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4 February 2014
Justice Department Settles with Rite Aid of Michigan over Alleged HIV DiscriminationRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Rite Aid of Michigan to resolve claims that Rite Aid violated the Americans with Disabilities Act (ADA).
The department found that a Rite Aid store pharmacist in Okemos, Mich., discriminated against a customer with HIV by refusing to administer a flu shot to the customer. Although the pharmacist had access to surgical gloves, she told the customer that she needed “special gloves” to administer a flu shot to him, and that he should return after the store had ordered the gloves.
“Erecting unfair and discriminatory barriers to medical care for people with HIV is unacceptable,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The ADA prohibits these types of barriers, and the Justice Department will fight to tear them down.”
Under the terms of the settlement agreement, Rite Aid of Michigan must pay $10,000 to the customer and $5,000 in civil penalties. In addition, Rite Aid must train its staff on the requirements of the ADA and implement an anti-discrimination policy.
Title III of the ADA prohibits public accommodations such as Rite Aid of Michigan from excluding people with disabilities, including people with HIV, from enjoying goods, services, privileges, facilities, advantages and accommodations provided. For more information regarding the department’s efforts to combat HIV discrimination, please visit www.ada.gov/aids/ada_aids_enforcement.htm To learn more about the obligations of public accommodations under federal disability rights statutes, call the department’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY) or access the ADA website at www.ada.gov
Justice Department Files Fair Housing Lawsuit Against Owner and Managers of Illinois Mobile Home Park for Discriminating Against African-Americans and Families with ChildrenRead the Press Release
The Justice Department filed a lawsuit today against the owner and those responsible for the management of a 126-space mobile home park in Effingham, Ill., for violating the Fair Housing Act (FHA) by discriminating against African-Americans and families with children.
“People should not be denied the housing of their choice because of their race or because they have children,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of the Fair Housing Act, which outlaws such discrimination.
“America’s strength is in its diversity,” said U.S. Attorney Stephen R. Wigginton for the Southern District of Illinois. “The Southern District of Illinois recognizes that our nation, our district and our communities depend upon each and every person being afforded the basic rights that this country gives them. As such, my office is proud to defend everyone’s right to live where they want, free from discrimination.”
The lawsuit, filed in the U.S. District Court for the Southern District of Illinois, charges that owner Lorraine Wallschlaeger, manager Barbara Crubaugh and David Crubaugh, another employee with management responsibilities, engaged in a pattern or practice of violating the FHA by imposing requirements on African-Americans interested in living at Four Seasons Estates Mobile Home Park that they did not impose on white prospective tenants, such as completing a written application and having their mobile homes inspected before being accepted into the park. The suit also charges that the defendants threatened to evict a white resident and his niece from the park if her African-American boyfriend did not leave, and refused to register the African-American boyfriend as a resident.
In addition, the lawsuit alleges that the defendants did not permit families with children to live on one of the four rows at the mobile home park.
The lawsuit arose after the residents who were subjected to the discriminatory conduct contacted HOPE Fair Housing Center, an organization in Illinois that advocates for equal opportunity in housing, who in turn contacted the Justice Department. Some of the evidence leading to the filing of today’s lawsuit came from statements made by Four Seasons officials to testers, individuals who pose as renters to gather information about possible discriminatory practices. The testing evidence in this case was developed by the department’s Fair Housing Testing Program.
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendants’ actions and a civil penalty. Any individuals who have information relevant to this case are urged to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743, mailbox #94.
The federal FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Judge Sentences Carrolltown Woman to Probation for Conspiring to Launder MoneyRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to two years probation on her conviction of conspiracy to commit money laundering, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Theresa A. Deckard, 60.
According to information presented to the court, from March 2008 to May 9, 2011, Deckard conspired to commit money laundering.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Deckard. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Johnstown Woman Sentenced to 3 Years in Prison for Possessing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 37 months in prison and three years supervised release on her conviction of possession with the intent to distribute cocaine base, commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Ebony R. Thorne, 31.
According to information presented to the court, on Oct. 31, 2012, Thorne possessed less than 28 grams of cocaine base with the intent to distribute it.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Thorne.
Jacksonville Man Charged in Tax Return FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the arrest and return by a grand jury of a thirty-five-count indictment charging Thomas Bandzul with tax fraud. Specifically, Bandzul is charged with nineteen counts of assisting in preparing a false tax return, thirteen counts of wire fraud, two counts of filing a false tax return and one count of aggravated identity theft. If convicted, he faces a maximum penalty of 3 years in federal prison for each count of assisting in preparing a false tax return and each count of filing a false return. On each wire fraud count he faces up to twenty years in federal prison. He also faces two years in prison for the aggravated identity theft charge, to be served consecutive to the wire fraud sentence. The indictment also notifies Bandzul that the United States intends to forfeit any assets, which are alleged to be traceable proceeds of the offenses. Bandzul made his initial appearance before United States Magistrate Judge Joel B. Toomey this afternoon. He was released on a $25,000 bond.
According to the indictment, between January 2008 and May 2011, Bandzul was a tax return preparer in Duval and St. Johns counties. As such, he allegedly knowingly and willfully made false claims for deductions and credits on behalf of his clients, which resulted in additional IRS tax refunds. The indictment alleges that, as part of a scheme, Bandzul would prepare and furnish one tax return to his taxpayer client, but then would make false and fraudulent claims on separate tax returns that he actually filed electronically with the IRS. By prearrangement, Bandzul was to be paid a specified fee by his clients out of the anticipated IRS refunds. Bandzul allegedly caused the additional higher tax refunds to be paid to him, through a bank clearinghouse, as additional tax preparation fees, without his clients’ knowledge or consent. In order to avoid detection by the IRS, Bandzul allegedly used various identities beside his own to electronically file tax returns. The tax loss from this scheme is alleged to be in excess of $100,000.
Additionally, the indictment alleges that Bandzul committed tax fraud on his individual tax returns by claiming a total income of $14,945 on his amended 2008 tax return, when he was paid $208,967 in fees, and by claiming $9,536 in total income on his 2009 tax return when he was paid $335,452 in fees. Finally, according to the indictment, Bandzul committed aggravated identity theft by using a client’s name and Social Security Number to electronically file a fraudulent tax return as a tax return preparer and commit wire fraud.
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 the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Dale R. Campion.
Jackson Man Sentenced to Prison for Possession with Intent to Distribute CocaineRead the Press Release
Jackson, Miss. – Aundra Mason, a/k/a Grey Head, 36, of Jackson, was sentenced to 27 months in federal prison followed by three years of supervised release for possession with intent to distribute cocaine, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced today. Fifteen months of the sentence will run consecutively to a 135 month sentence for narcotics violations previously imposed in Texas.
Mason was one of 13 defendants indicted and convicted following an extensive investigation dubbed “Operation Paperchase” targeting illegal narcotics distribution in the City of Jackson. The FBI led the investigation with assistance from DEA, U.S. Marshals Service, Gulf Coast HIDTA, Mississippi Bureau of Narcotics, and the Jackson Police Department. The case was prosecuted by Assistant United States Attorney Erin Chalk.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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JPMorgan Chase to Pay $614 Million for Submitting False <br /> Claims for FHA-insured and VA-guaranteed Mortgage LoansRead the Press Release
The Department of Justice today announced that JPMorgan Chase (JPMC) will pay $614 million for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). JPMC is a bank and financial services company headquartered in New York.
“The resolution announced today is a product of the Justice Department’s continuing efforts to hold accountable those whose conduct contributed to the financial crisis,” said Associate Attorney General Tony West. “This settlement recovers wrongfully claimed funds for vital government programs that give millions of Americans the opportunity to own a home and sends a clear message that we will take appropriately aggressive action against financial institutions that knowingly engage in improper mortgage lending practices.”
“The Department of Justice will continue to hold accountable financial institutions whose irresponsible mortgage lending undermines the housing market and costs the taxpayers many millions of dollars,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “I thank U.S. Attorney Bharara and his team for their stellar efforts in this case and look forward to our coordinated efforts in these cases.”
As part of the settlement, which was handled by the U.S. Attorney’s Office for the Southern District of New York, JPMC admitted that, for more than a decade, it approved thousands of FHA loans and hundreds of VA loans that were not eligible for FHA or VA insurance because they did not meet applicable agency underwriting requirements. JPMC further admitted that it failed to inform the FHA and the VA when its own internal reviews discovered more than 500 defective loans that never should have been submitted for FHA and VA insurance.
“For years, JPMorgan Chase has enjoyed the privilege of participating in federally subsidized programs aimed at helping millions of Americans realize the dream of homeownership,” said U.S. Attorney for the Southern District of New York Preet Bharara. “Yet, for more than a decade, it abused that privilege. JPMorgan Chase put profits ahead of responsibility by recklessly churning out thousands of defective mortgage loans, failing to inform the government of known problems with those loans and leaving the government to cover the losses when the loans defaulted. With today’s settlement, however, JPMorgan Chase has accepted responsibility for its misconduct and has committed to reform its business practices. This settlement adds to the list of successful mortgage fraud cases this office has pursued.”Beginning as early as 2002, JPMC falsely certified that loans it originated and underwrote were qualified for FHA and VA insurance and guarantees. As a consequence of JPMC’s misrepresentations, both the FHA and the VA incurred substantial losses when unqualified loans failed and caused the FHA and VA to cover the associated losses.
“This settlement with JP Morgan Chase will enable HUD to recover funds lost due to Chase’s past unacceptable mortgage underwriting practices,” said HUD’s Acting General Counsel Damon Smith. “In addition, Chase must now institute new and tighter controls to prevent abuses of FHA’s automated underwriting system. HUD will continue working with the Department of Justice to ensure that lenders are held accountable and are required to institute practices that will benefit both borrowers and the FHA insurance fund.”
“The agreement reached with JPMC was possible due to the dedication of the U.S. Attorney’s Office for the Southern District of New York and the hard work of the talented staff at the Office of Inspector General,” said Inspector General of the Department of Housing and Urban Development David A. Montoya. “It also demonstrates the combined commitment of the Justice Department and the Office of Inspector General to continuing efforts to enforce FHA mortgage insurance requirements.”
The FHA’s Single Family Mortgage Insurance Program enables low- and moderate- income borrowers to purchase homes by insuring qualified loans made by participating lenders, such as JPMC, against losses if the loans later default. A participating lender may only submit to the FHA creditworthy loans meeting certain requirements and must maintain a quality control program that can prevent and correct any deficiencies in the lender’s underwriting practices. The VA’s Loan Guaranty Program provides similar assistance to veterans, service members and qualifying surviving spouses.
“I commend the efforts of the United States Attorney’s Office for the Southern District of New York to hold lenders accountable for conduct that defrauds the government and deserving veterans who rely on VA’s Loan Guaranty Program to purchase their homes,” said Acting Inspector General for the Office of Inspector General, Department of Veterans Affairs Richard J. Griffin.
The settlement resolves allegations in a complaint filed by a private whistleblower.
Today’s settlement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov .This settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Southern District of New York , the department’s Civil Division, the Department of Housing and Urban Development’s Inspector General and the Department of Veterans Affairs’ Inspector General.
Indiana Law Enforcement Human Trafficking Task Force Announces First Federal ChargesRead the Press Release
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana announced the filing of a nine count federal indictment this afternoon against Jerry Mitchell, aka Tre da Great, age 24, of Indianapolis. The charges include sex trafficking, sex trafficking of a child, transporting a child to engage in prostitution and the production of child pornography. The indictment follows Mitchell’s arrest by Indianapolis law enforcement and the filing of charges by Marion County Prosecutor Terry Curry, and comes as federal and local authorities have joined forces to combat human trafficking and child exploitation.
“This indictment shows the importance of partnerships across all levels to address the horrific crime of human trafficking,” said Acting Assistant Attorney General Jocelyn Samuels for the division. “The Civil Rights Division and U.S. Attorneys offices across the country will continue their aggressive work to combat these types of crimes.”
“The scourge of human trafficking is a global crisis, but the fight against modern day slavery begins right here at home,” said U.S. Attorney Joseph H. Hogsett for the Southern District of Indiana. “That is why we have teamed up with law enforcement partners across this state and around the country to combat the types of horrific abuse that are alleged in this case.”
According to the federal indictment and state probable cause affidavit, an investigation into Mitchell’s alleged criminal activity began in July 2013, when officers with the Indianapolis Metropolitan Police Department were flagged down and informed by a woman that her niece, a reported runaway, had returned home and reported she had been the victim of sexual assault. Further investigation resulted in the identification of a suspect who went by the name of Tre, an alleged alias of Mitchell, as well as information indicating that the defendant was running a prostitution operation in the near-northside area of Indianapolis.
The indictment alleges that from May 2013 through June 27, 2013, Mitchell engaged in sex trafficking by means of force, fraud or coercion. The allegations include the trafficking of females between the ages of 19 and 21, as well as three minors aged 12, 16 and 17. Mitchell also allegedly transported the minors to facilitate their prostitution activities and sexually assaulted these female minors on a number of occasions. The federal indictment alleges that on June 22, 2013, Mitchell also made a video recording the sexual abuse of the 12-year-old female victim.
Mitchell had an initial appearance before a federal magistrate judge in Indianapolis this afternoon, and was ordered detained pending trial. Mitchell faces a statutory maximum sentence of life in federal prison if convicted of all counts. Under federal law, the defendant would be required to serve a minimum of 85 percent of his prison term within a correctional facility.
This case was the result of a collaborative investigation spearheaded by the Indiana Protection for Abused and Trafficked Humans (IPATH) Task Force, one of 42 task forces nationwide funded by the Department of Justice to address the issue of human trafficking. IPATH was created in 2006 and is chaired by the U.S. Attorney’s Office and the Indiana Attorney General’s Office. The group meets regularly to collaborate on cases and projects, provide additional training to law enforcement and raise awareness in our community about human trafficking.
Informations, indictments and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Goodwin Charges West Logan Restaurant Owner with Laundering Money Derived from Illegal Gambling OperationRead the Press Release
IRS Seizes Over Eighty Illegal Gray Machines from South Williamson, Kentucky Gambling Parlor
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin filed charges today against a West Logan restaurant owner for laundering cash proceeds of an illegal gambling operation. Since May of 2008, Gregory A. Dotson, 51, of Chapmanville and the proprietor of Giovani’s of Logan in West Logan, operated an illegal poker machine gambling parlor in the back of a tobacco store in South Williamson, Kentucky. Although payouts from poker machines, often referred to as “gray” machines, are illegal under Kentucky law, Dotson routinely paid out gambling winnings to patrons. Dotson retrieved the proceeds from the illegal gambling operation weekly and brought the cash across state lines to his office at Giovanni’s. Dotson then commingled the cash from his legitimate business with his illegal enterprise.
On August 16, 2010, Dotson traveled from West Virginia to Bristol, Tennessee with nearly $12,000 of cash proceeds from the illegal gambling operation and used those funds to help purchase a 2009 Nissan 350z sports car.
In October of 2013, agents from the Internal Revenue Service raided the gambling parlor, and seized forty machines in operation and another forty machines in storage.
The information filed today alleges that the United States intends to forfeit nearly $150,000 in cash, a $96,000 Mercedes sport-utility vehicle, a $50,000 Rolex watch, several expensive firearms, in addition to the eighty gray machines seized from the South Williamson operation.
In addition to the forfeiture, Dotson faces up to ten years in prison a $250,000 fine if convicted.
The investigation was conducted by the Internal Revenue Service with assistance from the Federal Bureau of Investigation. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
Fourth Circuit Affirms Convictions of Boyd DefendantsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today, the United States Court of Appeals for the Fourth Circuit affirmed the convictions and sentences of defendants Mohammad Omar Aly Hassan, Ziyad Yaghi, and Hysen Sherifi, who were charged and convicted as a part of United States v. Boyd, et al. in the Eastern District of North Carolina. Mr. Walker stated, “This decision not only affirms the convictions and sentences of these individuals, but it affirms the dedication of the many agencies involved in this investigation and prosecution to protect our nation from harms both foreign and domestic.”
The issues raised by the defendants included the sufficiency of the evidence, First or Second Amendment rights, whether portions of the government’s evidence were improperly admitted and defendants’ evidence improperly excluded, whether probable cause existed for surveillance authorized under the Foreign Intelligence Surveillance Act, and sentencing challenges including the imposition of the terrorism enhancement set forth under the United States Sentencing Guidelines. The Fourth Circuit rejected each of these challenges and went further to state: “The laudable efforts of law enforcement and the prosecutors have ensured that, on this occasion at least, we will not be left to second-guess how a terrorist attack could have been prevented.”
The indictment in United States v. Boyd, et al. alleged that, as part of the conspiracy, the multiple defendants in the case prepared themselves to engage in violent acts and were willing to die as martyrs. They also offered training in weapons and financing, helped arrange overseas travel and contacts so others could wage violent acts overseas. In addition, as part of the conspiracy, the defendants raised money to support training efforts, disguised the destination of such monies from the donors, obtained assault weapons, and trained in military tactics. Some defendants also radicalized and recruited others to believe that violent acts were a personal religious obligation.
On October 13, 2011, after a month-long trial, a federal jury convicted Hassan, Yaghi, and Sherifi. Yaghi and Sherifi were convicted on all counts, while Hassan was acquitted of conspiring to carry out attacks overseas, but convicted of providing material support to terrorists, in violation of Title 18 United States Code, Section 2339A. Sherifi was sentenced to 45 years’ imprisonment. Yaghi was sentenced to 31 years and six months of imprisonment. Hassan was sentenced to 15 years’ imprisonment.
The co-defendants in this case included Daniel Patrick Boyd, Dylan Boyd, Zakariya Boyd, and Anes Subasic. Zakariya Boyd pled guilty on June 7, 2011, to one count of Conspiracy to Provide Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A and received a sentence of nine years’ imprisonment. On September 14, 2011, Dylan Boyd pled guilty to one count of Aiding and Abetting a Conspiracy to Provide Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A, and received a sentence of eight years’ imprisonment. On February 9, 2011, Daniel Patrick Boyd pled guilty to one count of Conspiracy to Provide Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A and one count of Conspiracy to Murder, Kidnap, Maim and Injure Persons in a Foreign Country, in violation of Title 18, United States Code, Section 956(a). Daniel Boyd’s sentencing was held in abeyance until the conclusion of Subasic’s trial. On June 14, 2012, Subasic was found guilty of Conspiracy to Provide Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A and Conspiracy to Murder, Kidnap, Maim and Injure Persons in a Foreign Country, in violation of Title 18, United States Code, Section 956(a). Subasic represented himself at his jury trial. On August 24, 2012, Subasic was sentenced to 30 years’ imprisonment, and Daniel Boyd was sentenced to 18 years’ imprisonment. Subasic’s appeal is pending and will be argued separately.
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Raleigh Resident Agency Joint Terrorism Task Force (JTTF). The Raleigh JTTF consists of the following agencies: FBI, DHS-H.S.I., Raleigh Police Department, Durham Police Department, NC State Bureau of Investigation, and NC Department of Public Safety (NC State Highway Patrol and NC Alcohol Law Enforcement). The prosecution on appeal was handled by Assistant United States Attorneys Jason Kellhofer and Kristine Fritz. The prosecution in district court was handled by Assistant United States Attorneys John Bowler and Barbara Kocher, and by then-Trial Attorney Jason Kellhofer of the Counterterrorism Section in the Justice Department’s National Security Division.
Former Wilmington Trust Officer Indicted on Bank Fraud, Bank Bribery, and Money LaunderingRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Brian D. Bailey, age 51 of Middletown, DE, was charged on February 4, 2014, in a fourteen-count Indictment with the following offenses:
- Count 1 charges the defendant with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties for Count 1 are a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution.
- Count 2 charges the defendant with Conspiracy to Commit Bank Bribery, in violation of Title 18, United States Code, Sections 215 and 371. The maximum penalties for Count 2 are a term of imprisonment of five years; a fine of $250,000.00; a term of supervised release of two years; a $100.00 special assessment; and mandatory restitution.
- Counts 3 through 11 charge the defendant with Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 2. The maximum penalties for each of Counts 3-11 are a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
- Count 12 charges the defendant with receipt of a gift for procuring a loan, in violation of Title 18, United States Code, Sections 215(a)(2) and 2. The maximum penalties for Count 12 are a term of imprisonment of 30 years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
- Count 13 charges defendant with unlawfully providing a gift with an intent to influence a bank employee, in violation of Title 18, United States Code, Sections 215(a)(1) and 2. The maximum penalties for Count 13 are a term of imprisonment of 30 years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
- Count 14 charges the defendant with money laundering, in violation of Title 18, United States Code, Section 1957. The maximum penalties for Count 14 are a term of imprisonment of ten years; a fine of $250,000.00; a term of supervised release of three years; and a $100 special assessment.
Mr. Bailey made his initial appearance today before Chief United States Magistrate Judge Mary Pat Thynge. His next court appearance, an arraignment on the charges, is set for Wednesday, February 19, 2014, at 1:00 p.m.
The Indictment alleges that Mr. Bailey, the former head of Commercial Real Estate and Delaware Market Manager of the Wilmington Trust Co., engaged in a twelve-year lending relationship with James A. Ladio, the former Chief Lending Officer at Artisans’ Bank and Chief Executive Officer of MidCoast Community Bank. According to the Indictment, the defendant and Ladio approved approximately twenty-three loans and modifications to each other through their positions at Wilmington Trust, Artisans, and MidCoast, respectively. The loan relationship, as alleged in the Indictment, is summarized in the attached chart. The Indictment further alleges that the aggregate amount of all the loan facilities was in excess of $1.5 million.
United States Attorney Oberly said, “The Indictment alleges that the defendant entered into a long-term scheme with another banker to provide multiple loans to each other on terms not available to the general public, all the while failing to disclose their relationship to their respective banks. This Office remains steadfast in its continuing commitment to combat financial fraud and corruption, and to deter other individuals from similar alleged misconduct.”
“Brian Bailey is the second officer charged with bank fraud conspiracy at Wilmington Trust, a TARP bank that ended up being acquired by another TARP bank,” said Christy Romero, Special Inspector General for TARP (SIGTARP). SIGTARP and our law enforcement partners will aggressively investigate allegations of fraud by officers of TARP banks, and perpetrators will be held accountable for their crimes.”
"The indictment of this bank official alleges the misuse of his position of trust within his corporation," said Special Agent in Charge Akeia Conner, IRS Criminal Investigation. "The IRS, along with our law enforcement partners, is committed to investigating individuals who use their position to commit fraud and to abuse public trust.”
The case was investigated by the Federal Bureau of Investigation; the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and the Internal Revenue, Service Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz, Lesley F. Wolf, and Ilana H. Eisenstein.Members of the public are reminded that an Indictment is only an allegation and that a defendant is presumed innocent until proven guilty.
APPENDIX A
Date Recipient Bank/Loan No. Loan Amt. Description
July 9, 2001
Ladio
WTC
(9003)$29,000.00
Interest-only, six-month commercial demand line of credit
Jan. 4, 2002
Bailey
Artisans
$34,000.00
Automobile Loan for Ford F-150 Truck
Jan. 22, 2002
Bailey
Artisans
$40,000.00
Automobile Loan for Mercedes E-Series Sedan
Jan. 30, 2002
Ladio
WTC
(9004)$22,000.00
Interest-only, six -month commercial demand loan
Feb. 6, 2002
Bailey
Artisans
$33,000.00
Automobile Loan for Porsche Boxster
July 3, 2002
Ladio
WTC
(9005)$27,000.00
Interest-only, six month commercial demand loan (extension of Jan. 2002 loan, adding $5,000.00 in additional funds; extended again, at same terms, on Dec. 23, 2002)
Oct. 8, 2003
Bailey
Artisans
$15,000.00
Unsecured consumer demand loan
Nov. 18, 2003
Ladio
WTC
(9006)$69,138.46
Five-year term loan issued to pay- off $29K and $27K loans, set forth above, and for working capital
Date Recipient Bank/Loan No. Loan Amt. Description
June 30, 2004
Bailey
Artisans
$20,000.00
Interest-only commercial working capital line of credit
Aug. 13, 2004
Ladio
WTC
$9,000.00
(1001/1099)Interest-only, commercial working capital demand line of credit
Sept. 29, 2004
Ladio
WTC
$20,000.00
(1101/1199)Interest-only, unsecured working capital line of credit
April 4, 2005
Ladio
WTC
$150,000.00
(1201/1299)Interest-only unsecured commercial demand line of credit
May 3, 2006
Bailey
Artisans
$175,000.00
(3281)Two-year, interest-only, commercial line of credit
May 3, 2006
Ladio
WTC
$165,000.00
(5001)Interest-only, commercial demand line of credit with three-year expiration
March 14, 2007
Ladio
WTC
$225,000.00
(5101)Unsecured, interest-only commercial line of credit
Dec. 4, 2007
Bailey
MidCoast
$200,000.00
(1003)
Five year commercial loan, the proceeds of which were used to pay-off May 2006 Artisans loan.May 30, 2008
Bailey
MidCoast
$33,000.00
(1011)Consumer Loan to refinance a 2007 Mercedes E-Class Sedan
Sept. 9, 2008
Ladio
WTC
$285,000.00
(5101)Increase in March 2007 line, adding $60,000.00 and changing to a demand loan
Date Recipient Bank/Loan No. Loan Amt. Description
Nov. 10, 2008
Bailey
MidCoast
$37,000.00
(1016)Eighteen-month, unsecured consumer term loan
Aug. 7, 2009
Bailey
MidCoast
$70,000.00
(1000)Three-year, interest-only, unsecured consumer line of credit
March 31, 2010
Bailey
MidCoast
$100,000.00
(1000)Increase in Aug. 2009 line of credit by $30,000.00
July 12, 2010
Ladio
WTC
$615,162.13
Forbearance agreement between Ladio and WTC after WTC called four outstanding Ladio demand loans
Oct. 29, 2010
Ladio
MidCoast Cust. A
$650,000.00
Private loan secured by Ladio, in part, to make payments under Forbearance Agreement obligations with WTC
July 14, 2011
Ladio
MidCoast Cust. B
$650,000.00
Private loan secured by Ladio to pay off outstanding balance under Forbearance Agreement to WTC
May 23, 2013
Bailey
MidCoast
$90,000.00
Secured, home equity line of credit, the proceeds of which were used to pay-off $100,000.00 unsecured MidCoast line of credit
Former Wilmington Trust Officer Indicted on Bank Fraud, Bank Bribery, and Money LaunderingRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Brian D. Bailey, age 51 of Middletown, DE, was charged on February 4, 2014, in a fourteen-count Indictment with the following offenses:
- Count 1 charges the defendant with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties for Count 1 are a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution.
- Count 2 charges the defendant with Conspiracy to Commit Bank Bribery, in violation of Title 18, United States Code, Sections 215 and 371. The maximum penalties for Count 2 are a term of imprisonment of five years; a fine of $250,000.00; a term of supervised release of two years; a $100.00 special assessment; and mandatory restitution.
- Counts 3 through 11 charge the defendant with Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 2. The maximum penalties for each of Counts 3-11 are a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
- Count 12 charges the defendant with receipt of a gift for procuring a loan, in violation of Title 18, United States Code, Sections 215(a)(2) and 2. The maximum penalties for Count 12 are a term of imprisonment of 30 years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
- Count 13 charges defendant with unlawfully providing a gift with an intent to influence a bank employee, in violation of Title 18, United States Code, Sections 215(a)(1) and 2. The maximum penalties for Count 13 are a term of imprisonment of 30 years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
- Count 14 charges the defendant with money laundering, in violation of Title 18, United States Code, Section 1957. The maximum penalties for Count 14 are a term of imprisonment of ten years; a fine of $250,000.00; a term of supervised release of three years; and a $100 special assessment.
Mr. Bailey made his initial appearance today before Chief United States Magistrate Judge Mary Pat Thynge. His next court appearance, an arraignment on the charges, is set for Wednesday, February 19, 2014, at 1:00 p.m.
The Indictment alleges that Mr. Bailey, the former head of Commercial Real Estate and Delaware Market Manager of the Wilmington Trust Co., engaged in a twelve-year lending relationship with James A. Ladio, the former Chief Lending Officer at Artisans’ Bank and Chief Executive Officer of MidCoast Community Bank. According to the Indictment, the defendant and Ladio approved approximately twenty-three loans and modifications to each other through their positions at Wilmington Trust, Artisans, and MidCoast, respectively. The loan relationship, as alleged in the Indictment, is summarized in the attached chart. The Indictment further alleges that the aggregate amount of all the loan facilities was in excess of $1.5 million.
United States Attorney Oberly said, “The Indictment alleges that the defendant entered into a long-term scheme with another banker to provide multiple loans to each other on terms not available to the general public, all the while failing to disclose their relationship to their respective banks. This Office remains steadfast in its continuing commitment to combat financial fraud and corruption, and to deter other individuals from similar alleged misconduct.”
“Brian Bailey is the second officer charged with bank fraud conspiracy at Wilmington Trust, a TARP bank that ended up being acquired by another TARP bank,” said Christy Romero, Special Inspector General for TARP (SIGTARP). SIGTARP and our law enforcement partners will aggressively investigate allegations of fraud by officers of TARP banks, and perpetrators will be held accountable for their crimes.”
"The indictment of this bank official alleges the misuse of his position of trust within his corporation," said Special Agent in Charge Akeia Conner, IRS Criminal Investigation. "The IRS, along with our law enforcement partners, is committed to investigating individuals who use their position to commit fraud and to abuse public trust.”
The case was investigated by the Federal Bureau of Investigation; the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and the Internal Revenue, Service Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz, Lesley F. Wolf, and Ilana H. Eisenstein.Members of the public are reminded that an Indictment is only an allegation and that a defendant is presumed innocent until proven guilty.
APPENDIX A
Date Recipient Bank/Loan No. Loan Amt. Description
July 9, 2001
Ladio
WTC
(9003)$29,000.00
Interest-only, six-month commercial demand line of credit
Jan. 4, 2002
Bailey
Artisans
$34,000.00
Automobile Loan for Ford F-150 Truck
Jan. 22, 2002
Bailey
Artisans
$40,000.00
Automobile Loan for Mercedes E-Series Sedan
Jan. 30, 2002
Ladio
WTC
(9004)$22,000.00
Interest-only, six -month commercial demand loan
Feb. 6, 2002
Bailey
Artisans
$33,000.00
Automobile Loan for Porsche Boxster
July 3, 2002
Ladio
WTC
(9005)$27,000.00
Interest-only, six month commercial demand loan (extension of Jan. 2002 loan, adding $5,000.00 in additional funds; extended again, at same terms, on Dec. 23, 2002)
Oct. 8, 2003
Bailey
Artisans
$15,000.00
Unsecured consumer demand loan
Nov. 18, 2003
Ladio
WTC
(9006)$69,138.46
Five-year term loan issued to pay- off $29K and $27K loans, set forth above, and for working capital
Date Recipient Bank/Loan No. Loan Amt. Description
June 30, 2004
Bailey
Artisans
$20,000.00
Interest-only commercial working capital line of credit
Aug. 13, 2004
Ladio
WTC
$9,000.00
(1001/1099)Interest-only, commercial working capital demand line of credit
Sept. 29, 2004
Ladio
WTC
$20,000.00
(1101/1199)Interest-only, unsecured working capital line of credit
April 4, 2005
Ladio
WTC
$150,000.00
(1201/1299)Interest-only unsecured commercial demand line of credit
May 3, 2006
Bailey
Artisans
$175,000.00
(3281)Two-year, interest-only, commercial line of credit
May 3, 2006
Ladio
WTC
$165,000.00
(5001)Interest-only, commercial demand line of credit with three-year expiration
March 14, 2007
Ladio
WTC
$225,000.00
(5101)Unsecured, interest-only commercial line of credit
Dec. 4, 2007
Bailey
MidCoast
$200,000.00
(1003)
Five year commercial loan, the proceeds of which were used to pay-off May 2006 Artisans loan.May 30, 2008
Bailey
MidCoast
$33,000.00
(1011)Consumer Loan to refinance a 2007 Mercedes E-Class Sedan
Sept. 9, 2008
Ladio
WTC
$285,000.00
(5101)Increase in March 2007 line, adding $60,000.00 and changing to a demand loan
Date Recipient Bank/Loan No. Loan Amt. Description
Nov. 10, 2008
Bailey
MidCoast
$37,000.00
(1016)Eighteen-month, unsecured consumer term loan
Aug. 7, 2009
Bailey
MidCoast
$70,000.00
(1000)Three-year, interest-only, unsecured consumer line of credit
March 31, 2010
Bailey
MidCoast
$100,000.00
(1000)Increase in Aug. 2009 line of credit by $30,000.00
July 12, 2010
Ladio
WTC
$615,162.13
Forbearance agreement between Ladio and WTC after WTC called four outstanding Ladio demand loans
Oct. 29, 2010
Ladio
MidCoast Cust. A
$650,000.00
Private loan secured by Ladio, in part, to make payments under Forbearance Agreement obligations with WTC
July 14, 2011
Ladio
MidCoast Cust. B
$650,000.00
Private loan secured by Ladio to pay off outstanding balance under Forbearance Agreement to WTC
May 23, 2013
Bailey
MidCoast
$90,000.00
Secured, home equity line of credit, the proceeds of which were used to pay-off $100,000.00 unsecured MidCoast line of credit
Former U.S. Marine Reservist Sentenced to Five Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Lee Baca, 23, a former U.S. Marine Reservist who resides in Albuquerque, N.M., was sentenced this morning to five years in federal prison followed by five years of supervised release for his child pornography conviction. Baca will be required to register as a sex offender after he completes his prison sentence.
Baca was charged on June 26, 2013, in a five-count indictment charging him with three counts of receipt of visual depictions of minors engaged in sexually explicit conduct and two counts of possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Baca received child pornography between Dec. 2012 and Feb. 2013, and possessed child pornography in March 2013, in Bernalillo County, N.M. Baca was arrested on June 29, 2013 by Homeland Security Investigations (HSI) agents, and has been in federal custody since that time.
On Sept. 25, 2013, Baca entered a guilty plea to Count 1 of the indictment, a receipt of child pornography charge. In his plea agreement, Baca acknowledged that the investigation leading to his arrest began in Oct. 2012, when an agent with the New Mexico Attorney General’s Office (NMAGO) working in an undercover capacity identified an IP Address that was being used to participate in the distribution of child pornography. On March 5, 2013, after investigation revealed that the IP Address was subscribed to Baca’s residence, HSI agents and officers of the Albuquerque Police Department (APD) executed a federal search warrant at Baca’s residence and seized Baca’s computers and computer-related media.
In his plea agreement, Baca admitted to participating in a voluntary interview while the search was ongoing and telling the agents and officers that he used file-sharing programs to download child pornography. Baca acknowledged that an ongoing forensic examination of his computers and computer-related media uncovered more than 2000 videos and images consistent with child pornography. Baca also acknowledged that an examination of the images and videos on his computers and computer-related media by the National Center for Missing and Exploited Children revealed 564 images and seven videos of 47 children who have been identified as child pornography victims and have been rescued.
This case was investigated by the Albuquerque office of HSI, the NMAGO and APD. The case was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Former St. Landry Parish School Board Member Sentenced to 33 Months in Prison for Bribery ChargesRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that former St. Landry Parish School Board member Quincy Richard Sr., 51, of Opelousas, La., was sentenced by U.S. District Judge Richard T. Haik to 33 months in prison for one count of conspiracy to commit bribery and two counts of bribery. He was also ordered to serve three years of supervised release and to pay a $10,000 fine. A jury found him guilty after a two-day trial on August 20, 2013.
During trial, the witness testimony and documents presented revealed that Quincy Richard was shown to have conspired with fellow St. Landry Parish School Board member John Miller, 72, of Opelousas, to receive bribe money from former school board superintendent candidate Joseph Cassimere in return for their support. In July, August and September of 2012, Richard and Miller had a number of private meetings with Cassimere where they negotiated price and payment from Cassimere in exchange for their favorable individual votes as school board members in support of Cassimere’s candidacy for superintendent. At the same time the screening process for the superintendent position was ongoing, and by the week of September 16, 2012, five applicants had been publicly named; the final vote was scheduled for September 26, 2012. Unknown to both school board members, Cassimere had reported Richard and Miller’s plans to the authorities and became a cooperating party in the investigation.
The defendants met with Cassimere on September 24, 2012, at the Quarters Restaurant in Opelousas and received $5,000 each in return for their votes. During the conversation, they made it clear that Cassimere’s payment was for their services, efforts, influence, and due diligence relating to the votes of other members of the school board who would support Cassimere’s candidacy. Trial testimony revealed that Richard advised Cassimere that he could recoup the $10,000 bribe by adding that amount to his salary request. Richard and Miller provided Cassimere with instructions on how to justify the salary increase since it was above the amount advertised for the superintendent’s position. The September 24, 2012 discussion was videoed and surveilled by the FBI. After the defendants exited the restaurant, they were confronted by agents who recovered the $5,000 payments in the possession of Quincy and Miller.Miller was indicted on October 24, 2012, and resigned from his position as a school board member on July 28, 2013. He pleaded guilty to conspiracy to commit bribery on July 1, 2013. Miller was sentenced on November 19, 2013, to home detention for 10 months and ordered to pay a $15,000 fine.
“This closes the door on a very unfortunate chapter for the School Board in Opelousas,” Finley stated. “Quincy Richard was thinking only of himself and not about the children, the community and the School Board he was elected to serve. This sentence should send a message that public corruption will not be tolerated. I hope the Opelousas School Board can now move forward to take care of the important work that needs to be addressed for the citizens of Opelousas.”
“Public corruption is unacceptable within any level or function of government, but when it infiltrates our schools and future generations of the citizenry, there is an even greater need for full accountability,” said Michael J. Anderson, FBI Special Agent in Charge, New Orleans Division.
The Federal Bureau of Investigation, Alexandria Resident Agency, conducted the investigation with the assistance of the U.S. Department of Education, Office of Inspector General. Assistant U.S. Attorney Howard C. Parker prosecuted the case.Former Littleton Police Officer Sentenced to 48 Months in Federal Prison for Firearm and Drug TraffickingRead the Press Release
DENVER – Jeffery Allan Johnston, age 46, of Parker, Colorado, was sentenced yesterday by U.S. District Court Judge Philip A. Brimmer to serve 48 months in federal prison, followed by 3 years of supervised release for firearm and drug trafficking crimes, United States Attorney John Walsh and Federal Bureau of Investigation (FBI) Denver Division Special Agent in Charge Thomas Ravenelle announced. Judge Brimmer also ordered a preliminary order of $25,000 in asset forfeiture in lieu of forfeiture of his residence, which was used to facilitate his criminal conduct. That money will be paid into the federal asset forfeiture fund. At the conclusion of the hearing Judge Brimmer ordered Johnston be remanded into the custody of the U.S. Marshals.
Johnston was first arrested based on a Criminal Complaint issued on July 19, 2013. He then waived his Constitutional right to indictment, and was charged by Information on August 15, 2013. He pled guilty before Judge Brimmer on October 28, 2013. He was sentenced yesterday, February 3, 2014.
According to court documents, including the stipulated facts contained in the plea agreement, as well as other court documents, in April 2012, a source told law enforcement that he (the source) attended a party at Johnston’s home. While at the party, the source claims he observed behavior consistent with the use of illegal drugs. On July 16, 2013, a source received a message from Johnston. In cooperation with the FBI, the source returned Johnston’s call and had a coded conversation about providing Johnston with MDMA. On July 19, 2013, the source, working with the FBI, traveled to Johnston’s residence. Through monitored and recorded calls before the meeting, the source had agreed to deliver 75 MDMA pills to Johnston. The source and Johnston then met at Johnston’s residence. The exchange of money and MDMA took place in the kitchen of the residence. Johnston received approximately 9.9 grams of MDMA, in the form of 37 pills and 6.3 grams of powder MDMA. Johnston paid the source $1,300 for the drugs. Following the transaction, Johnston was taken into custody and a federal search warrant was executed at the residence.
During the search agents found the MDMA used during the controlled exchange in a kitchen drawer. They also found a stainless steel Colt Officers Model .45 caliber pistol located in a small black bag, loaded with seven rounds in the magazine and one in the chamber located above the kitchen drawer that contained the drugs. Investigators eventually located a small amount of cocaine, steroids, hundreds of prescription pills, additional firearms, and hundreds of rounds of ammunition in the residence. They also found 8 other firearms, including an AR-15 and two 12 gauge shotguns. At all pertinent times, the defendant was employed as a sworn police officer.
“As a police officer who violated the public’s trust, a four year federal prison sentence is just and appropriate given the circumstances,” said U.S. Attorney John Walsh. “The fact that Johnston was involved in trafficking illegal drugs while also serving as a law enforcement officer is particularly disturbing.”
“Yesterday’s sentencing illustrates that public servants are not above the law and must be held accountable for failing to uphold their oath to maintain the public’s trust,” said FBI Denver Special Agent in Charge Thomas Ravenelle.
"Jeff was a good officer who dedicated twenty years to the Littleton community,” said Littleton Police Department Chief Doug Stephens. “His private life choices have cost him greatly and should serve as an example of how drugs ruin lives."
This case was investigated by the Federal Bureau of Investigation (FBI) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) who traced the firearms.
Johnston was prosecuted by Assistant U.S. Attorneys Guy Till and David Conner with assistance regarding the asset forfeiture from Assistant U.S. Attorney Tonya Andrews.
Former Federal Bureau of Prisons Employee Charged with Fraudulently Obtaining Compensation BenefitsRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that Christopher A. Seifer (age: 43) of Westfield, Wisconsin, has been indicted by a federal grand jury in Milwaukee. The indictment charges Mr. Seifer with four counts of mail fraud, in violation of Title 18, United States Code § 1341, and one count of theft of government property, in violation of Title 18, United States Code, § 641.
The indictment alleges that Mr. Seifer submitted over 1,380 false and fraudulent claim forms seeking reimbursement from the federal government for mileage expenses he falsely claimed to have incurred by driving to health clubs for rehabilitation. The indictment alleges that Mr. Seifer did not, in fact, travel to the health clubs on at least 1,380 of the dates, between March 28, 2006 and October 2, 2012, for which Mr. Seifer sought reimbursement of travel expenses.As a result of the false travel-expense claims, according to the indictment, Mr. Seifer fraudulently obtained over $87,289.99 in reimbursement payments from the Department of Labor’s Office of Workers Compensation Program, which provides disability-related benefits to federal workers who suffer disabilities as a result of work-related injuries. According to the indictment, Mr. Seifer had formerly been employed by the United States Bureau of Prisons as an Electronics Technician at the Federal Correctional Institution in Oxford, Wisconsin.
Each of the mail fraud counts subjects Mr. Seifer to a possible term of imprisonment of up to twenty years, a fine of up to $250,000, or both; a mandatory $100 special assessment; and up to three years of supervised release. The theft of government property count subjects Mr. Seifer to a possible term of imprisonment of up to 10 years, a fine of up to $250,000, or both, plus a mandatory $100 special assessment and up to three years of supervised release.
In announcing this indictment, James L. Santelle, United States Attorney for the Eastern District of Wisconsin commented: “This prosecution and others like it reflect our continuing, focused work in investigating and prosecuting those individuals, including employees of the federal government, who wrongly use taxpayers’ monies for their own purposes. The partnership among the United States Department of Labor and the United States Department of Justice in identifying and cataloguing the many instances of fraud, as alleged in this indictment, is not only critical to our appropriate response to behaviors involving false claims but also reflects the unified mission and strategy of all law enforcement entities here in Eastern Wisconsin.”
“These efforts reflect the importance of ongoing collaboration between federal agencies” stated John Oleskowicz, Special Agent in Charge of the United States Department of Justice, Office of Inspector General, Chicago Field Office. Oleskowicz continued “We hope that this prosecution will deter others from stealing federal funds.”
This case has been investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations and The U.S. Department of Justice Office of the Inspector General, Chicago Field Office. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Employee of Local Oil Company Pleads Guilty to Wire Fraud in A Scheme to Defraud EmployerRead the Press Release
Kevin D. Dowell, 37, of St. Louis, Missouri, entered a plea of guilty in federal district court to wire fraud in a scheme to defraud and embezzle from the FKG Oil Company, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dowell faces a prison sentence of up to 20 years, a fine of up to $250,000, up to 3 years of supervised release after serving his sentence, and mandatory restitution. Sentencing has been scheduled for May 30, 2014.
As part of the plea, Dowell admitted that while he was the Manager of the Human Resources Department of FKG Oil Company in Belleville, Illinois, and during the time period mid-2010 to April 2013, he falsified mileage expense reports, used a company credit card for personal expenses, and would transfer funds electronically from the company’s bank account directly to his personal bank account in Missouri. Dowell admitted that he caused a direct loss of $87,419 and an additional $26,565 in investigative expenses for a total loss of $113,984.
This crime was reported to the Belleville Police Department and a full investigation was performed by a third party firm. At completion of the full investigation, the case was turned over to the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Falsifying expense reports is a crime. To report suspicious activity to the F.B.I. call (217) 522-9675 or email [email protected]. To report public corruption, call (877) 884-7633 or (877) U-TIP-OFF. To report health care fraud, call (888) 557-9503.)
Former Cumberland Man Pleads Guilty to Bank Fraud and Tax Evasion ChargesRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Walter
Scott Fox, 56, formerly of Cumberland, Maine, and now of Canton, Georgia, pleaded guilty in
U.S. District Court to bank fraud and tax evasion charges.
According to court documents, from 1995 until 2011, Fox used his position as a loan officer at Casco Northern Bank and at its successor, KeyBank, to originate or authorize over
$14,000,000 in fraudulent loans and lines of credit using the identities of four real individuals, without their knowledge or consent. He used over $5,800,000 of the fraudulent proceeds to keep the loans current and prevent the detection of his scheme. He used almost $8,200,000 for personal expenses including to pay for his children’s educations and family vacations, and to support his business, “The Boathouse.” Fox failed to report receiving any of this income to the
Internal Revenue Service (“IRS”) causing a tax loss of over $1,300,000 between 2006 and 2011.The scheme was discovered in 2012 when KeyBank denied an increase for one of the credit lines because it did not fit the model for its community development loans. With no funds available to make payments and keep the scheme afloat, all the fraudulent loans became delinquent by August, 2012. Fox abruptly resigned his position at KeyBank on September 7, 2012 when a supervisor became concerned about the delinquent loans and made inquiries about the status of his loan portfolio.
Fox faces a sentence of up to 30 years of imprisonment and a fine of up to twice the gain or loss on the bank fraud charge and up to five years and a fine of up to twice the loss on the tax evasion charge. He will be sentenced after the completion of a presentence investigation report by the United States Probation Office.
The case was investigated by the Federal Bureau of Investigation and IRS - Criminal
Investigations.Former Connecticut Resident Pleads Guilty to Mortgage Fraud ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GARI-MARK THOMAS, 38, of Michigan, formerly of Norwalk, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of conspiracy to defraud the Federal Housing Authority through a mortgage fraud scheme.
According to court documents and statements made in court, in March 2008, THOMAS, while serving as a loan officer for Suntrust Mortgage, assisted his girlfriend in obtaining a residential real estate loan to purchase a property at 510 E. Main Street in Stratford by submitting fraudulent information to the lender and the Federal Housing Authority (FHA). The fraudulent information included a false claim that his girlfriend was employed with a tax and accounting company, false paystubs, false IRS tax forms and phony bank statements to make it appear that she had a bank account with assets in it, when in fact she had no such assets.
Based on the fraudulent loan documentation, the loan was issued by the lender and insured by the FHA. THOMAS’ girlfriend ultimately defaulted on the loan, causing a loss of approximately $184,000 to the FHA.
THOMAS is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 23, 2014, at which time THOMAS faces a maximum term of imprisonment of five years.
This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Camden Town Manager Sentenced to 24 Months in PrisonRead the Press Release
WILMINGTON, Del. – James O. Plumley, the former Town Manager of Camden, Delaware, was sentenced today by United States District Court Judge Richard G. Andrews to 24 months of imprisonment for his role in a kickback scheme to unlawfully defraud the State of Delaware of over $200,000 dollars in years 2004 through 2008. In addition to the prison term, Judge Andrews ordered Plumley to repay over $204,000 to the State of Delaware.
Prior to his position as the Camden Town Manager, Plumley was employed at Roofing Resources, Inc., and was responsible for assisting the State of Delaware’s Division of Facilities Management select qualified contractors to repair and maintain roofs at state-owned facilities. Plumley used this position to steer roofing contracts to his co-defendant, contractor William P. Mahon. In return and at Plumley’s direction, Mahon inflated his project bids by a specified amount, which he later deposited into Plumley’s checking account as a kickback. Over the course of the scheme, the FBI was able to identify $204,000 in kickbacks that Plumley received from Mahon between 2004 and 2008.
This case was made possible through substantial cooperation by the Camden Police Department, including Chief of Police William E. Bryson and Captain Gary Melvin, who conducted the initial investigation of Plumley and provided the FBI with a strong foundation for its case here.
Charles M. Oberly, III, United States Attorney for the District of Delaware stated, “This is an example of our commitment to work tirelessly with our law enforcement partners to investigate and prosecute individuals who criminally exploit positions of trust within our community. This is especially true when individuals abuse the government’s trust for their own benefit. Hopefully, this prison sentence will serve as a deterrent to others who elevate their own benefit above the duty they owe to the citizens of Delaware.”
“Tax payers trust their tax money will be used wisely, and not stuffed into the pockets of corrupt people. The reason people who serve governments are held to a higher standard is because they have access to incredible power and influence. It can’t be abused, and the FBI and U.S. Attorney’s Office won’t let it be,” said FBI Baltimore Division Special Agent in Charge Stephen Vogt.
The case was prosecuted by Assistant United States Attorneys Shawn A. Weede and Jennifer L. Hall. For further information, please contact Public Information Officer Kim Reeves at (302) 573-6277, ext. 16287.
See Also: United States v. William P. Mahon, Criminal Action No. 13-33-RGA
Fenton Man Sentenced to Almost 30 Years on Child Exploitation ChargesRead the Press Release
A man who enticed a minor to engage in sexual activity and possessed child pornography was sentenced February 3, 2014, to almost 30 years in federal prison.
Timothy Koenck, age 54, of Fenton, Iowa, received the sentence after a September 26, 2013, guilty plea to one count of enticing a minor to engage in sexual activity, one count of committing a felony offense involving a minor by a person required to register as a sex offender, and two counts of possession of child pornography. Koenck previously had been convicted of enticement of a minor and possession of child pornography in 2001-2002.
Koenck was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Koenck was sentenced to 355 months’ imprisonment. A special assessment of $400 was imposed, and Koenck must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Kossuth County Sheriff’s Office, and the Mower County, Minnesota, Sheriff’s Office.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3016.
Felon in Possession of Firearm Sentenced to 41 MonthsRead the Press Release
EUGENE, Ore. – On January 31, 2014, Scott Alan Gorman, 46 years old, was sentenced by U.S. District Chief Judge Ann Aiken to 41 months in federal prison for unlawful possession of a firearm. Upon his release from prison, Gorman will be on supervised release for three years.
On January 7, 2013, Gorman made threatening statements about having a firearm and an underground bomb shelter that scared employees at an adult care facility. The next morning, law enforcement responded to Gorman’s home and found in his bedroom a loaded Bushmaster .223 semi-automatic rifle and four loaded 30-round magazines. Gorman has a prior felony conviction for unlawful use of a weapon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eugene Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik. The Lane County District Attorney’s Office is also prosecuting Gorman based upon an unrelated alleged assault.
Expatriate American Sex Offender Sentenced to Thirty Years in Prison in Foreign Sexual Abuse and Child Pornography CaseRead the Press Release
PORTLAND, Ore. – A previously-convicted sex offender who moved to Ecuador, sexually abused young boys there, and produced and distributed images of the abuse was sentenced in federal court this morning to 30 years in prison followed by a life term of supervised release. U.S. District Judge Michael H. Simon imposed the sentence on Kenneth Robert McVicker III, 50, following McVicker’s plea of guilty to traveling in foreign commerce and engaging in illicit sexual conduct with minors. While on supervised release, McVicker will be subject to stringent conditions of supervision, including prohibitions on associating with minors and frequenting places where children congregate, and restrictions on his use of computers. McVicker will also be required to participate in sex offender treatment, and must register as a sex offender.
McVicker was convicted of a number of child molestation offenses in Maryland in the 1980s, for which he spent close to 15 years in prison. After his release, and after completing a term of post-prison supervision, McVicker moved to a small coastal village in Ecuador, where he taught English and worked as an artist and soccer coach. While in Ecuador, he sexually abused at least eight young boys between the ages of five and twelve, took photographs and made videos of the abuse, and distributed the images to child pornography traders and collectors in Canada, India, Thailand, and Mexico. McVicker used the images he created as currency to obtain images of child sexual abuse from others. Agents from the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) learned of McVicker’s activities after one of those collectors, a convicted American child pornographer living in Mexico, sent hundreds of McVicker’s self-produced images to an undercover HSI agent in Oregon posing as a child pornography collector. The collector in Mexico is presently serving a 15-year federal sentence following his conviction in Oregon for transportation of child pornography.
McVicker was indicted in Oregon and arrested in Belize after he travelled there to work on a commercial art project. Acting on information provided by HSI, authorities in Ecuador served an Ecuadoran search warrant at McVicker’s residence and seized his computer equipment. Forensic examinations of the equipment revealed a vast collection of over 360,000 images and more than 1,300 videos depicting the graphic sexual abuse of young children.
At the sentencing hearing, McVicker said that while he was born in the United States, he did not grow up here, and does not consider the United States his country. He believes that he should be facing charges in Ecuador, not in the United States. The government noted that McVicker’s conduct violated the laws of the United States, and was no less serious because his victims lived in Ecuador.
Judge Simon asked McVicker what “we, as a society” can do to prevent the sexual abuse of children in the future. McVicker replied, “Nothing at all.” He also apologized to “everyone who got hurt” by his conduct. Judge Simon urged McVicker to consider participating in scientific research geared toward better understanding and preventing future instances of child sexual abuse “in part, to repay for harms you’ve already caused.”
U.S. Attorney Amanda Marshall praised the sentence imposed on McVicker. “This sentence sends a strong message that there is no safe haven for predators who sexually abuse children – not in this country, and not abroad,” she said. McVicker’s conduct was “particularly egregious” because “he created images of the abuse, distributed the images, and used them to amass a horrific library of sexual abuse images and videos.” She also praised the “extraordinary efforts of the HSI agents, both here and abroad,” in identifying and locating McVicker. Because of those efforts, Marshall said, “Kenneth McVicker will never again be able to sexually abuse a child.”
HSI officials echoed Marshall’s comments. “Kenneth McVicker repeatedly abused young children to satisfy his sexual desires, and continued doing so even after moving to another country,” said Brad Bench, special agent in charge of HSI’s Seattle office, which oversees Oregon investigations. “Americans who travel overseas to abuse children are not beyond the reach of U.S. law. HSI special agents will go anywhere in the world to track down child predators and bring them to justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice 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.
This case was investigated by the Homeland Security Investigations and was prosecuted by Assistant U. S. Attorneys Gary Sussman, Project Safe Childhood Coordinator for the U.S. Attorney’s Office in Oregon, and Kelly Zusman, Appellate Chief for the District of Oregon.
Dutchess County Woman Convicted in White Plains Federal Court of Wire Fraud, Filing False Claims, Bank Fraud, and Corruptly Interfering with the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELANIE FERREIRA, 61, was found guilty on all counts of a four-count Indictment today that charged her with engaging in a series of frauds, which included cheating the Internal Revenue Service (“IRS”) out of nearly half a million dollars, and perpetrating a bank fraud scheme. The verdict came following a seven-day jury trial in White Plains Federal Court before U.S. District Judge Cathy Seibel.
U.S. Attorney Preet Bharara stated: “Melanie Ferreira thought she could enjoy the fruits of law-abiding taxpayers’ money while evading the tax laws and defrauding the government. Through today’s jury verdict, she learned how wrong she was.”
According to the Indictment and the evidence at trial:
On October 15, 2009, FERREIRA filed a U.S. Individual Income Tax Return, Form 1040, for the year 2008 (“2008 Return”). In her 2008 Return, she falsely reported interest income of $661,600 from three different banks. She then falsely claimed that she had paid taxes in the amount of $661,536 to the IRS for Tax Year 2008. On that basis, she claimed a refund of $440,924. In reality, she actually earned only $17 in interest income in 2008. Further, contrary to her claim on her 2008 Return that she had already paid $661,536 in federal taxes, she actually paid only $236.
On October 23, 2009, the IRS wired $440,924 to FERREIRA’s bank account. That same day, FERREIRA wired $44,100 to the individual listed on her tax return as her “tax preparer” and $88,172 to the individual who introduced her to the “tax preparer.”
The following spring, on April 15, 2010, FERREIRA tried to carry out the same type of scheme – requesting of a refund of over $332,033 – when she filed her Form 1040 for the year 2009, but this time, the IRS rejected her refund request. Thereafter, when the IRS notified FERREIRA that she was required to pay back the $440,924 plus interest and penalties, FERREIRA sent the IRS a series of incomprehensible documents and a worthless check for $759,033.05 written on a closed account.
In addition, FERREIRA also perpetrated a bank fraud scheme against the Bank of America (“BOA”), which was the bank that held the mortgage for her house in Dutchess County, New York (“House 1”). In May 2010, she caused a forged cashier’s check for $316,966.05, purporting to be drawn on the Federal Reserve Bank of Cleveland, Ohio (“Check 1”), to be sent to BOA in satisfaction of the mortgage on House 1. Believing that Check 1 was legitimate, BOA filed a satisfaction of mortgage. BOA subsequently determined that Check 1 was fraudulent and filed suit in New York State Supreme Court in order to have the mortgage reinstated. On June 2, 2012, FERREIRA sent a personal check in the amount of $305,000 (“Check 2”) to BOA, purporting, again, to pay off the balance of her mortgage. On the memo line of Check 2, FERREIRA wrote, in red ink, “FOR DISCHARGE OF DEBT EFT ONLY.” Check 2 was written on a bank account that had been closed two years before.
As reflected in papers filed in Court: FERREIRA’s schemes – sometimes known as a 1099-OID scheme and an electronic funds transfer or “EFT” scheme – are schemes often used by adherents to the Sovereign Citizens Movement, a group comprised of individuals who, although they reside in the United States, assert the position that they do not have to answer to any government authority, including courts, taxing entities, motor vehicle departments or law enforcement.
FERREIRA faces a maximum sentence of 58 years in prison and a maximum fine of $1,000,000, or twice the gross gain or gross loss from the offense. Judge Seibel set a sentencing date of May 20, 2014 at 2 p.m.
FERREIRA lived in Lagrangeville, New York, until her conviction today. Judge Seibel remanded her following the conviction.
Mr. Bharara praised the outstanding investigative work of the law enforcement partners involved in the investigation, including the FBI’s Joint Terrorism Task Force and the IRS.
This prosecution is being handled jointly by the Office’s Terrorism and International Narcotics Unit and the White Plains Division. Assistant United States Attorneys Jason P.W. Halperin and Marcia S. Cohen are in charge of the prosecution.
U.S. v. Melanie Ferreira Superseding Indictment
District of Oregon Assistant United States Attorneys Chosen as Recipients of 30th Annual Director's AwardsRead the Press Release
PORTLAND, Ore. - Four Assistant United States Attorneys (AUSAs) in the District of Oregon have been selected as recipients of the 2014 Director’s Awards by the Executive Office for United States Attorneys in Washington, D.C. The Director’s Awards are awarded for distinguished service to the mission of the Department of Justice through extraordinary professional achievements and excellence.
AUSA Gary Sussman was awarded the Director’s Award for Superior Performance as a Criminal AUSA for his work as the Project Safe Childhood Coordinator (PSC). He has served in this capacity for over seven years. AUSA Sussman has worked with federal, state, and local law enforcement and prosecutors to investigate child sexual abuse and exploitation offenses with an eye towards federal prosecution for particularly serious offenders. PSC prosecutions doubled between 2011 and 2012. As a result of his efforts, many sexual predators are serving substantial federal prison sentences.
AUSAs Tim Simmons, Craig Gabriel, and Billy Williams received the Director’s Awards for Superior Performance in Indian Country. All three AUSAs serve as Tribal Liaisons to the nine federally recognized tribes in Oregon. They received this award for their achievements in promoting the safety of Indian Tribal communities, establishing trusted government-to-government relationships, prosecuting Indian Country cases, and their work on jurisdictional complexities. Their work has concentrated on fulfilling the United States’ trust responsibilities by helping to protect Indian treaty and ancestral rights, and facilitating partnerships between tribal officials and both federal and state law enforcement regulatory agencies. They have instituted concrete changes in Indian country in promoting partnerships necessary for effective Indian Country law enforcement. This has led to effective and aggressive prosecution strategies and a dramatic reduction in crimes and violence affecting tribal communities in Oregon.
“This recognition by the Executive Office of U.S. Attorneys is a huge honor for all of the employees of the United States Attorney’s Office in the District of Oregon. Nationwide, many Department of Justice employees are nominated for these prestigious awards”, said U.S. Attorney Amanda Marshall. “I am particularly proud to have our Indian Country and Project Safe Childhood prosecutors recognized in this way as it speaks to the hard work of our office, prioritization, and continued commitment in these areas. Having four of our AUSAs recognized for their significant contributions to the mission of the Department of Justice, and the citizens of Oregon is a testament to the commitment, dedication, and hard work of all our employees.”
District Man Sentenced to Six Years in Prison for Pair of December 2012 Bank Robberies- Defendant Robbed Two Banks Within 48 Hours -Read the Press Release
WASHINGTON – Scott Lee Feuer, 58, of Washington, D.C., was sentenced today to six years in prison for robbing two banks in December 2012, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Edwin D. Sloane, U.S. Marshal for the District Court of the District of Columbia.
Feuer pled guilty to two counts of bank robbery in October 2013 and was sentenced today by the Honorable Rosemary M. Collyer in the U.S. District Court for the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. He also was ordered to pay $698 in restitution.
According to a factual proffer of evidence presented at the time of the guilty plea, on the afternoon of Dec. 26, 2012, Feuer entered a SunTrust Bank in the 900 block of 17th Street NW, approached a bank employee, and handed over a note demanding money. Feuer stole $692 from the bank before fleeing the area. Less than 48 hours later, on the morning of Dec. 28, 2012, Feuer entered a SunTrust Bank in the 1300 block of Connecticut Avenue NW, approached a bank employee, announced a robbery, and demanded money. Feuer stole $2,350 from the bank.
Feuer was apprehended by officers with the Metropolitan Police Department (MPD) moments later inside the Dupont Circle Metro Station. Some stolen proceeds were recovered.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and U.S. Marshal Sloane commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case, the U.S. Marshals Service, and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Jessica Moffatt, and Assistant U.S. Attorneys Arvind K. Lal and Catherine K. Connelly, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crime and Narcotics Trafficking Section, who prosecuted the case.
14-031District Man Sentenced to Six Years in PrisonRead the Press Release
For Pair of December 2012 Bank Robberies
- Defendant Robbed Two Banks Within 48 Hours -WASHINGTON – Scott Lee Feuer, 58, of Washington, D.C., was sentenced today to six years in prison for robbing two banks in December 2012, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Edwin D. Sloane, U.S. Marshal for the District Court of the District of Columbia.
Feuer pled guilty to two counts of bank robbery in October 2013 and was sentenced today by the Honorable Rosemary M. Collyer in the U.S. District Court for the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. He also was ordered to pay $698 in restitution.
According to a factual proffer of evidence presented at the time of the guilty plea, on the afternoon of Dec. 26, 2012, Feuer entered a SunTrust Bank in the 900 block of 17th Street NW, approached a bank employee, and handed over a note demanding money. Feuer stole $692 from the bank before fleeing the area. Less than 48 hours later, on the morning of Dec. 28, 2012, Feuer entered a SunTrust Bank in the 1300 block of Connecticut Avenue NW, approached a bank employee, announced a robbery, and demanded money. Feuer stole $2,350 from the bank.
Feuer was apprehended by officers with the Metropolitan Police Department (MPD) moments later inside the Dupont Circle Metro Station. Some stolen proceeds were recovered.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and U.S. Marshal Sloane commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case, the U.S. Marshals Service, and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Legal Assistant Jessica Moffatt, and Assistant U.S. Attorneys Arvind K. Lal and Catherine K. Connelly, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorney David B. Kent, of the Violent Crime and Narcotics Trafficking Section, who prosecuted the case.
14-31
District Man Sentenced to Six Years in PrisonRead the Press Release
For Pair of December 2012 Bank Robberies
- Defendant Robbed Two Banks Within 48 Hours -WASHINGTON – Nicholas Hanlon, 28, of Stafford, Va., was sentenced today to eight years in prison on one count of traveling interstate to engage in illicit sexual conduct with a minor and two counts of receipt of child pornography.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Earl L. Cook, Chief of the Alexandria Police Department, Alexandria, Va.
Hanlon pled guilty to the charges in November 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Gladys Kessler. Upon completion of his prison term, Hanlon will be placed on 10 years of supervised release.
According to the government's evidence, on April 25, 2013, a member of the FBI's Child Exploitation Task Force, a detective from the Alexandria Police Department, was contacted by the parent of an under-aged female who was concerned that the child had been engaged in illicit text message conversations with Hanlon and others. The task force member, in an undercover capacity, began communicating with Hanlon, who believed the officer was the child.
Over the next few days, Hanlon engaged in text messaging with the undercover officer. During this period of time, Hanlon arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On April 25, 2013, Hanlon traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. Subsequent to his arrest, law enforcement searched Hanlon’s computer and cell phone. Pursuant to that search, law enforcement found evidence that Hanlon had been communicating via text message and email with multiple young girls. Specifically, law enforcement recovered evidence that Hanlon received explicit videos from a female child from Missouri and from a 15-year-old from Virginia.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and Chief Cook praised the work of the MPD and Alexandria Police Detectives and Special Agents of the FBI Child Exploitation Task Force. Finally, they commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-30Court Bars N.C. Tax Return Preparer from Preparing Returns for OthersRead the Press Release
Today, a federal court in the Eastern District of North Carolina permanently barred Sharon D. Rhodes and her businesses, R&S Freedom Tax Service and Changing Faces Annoited Tax Services, from preparing tax returns for others. Rhodes consented to the entry of the injunction without admitting she was guilty of the allegations against her.
According to the complaint, Rhodes prepared over 600 tax returns for the 2008 through 2010 tax years. The complaint alleges that Rhodes prepared returns claiming false charitable deductions and false credits such as the Earned Income Tax Credit and education credits. Rhodes also allegedly improperly understates her customers’ federal tax liabilities by creating phony businesses and then listing those fake businesses on returns and fabricating expenses and losses for them. The United States contended that the false items generated larger refunds for Rhodes’ customers than they were entitled to receive, and that the losses to the U.S. Treasury could amount to as much as $3 million.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2013, which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . The IRS has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm .
Related Materials:
United States v. Sharon D. Rhodes
Agreed Final Judgment of Permanent Injunction and Order Against Sharon D. RhodesClinton Woman Sentenced to Prison for Bank Fraud and Tax EvasionRead the Press Release
Jackson, Miss. -- Barbara Cummings, 60, of Clinton, Mississippi, was sentenced by U.S. District Judge David Bramlette to 23 months in federal prison followed by five years of supervised release for bank fraud and tax evasion, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Daniel McMullen, and Special Agent in Charge Gabriel Grchan with IRS Criminal Investigation - New Orleans Field Office. A restitution and forfeiture hearing in this case will be held on March 25, 2014, at 11:00 a.m.
From March 2007 through March 2009, Cummings was employed as the office manager at Mid-South Machinery in Jackson. During her employment, she systematically forged the signatures of the owners of Mid-South Machinery on numerous checks drawn on Mid-South Machinery’s accounts at First Commercial Bank, making such forged checks payable to herself and her husband and cashing and depositing such funds into her personal bank account. Cummings also altered the dollar amounts written on transaction tickets from Mid-South’s Regions Bank account that were made payable to “Petty Cash” or she would fraudulently create a transaction ticket, making it payable to “Barbara Cummings,” and keep some or all of the money. When interviewed by agents of the FBI and IRS, Cummings admitted to embezzling the funds from Mid-South by defrauding the banks. During 2008, she prepared her own income tax return, where she intentionally failed to report over $120,000 in income she had received that year through her fraudulent scheme in order to pay less tax on her income.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Mike Hurst.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
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Help us combat the proliferation of sexual exploitation crimes against children.
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Cleveland Man Indicted for Four Bank RobberiesRead the Press Release
A grand jury returned a four-count indictment charging Eddie J. Fletcher, 39, of Cleveland, with three counts of bank robbery and one count of attempted bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Fletcher robbed three banks: First Merit Bank of Streetsboro, Ohio, on January 10, 2013; Chase Bank of Cleveland, Ohio, on April 3, 2013; and, First Place Bank of Cleveland Heights, Ohio, on September 9, 2013. The indictment further alleges that Fletcher attempted to rob the same Chase Bank branch on November 25, 2013.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, the Streetsboro Police Department, and other local law enforcement agencies.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Campbellsville Man Sentenced to 15 Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
– Defendant had prior child pornography conviction in Massachusetts
LOUISVILLE, Ky. – A Campbellsville man who previously pled guilty to violating federal child exploitation laws, was sentenced to 15 years in prison, followed by 15 years of supervised release yesterday, by Chief United States District Court Judge Joseph H. McKinley, Jr., announced David J. Hale, United States Attorney for the Western District of Kentucky.
Michael William Bolter, age 42, pleaded guilty to a two-count Indictment on November 15, 2013. The Indictment charged him with distributing and possessing child pornography. Bolter had a 2001 child pornography conviction in Bristol Superior Court of Massachusetts.
While working online in an undercover capacity on December 19, 2012, a Deputy Sheriff in Taylor County observed an IP address for a computer that had been sharing images of child pornography. The Deputy Sheriff downloaded numerous files of child pornography from the computer with the previously-identified IP address. He obtained and executed a state search warrant (on January 29, 2013), at the physical address associated with the IP address during which law enforcement officials seized a Toshiba laptop.
Law enforcement officials identified Michael William Bolter as the person using the computer to trade child pornography. During an interview conducted simultaneously with execution of the search warrant, Bolter admitted that child pornography images would be on his computer. Subsequent forensic examination of the computer by the Federal Bureau of Investigation revealed approximately 3,000 still images and 50 movie files containing child pornography. Many of the files were recovered from a folder labeled AMy shared folder@ within a peer-to-peer file sharing program on the Toshiba laptop.
Assistant U. S. Attorney Jo E. Lawless prosecuted the case. The Taylor County Sheriff’s Department and Louisville Division of the Federal Bureau of Investigation (both members of the Kentucky Internet Crimes Against Children Task Force), conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab.
Bluffton Man Sentenced to 15 Years in Prison for Conspiracy to Smuggle Firearms, Stolen Cars to BoliviaRead the Press Release
SAVANNAH, GA: ROBERTO BARRERO, 46, a naturalized American citizen originally from Bolivia, was sentenced last week by Senior Judge B. Avant Edenfield to 15 years in prison for his role in a far-reaching conspiracy whose goals included smuggling firearms and stolen cars to Bolivia, smuggling contraband cigarettes to New York, trafficking cocaine, and laundering millions of dollars of drug proceeds. The organization was investigated as part of Operation Pulaski, a long-term undercover operation that resulted in federal charges against 45 defendants and the seizure of 188 firearms, over 200 grams of heroin, over 3 kilograms of cocaine, and 9 stolen vehicles.
United States Attorney Edward J. Tarver stated, Operation Pulaski was an innovative effort to fight organized criminal activity that impacts not just South Georgia, but the entire east coast and foreign countries, as well. Smugglers, gun runners, drug traffickers, and other criminals should take this sentence as a warning signal that the Port of Savannah is not available to them as a gateway to commit their crimes within the United States of America. If they attempt to use our ports in this way, they will be prosecuted and punished.
“Yesterday’s sentence is a direct result of ATF and our law enforcement partners working on the frontline of preventing violent crime by leveraging technology and utilizing our expertise, resulting in a safer community for the citizens of Savannah and the surrounding area”, said ATF Special Agent in Charge Christopher Shaefer. “Removing firearms and the criminals who illegally use and traffic firearms from the street makes a positive impact and contributes to stabilizing those areas which are fraught with criminal activity.”
BARRERO was convicted of conspiracy to deal in firearms without a license, to transport stolen vehicles across state lines, to possess untaxed cigarettes, and to commit money laundering. He was also convicted of carrying a firearm during and in relation to drug trafficking. At sentencing, Judge Edenfield noted that BARRERO was responsible for trafficking over 50 firearms, 9 stolen vehicles, 2,370 cartons of untaxed cigarettes, and 935.15 grams of cocaine. He also conspired to launder between 2 and 18 million dollars in drug proceeds. He obliterated the serial numbers from 19 of the firearms, to avoid their detection by law enforcement. Finally, the Court noted that BARRERO traded 23 firearms for 2 stolen cars, attempted to convert some semiautomatic firearms to fully automatic machineguns, and recruited multiple individuals to participate in the conspiracy. BARRERRO was also ordered to pay $130,571.32 in restitution and a $200 special assessment. Once he is released from prison, he will serve five years of supervised release. Mr. Tarver noted that there is no parole in the federal system.
BARRERO and six of his codefendants were convicted after pleas of guilty to various counts of a 52-count Superseding Indictment returned by the Grand Jury of the Southern District of Georgia on July 10, 2013. Two additional codefendants were charged in the indictment but have not yet been apprehended.
The case was the result of a long-term undercover investigation conducted by the ATF, in cooperation with the Georgia Department of Revenue, Homeland Security Investigations, and United States Customs and Border Protection.
Assistant United States Attorney Cameron Heaps Ippolito prosecuted this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547 or [email protected].
Berkeley Psychologist Convicted of Theft of Government Property and Tax EvasionRead the Press Release
OAKLAND – Yesterday a federal jury convicted Hugh Leslie Baras, a psychologist and Berkeley resident, on five counts of tax evasion and one count of theft of government property, United States Attorney Melinda Haag, and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. . Martinez announced.
The evidence presented during the seven-day trial before the honorable Yvonne Gonzalez Rogers, United States District Court Judge, showed that Baras, who formerly worked as a psychologist at Kaiser Permanente, and as an Adjunct Clinical Assistant Professor in the Department of Psychiatry and Behavioral Sciences at Stanford University School of Medicine, started a solo, private practice in Palo Alto, Calif., in late 2002. At his private practice, the Baras provided clinical psychotherapy services to clients. During the years 2005 through 2009, the defendant’s private practice generated over $1,000,000 of income. Although he filed timely federal income tax returns for each of these years, Baras omitted all of the income produced by his private practice from those returns. In addition, although he was self-employed and earning substantial income, Baras continued to collect Disability Insurance Benefits from the Social Security Administration. Between 2006 and 2009, Baras received Disability Insurance Benefits payments totaling $80,615.80 to which he was not entitled.
Baras’ sentencing hearing is scheduled for May 22, 2014, at 2:00 p.m., before Judge Gonzalez Rogers in Oakland. The maximum statutory penalty for each count of tax evasion, in violation of Title 26, U.S.C § 7201 is five years in prison and a fine of $250,000. The maximum statutory penalty for each count of theft of government property, in violation of Title 18, U.S.C § 641 is ten years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Michael G. Pitman is the Assistant United States Attorney prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and the United States Social Security Administration, Office of Inspector General.
(Baras superseding indictment )
Bergen County, N.J., Woman Admits Role in $2 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. - A Bergen County, N.J., woman today admitted her role in a large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Klary Arcentales, 45, of Lyndhurst, N.J., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging her with one count of conspiracy to commit bank fraud and four counts of bank fraud.
According to the documents filed in this case and statements made in court:
Between 2007 and 2012, Arcentales engaged in a mortgage fraud conspiracy through a company called Premier Mortgage Services (Premier), where she worked as a loan officer. Arcentales provided false and fraudulent documents to financial institutions in connection with mortgage loan applications on behalf of “straw buyers” to induce those financial institutions to fund mortgage loans. Arcentales then profited illegally by receiving a commission from Premier for each mortgage loan that she closed and by diverting portions of the fraudulently obtained mortgage proceeds to herself.
Two other conspirators, Lester Soto, 57, of Freehold, N.J., and Linda Cohen, 56, of Orange, N.J., previously pleaded guilty in connection with their roles in the mortgage fraud scheme. Soto acted as a loan officer on certain Premier mortgage loan applications and took a percentage of Premier’s profits. Soto employed document makers to create false and fraudulent documents in furtherance of the scheme and put loan officers at Premier, including Arcentales, in contact with these document makers to create other false and fraudulent documents. Soto is scheduled to be sentenced on Feb. 10, 2014.
Cohen was a paralegal who served as the settlement agent on mortgage loans brokered by Arcentales for various properties. Cohen convened closings, received funds from lenders, and prepared “HUD-1” reports that claimed to reflect the sources and destinations of funds for mortgages on subject properties. However, the HUD-1s were neither true nor accurate. Cohen is scheduled to be sentenced Feb. 18, 2014.
Arcentales faces a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss caused by her offense. Sentencing is currently scheduled for May 19, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Zach Intrater of the Criminal Division in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
14-039Defense counsel: Michael Orozco Esq., Newark
Arcentales, Klary Indictment
Army Soldier Sentenced on Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
A former U.S. Army soldier was sentenced to serve 87 months in prison for her role in stealing fuel at Forward Operating Base (FOB) Fenty, Afghanistan, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced today.
Former U.S. Army Specialist Stephanie Charboneau, 35, of Colorado Springs, Colo., was sentenced on Feb. 3, 2014, by U.S. District Court Philip A. Brimmer. Charboneau pleaded guilty on Sept. 5, 2013.
According to court documents, from approximately February through May 2010, Charboneau was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. As part of this process, documents generally described as “transportation movement requests” (TMRs or mission sheets) were created to authorize the movement of fuel.
According to court documents, Charboneau conspired with others to steal and sell fuel. The essence of the scheme was that the conspirators would create fraudulent TMRs that purported to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation mission was required. After the trucks were filled with fuel, the fraudulent TMRs were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint to justify the trucks’ departures from FOB Fenty. In truth, the fuel was simply stolen, and the conspirators would receive money from the trucking company that stole the fuel.
Charboneau pleaded guilty to bribery and conspiracy to commit bribery for having received payments from a representative of the trucking company in exchange for facilitating the theft of approximately 70 truckloads of fuel. According to court documents, the loss to the United States as a result of the thefts was in excess of $1,225,000.
Charboneau’s plea was the fourth guilty plea arising from the investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Charboneau, pleaded guilty to similar charges. After cooperating with the government, he was sentenced to serve 24 months in prison on Oct. 28, 2013. On Oct.10, 2012, Christopher Weaver, who also conspired with Charboneau, pleaded guilty to fuel theft charges, and, after cooperating with the government, was sentenced to serve 37 months in prison on Oct. 28, 2013. Both Weaver and Hightower were prosecuted in the United States District Court for the District of Colorado. On Aug. 29, 2013, Sergeant Bilal Kevin Abduallah, who succeeded Charboneau at FOB Fenty, pleaded guilty in the United States District Court for the Western District of Kentucky to fuel theft-related charges. His sentencing is set for Feb. 12, 2014.
The cases were investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR); the Department of the Army, Criminal Investigations Division (CID); the Defense Criminal Investigative Service; and the Federal Bureau of Investigation.
These cases were handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, who is on detail from SIGAR.Armed Career Criminal Sentenced to 15 Years in Prison for Possessing a FirearmRead the Press Release
EUGENE, Ore. – On Tuesday, February 4, 2014, U.S. District Chief Judge Ann Aiken sentenced Michael Lee Fry, 38, of Douglas County, Oregon, to a prison term of 15 years for being a felon in possession of a firearm. Following his release from prison, the defendant will be on supervised release for five years.
On November 13, 2011, a Sutherlin Police Officer stopped the defendant’s vehicle for a traffic violation and for suspicion that the defendant was driving under the influence. A female passenger ran away from the vehicle and the defendant was detained for not having a driver’s license. A pat down of the defendant revealed a knife with crystal residue and he showed several signs of having used methamphetamine. The defendant’s vehicle was searched and a pistol was located in his backpack. The defendant’s felony convictions include unlawful use of a weapon, delivery of a controlled substance, attempt to elude and first degree burglary.
This case was investigated by the Sutherlin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Aracoma Contracting, Llc Sentenced for Hiding Millions in Cash Withdrawals from Bank of MingoRead the Press Release
Company that schemed to bilk BrickStreet out of millions in insurance premiums ordered to pay more than $4 million in restitution
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin announced that Williamson, W.Va.-based employee leasing firm, Aracoma Contracting, LLC (“Aracoma”), was sentenced to three years of probation and ordered to pay more than $4 million in restitution and forfeit another $405,000 in connection with a structuring scheme involving more than $2 million in cash withdrawals from the company’s bank accounts once held at a Mingo County bank. “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).
Acting on behalf of Aracoma, its principals Jerome Edward Russell, 50, of Williamson and Frelin R. Workman, 58, of Belfrey, Kentucky formed a longstanding relationship with Bank of Mingo, and, particularly, one of its employees at the bank’s Williamson branch. From January of 2009 through April of 2012, Aracoma structured at least $2.2 million out of Bank of Mingo. Russell and Workman also enlisted the assistance of a number of individuals who agreed to appear at the Williamson branch and cash cashier’s checks. The cash from the bank withdrawals was later brought back to Aracoma’s office to be used to pay cash payroll.
During the scheme, Aracoma sent advance forms to the Williamson branch prior to the structured cash withdrawals, so the bank could prepare the cash ahead of time. Bank of Mingo would then prepare cashier’s checks in the names of the identified individual or individuals and pre-count the requested cash. When an individual or individuals from Aracoma appeared at a Bank of Mingo teller window, a bank representative presented them with the cashier’s check in the individual’s name. The check was immediately endorsed and the individual was given the pre-counted cash.
Despite numerous times when multiple individuals appeared at the same teller window to endorse cashier’s checks that exceeded $10,000 on Aracoma’s line of credit, Bank of Mingo routinely failed to file notifications, known as currency transaction reports, as required by law.
As part of its sentencing, Aracoma admitted that substantially all of the cash structured out of Bank of Mingo by Aracoma was used to pay the company’s payroll in cash, therefore avoiding the payment of required federal employment taxes and also to make bribe payments to a former BrickStreet field auditor, Arville Sargent.
Sargent, 52, of Chapmanville, previously pleaded guilty in March of 2013 to honest services mail fraud and tax evasion. As a field auditor, Sargent purposely allowed four “employee leasing” companies, including Aracoma, to falsify documents drastically understating their actual payroll. In exchange for saving those policyholders millions of dollars in insurance premiums rightfully owed to BrickStreeet, Sargent accepted hundreds of thousands of dollars in cash bribes and other things of value, including a Yamaha Rhino all-terrain vehicle. At today’s sentencing, the district court held Aracoma jointly and severally liable for the $4 million owed in restitution to BrickStreet and the State of West Virginia by Sargent, Russell and Workman.
Sargent was previously sentenced in October of 2013 to six years in federal prison. Russell and Workman each were sentenced to their thirty months of imprisonment for their role in bribery scheme.
The FBI, the IRS, the West Virginia State Police and the West Virginia Insurance Commission conducted the investigations. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
10 Defendants Sentenced in Central Louisiana Cocaine Distribution ConspiracyRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that 10 defendants were sentenced last week by U.S. District Judge Dee D. Drell, for their roles in a cocaine distribution network operating across the central Louisiana area.
The defendants were sentenced on Thursday and Friday to three years of supervised release in addition to the drug conspiracy charge. They are: Michael J. Wright, 27, of Houston, who received 70 months in prison; Dennis Wayne Bradford, 30, of Cottonport, La., who received 54 months; Falon S. Maricle, 31, who received 40 months and Brandon C. Thomas, 31, who received 152 months, both of Marksville, La.; Abraham Baylor III, 39, who received 45 months, Earnest G. Miles III, 25, who received 48 months, Leotis V. Perry, 36, who received 60 months, Sedrick D. Porter, 36, who received 60 months, Terrace D. Winchester, 34, who received 44 months, and Dontour D. Drakes, 37, who received 168 months, all of Alexandria, La. Drakes was also sentenced to five years in prison as part of his sentence for one count of possession of a firearm in furtherance of a drug trafficking crime.
According to evidence presented at the guilty plea, from January 2012 through March 2013, authorities in Avoyelles and Rapides parishes conducted an investigation into cocaine trafficking that resulted in the arrest of these 10 defendants. It was determined that this group was responsible for the sale and distribution of more than 10 kilos of cocaine. Law enforcement agents seized more than 5 kilograms of powder cocaine, 500 grams of crack cocaine, and approximately $70,000 in cash. The defendants obtained their cocaine from Houston and converted it into crack in the central Louisiana area to sell in Avoyelles and Rapides parishes.
The FBI Central Louisiana Safe Streets Task Force, the U.S. Marshals Service Task Force, the Louisiana State Police, Rapides Parish Sheriff’s Office, Avoyelles Parish Sheriff’s Office, Alexandria Police Department, and the Louisiana Probation and Parole Office conducted the investigation. Assistant U.S. Attorneys James G. Cowles and Seth Reeg prosecuted the case.
3 February 2014
Wichita Man Sentenced on Federal Gun ChargeRead the Press Release
KANSAS CITY, KAN. A Wichita man was sentenced Monday to 40 months in prison on a federal gun charge, U.S. Attorney Barry Grissom said.
Johnathan R. Rush, 29, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, he admitted that on July 17, 2103, he and Brittny Adams-Humphrey drove to Lawrence, Kan. While in Lawrence, Rush was involved in a fight with two men. During a struggle, one of the men fell to the ground with a single gunshot wound.
Rush and Adams-Humphrey then drove to Topeka in her Pontiac Grand Am. During the trip, Adams-Humphrey threw several items out the window of the car, including a .45 caliber gun. The Shawnee County Sheriff’s Office stopped their car near 6th and Rice streets in Topeka. A deputy recovered the .45 caliber handgun about 100 yards from where the car was stopped. The gun was purchased by Rush two weeks before the incident. At the time, he was prohibited by federal law from possessing a firearm because of a 2005 felony conviction in Shawnee County District Court.
U.S. Attorney Barry Grissom prosecuted the case. He commended the Lawrence Police Department, the Shawnee County Sheriff’s Department and Special Assistant U.S. Attorney Trent Krug for their work on the case.
Waterbury Man Admits Producing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESUS F. GONZALEZ, SR., 37, of Waterbury, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to one count of production of child pornography.
According to court documents and statements made in court, GONZALEZ had sexual intercourse with a minor female victim on several occasions between approximately February 2012 and August 2012. On approximately August 9, 2012, GONZALEZ used his cell phone to take multiple pictures of the victim, naked, in sexually explicit positions. GONZALEZ then maintained the pictures on his phone. The victim was approximately 14 years old at the time the sexually explicit pictures were taken.
Judge Bryant has scheduled sentencing for April 23, 2014, at which time GONZALEZ faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.
GONZALEZ has been detained in state custody since his arrest on August 11, 2012 on related state charges.
This matter is being investigated by the Waterbury Police Department, the Federal Bureau of Investigation, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State’s Attorney’s Office in Waterbury also provided critical assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Virginia Man Pleads Guilty to Lying to SBA About Loan DefaultRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Rene Michael Ward, 45, of Chantilly, Va., entered a guilty plea before U.S. Magistrate Judge Patrick Hanna, to submitting false documents and lying to the Small Business Administration (SBA).
According to evidence presented at the guilty plea, Ward submitted numerous false documents to the SBA in an attempt to have the SBA agree to an offer-in-compromise to settle an outstanding loan in the amount of approximately $511,400 for a $10,000 lump sum payment.
Rene Ward faces five years in prison and three years of supervised release for one count of filing false documents to a government agency and also faces two years in prison and one year of supervised release for one count of making false statements to the Small Business Administration. He also faces a $250,000 fine for both counts. A sentencing date of May 16, 2014 was set.
The Small Business Administration, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.Utah Sex Offender Convicted of Failure to RegisterRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A sex offender from Utah who moved to West Virginia last year and failed to register has been convicted in federal court.
JONAH L. BEGAY, age 38, of Wheeling, West Virginia, appeared before Judge Frederick P. Stamp, Jr., and entered a plea of guilty to "Failure to Register and Update Registration as a Sex Offender." According to U.S. Attorney William J. Ihlenfeld, II, BEGAY was previously convicted in Utah District Court of “Attempted Sexual Abuse of a Child” and as a result is required to register as a sex offender under both state and federal law. His conviction in Utah involved a 10 year old victim.
On November 11, 2013, police officers were advised that an individual later identified as Mr. BEGAY was being aggressive and appeared to be intoxicated in an area near Bridge Street Middle School. Officers responded and arrested BEGAY and then learned that he had moved to Wheeling in June, and in October began working at the McDonald’s restaurant in the Elm Grove section of Wheeling. At no point did BEGAY update his registration with the State of Utah nor did he register in the State of West Virginia. BEGAY, who is in presently in custody, faces up to 10 years in prison.
This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and was investigated by the Wheeling Police Department, the United States Marshals Service and the West Virginia State Police.
Used False Identity to Trick Boy Scouts into Sending Pornographic Photos over the InternetRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man who used a false identity as a woman to trick seven minor victims, whom he knew through his involvement in the Boy Scouts of America, pleaded guilty in federal court today to producing, receiving and distributing child pornography.
Ian Francis Burow, 24, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in a Nov. 7, 2012, federal indictment. Burow remains in federal custody without bond.
By pleading guilty today, Burow admitted that he used the alias “Sarah McGee” to communicate online (through Facebook, Skype and Yahoo) and via cell phone with several Boy Scouts, ranging in age from 14 to 17. Burow tricked the minor victims into sending him pornographic photos of themselves in inappropriate poses, or make videos or live broadcast themselves engaged in sexually explicit behavior over the Internet (through Skype or a Windows movie media attachment).
Burow sent the victims photos of a woman (claiming it was “Sarah McGee”) in various poses, including nudity, to encourage the victims to send similar photos. Once he received victims’ photos and movies, he frequently distributed some of them to one of the minor victims and to others.
Burow, who was also a Boy Scout, told persons asking about “Sarah McGee” that he knew her, that she was a good friend and that she lived in the same housing complex. In fact, she did not exist.
According to court documents, witnesses saw Burow carrying and displaying nude photos of young boys on his phone, and at least one caught him in an inappropriate communication over the Internet. When confronted by this person, Burow falsely claimed he was working for the Boone County Sheriff’s Department’s Cyber Crimes Task Force – the same agency that investigated and arrested him. He suggested to her that he was assisting law enforcement in its efforts to capture persons who were predators of young people.
Law enforcement investigators identified many persons (not all of whom were minors) who were solicited by Burow to produce photos and videos of themselves engaging in sexually explicit conduct and send them to “Sarah McGee.” Not all of these persons sent the requested materials, but many did.
Burow pleaded guilty to seven counts – involving six different victims, ages 14 through 17 – of receiving and distributing child pornography between Dec. 27, 2010, and Aug. 1, 2011. Burow also pleaded guilty to one count of producing child pornography on Oct. 14, 2011, when he used a 15-year-old victim to engage in sexually explicit conduct, which was transmitted live over the Internet by using Skype.
Burow must forfeit to the government any property used to commit the offenses, including an Apple iPad, a laptop computer, an Apple iTouch, a Blackberry Curve, two external hard drives and other items.
Under federal statutes, Burow is subject to a mandatory minimum sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
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."U.s. Attorney Polite Announces Personnel and Unit ChangesRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. announced that today, Richard W. Westling is rejoining the U.S. Attorney’s Office to serve as the First Assistant U.S. Attorney. Effectively immediately, the senior staff of the Office is as follows:
Richard W. Westling serves as the First Assistant United States Attorney. Between 2008 and 2014, Mr. Westling was a partner in Waller, Lansden, Dortch & Davis, LLP, in Nashville, TN, and a shareholder in Ober|Kaler, in Washington, D.C. At both firms, he represented clients in health care fraud cases and a variety of other government enforcement matters. Previously, Mr. Westling served as general counsel of a Louisiana-based physician-hospital organization which administered a Medicare Advantage HMO Plan with more than 35,000 members. From 1997-2006, he practiced with the Law Offices of Richard W. Westling, LLC in New Orleans, where he defended complex federal criminal matters involving allegations of public corruption, health care fraud, mail and wire fraud, tax and environmental crimes and narcotics violations. He served as an Assistant United States Attorney for the Eastern District of Louisiana from 1992 until 1997, prosecuting a variety of white collar crimes and serving as the Asset Forfeiture Chief for three years. From 1990 to 1992, Mr. Westling was trial attorney and special assistant to the Assistant Attorney General of the Tax Division of the U.S. Department of Justice in Washington D.C. He graduated with honors from the University of the South in Sewanee, TN and cum laude from Tulane University Law School in New Orleans, where he was a member of the Board of Editors of the Tulane Law Review.
Eileen Gleason serves as Executive Assistant United States Attorney. Prior to her current position, Ms. Gleason served as Senior Litigation Counsel. She first joined the United States Attorney’s Office in January 1988 as an Assistant United States Attorney assigned to the Civil Division. After transferring to the Criminal Division, she specialized in prosecuting white collar crimes, political corruption and environmental crimes and served as Chief of the Financial Crimes Unit. Previously, Ms. Gleason served with the Department of Justice in Washington, DC. as a trial attorney with the Public Integrity Section of the Criminal Division from 2005 until 2008, and as a senior trial attorney, assistant chief, principal assistant chief and acting chief of the Environmental Crimes Section of the Environment and Natural Resources Division from 1999 until 2005. Ms. Gleason also has served as Assistant Director of the Office of Legal Education, Executive Office for United States Attorneys, in Washington, DC. She served as a United States Magistrate for the Eastern District of Louisiana from 1981 until 1983. Ms. Gleason practiced law with two New Orleans firms, Phelps Dunbar, LLP and Gelpi, Sullivan, Carroll & Laborde, and served judicial clerkships with the Honorable Edward J. Boyle, Sr. and Morey L. Sear, United States District Judges for the Eastern District of Louisiana. She is a graduate of Tulane University and Loyola University College of Law, where she was a member of the Editorial Board of the Loyola Law Review.
Duane A. Evans serves as the Chief of the Criminal Division. He joined the United States Attorney’s Office in August 2000 as an Assistant United States Attorney assigned to the Criminal Division. During his tenure in the Firearms/Violent Crimes Unit, he specialized in prosecuting matters related to firearms, narcotics, and violent crime. In 2006, he became the Supervisor for the Violent Crimes/Project Safe Neighborhoods Unit. In 2010, he became Chief of the Strike Force and Anti-Gang Unit. Beginning in June 2012, he served as Senior Litigation Counsel until his promotion to the position of Criminal Chief. After graduating from Tulane University School of Engineering and Loyola University College of Law, Mr. Evans served a judicial clerkship for Virgin Islands Superior Court Judge Ishmael A. Meyers from 1995-1997. He later worked as an Assistant District Attorney for the Orleans Parish District Attorney’s Office. He is a native of St. Thomas, United States Virgin Islands.
Peter M. Mansfield serves as Chief of the Civil Division. Prior to his current position, Mr. Mansfield served as Deputy Chief of the Civil Division since 2008. Since 2007, Mr. Mansfield also has supervised the office’s Financial Litigation Unit which is responsible for the enforcement and collection of criminal fines, restitution, and civil judgments in the district. As a supervisory AUSA, Mr. Mansfield has been the lead editor and reviewer of the office’s civil appeals in the Fifth Circuit Court of Appeals since 2011. Mr. Mansfield joined the United States Attorney’s Office in 2005 and has handled both defensive and affirmative civil cases in district and appellate courts as lead counsel. After graduating from Franciscan University and Ave Maria School of Law, both magna cum laude, Mr. Mansfield began his legal career as a litigation associate at Adams and Reese, L.L.P. in its New Orleans office. Mr. Mansfield is a native of Metairie, Louisiana.
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In addition, U.S. Attorney Polite announced that he has reorganized the Office’s Criminal Division into the following units:
The Organized Crime Strike Force/Violent Crime Unit investigates and prosecutes violent crime and firearms offenses, with a particular focus on conduct by organized street gangs and criminal enterprises. Along with representatives from local, state, and federal law enforcement agencies, members of the Unit actively participate in the Multi-Agency Gang Unit, an initiative led by the New Orleans Police Department to combat gang-related shootings and murders in the New Orleans area.
The Public Integrity Unit investigates and prosecutes corruption by public officials and law enforcement officers. The Unit also handles criminal civil rights matters, such as hate crimes, police brutality and human trafficking.
The Narcotics Unit investigates and prosecutes cases involving the distribution of illegal narcotics. The Unit primarily seeks to disrupt large-scale drug-trafficking organizations that qualify for prosecution by the Organized Crime and Drug Enforcement Task Force (OCDETF).
The Fraud Unit investigates and prosecutes fraud offenses of all types, including financial institution crime, health care fraud, bank fraud, computer fraud, institutional insurance fraud, large scale mail and wire fraud, and criminal tax violations. The Unit also handles child pornography cases under the Project Safe Childhood initiative.
The National Security Unit investigates and prosecutes cases involving international and domestic terrorism, threats involving weapons of mass destruction, terrorism financing, immigration violations, environmental crimes, and other offenses that impact national and border security.
The Appeals Unit defends convictions and judgments obtained by the Office in the United States Court of Appeals for the Fifth Circuit, the federal appellate court overseeing cases in Mississippi, Louisiana, and Texas. Additionally, the Unit, in consultation with the Department of Justice, decides when to seek appellate review of trial level rulings adverse to the United States.
U.S. Attorney Polite stated, "Through these unit changes, I have reallocated our personnel into units that more accurately reflect our District’s prosecutorial priorities. In particular, I am increasing the number of prosecutors addressing violent crime and narcotics offenses, while at the same establishing the Office’s first stand-alone unit to address political corruption and civil rights violations. These changes, together with the appointment of new senior management, represent significant steps toward the goal of increasing the productivity and efficiency of our Office."
Two Ñetas Gang Members and A Gang Associate Plead Guilty in Connection with the Murders of Two 17-Year-Old Rival Gang MembersRead the Press Release
Earlier today, two members of the Ñetas street gang, Alvaro Cabral, also known as “Boobi,” and Jason Cabral, also known as “J-Live,” pleaded guilty to the 2004 murders of Anthony Marcano and Fabian Mestres. Stephanie DiCarlo-Cabral, an associate of the gang and at the time the girlfriend of Jason Cabral, pleaded guilty to robbery and using a firearm in connection with the robbery of Marcano and Mestres. Today’s pleas took place before United States District Judge Joanna Seybert. When sentenced, the defendants face life in prison.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“These were brutal, senseless gang murders. The defendants stuffed the victims into the trunk of a car in the dog days of August, and then drove them to their execution,” stated United States Attorney Lynch. “We hope the victims’ families can take some measure of solace in knowing that the individuals who are responsible for their sons’ murders have been brought to justice.” Ms. Lynch expressed her grateful appreciation to the Suffolk County Police Department, the Tampa Division of the FBI, and United States Attorney’s Office, Middle District of Florida, for their cooperation and assistance in the investigation.
The defendants targeted one of the victims, Anthony Marcano, because of his affiliation with a rival gang, the Latin Kings. On August 10, 2004, at the direction of Jason Cabral, the leader of gang, the defendants devised a plan to rob and kill 17-year-old Marcano. As part of the plan, the defendants lured Marcano to a house in Brentwood. Marcano arrived with 17-year-old Fabian Mestres, a fellow “Pee Wee” member of the Latin Kings street gang. Once inside the house, Marcano and Mestres were restrained with duct tape, and their drugs, money, and jewelry were stolen. The victims were stuffed into the trunk of a car and driven to a warehouse in Queens where Luis Benitez , with the assistance of Alvaro Cabral, shot them with a shotgun. Mestres was shot once in the head, and Marcano was shot once in the head and once in the back of the neck. Marcano’s and Mestres’s bodies were found behind a warehouse in Queens the following day.
The government’s case is being prosecuted by Assistant United States Attorneys Nicole Boeckmann and Christopher C. Caffarone.
The Defendants:
ALVARO CABRAL
Age: 28
Apollo Beach, Florida
JASON CABRAL
Age: 36
Riverview, Florida
STEPHANIE DICARLO-CABRAL
Age: 29
Riverview, Florida
1. Luis Benitez pleaded guilty to the murders of Marcano and Mestres on November 7, 2013.
Tilden Man Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Brian D. Benedict, age 33 of Tilden, Nebraska, was sentenced in federal court in Omaha for receiving child pornography. The Honorable Joseph F. Bataillon sentenced Benedict to a 60 month term of imprisonment. There is no parole in the federal system. After his release from prison Benedict will begin a five year term of supervised release and be required to register as a sex offender.
On January 23, 2013, an investigator with the Nebraska State Patrol was investigating individuals sharing child pornography on the internet. The investigator was successful in downloading a video of child pornography from Benedict’s computer. That same day an investigator from the Hastings Police Department successfully downloaded another video of child pornography from the same computer.
A warrant was issued for Benedict’s home in Tilden, Nebraska. Officers recovered 13 videos of child pornography and search terms designed to locate videos involving children as young as infants engaging in sexually explicit conduct. Benedict acknowledged searching for child pornography and downloading as many as 100 videos during the previous year.
U.S. Attorney Deborah R. Gilg acknowledged the work of the Nebraska State Patrol and the Internet Crimes Against Children Task Force in the investigation of this matter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Three Plead Guilty in Scheme to Smuggle Aliens via Private PlanesRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy announced that Philip Kubeck, Roselia Kubeck, and Earl Allen pleaded guilty Friday morning in federal court in San Diego to conspiracy to bring in illegal aliens for financial gain, harbor illegal aliens, and transport illegal aliens. All three entered their guilty pleas before U.S. Magistrate Judge David H. Bartick.
As described in their plea agreements, Philip Kubeck, Roselia Kubeck, and Earl Allen were involved in a smuggling scheme in which illegal aliens were smuggled into the United States through a hole in the International boundary fence, were harbored at a house located on North 8th Street, in El Centro, California, and then transported further into the United States via private airplane in order to bypass Border Patrol checkpoints.
According to his plea agreement, Earl Allen operated the alien stash house located on North 8th Street, where the aliens were taken after illegally entering the United States through the hole in the fence. Earl Allen also drove the aliens to the Imperial County airport.
Philip Kubeck admitted that he served as the pilot, and flew the aliens from El Centro, California, past all of the Border Patrol checkpoints, to the Los Angeles area. According to her plea agreement, Roselia Kubeck served as the communications link between Philip Kubeck and Earl Allen coordinating flight times for the illegal aliens staying at the stash house, and drop off times for those aliens at the airport. Illegal aliens involved in this scheme paid as much as $10,000 to be brought into the United States and transported in this way.
All three are set for sentencing on April 21, 2014 before U.S. District Judge Larry Alan Burns.
DEFENDANTS Criminal Case No. 13CR4226-LABPhilip Kubeck
SUMMARY OF CHARGES
Roselia Kubeck
Earl AllenConspiracy in violation of of Title 18, United States Code, Section 371- Maximum penalties per count: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCIESUnited States Border Patrol
Three Martinsburg Residents Arrested Pursuant to Federal IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Three Martinsburg residents were arrested on January 31, 2013, pursuant to Indictments returned by a Federal Grand Jury.
According to United States Attorney William J. Ihlenfeld, II, DANIEL WILLIAM JAMISON was named in a one-count Indictment charging him with “Felon in Possession of Ammunition.” The Indictment alleges that on December 23, 2013, JAMISON, who had previously been convicted on June 5, 2006, in the Circuit Court of Arlington County, Virginia, on the offense of failure to perform construction and on July 25, 2006, in the Circuit Court of Stafford County, Virginia, for construction fraud, possessed five rounds of Cascade Cartridge, Inc. .22 caliber Winchester Magnum Rimfire ammunition. The U.S. Attorney’s Office is seeking to forfeit ammunition which was seized from JAMISON on December 23, 2013. JAMISON faces up to 10 years in prison.
TIMICO CONSTINE JOHNSON a/k/a TC, age 43, and MISTY ANN TARMAN, age 41, of Martinsburg, were named in an eight-count Indictment charging them with “Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine.” JOHNSON is named in seven additional counts and TARMAN is named in five additional counts for “Distribution of Crack Cocaine.” JOHNSON and TARMAN each face up to twenty years in prison on each count.
These cases will be prosecuted by Assistant United States Attorney Jarod J. Douglas and were investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department, as well as uniformed officers of the West Virginia State Police.
Three KC Residents Sentenced for Armed Bank Robbery; Pretended to take Brother, Sister HostageRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Mo., residents were sentenced in federal court today for the armed robbery of a Brookside area bank in which they pretended that two of the accomplices, a brother and sister, were taken hostage.
Lashon M. Hudson, 42, her brother, Larry T. Hudson III, 39, and William L. Wheeler, Jr., 28, all of Kansas City, Mo., were sentenced in separate hearings before U.S. District Judge Dean Whipple. Lashon Hudson was sentenced to seven years and three months in federal prison without parole. Larry Hudson was sentenced to three years and six months in federal prison without parole. Wheeler was sentenced to two years in federal prison without parole.
Lashon Hudson, Larry Hudson and Wheeler each have pleaded guilty to aiding and abetting armed bank robbery. They admitted to working together to steal $2,872 from a branch of Bank Midwest, 6249 Brookside Blvd., Kansas City, Mo., on Dec. 10, 2011.
According to their plea agreements, Lashon Hudson and Wheeler drove together to the bank, while Larry Hudson drove separately. Lashon Hudson gave Wheeler a revolver. Then Lashon Hudson, and eventually Larry Hudson separately, entered the Bank Midwest to scout the location. When approached by a bank employee, Lashon Hudson claimed she was waiting for her sister to arrive at the bank to open an account. Lashon Hudson appeared to be talking on a cell phone while in the bank. When Larry Hudson entered the bank, he asked to use the restroom, but was told by a bank employee that there was no public restroom available. He briefly exited the bank, but eventually came back inside.
Wheeler then entered the bank with the handgun and demanded money from a bank teller, stating something to the effect of “I’ve got a gun and I’m not afraid to use it.” Wheeler told another bank employee, “Get your hands in the air! Don’t anyone move; I will shoot you.” The teller gave Wheeler the money from her drawer, which Wheeler started putting in a bag. Some of the money was accidently dropped on the floor, and Lashon Hudson helped place that money in the bag for Wheeler.
Larry Hudson remained in the bank lobby, and stated, “Oh my God, I don’t want to die.” As part of the plan, Wheeler pretended to take Lashon and Larry Hudson hostage. The three of them left the bank, got into the car driven by Larry Hudson, and drove away.
Larry Hudson drove Lashon Hudson and Wheeler several blocks away from the bank. Wheeler gave Lashon Hudson the bag containing the money and returned the revolver to her. Wheeler and Lashon Hudson exited the vehicle at a house, and Larry Hudson drove away. Lashon Hudson called for a cab, which she and Wheeler then took back to her house. Subsequently, Lashon and Larry Hudson divided up the money from the bank robbery.
Approximately five hours after the robbery, Lashon Hudson arrived at the Kansas City, Mo., Police Department headquarters. She told officers that she and her brother were taken hostages by the bank robber, whom she could not identify. Upon additional questioning, Lashon Hudson altered her story; she could not explain why it took her five hours to report the robbery and her being taken hostage but denied being involved in the bank robbery.
When officers returned Lashon Hudson to her home after the interview, they encountered Larry Hudson, who had failed to report his alleged kidnapping to the police. Larry Hudson also claimed that he and his sister were taken hostage by the bank robber, but in a subsequent interview altered his story.
Investigators later identified Wheeler as the armed bank robber.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI and the Kansas City, Mo., Police Department.