narcotics, violation of probation, violation of protective order and assault.
Nave has pleaded guilty and awaits sentencing.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Harrisburg Man Sentenced to 108 Months in Federal Firearms CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl E. Murphy, Jr., a 33 year old resident of Harrisburg, PA, was sentenced yesterday by Senior U.S. District Court Judge Sylvia H. Rambo, following Murphy’s guilty plea to Possession of a Firearm by a Convicted Felon.
On August 29, 2013, Murphy pled guilty to possessing a loaded firearm in Harrisburg on March 7, 2012 and on October 13, 2012. Murphy has multiple prior felony convictions making him ineligible to possess a firearm.
According to United States Attorney Peter J. Smith, Judge Rambo sentenced Murphy to 108 months (9 years) incarceration to be followed by three years of supervised release and a fine of $500 for the firearms conviction.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Police Bureau and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
****Harrisburg Doctor Charged with Distribution of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that child pornography distribution charges were filed against David H. Scanlan III. Scanlan, 38, of Harrisburg, was charged with one count of distribution of child pornography in a criminal Information filed today in U.S. District Court in Harrisburg.
According to U.S. Attorney Peter Smith, Scanlan is charged with distributing child pornography over the internet between May and June 2011. The charges stem from an investigation by the Internet Crimes Against Children Task Force, Pennsylvania State Police, and U.S. Department of Homeland Security, Homeland Security Investigations. At the time of the offense, Scanlan was a physician specializing in pediatric oncology. He has surrendered his medical license.
Along with the Information, a plea agreement was filed in which Scanlan agrees to plead guilty to the child pornography distribution charge. The plea agreement must be approved by the court. Scanlan faces a minimum of five and a maximum of 20 years in prison and a $250,000 fine, Smith said.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigation by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Greenwich Nail Salon Owner Sentenced for Currency Structuring and Immigration OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAE HEE YANG, formerly known as Jae Hee Yang Kim, 58, of Englewood, N.J., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to three years of probation for currency structuring and immigration offenses. YANG was also ordered to forfeit $100,000 and perform 150 hours of community service.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, YANG is the sole owner of Tip Top Nails, Inc., a nail salon located in Old Greenwich, Conn. Between May and September 2009, YANG made 15 cash withdrawals in increments ranging from $4,000 to $8,000 and totaling $100,000, from a bank in New Jersey where she maintained a business checking account. The currency was generated from the operation of Tip Top Nails. At the time, YANG knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting her financial transactions in amounts less than $10,001, she intended to evade the transaction reporting requirements.
In addition, Tip Top Nails employed individuals who were unauthorized aliens not permitted to work in the U.S., paid the aliens in cash rather than by check as it did with legal employees, and transported the aliens between New York and Greenwich daily.
On August 28, 2012, YANG pleaded guilty to one count of structuring currency transactions to evade reporting requirements and one count of employing an unauthorized alien.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Government Contractor Pays $229,060 to Resolve Allegations of Improper ClaimsRead the Press Release
HONOLULU – J.M. Waller Associates, Inc. (“JMWA”), a corporation headquartered in Fairfax, Virginia, will pay $229,060 to settle certain civil claims under the federal False Claims Act in an agreement signed on February 5, 2014. The United States had alleged that JMWA submitted false or fraudulent claims for payment to the United States Air Force in connection with a professional services contract which required JMWA to provide design architect-engineering services and inspection services in connection with various construction projects located on Joint Base Pearl Harbor-Hickam in Honolulu.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the settlement agreement, the United States alleged that during the period from October 1, 2008, through November 30, 2010, JMWA submitted false or fraudulent claims for payment that included (1) JMWA’s alleged use of inappropriate labor categories and billing rates for certain tasks; (2) JMWA’s alleged billing for inspection services on days when no construction had been performed; and (3) JMWA’s billing of time charged to a particular task order for work that allegedly was outside the scope of that task order. While JMWA agreed to the settlement, it did not admit that the allegations were correct.
USA Nakakuni noted that under the federal False Claims Act, the United States can seek up to triple damages, plus penalties, for false and fraudulent claims for payment that are submitted in connection with all government contracts: She stated: “As the Air Force and our other military services enter into thousands of contracts for goods and services in support of our military efforts both at home and abroad, we will work tirelessly with our military law enforcement partners to protect the taxpayers’ money and combat procurement fraud.”
This civil investigation was initiated after the Air Force contracting office identified billing discrepancies while processing claims submitted by JMWA. The investigation, conducted by the Air Force Office of Special Investigations, included a review of thousands of pages of documents and numerous witness interviews during the course of the three-year investigation. The Defense Contract Audit Agency auditors and Air Force contracting officers shared their expertise and provided critical support to the investigation. The case was handled by Assistant U.S. Attorney Rachel Moriyama.
Geneva Man Convicted of Transporting and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that, following a jury trial, JOSEPH VINCENT JENKINS, (43, of Geneva, New York) was found guilty in U.S. District Court in Syracuse, N.Y. of the felony offenses of Transportation of Child Pornography, in violation of Title 18, United States Code, Section 2252A(a)(1) and 2256(8)(A), and Possession of Child Pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B) and 2256(8)(A). JENKINS is facing a statutory mandatory minimum sentence of 5 years and a maximum sentence of twenty years imprisonment for the Transportation of Child Pornography offense, for the Possession of Child Pornography charge a maximum sentence of imprisonment of ten years; a term of supervised release of at least five years and up to lifetime supervision, a maximum fine of $250,000.00 and mandatory registration as a sex offender. JENKINS is scheduled to be sentenced on June 17, 2014, before Judge Glenn T. Suddaby, in Syracuse, New York.
“Consumers of child pornography re-victimize the children abused by these horrific crimes and create demand for more of this material”, said Nicholas DiNicola, assistant special agent in charge of HSI Albany. “HSI special agents will continue to work with our partners on both sides of the border to identify these criminals and ensure they are brought to justice.”
United States Attorney Richard S. Hartunian said “This case should serve as a warning to those who download child pornography over the internet with the belief that they will never be caught. We will continue to pursue these offenders and prosecute them in the courts of the United States.”
JENKINS was arrested on May 24, 2009, at the Port of Lansdowne in Ontario, Canada, when he crossed the United States-Canadian border with a laptop and two thumb drives containing images and videos of child pornography. JENKINS was charged in Canada and failed to appear at his trial. A bench warrant was issued for his arrest by the Ontario Court of Justice. Federal Agents with Homeland Security Investigations took the case after a referral from the Ontario Provincial Police as the defendant entered the Port of Lansdowne from Jefferson County, New York, and had transported and possessed child pornography in the Northern District of New York before entering Canada.
This prosecution resulted from an investigation conducted by Homeland Security Investigations, Canada Border Services Agency, and Ontario Provincial Police. The case was prosecuted by Assistant United States Attorneys Tamara B. Thomson and Gwendolyn Carroll. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Gallatin County Woman Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
Angela Seavers, 35, of Ridgeway, Illinois, was sentenced today in United States District Court in Benton to a term of 37 months in prison for conspiring with others to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Seavers pled guilty on October 24, 2013, to conspiring with Dustin J. Lowe, 25, also of Ridgeway, and others, between February 2012 and March 2013 to illegally manufacture the drug.
Lowe also pled guilty to the conspiracy charge on December 13, 2013, and is currently scheduled for sentencing on April 3rd at 10:00 a.m. at the United States District Courthouse in Benton.
In addition to the 37 month term, Seavers was ordered to pay fines and special assessments totaling $200 and was placed on a 3 year term of supervised release to follow her incarceration. Under federal law, parole has been abolished, meaning that Seavers will be required to serve a minimum of 85% of her sentence.
Seavers has been held in the custody of the United States Marshal since her bond was revoked in September. She was again remanded to the custody of the Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Fort Worth Man Sentenced to Nearly 22 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — Dwight L. Looney, 62, was sentenced today by U.S. District Judge John McBryde to 262 months in federal prison following his guilty plea in October 2013 to one count of production of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, in May 2010, Looney knowingly used, persuaded and enticed “Jane Doe” to engage in sexually explicit conduct, and Looney used a digital camera to take a still image of that conduct. Jane Doe was younger than 16 years old at the time.
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 Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Aisha Saleem prosecuted.
Former Usps Facilities Project Manager Pleads Guilty to Bribery, Fraud and Tax ChargesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Tom Frost, Special Agent in Charge of the United States Postal Service Office of Inspector General, Major Fraud Investigations Division, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and John Collins, Acting Special Agent in Charge, Internal Revenue Service – Criminal Investigation, announced that former U.S. Postal Service employee ROBERT GIULIETTI, 57, of Cheshire, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to bribery, fraud and tax offenses.
According to court documents and statements made in court, GIULIETTI was a Facilities Project Manager for the U.S. Postal Service (USPS) at the USPS Northeast Facilities Office in Windsor, Conn. GIULIETTI’s duties included recommending and selecting facilities improvement contractors, reviewing and approving bids received from those contractors for USPS work, certifying the completion of work by contractors and approving payment authorizations. In pleading guilty, GIULIETTI admitted that he accepted approximately $89,000 from two contractors to direct inflated USPS facilities construction contracts to them.
Also, in approximately September 2009, GIULIETTI formed MGC LLC to do business with the USPS on projects on which he worked. MGC was owned in name by GIULIETTI’s wife, and its business address was his home address in Cheshire. Operating MGC from his USPS office in Windsor, GIULIETTI used his position to direct USPS contracts to MGC, to approve MGC’s work and to authorize payment to MGC for work. After GIULIETTI directed USPS contracts to MGC, he engaged other contractors to perform the actual work involved with the project. GIULIETTI generated almost a million dollars in profit by having MGC charge USPS more than MGC had to pay the contractors who performed the actual work.
Between November 2009 and November 2011, GIULIETTI directed more than 150 USPS facility projects to MGC, causing a loss to the USPS of approximately $982,064.68.
GIULIETTI also filed false federal income tax returns for the 2008 through 2011 tax years by fraudulently deducting payments from MGC to members of his family, and by not reporting the corrupt payments that he received.
“This defendant was a corrupt federal employee who perpetrated a multifaceted and brazen scheme that defrauded the Postal Service of nearly a million dollars,” stated U.S. Attorney Daly. “I commend the USPS Office of Inspector General, the Connecticut FBI and IRS-Criminal Investigation for their excellent work in this investigation, which included the seizure of significant assets of approximately $740,000 in cash and a house in Cheshire.”
“The Office of Inspector General will continue to pursue instances in which contractors and employees attempt to take advantage of the Postal Service and commit fraud,” stated Special Agent in Charge Frost. “This should serve notice to all contractors and employees that such conduct, as perpetrated by Mr. Giulietti in this case, will be fully investigated.”
GIULIETTI was arrested on December 13, 2012. Today, he pleaded guilty to one count of bribery of a public official, one count of wire fraud and one count of filing a false tax return.
Judge Underhill scheduled sentencing for May 2, 2014, at which time GIULIETTI faces a maximum term of imprisonment of 38 years.
GIULIETTI has agreed to pay restitution in the amount of $882,064.68, and back taxes penalties and interest in the amount of $291,026.82. The government is seeking the forfeiture of a residence GIULIETTI owns on South Pond Circle in Cheshire, and approximately $740,000 that has been seized from bank accounts.
U.S. Attorney Daly noted that the investigation is ongoing.
This case is being investigated by the U.S. Postal Service, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Mayor of Manalapan, N.J., Arrested for Mortgage Fraud, Identity Theft, and Obstruction of JusticeRead the Press Release
Indictment Alleges Former Mayor Defrauded Investment Client of $250,000 and Submitted Falsified Tax Returns in Order to Purchase Farm in Manalapan
TRENTON, N.J. – The former mayor of Manalapan, N.J., was arrested today on charges that he falsified his 2007 and 2008 tax returns in order to purchase a farm property in Manalapan and that he provided federal investigators and a federal grand jury with a fabricated document in 2013, U.S. Attorney Paul J. Fishman announced.
Andrew Lucas, 36, was arrested as a result of an 11-count indictment charging him with wire fraud, illegal monetary transaction, loan application fraud, false statements to the IRS, aggravated identity theft, obstruction of a grand jury investigation and falsification of records in a federal investigation. Lucas is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to the indictment unsealed today:
On Dec.15, 2009, Lucas submitted a loan application to a New Jersey bank requesting $525,000 to finance his purchase of the Burke Farm property in Manalapan. Lucas provided the bank with falsified versions of his 2007 and 2008 tax returns, as well as a falsified version of a 2007 tax return for a relative whose name was also on the loan application. Lucas also falsely reported that he had a total of $210,000 in cash.
Lucas owned and operated Lucas Capital Advisors LLC (Lucas Capital), through which he served as an investment advisor and manager to multiple individuals. To obtain the $250,000 down payment for the property, Lucas approached “Victim 1,” who was a client of Lucas Capital, to pitch an investment in an entity called VLM Investments LLC (VLM). On Feb. 15, 2010, Lucas presented a written note to Victim 1, which stated that the $250,000 investment was to be secured by “…interest in the equipment, fixtures, inventory and accounts receivable” of VLM. However, Lucas failed to inform Victim 1 that at the time the note was signed, VLM did not exist. Lucas also failed to disclose to Victim 1 that Lucas intended to make personal use of the funds. It was not until three days later, on Feb. 18, 2010, that Lucas created VLM by registering it with the State of New Jersey and the IRS, using the name and Social Security number of Lucas’s out-of-state relative, “Victim 2,” without Victim 2’s knowledge or permission.
On Feb. 22, 2010, Lucas wired $250,000 from Victim 1’s Lucas Capital investment account to a VLM bank account that had Lucas as the only authorized signer. On March 1, 2010, Lucas withdrew this money in the form of a bank check, which he provided the next day to the closing attorney for the purchase of the Burke Farm property.
Lucas also filed tax returns for VLM for tax years 2011 and 2012, both times listing Victim 2’s name and Social Security number without Victim 2’s knowledge or permission.
Federal investigators served Lucas with subpoenas on Feb. 7, 2013, for the records of VLM and Lucas Capital Advisors. In response, Lucas provided federal authorities with a fabricated and back-dated letter purporting to be from Victim 2 concerning a transaction for the purchase of the Burke Farm property.
The counts of wire fraud and falsification of records in a federal investigation are each punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Loan application fraud is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Illegal monetary transaction and obstruction of a grand jury investigation are each punishable by a maximum potential penalty of 10 years. Each of the charges of false statements to the IRS is punishable by a maximum potential penalty of five years in prison. Aggravated identity theft is punishable by a mandatory prison term of two years, to be run consecutive to any other sentence.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and investigators with the U.S. Attorney’s Office, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton and Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Special Prosecutions Division in Newark.The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Mario F. Gallucci Esq., Staten Island, N.Y.
Lucas Indictment
Former Jarrell Police Chief Pleads Guilty to Federal Bribery ChargeRead the Press Release
Former Jarrell (TX) Police Chief Andres Tomas Gutierrez, age 51, faces up to 20 years in federal prison after pleading guilty this morning to a wire fraud/theft of honest services charge announced United States Attorney Robert Pitman; Homeland Security Investigations (HSI) Special Agent In Charge Janice Ayala in San Antonio; Department of Homeland Security Office of Inspector General–Investigations Special Agent In Charge J. Kirk Beauchamp in Houston; and Federal Bureau of Investigation Acting Special Agent In Charge John Boles, San Antonio Division.
Appearing before United States Magistrate Judge Mark Lane in Austin this morning, Gutierrez admitted that from the Fall of 2011 to November 2013, he devised a scheme to defraud and deprive the citizens of Jarrell of their right to his honest services through bribery and concealment of information.
“Gutierrez solicited and accepted cash bribes—between $10,000 and $40,000—from several undocumented aliens in return for requesting and obtaining for the aliens limited immigration benefits that the U.S. government intended and designed for law enforcement purposes,” stated U.S. Attorney Robert Pitman. “Gutierrez falsely represented to the U.S. government that the undocumented aliens were assisting the Jarrell Police Department with ongoing investigations into narcotics trafficking and human trafficking,” Pitman added.
According to court records, individuals unconnected to the City of Jarrell and its Police Department introduced Gutierrez to undocumented aliens who had money to pay for immigration benefits. Gutierrez or the individuals who made the introductions, or both, then met with the aliens and explained the benefits they could receive if they paid certain amounts of money. They lied to the aliens, telling them that the Jarrell Police Department would receive the money and use it to pay for law enforcement operations. They also told the aliens that they would provide information or assistance to the Jarrell Police Department, for use in criminal investigations, in return for the immigration benefits. That was also a lie. Gutierrez never asked the aliens to provide assistance or information in connection with criminal investigations. What Gutierrez asked for and received from the aliens was money.
Furthermore, with the help of the individuals who introduced him to the aliens, Gutierrez simply sold the aliens the benefits. After an alien paid his or her money, Gutierrez would submit to the U.S. government an application for the alien to receive what is known as a Significant Public Benefit Parole, which is a type of immigration status that federal immigration laws make available to aliens who actually assist federal, state and local law enforcement agencies. The Paroles authorize an alien to reside and work in the United States for up to a year, and they can be renewed. The applications that Gutierrez submitted said the aliens were providing assistance with ongoing criminal investigations by the Jarrell Police Department, which was false. Also, the Defendant never disclosed to the United States government that he was selling the Paroles.
“Today’s guilty plea serves as a stern and sobering reminder that no one is above the law especially those who hold a position of public trust,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “HSI will continue to work with its law enforcement partners to root out public corruption wherever it exists.”
“Acts of corruption within law enforcement threaten our nation’s system of justice and undermine the honest and hardworking law enforcement personnel who consistently strive to keep that system the best in the world. The Department of Homeland Security will not tolerate corruption, and we will aggressively pursue those who choose to break the law,” stated DHS OIG SAC J. Kirk Beauchamp,
“Gutierrez abused his authority and repeatedly broke the law he was sworn to uphold. He tarnished the badge he wore and violated the trust of the people of Jarrell. This case demonstrates the FBI's commitment to enforce the law and hold individuals accountable, regardless of rank, position, or status,” stated FBI Acting Special Agent In Charge John Boles.
Gutierrez is out on bond pending sentencing. No sentencing date has been scheduled.
This investigation was conducted by agents with Homeland Security Investigations, Department of Homeland Security Office of Inspector General--Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Alan M. Buie and Gregg N. Sofer are prosecuting this case on behalf of the Government.
The government’s investigation into the bribery scheme is ongoing. Anyone who has pertinent information should call one of the following: the FBI at (512) 506-2136; HSI at (512) 801-1862; or, the DHS Office of Inspector General at (713) 212-4305.
Former Employee of Federal Contractor Pleads GuiltyTo Disclosing National Defense InformationRead the Press Release
WASHINGTON – Stephen Jin-Woo Kim, a former Lawrence Livermore National Laboratory (LLNL) employee, pleaded guilty today in the District of Columbia in connection with his unauthorized disclosure of national defense information.
At a hearing before U.S. District Judge Colleen Kollar-Kotelly, Kim pleaded guilty to one count of making an unauthorized disclosure of national defense information. The plea agreement, which is contingent upon the Court’s approval, calls for Kim to be sentenced to 13 months in prison, to be followed by a year of supervised release. If the plea is accepted, Kim is to be sentenced on April 2, 2014.
The guilty plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Kim, 46, worked as an LNLL employee on detail to the State Department’s Bureau of Verification, Compliance and Implementation (VCI) at the time of the disclosure. At the time, Kim worked as a Senior Advisor for Intelligence to the Assistant Secretary of State for VCI. According to court documents, on June 11, 2009, Kim knowingly and willfully disclosed TOP SECRET/SENSITIVE COMPARTMENTED INFORMATION (TS/SCI) national defense information to a reporter.
The information concerned the military capabilities and preparedness of North Korea and was contained in an intelligence report classified at the TS/SCI level that Kim accessed on a classified computer database. Within hours of the disclosure, the news organization published an article on the Internet that included the TS/SCI national defense information that Kim had disclosed.
“Today Stephen Kim admitted to violating his oath to protect our country by disclosing highly classified intelligence about North Korea’s military capabilities,” said U.S. Attorney Machen. “Stephen Kim admits that he wasn’t a whistleblower. He admits that his actions could put America at risk. Within hours of the dissemination of a top secret intelligence report about North Korea, he exposed its secrets, which were then broadcast to the world. As this prosecution demonstrates, we will not waver in our commitment to pursuing and holding accountable government officials who blatantly disregard their obligations to protect our nation’s most highly guarded secrets.”
“Mr. Kim was entrusted with a Top Secret security clearance, which included a responsibility to protect classified national defense information. Instead, he knowingly disclosed that material to someone not authorized to receive it,” said Assistant Director in Charge Parlave. “Today, as the result of the hard work of dedicated Special Agents, analysts and prosecutors, Mr. Kim has taken responsibility for his illegal action.”
Kim was indicted in August 2010. According to the court documents that were filed today, Kim admitted that he did not believe that he was exposing government waste, fraud, abuse, or any other kind of government malfeasance or misfeasance. Further, Kim admitted that he had reason to believe that his unauthorized disclosure could be used to the injury of the United States or to the advantage of a foreign nation. Finally, he acknowledged that he was never authorized, directly or indirectly, by the United States Government to communicate any national defense information to the media.
This investigation was conducted by the FBI’s Washington Field Office. The prosecution was handled by Assistant U.S. Attorneys G. Michael Harvey, Jonathan M. Malis, and Thomas A. Bednar of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Deborah A. Curtis and Julie A. Edelstein of the Counterespionage Section of the Justice Department’s National Security Division.
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