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Tuesday 3 December 2013
Texas Man Sentenced for Cattle Fraud in KansasRead the Press Release
WICHITA, KAN. – A Texas man has been sentenced to 21 months in federal prison for cattle fraud in Kansas, U.S. Attorney Barry Grissom said today.
William P. Cadle, 50, DeKalb, Texas, was sentenced Monday in U.S. District Court in Wichita. He pleaded guilty to one count of loan fraud and one count of criminal conversion.
In his plea, Candle admitted that on Feb. 6, 2012, he committed loan fraud against First National Bank in Independence, Kan. He obtained a loan from the First National Bank and identified cattle to be used as collateral for the loan. The security agreement grossly overstated the number of cattle he had to collateralize the loan. The security agreement also identified Angus cattle purchased with a Farm Service Agency loan as belonging to Cadle. In fact the cattle were purchased by Cadle’s son with a loan from the Farm Service Agency, and Cadle did not have enough collateral to secure his loan from First National Bank.
From September 2011 to March 2012, Cadle began selling the cattle secured by the Farm Service Agency loan. He concealed the fact the cattle were mortgaged by FSA and he did not make payments to FSA upon the sale. By the spring of 2012 he had sold all the cattle.
Grissom commended the U.S. Department of Agriculture and Assistant U.S. Attorney Aaron Smith for their work on the case.
Siblings Plead Guilty to Social Security FraudRead the Press Release
PORTLAND, Ore. – Two family members charged in a multi-family member conspiracy to defraud social service agencies have pleaded guilty to Social Security fraud. Jason Boutros, 49, of Portland, admitted in federal court yesterday that he concealed a family member’s travel outside the United States while continuing to accept Supplemental Security Income benefits on her behalf. He also admitted to submitting a voucher for payment for home-care services for his mother that he never provided because she also was outside the United States. Sentencing is set for March 3, 2014, before the Honorable Michael H. Simon.
According to papers filed in court, Boutros has agreed to pay approximately $220,000 in restitution for Supplemental Security Income and medical benefits family members received that they were not entitled to.
Boutros’ sister, Killda Boutros, 46, of Portland, pleaded guilty to similar charges on November 14, 2013.
This case was investigated by agents for the Medicaid Fraud Unit, the Department of Health and Human Services, and the Social Security Administration, Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Helen L. Cooper as part of a partnership venture between the U.S. Attorney’s Office in Portland, Oregon, and the Seattle Region of the Social Security Administration, Office of the General Counsel.
For more information, please see the attached indictment Here
Sentencing of Two eBay RICO DefendantsRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announced that Tyrone Clark and Joedy Nixon, both Detroit, Michigan residents, were sentenced today by Chief United States District Judge William Steele for a conspiracy to commit a RICO violation. Clark received a sentence of 76 months and Nixon received a sentence of 51 months. Both were ordered to make restitution.
Both Clark and Nixon previously entered guilty pleas to the conspiracy charge and admitted their involvement in stealing electronics from retail stores in a number of states. Both admitted some of the stolen electronics were subsequently sold on eBay.
The cases arose from an investigation by the United States Secret Service and were prosecuted by Assistant United States Attorney Deborah Griffin.
San Francisco Man Sentenced to Twelve Months for Structuring Currency Transactions to Evade Reporting RequirementsRead the Press Release
SAN FRANCISCO – Tailiang Li was sentenced today to twelve months in prison for unlawfully structuring cash transactions, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez announced.
Li, 63, of San Francisco, pleaded guilty on August 6, 2013. According to the plea, Li knowingly structured financial transactions at a domestic financial institution with the purpose of avoiding the currency reporting requirements. Between February 14, 2008 and May 1, 2009, Li purchased, with cash, 174 - $1,000 money orders ($174,000) from the United States Postal Service. He purchased money orders from the following post offices: Millbrae Main Station, Chinatown Station, Sunset Station, Irving Station, Golden Gate Station, Steiner Station, and Geary Station. He typically purchased money orders from at least two or more post offices in one day. However, if he did purchase money orders from the same post office on the same day, he took particular care not to purchase from the same window clerk.
Li was charged on February 12, 2013 with 20 counts of structuring transactions to evade reporting requirements. He pleaded guilty to 2 counts. Li was also ordered to forfeit $174,000. This sum represents the funds that were involved in the structuring violations.
Thomas Moore is the Assistant United States Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Li indictment )
Salina Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
WICHITA, KAN. – A Salina man has been sentenced to 180 months in federal prison for receiving and distributing child pornography, U.S. Attorney Barry Grissom said today.
Justin S. Tatum, 32, Salina, Kan., was sentenced Monday in U.S. District Court in Wichita. He pleaded guilty to three counts of distributing child pornography, related to two different investigations. In his plea, Tatum admitted sending images of child pornography to Jeffrey Wiederholt in exchange for child pornography that Wiederholt produced. Tatum sent a video of an adult male pulling a diaper off a girl no more than three years of age to expose her genitals to the camera. He also sent a video of an adult male sexually abusing a girl no more than five years old. The investigation began in 2011 when Immigration and Customs Enforcement agents acted on a lead related to Wiederholt, uncovering emails between Tatum and Wiederholt.
Wiederholt was charged and convicted in U.S. District Court in the Western District of Missouri. He was sentenced to 70 years.
Tatum also admitted to using an encrypted peer-to-peer program to trade child pornography with individuals he met on the Internet. An investigation into these activities began in July 2011 when a detective with the Sheriff’s Department in Martin County, Florida, downloaded images of child pornography from Tatum on July 15 and 18, 2011. On Aug. 10, 2011, officers of the Salina Police Department executed a search warrant at Tatum’s home in Salina.
Grissom commended Immigration and Customs Enforcement, the Martin County, Fla., Sheriff’s Department, the Salina Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Sacaton Man Sentenced to 37 Months in Prison for Domestic ViolenceRead the Press Release
PHOENIX – On Dec. 3, 2013, Lawrence Antonio Jackson, 22, a member of the Gila River Indian Community from Sacaton, Ariz., was sentenced by U.S. District Judge McKibbento 37 months in prison following a plea of guilty to domestic assault by a habitual offender on Sept. 16, 2013.
On April 9, 2013, within the Gila River Indian Community, Jackson threw a full can of beer at the side of the victim’s head, causing her to momentarily black out. He then cut her on the arms with a knife. Prior to this assault, Jackson had been twice convicted of domestic violence in the Tribal Court.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-00856-PHX-NVW
RELEASE NUMBER: 2013-091_JacksonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Rapper Gucci Mane Arraigned on Federal Gun ChargesRead the Press Release
ATLANTA – Radric Davis, an Atlanta-based rap artist who performs under the name Gucci Mane, has been charged in federal court with two separate counts of possessing a firearm while being a felon.
“The indictment charges that on two separate occasions, this defendant, a convicted felon, threatened individuals, including the police and his attorney with a gun” said United States Attorney Sally Quillian Yates. “This is how people get hurt, and we are committed to ensuring that convicted felons not have guns.”
“When offenders such as this use firearms to threaten individuals, including law enforcement officers sworn to protect our community, ATF takes this very seriously,” said ATF Special Agent in Charge Christopher Shaefer. “ATF remains on the frontline of preventing violent crime along with our law enforcement partners and will continue to pursue those who violate the law, regardless of their celebrity status.”
“The Atlanta Police Department has made it a priority to take violent repeat offenders off our city streets and see that they are held responsible for their actions. We are thankful for the cooperation with our partner agencies, especially the U.S. Attorney’s Office, in bringing Mr. Davis to justice. We cannot tolerate convicted felons ignoring the law by carrying firearms and endangering our citizens,” said Atlanta Police Chief George N. Turner.
According to United States Attorney Yates, the charges, and other information presented in court: On September 12, 2013, Davis, who was a felon at the time, was found in possession of a firearm. Then, just two days later, on September 14th, he again possessed a firearm different from the earlier gun. On both occasions, Davis displayed the loaded firearm, acted erratically, and made threats to individuals, including police and his attorney.Davis, 33, of Atlanta, Ga., was indicted by a federal grand jury on November 19, 2013. He made his initial appearance before Magistrate Judge Linda T. Walker and was detained in custody pending his trial.
Each charge of being a felon in possession of a firearm carries a maximum sentence of 10-years in prison and a fine of up to $250,000. In determining the actual sentence, the sentencing Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that an indictment contains only allegations. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by law enforcement partner members of the Violent Repeat Offenders Initiative, including the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Atlanta Police Department.
Assistant United States Attorney Kim S. Dammers is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Postal Customer Sentenced for Embezzling $33,072.68 from the United States Postal ServiceRead the Press Release
SYRACUSE, NEW YORK – Richard S. Hartunian, United States Attorney for the Northern District of New York, announced that JOHN GIBSON, III, age 38, of Oswego, N.Y. was sentenced today before the Honorable Glenn T. Suddaby in the United States District Court in Syracuse, New York.
GIBSON was sentenced to 3 years probation in connection with his plea to Theft of Government Property, in violation of Title 18, United States Code, Section 641. Additionally, GIBSON was ordered to pay $33,072.68 in restitution; was ordered to serve 6 months of home detention and two months of weekend incarceration; ordered to perform 100 hours of community service; and pay a special assessment of $100.
On June 4, 2013, GIBSON admitted that from June 2012 through August 2012, he purchased 91 postal money orders using 42 checks drawn on closed checking accounts in the total amount of $33,072.68.
GIBSON’s prosecution is the result of a joint investigation by the U.S. Postal Inspection Service and the United States Postal Service Office of Inspector General. The investigation began in June 2012. The prosecution was handled in the United States Attorney’s Office by Assistant U.S. Attorney Tamara B. Thomson
Owners of St. Charles Real Estate Company Sentenced for Tax FraudRead the Press Release
St. Louis, MO - JOHN and ANTHONY CALANDRELLA were sentenced today for their failure to file income tax returns for three years on the income from their company, Golden Delta Enterprises. John was sentenced to 18 months in prison; Anthony was sentenced to 6 months in prison.
According to court documents, John and Anthony Calandrella owned Golden Delta Enterprises, (GDE), a business that purchased, renovated and then sold or rented homes in the St. Louis metropolitan area. For the tax years 2003, 2004 and 2005, GDE generated substantial profits, part of which went directly to the defendants. Accordingly, they received substantial, personal gross income which required them to prepare and file individual federal income tax returns. However, for these three tax years, the Calandrellas’ had returns prepared for these tax years, but failed to file these returns or pay any taxes due and owing to the United States of America. Additionally, they sent letters to the Internal Revenue Service claiming to be citizens of the sovereign state of Missouri, therefore not required to sign or file federal income tax returns or pay federal income taxes. They also concealed personal income and assets in order to lower potential tax liability. Finally, the brothers used GDE funds to purchase literature from well-known promoters of tax evasion schemes and activities. For the tax years 2003-2005, John Calandrella caused a loss to the United States in the amount of $227,032; Anthony Calandrella caused a loss of $198,644. Both were ordered to pay those amounts in restitution.
"The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Honest individuals should not have to pick up the tab for those people not filing returns."
John P. Calandrella and Anthony R. Calandrella, both of Lake St. Louis, MO, pled guilty in July to three felony counts of attempting to evade taxes. They appeared today for sentencing before United States District Judge Jean C. Hamilton.
This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Stephen Casey handled the case for the U.S. Attorney’s Office.
Owner of Mountain Pure Water Indicted on Multiple Counts of Wire Fraud and Money LaunderingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced that John B. Stacks, owner of Mountain Pure Water, was indicted today by a Federal Grand Jury on three counts of wire fraud, three counts of money laundering, one count of submitting a false claim to the Small Business Administration (SBA), and four counts of making a false statement.
The Indictment charges that Stacks obtained an SBA loan in 2009 for $703,300 under false pretenses. According to the Indictment, Stacks claimed he had over $500,000 worth of Mountain Pure Water equipment at his farm in Damascus, Arkansas. Stacks further alleged that this equipment was destroyed when a tornado touched down in the area in May 2008. The wire fraud and money laundering charges stem from three transfers of money from the SBA in Kansas City, Missouri to Stacks’ General Account at Home Bank of Arkansas in Greenbriar. The false claim and statement charges are related to the Loan Authorization and Agreement and other related documents and statements Stacks submitted to the SBA to induce the SBA to make the loan.
If convicted, Stacks faces a statutory maximum penalty for Wire Fraud of not more than 20 years; a statutory maximum penalty for Money Laundering of not more than 10 years; a statutory penalty for False Claim of not more than 5 years; and a statutory penalty for false statement of not more than 5 years of imprisonment.
The case was investigated by the SBA Office of Inspector General and the IRS Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Angela Jegley and First Assistant United States Attorney Pat Harris.
Owner of Atlanta Income Tax Preparation Firm Pleads Guilty to Multi-Million Dollar Refund FraudRead the Press Release
ATLANTA - Anita R. Ford, a/k/a Anita R. Dixon has pleaded guilty today for aiding or assisting in the presentation and filing of false personal income tax returns with the U.S. Internal Revenue Service.
“By filing thousands of false tax returns this defendant caused the U.S. Treasury to issue millions of dollars in fraudulent refunds to her clients,” said United States Attorney Sally Quillian Yates. “Her scheme was stopped when she prepared a false tax return for an undercover IRS agent. This conviction should make abusive return preparers think twice before attempting to rob the U.S. Treasury.”
“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching fraudulent refund claims,” stated IRS Criminal Investigation Special Agent in Charge, Veronica F. Hyman-Pillot. “The message this case sends is that participation in refund fraud schemes does not pay and those who do will be prosecuted. Additionally, taxpayers who receive fraudulent refunds, whether knowingly or not are responsible for repaying the money.”
According to United States Attorney Yates, the charges and other information presented in court: Between 2004 and 2012, Ford owned and operated Georgia Peach Financial & Fast Tax Service (“Georgia Peach”), an Atlanta personal income tax preparation business. During that time Ford prepared and electronically filed (“e-filed”) thousands of Form 1040 individual income tax returns with the IRS that intentionally misstated her clients’ income in order to generate fraudulent refunds. In particular, Ford made up fake side businesses with fake income and fake expenses, and then attached false Schedules C’s (“Profit or Loss from Business”) to the clients’ tax returns showing such made up income and expenses. This had the effect of off-setting her clients’ income tax liability from their real salaries, as reflected in Forms W2 (“Wage & Tax Statement”) issued by their real employers, generating false credits and refunds.
In March 2011, a Special Agent of IRS-CI visited Georgia Peach in an undercover capacity, posing as a taxpayer seeking to have a return prepared. Ford began preparing a tax return in the agent’s cover identity, based on a Form W2 in the cover identity, and informed the agent that they would owe approximately $200. In truth, the agent would have been due a refund of almost $400. Ford then created a fictitious Form Schedule C for a fake beauty salon business, with $30,000 in fake business expenses, generating a fraudulent refund of over $4,000, and e-filed the completed tax return with the IRS. To prepare and e-file the return, Ford charged a fee of $510. Ford did not provide a copy of the tax return to the undercover agent or review it with the undercover agent before e-filing it.
The returns identified in the scheme sought fraudulent refunds ranging from several thousand dollars to tens of thousands of dollars, including at least one fraudulent refund of more than $30,000. As part of her plea agreement with the United States, Ford agreed that she is responsible for between $2.5 and $7 million in losses to the IRS.
Ford, 49, of Jonesboro, Ga., pleaded guilty to both counts of a two-count Criminal Information filed against her on October 4, 2013. The charges each carry a maximum sentence of three years, for a total of six years in federal prison, and a fine of up to $250,000 on each count. Also, as part of the plea agreement, Ford has agreed to pay $5,732,021.50 in restitution to the United States Treasury. The sentencing has not yet been scheduled. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of IRS-CI.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
The IRS would like to remind people that while most preparers provide excellent service to their clients, the IRS urges taxpayers to be very careful when choosing a tax preparer. Taxpayers should be as careful as they would be in choosing a doctor or a lawyer. It is important to know that even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the tax return.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Northern KY. Fireworks Dealer Awaits Sentence for Explosives CrimeRead the Press Release
COVINGTON, KY - Sam Droganes, 48, of Ft. Mitchell, KY., awaits sentencing for being a felon in possession of explosives, a violation of federal law.
Droganes, who will be sentenced in March 2014, pleaded guilty on November 27, 2013 and admitted selling 1.3G (display) fireworks to a confidential informant who was working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The sale occurred on May 28, 2013, at Droganes’s store, which is located in Covington, KY., Droganes is a convicted felon, having previously been convicted in federal court in 2010 of an offense involving the same type of explosives. Under federal law, convicted felons are prohibited from possessing firearms and explosives.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Stuart L. Lowrey, Special Agent in Charge, ATF, jointly made the announcement.
The investigation was conducted by ATF. Assistant U.S. Attorney Elaine K. Leonhard represents the U.S. Attorney’s Office in this case.
Droganes is currently scheduled to appear for sentencing, before U.S. District Judge Amul R. Thapar, in Covington, on March 20, 2014 at 2:00 p.m. Droganes faces a maximum prison sentence of 10 years. However, any sentence will be imposed by the Court after consideration of the United States Sentencing Guidelines and the applicable federal statutes governing the imposition of sentences.
New York City Police Officer and Criminal Associates Charged with Extorting Queens RestauranteurRead the Press Release
A three-count indictment was unsealed today in federal court in Brooklyn, New York charging Redinel Dervishaj, Besnik Llakatura, and Denis Nikolla with Hobbs Act extortion conspiracy, attempted Hobbs Act extortion, and brandishing a firearm in relation to the extortion.1 The charges arose from the defendants’ extortion of money from a Queens County restaurant owner. Llakatura was at the time of the alleged offenses a police officer with the New York City Police Department (NYPD), assigned to the 120th Precinct in Staten Island, New York. He was suspended without pay upon his arrest. The defendants are scheduled to be arraigned this afternoon at the United States District Court for the Eastern District of New York, before United States Magistrate Judge Joan Azrack.
The charges 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 Raymond W. Kelly, Commissioner, NYPD.
“The defendants told their victims they offered “protection,” but in reality they peddled fear and intimidation through the Albanian community – their community – of Queens,” stated United States Attorney Lynch. “When one victim turned to law enforcement for help, he was betrayed again by a corrupt officer on the take, who turned his back on his badge, his oath and his friend in exchange for extortion money in his pocket.” Ms. Lynch expressed her thanks to members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division for its cooperation and assistance in the investigation.
“By creating a climate of fear, the defendants allegedly coerced an innocent restaurant owner into paying for so-called protective services. The victim was further betrayed when seeking the assistance of Besnik Llakatura, an NYPD officer whose sinister intentions were shrouded by his badge of honor. But Llakatura didn’t serve his community with honor; he, instead, abused his powers to the detriment of the public trust. He remains an exception to those law enforcement officers who work selflessly to weed out crime and corruption in their communities,” stated FBI Assistant Director-in-Charge Venizelos.
“Llakatura is alleged to have exploited his friendship and shared heritage in order to help the defendants extort a restaurateur. Once it was reported, the NYPD Internal Affairs Bureau, and the Department’s Organized Crime Investigations Division thoroughly responded, resulting in the charges being announced today.” Commissioner Kelly said.
According to the indictment and court filings, Dervishaj, Llakatura, and Nikolla demanded monthly payments from a Queens restaurant owner in exchange for “protection,” repeatedly using threats and intimidation to ensure his compliance. The scheme began shortly after the victim opened a restaurant in Astoria when he was visited by Dervishaj and told that he had opened a business in “our neighborhood” and, as a result, “you have to pay us.” The restaurant owner, who understood that he was targeted because he, like the defendants, is of Albanian descent, sought help from his friend Llakatura. Unbeknownst to him, Llakatura, an NYPD officer on Staten Island since 2006, was conspiring with Dervishaj in the extortion. Llakatura discouraged the restaurant owner from going to the police and sought to leverage his position to persuade the victim that he had no choice but to make the demanded payments. When the victim resisted, he was threatened with physical violence and chased at gunpoint down the street in Queens by Nikolla.
Court-authorized wiretaps of the defendants’ telephones uncovered detailed evidence of their efforts to maintain control over businesses in the neighborhood through fear, intimidation, and violence. In one intercepted call, Llakatura joked about how he “taxes” local businesses. In another, Nikolla described to Dervishaj how he had grabbed another victim “by the neck” because he had told Nikolla that he only had $2,000 and could not pay more.2
Over the course of five months, each of the three defendants took turns collecting monthly payments from the Astoria restaurant owner, ultimately collecting $24,000 in so-called protection money.
The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata and M. Kristin Mace.
The Defendants
REDINEL DERVISHAJ, a/k/a “Redi”
Age: 37
Queens, New YorkBESNIK LLAKATURA, a/k/a “Besi” and “Nick”
Age: 34
Staten Island, New YorkDENIS NIKOLLA
Age: 33
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-668 (ENV)
_____________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
2 The referenced language from the intercepted calls is based on draft translations from Albanian.
Michigan Aquarium Store Operators Plead Guilty to Illegal Trafficking of Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and Edward Grace, Deputy Assistant Director, U.S. Fish & Wildlife Service Office of Law Enforcement, announced that Richard Perrin, 80, formerly of Romulus, Michigan, pled guilty yesterday in federal District Court in Key West for conspiring with others to transport, sell, receive, acquire, and purchase fish and wildlife, Sea Fans (Gorgonia flabellum and Gorgonia ventalina), ornamental tropical fish, sharks, and alligators (Alligator mississippiensis), with a fair market value in excess of $350.00, knowing the wildlife was taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4), and 3373(d)(1) and (2), all in violation of Title 18,United States Code, Section 371.
United States District Court Judge Jose E. Martinez, who accepted Perrin’s plea, set sentencing in the matter for March 25, 2014 at 2:00 p.m. in Key West. Perrin faces a maximum sentence of five years in prison, three years of supervised release, and a criminal fine of up to $250,000. He also faces forfeiture of the vehicle used in the commission of the Lacey Act Violations. Perrin’s co-defendant, Joseph Franko, 35, also of Romulus, entered a guilty plea to the same charge on November 25, 2013 and faces the same possible sentence and fine.
According to the Indictment and Joint Factual Statements submitted to the Court, from approximately December 2008 through December 2011, Perrin and Franko engaged in a conspiracy to purchase, harvest, and transport marine life and reptiles from Florida to Michigan for sale through a business known as Tropicorium, Inc. Perrin was the owner Tropicorium, engaged in the day-to-day management and operation of the corporation, while Franko was an employee. Tropicorium was organized in 1993 under the laws of Michigan with its principal place of business in Romulus. Tropicorium was engaged in the purchase and retail sale of marine life and reptiles, including sharks, marine invertebrates, Sea Fans, ornamental tropical fish, and alligators.
The defendants admitted that they failed to acquire or possess the licenses required by Florida Statute for the marine life they harvested during multiple trips to the Florida Keys. Additionally, the Sea Fans taken by the defendants and sold in Michigan are prohibited from being harvested from the waters of the State or the Florida Keys National Marine Sanctuary, where they plied their trade. Richard Perrin and Franko also made stops while en route to the Keys in the area of Big Cypress National Preserve, where they illegally poached juvenile alligators to sell through Tropicorium. Unknown to the defendants, on one occasion they actually sold a baby alligator and illegal Sea Fans from a Florida harvesting trip to an undercover Special Agent of the Fish & Wildlife Service. They also utilized a facility on Grassy Key as maintenance base for their harvested marine life until they were ready to ship or transport the specimens to Michigan for sale.
Mr. Ferrer commended the joint investigative efforts of the Special Agents of the NOAA Office of Law Enforcement and the Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom, and the assistance of the Officers of the Michigan Department of Natural Resources. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section and Antonia Barnes of the Asset Forfeiture Division.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Massachusetts Man Pleads Guilty to Tax Fraud and Mail FraudRead the Press Release
Michael Edwards pleaded guilty today to one count of corruptly endeavoring to obstruct the Internal Revenue Service (IRS) and one count of mail fraud, t he Justice Department and IRS announced. Both charges arise from Edwards’ operation of his tax return preparation business Boston Financial Associates (BFA) and Edwards’ misappropriation of income tax refunds from two of his clients in 2009.
According to court documents, Edwards admitted that he misled an IRS auditor reviewing one of his client’s 2007 and 2008 income tax returns by giving her false documentation that claimed to support the false entries on the returns. Edwards misappropriated federal income tax refunds of $573,518 from one client and $202,143 from a second client.
Sentencing for Edwards has been scheduled for Feb. 25, 2014. The statutory maximum penalty for corruptly endeavoring to obstruct the IRS is three years in prison and a $250,000 fine. The statutory maximum penalty for mail fraud is 20 years in prison and a $250,000 fine.
This case was investigated by IRS – Criminal Investigation and prosecuted by Tax Division Senior Litigation Counsel Corey J. Smith.
Man Sentenced to 3 Years in Federal Prison in Connection with A Huntington Heroin Distribution SchemeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced yesterday to three years in federal prison for his role in a heroin distribution scheme in Huntington, announced U.S. Attorney Booth Goodwin. Rodney Lee Flowers, also known as “Anthony Phillip Hollis,” 48, previously pleaded guilty in September to possession of heroin with the intent to distribute. Flowers was charged in a one-count indictment in April.
In early March 2013, agents with the Drug Enforcement Administration (DEA) received information that Flowers and several of his associates were distributing heroin from a residence located on Washington Avenue in Huntington. During an investigation, agents discovered that Flowers and his associates were expecting a package containing heroin by mail from Michigan. On April 3, 2013, an undercover agent delivered the package to 2200 ½ Washington Avenue in Huntington. Rodney Flowers answered the front door at the residence and accepted the package. A short time later, Flowers and an associate exited the residence and got inside of a vehicle. Police later conducted a traffic stop on the vehicle. Flowers was arrested and taken to the Huntington Police Department for processing. The defendant provided a Mirandized statement to police regarding his involvement in the heroin distribution scheme. Flowers told police that he was expecting a package by mail from Michigan that contained approximately 225 grams of heroin.
Agents executed a search warrant on the defendant’s Washington Avenue residence and recovered the package that contained 226.8 grams of heroin.
The DEA, the United States Postal Inspection Service and the Huntington Police Department conducted the investigation. Assistant U.S. Attorney Gregory McVey handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
Man Indicted for Illegal ReentryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury returned a one-count indictment charging Oscar Mejia Gomez, age 29, of Honduras, with illegal re-entry into the United States after deportation.
The indictment charges that or about November 7, 2013, Gomez , an alien, was found in the United States after having been deported on or about August 11, 2011, at or near the Phoenix Mesa Gateway Airport, Mesa, Arizona, and not having obtained the express consent of the Secretary of Homeland Security to reapply for admission to the United States.
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
Major Cocaine and Heroin Trafficker Sentenced on Drug Charges, Ordered to Forfeit AssetsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Ronald Walker, 43, of Corona, N.Y., who was convicted of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and one kilogram or more of heroin and conspiracy to commit money laundering, was sentenced to 10 years in prison by U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to assets totaling $2,500,000 to the United States, which represented the amount of proceeds from the drug trafficking conspiracy.
Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that between 2005 and August 2012, the defendant was part of a conspiracy to distribute cocaine and heroin. During the time period of the conspiracy, Walker was in New York City and arranged for the distribution of quantities of cocaine and heroin through others to individuals who were transporting the drugs to Rochester and distributing them. The conspiracy involved at least 40 kilograms of cocaine and one kilogram of heroin. In addition, Walker laundered drug proceeds by placing at least $911,000 in cash in safe deposit boxes opened by other individuals to conceal the proceeds. In August 2012, authorities seized the cash from these safe deposit boxes, as well as approximately $615,000 in cash from two residences connected to the defendant. Walker agreed to forfeit all of that cash, as well as a 2012 Range Rover vehicle, articles of jewelry and two properties located in Corona, N.Y., and Union City, Georgia, as proceeds of his illegal activities.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, investigators with the Rochester Police Department, under the direction of Chief James M. Sheppard, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.Maine Man Sentenced for Newington Bank RobberyRead the Press Release
CONCORD, N.H. – Derek Kucinski, 27, formerly of Cape Neddick, Maine, was sentenced yesterday in United States District Court for the District of New Hampshire to serve a minimum mandatory 22 years in federal prison following his conviction for armed bank robbery, announced United States Attorney John P. Kacavas.
On Saturday, January 12, 2012, Kucinski entered the TD Bank on Woodbury Avenue in Newington, New Hampshire wearing a black ski mask, gloves and armed with a loaded .32 caliber revolver. He ordered several customers to the ground as he repeatedly pointed the handgun at tellers and demanded money. After spending several minutes in the bank, Kucinski fled with approximately $5000.00 and was apprehended by Newington and Portsmouth police following a brief car and foot chase.
At the time of his arrest, Kucinski was on supervised release after having served five years in federal prison for nine prior bank robberies committed in 2006. He was not armed in the commission of those robberies.
The case was investigated by the Federal Bureau of Investigation, and the Newington and Portsmouth Police Departments, with invaluable assistance provided by the Somersworth Police Department. The case was prosecuted by United States Attorney John P. Kacavas.Lockport man sentenced on drug chargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Torano Spencer, 37, of Lockport, N.Y., who was convicted of conspiracy to possess with intent to distribute, and to distribute, cocaine and cocaine base, was sentenced to three years probation with three months electronic monitoring by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between June 2009 and August 2010, Spencer distributed cocaine and cocaine base in the Lockport area which was supplied to him by co-defendant Eric Williams. Spencer is one of the 22 defendants convicted as a result of this drug investigation.
The conviction is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Lawrence, Pa., Man Charged with Embezzling from Clients, Failing to Report IncomeRead the Press Release
PITTSBURGH - A resident of Lawrence, Pa., has been indicted by a federal grand jury in Pittsburgh, on charges of wire fraud and filing false income tax returns, United States Attorney David J. Hickton announced today.
The seven-count indictment named James Grimes, a resident of Lawrence, Pennsylvania.
According to the indictment presented to the court, Grimes embezzled funds belonging to clients of his brokerage firm. He also allegedly failed to report the income realized on his tax return for the years 2007-2009.
The law provides for a maximum total sentence of 89 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James Y. Garrett is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lakeland Man Pleads Guilty to Production of Child PornographyRead the Press Release
Tampa, FL– Acting United States Attorney A. Lee Bentley, III announces that Lawrence H. Dorman a/k/a “Howie” (42, Lakeland) today pleaded guilty to production of child pornography. Dorman faces a mandatory minimum of 15 years’ imprisonment, up to a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
Dorman was indicted on July 31, 2013.
According to the plea agreement, following an anonymous tip from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Tipline, law enforcement determined that from approximately December 2012 until April 2013, Dorman a/k/a "Howie" engaged in a sexual relationship with a sixteen year-old minor female. Throughout the course of that relationship Dorman produced videos of himself engaged in sexual acts with the minor.
On April 3, 2013, agents from ICE-HSI, the Lakeland Police Department, and Polk County Sheriff's Office conducted a search warrant at Dorman’s residence. During the search of the residence, law enforcement seized and previewed several electronic media items, including a video file on Dorman's desktop computer. The video depicted Dorman engaged in sexual contact with a minor female victim. When interviewed by law enforcement, Dorman admitted to having sex with the minor victim and creating video recordings of the sex acts.
A subsequent interview with the minor victim corroborated the seized evidence. Additionally, the minor victim advised that Dorman provided her with marijuana and methamphetamine, while she was at his residence.
This case was investigated by ICE-HSI and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ketchikan Man arraigned in Federal Court for assault on a Federal OfficerRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Ketchikan man was arraigned yesterday in Juneau on one charge of assault on a federal officer.
Jon William Munhoven, 55, of Ketchikan, Alaska, also known as “John William Mundhoven,” appeared in court yesterday and pled not guilty to the charge.
According to the information presented to the court, Munhoven was contacted by the United States Coast Guard in response to a disturbance on a private vessel outside of Ketchikan, Alaska. Once contacted, USCG officers removed Munhoven from the vessel and onto a USCG patrol vessel. Munhoven was subsequently placed in restraints. The USCG secured the other vessel in order to tow the vessel into safe harbor. The indictment alleges that Munhoven was hostile and aggressive during the tow operation and was placed on the deck of the USCG boat for his safety and the safety of other personnel on the patrol vessel. Munhoven is charged with kicking a USCG officer in the face with a shod foot causing bodily injury to the officer.
Assistant U.S Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
The United States Coast Guard Investigative Service and the Ketchikan Police Department conducted the investigation leading to the indictment in this case. Munhoven remains incarcerated pending trial in this case.
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.
Kent Woman Faces Tax ChargesRead the Press Release
A Kent, Ohio, woman is accused of underreporting her taxable income by more than $240,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Youlanda Banks, age 57, was charged via criminal information with two counts of making or subscribing a false tax return.
Banks filed a tax return for 2007 stating her total income was $54,059 when, in fact, it was approximately $157,238. She filed a tax return for 2008 stating her total income was $3,169 when, in fact, it was $143,765, according to the information.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton following an investigation by the Internal Revenue Service.
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.
Justice Department Files Lawsuit to Stop Tennessee Woman from Preparing Tax ReturnsRead the Press Release
The Department of Justice filed a civil lawsuit in a federal court in Memphis today to stop Stephanie Edmond and her businesses, the Tax Factory and Tax Factory Enterprise Inc., from preparing federal income tax returns. According to the complaint, Edmond and her businesses have prepared more than 9,000 tax returns since 2011.
The complaint filed with the U.S. District Court for the Western District of Tennessee alleges that Edmond understates her customers’ federal tax liabilities by creating fake businesses, then listing those phony businesses on returns and fabricating expenses for them. Edmond also improperly claims the earned income tax credit on the income tax returns that she prepares for her customers. In one case, according to the complaint, two returns prepared for a customer by The Tax Factory claimed bogus business losses of approximately $30,000 for each of the two years, and as a result, the customer improperly received tax refunds of approximately $7,000 both years. In total, the complaint alleges that Edmond’s activities over the last three years have cost the Treasury $9.7 million or more in lost income tax revenue.
Return preparer fraud is one of the Internal Revenue Service’s 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 Internal Revenue Service has some tips for choosing a tax preparer: http://www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional. In the past decade, the department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.g ov/tax/taxpress2013.htm.
Related Materials:
United States v. Stephanie Edmond
Complaint for Permanent InjunctionJustice Department Files Lawsuit Alleging Disability-Based Discrimination at Hartville, Ohio, Condominium ComplexRead the Press Release
The Justice Department filed a lawsuit late yesterday against the owners, builders and designers of a 54-unit condominium complex in Hartville, Ohio, for violations of the Fair Housing Act (FHA). The lawsuit alleges that the defendants violated the law when they designed and constructed the complex with barriers that make it inaccessible to persons with disabilities.
“Since 1991, the Fair Housing Act has required that when new multifamily housing is built, it be accessible to persons with disabilities,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “When condominium complexes are built with steps and other barriers, those with disabilities are denied that equal housing opportunity.”
“We will continue to work to make sure people with disabilities are free to live where they choose, as is their legal right,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
The suit, filed in U.S. District Court in Cleveland alleges that various barriers at the Windham Bridge property in Hartville deny persons with disabilities equal access to 52 condominiums and the associated public and common-use areas at the property that are covered by the FHA. Such barriers include inaccessible building entrances; no accessible parking spaces; insufficient accessible routes into and through the units; and kitchens and bathrooms that are inaccessible to persons in wheelchairs.
The lawsuit arises from a complaint filed with the Department of Housing and Urban Development (HUD) by the Fair Housing Advocates Association (FHAA), a private nonprofit corporation whose mission is to provide education regarding fair housing laws and to ensure compliance with those laws in Ohio. FHAA inspected the Windham Bridge property and observed accessibility barriers. After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.
“The Fair Housing Act's accessibility requirements have been on the books for over two decades. So, today, when a person with a disability cannot enter the front door of a condominium complex, or find accessible parking there, it sends the message: 'You are not welcome here,'" said HUD's Acting Assistant Secretary Bryan Greene for Fair Housing and Equal Opportunity. “HUD and DOJ are committed to enforcing the nation’s fair housing laws to make certain persons with disabilities have the same access to multifamily housing as anyone else."
Named in the suit are the prior owners and builders of the property, Noble Homes Inc., Guardian Property Management Inc., Dean Windham, Hersh Construction Inc., and John Hershberger, as well as the designer of the property, Milton Studer, and his firm, Studer Architects LLC. The suit seeks a court order requiring the defendants to retrofit the Windham Bridge property to bring it into compliance with the FHA, as well as monetary damages for FHAA and for persons harmed by the lack of accessibility at the complex.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, the Act requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] , or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Justice Department Files Lawsuit Alleging Disability-Based Discrimination at Hartville Condominium ComplexRead the Press Release
The Justice Department filed a lawsuit late yesterday against the owners, builders and designers of a 54-unit condominium complex in Hartville, Ohio, for violations of the Fair Housing Act (FHA). The lawsuit alleges that the defendants violated the law when they designed and constructed the complex with barriers that make it inaccessible to persons with disabilities.
“Since 1991, the Fair Housing Act has required that when new multifamily housing is built, it be accessible to persons with disabilities,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “When condominium complexes are built with steps and other barriers, those with disabilities are denied that equal housing opportunity.”
“We will continue to work to make sure people with disabilities are free to live where they choose, as is their legal right,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
The suit, filed in U.S. District Court in Cleveland alleges that various barriers at the Windham Bridge property in Hartville deny persons with disabilities equal access to 52 condominiums and the associated public and common-use areas at the property that are covered by the FHA. Such barriers include inaccessible building entrances; no accessible parking spaces; insufficient accessible routes into and through the units; and kitchens and bathrooms that are inaccessible to persons in wheelchairs.
The lawsuit arises from a complaint filed with the Department of Housing and Urban Development (HUD) by the Fair Housing Advocates Association (FHAA), a private nonprofit corporation whose mission is to provide education regarding fair housing laws and to ensure compliance with those laws in Ohio. FHAA inspected the Windham Bridge property and observed accessibility barriers. After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.
“The Fair Housing Act's accessibility requirements have been on the books for over two decades. So, today, when a person with a disability cannot enter the front door of a condominium complex, or find accessible parking there, it sends the message: 'You are not welcome here,'" said HUD's Acting Assistant Secretary Bryan Greene for Fair Housing and Equal Opportunity. “HUD and DOJ are committed to enforcing the nation’s fair housing laws to make certain persons with disabilities have the same access to multifamily housing as anyone else."
Named in the suit are the prior owners and builders of the property, Noble Homes Inc., Guardian Property Management Inc., Dean Windham, Hersh Construction Inc., and John Hershberger, as well as the designer of the property, Milton Studer, and his firm, Studer Architects LLC. The suit seeks a court order requiring the defendants to retrofit the Windham Bridge property to bring it into compliance with the FHA, as well as monetary damages for FHAA and for persons harmed by the lack of accessibility at the complex.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, the Act requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Jury Finds Felon with Prior Convictions Guilty of Illegally Possessing A RevolverRead the Press Release
PITTSBURGH - After deliberating for less than an hour, a federal jury of four men and eight women found James H. Anthony guilty of one count of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g), United States Attorney David J. Hickton announced today.
Anthony was tried before Senior United States District Judge Donetta Ambrose in Pittsburgh, Pa.
According to Assistant United States Attorney Barbara K. Doolittle, who prosecuted the case, the evidence presented at trial established that, on Sept. 25, 2011, Anthony possessed a Rossi .38 special revolver with an obliterated serial number. The firearm had been reported stolen years earlier by the Ligonier Township Police Department in Westmoreland County. Anthony was found to be in possession of the gun at his home in Fawn Township, Allegheny County, despite his inability to lawfully possess any firearm as a result of a prior felony conviction.
Judge Ambrose scheduled sentencing for March 27, 2014. Because the defendant has three previous convictions for a violent felony or a serious drug offense, or both, the law provides for a mandatory minimum sentence of 15 years in prison up to a maximum of life imprisonment, and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history of the defendant, but cannot be less than 15 years in this instance.
Pending sentencing, the court continued the defendant’s house arrest.
The Fawn Township Police Department, the Allegheny County Police Department, and the ATF conducted the investigation that led to the prosecution of James Anthony.
Judge Sentences Heroin Dealer to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 120 months imprisonment followed by eight years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Donald Lyles a/k/a Chief, 39.
According to information presented to the court, on or about April 25, 2013, Lyles possessed with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Lyles.
Grand Junction Man Is Sentenced to 38 Months in Federal Prison for Income Tax EvasionRead the Press Release
DENVER – James G. Kreutzer, age 52, of Grand Junction, Colorado, was sentenced yesterday by U.S. District Court Judge William J. Martinez to serve 38 months in federal prison for income tax evasion, United States Attorney John Walsh, IRS Criminal Investigation Special Agent in Charge Stephen Boyd and FBI Special Agent in Charge Thomas P. Ravenelle announced. Following his prison sentence, Kreutzer was ordered to spend 3 years on supervised release. Judge Martinez also ordered him to pay $186,473 in restitution, as well as a $10,000 fine.
Kreutzer waived his right to be indicted by a federal grand jury on May 7, 2013, and was charged by Information. According to the stipulated facts contained in the plea agreement, as well as the Information, Kreutzer through Village Nursery, Inc (his solely owned company) and various related entities he owned and/or controlled, engaged in real estate development and construction activities in Southwest Colorado. During the period of 2001 through 2008, Kreutzer devised a scheme to defraud, lenders, which included financial institutions, companies, and other persons. Personally and through his companies Kreutzer repeatedly sought and obtained new loans to service his prior loans, to pay his personal obligations and expenses, and to pay for his real estate purchases and construction activities. To obtain these loans, he routinely made materially false and fraudulent pretenses, representations and promises to financial institutions.
By mid-2008, Kreutzer was no longer able to obtain money through new loans or otherwise to pay previous lenders and others. In 2007 and 2008, Kreutzer’s personal expenses were reflected by the accountant he hired in the company's general ledger as accounts receivable which showed he took $1,132,917.46 from his company in 2007, none of which was reported as income on his 2007 tax return. In 2008 he took an additional $248,627.35, none of which was reported as income on his 2008 tax return. The personal expenses paid by the company in 2007 and 2008 included Kreutzer’s home mortgage payments for his two homes, his utility payments, his Mercedes Benz payments, his gambling expenses in Las Vegas, Nevada, and his jewelry purchases.
The accountant, over a number of years, told Kreutzer the money he took out of the company was income and he should report it on his personal income tax returns. Kreutzer stated to the accountant, in essence, don't put it on the return, I can't pay it. Kreutzer paid no income tax to the IRS in 2007 and 2008 while the actual calculated amount due to the IRS was $186,473.
This case was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Todd Norvell and Tim Neff.
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Four Louisville Men Charged in String of Armed RobberiesRead the Press Release
– Federal Charges Result From “Project Recoil”
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky announced the indictment by federal grand jury today, of four Louisville men charged with the armed robbery, and attempted robbery, of five businesses located in Jefferson County, Kentucky, and discharging a firearm during the course of a robbery. These federal charges stem from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by U.S. Attorney Hale, Jefferson County Commonwealth’s Attorney Tom Wine, Jefferson County Attorney Mike O’Connell, LMPD Chief Steve Conrad, ATF Special Agent in Charge Stuart Lowrey, FBI Special Agent in Charge Perrye Turner, and United States Marshal James Clark to maximize penalties for the most violent offenders and to reduce violent crime in our community.
The ten-count indictment charges, Jescell Whittle, age 22, Tony Trumbo, Jr., age 23, with four counts of obstructing interstate commerce through robbery, one count attempted robbery and four counts of brandishing a firearm during a robbery. Dahntel Newsome, age 18, is charged with two counts of obstructing interstate commerce through aiding and abetting a robbery, one count attempted robbery and three counts of brandishing a firearm during a robbery. James Gore, Jr., age 23, is charged with two counts of obstructing interstate commerce through aiding and abetting a robbery and one count brandishing a firearm during a robbery. All defendants, except Newsome, face an additional count of brandishing and discharging a firearm, during a robbery.
Defendants Whittle, Trumbo and Newsome are charged with robbing the Cricket Wireless located at 4442 Cane Run Road on October 22, 2012, attempted robbery of the Cricket Wireless located at 3125 West Broadway on October 23, 2012, and robbery of the JC Cigarette Outlet located at 2714 Crums Lane on October 29, 2012. Defendants Whittle, Trumbo and Gore are charged with robbing the Thorntons located at 4516 Poplar Level Road on October 30, 2012, and the Speedway, located at 3030 Taylor Boulevard on October 31, 2012. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce.
If convicted at trial, Whittle and Trumbo face a mandatory 100 year prison sentence for robbery and attempted robbery, a 107 year sentence for use of a firearm in a crime of violence, and a $2.5 million fine. Newsome faces a 60 year sentence for robbery and attempted robbery, a 57 year sentence for use of a firearm in a crime of violence, and a $1.75 million fine. Gore faces a 40 year sentence for robbery, a 32 year sentence for use of a firearm in a crime of violence, and a $1 million fine.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKinness and is being investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Former Philadelphia Police Officer Convicted of CorruptionRead the Press Release
PHILADELPHIA – A federal jury, yesterday, found 52-year old Rafael Cordero, a 23-year veteran of the Philadelphia Police force, guilty of interfering with the federal drug investigation of the Christian Serrano/Edwin Medina Drug Trafficking Organizations (“DTOs”). Cordero provided sensitive law enforcement information about drug investigations to his half-brother, David Garcia, a member of the Serrano/Medina DTOs. Cordero told his half-brother about a surveillance camera put up by the DEA to monitor activities occurring at a garage, located at 538 East Indiana Street in Philadelphia, used by the Medina DTO. When the FBI and DEA executed search warrants at several locations associated with the Serrano/Medina DTOs, including the garage, Cordero, after being informed about the searches by his half-brother and without having any official reason to do so, went to the search location on East Indiana Street and began looking in the windows of the garage. When confronted by law enforcement and brought inside the location, Cordero misrepresented his reason for being at the location and offered to assist with the search. At no time did Cordero provide his name to law enforcement.
Immediately after leaving the search location, Cordero placed a call to David Garcia and shared with him, among other things, how many law enforcement officers were conducting the search and what areas of the garage they were searching. Garcia removed a DVR tape that law enforcement had inadvertently failed to seize during the search and viewed it to see if Cordero was recorded at the garage at the time of the search, which he was. At no time did Cordero inform law enforcement that David Garcia had possession of the video tape.
When questioned by federal agents, Cordero denied giving information to Garcia regarding the surveillance camera, denied knowing of anyone associated with the Indiana Street garage, denied having spoken to David Garcia about the search at the garage, and denied passing on information regarding cooperating witnesses to Garcia, all of which were false statements.
Cordero faces a maximum possible sentence of 20 years imprisonment. A sentencing date has not yet been set.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorneys Maureen McCartney and Kevin Brenner.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former El Paso Businessman and City Representative Sentenced in El Paso Corruption CaseRead the Press Release
In El Paso this morning, Roberto “Bobby” Ruiz, a former representative for New York–based financial services firm Bear Stearns, was sentenced to two years in federal prison followed by three years of supervised release for his role in a “pay-to-play” scheme uncovered during the ongoing public corruption investigation in El Paso announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
United States District Judge Frank Montalvo also ordered that Ruiz pay a $175,000 fine and to self-surrender to the Dallas office of the U.S. Marshals Service on January 7, 2014, to begin serving his prison term.
In sentencing Ruiz below the applicable advisory U.S. Sentencing Guidelines, Judge Montalvo took into consideration the Government’s request to the Court to acknowledge Ruiz’ lengthy, extensive and beneficial assistance to the Government in the El Paso public corruption investigation as well as his assistance to other state and federal initiatives in other jurisdictions.
Judge Montalvo also sentenced former El Paso city representative and attorney, Raymond Telles, this morning to five years of probation and ordered Telles to pay a $4,000 fine for his role in the conspiracy.
In sentencing Telles to a term of probation, Judge Montalvo took into consideration the Government’s recommendation regarding Telles’ sentencing based on Telles’ expeditious cooperation with the Government, within one month of learning he was under investigation, and Telles’ truthful and complete cooperation. In addition, the Judge recognized Telles’ minimal benefit as a result of corrupt conduct. According to counsel for Telles, the defendant voluntarily surrendered his Texas law license in 2009 and has no intent to practice law in the future.
Previously, Telles and Ruiz pleaded guilty to conspiracy to commit mail and wire fraud, and deprivation of honest services. By pleading guilty, both admitted to conspiring to participate in a bribery scheme in an effort to secure a $40 million El Paso County debt refinancing contract.
“The sentencing of Mr. Ruiz and Mr. Telles are a reminder that those who illegally conspire to profit from taxpayer dollars will have to answer to the people of El Paso,” stated FBI Special Agent in Charge Douglas E. Lindquist.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorneys Debra Kanof and Jose Luis Gonzalez prosecuted this case on behalf of the Government.
Former Crawford County 911 Director Pleads Guilty to Mail FraudRead the Press Release
WICHITA, KAN. – A former 911 director for Crawford County, Kan., has pleaded guilty to mail fraud, U.S. Attorney Barry Grissom said today.
John Gagliardo, 60, Pittsburg, Kan., pleaded guilty Monday in U.S. District Court in Wichita to one count of mail fraud. In his plea, he admitted the crime occurred in 2011 while he was serving as 911 Director for Crawford County, Kan., and also working as a salesman at Washington Electronics at 611 N. Pine in Pittsburg, Kan.
In 2011 Dave Gobel, an employee of the Kansas Division of Wildlife and Parks, was responsible for obtaining storm warning equipment for Farlington, Kan., and an area around Crawford County State Park. Gobel prepared a grant application to the state of Kansas. He solicited a bid for the equipment from Washington Electronics. In addition to supplying Gobel a legitimate bid from Washington Electronics, Gagliardo supplied Gobel with a fraudulent bid from a non-existent company called K-Sirens of Scammon, Kan. Goebel did not ask for the second bid and did not know it was fraudulent. The fraudulent bid was for a higher amount than the legitimate bid from Washington Electronics.
Sentencing is set for Feb. 19. The parties have agreed to recommend probation.
Co-defendant George Washington is set for sentencing Feb. 10.
Grissom commended the Kansas Bureau of Investigation, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.
Florida Marine Life Dealers Sentenced for Illegal Wildlife TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and Edward Grace, Deputy Assistant Director U.S. Fish & Wildlife Service, Office of Law Enforcement, announce that Eric Pedersen, 51, and Serdan Ercan, 43, both formerly of Grassy Key, were sentenced today in federal District Court in Key West for conspiring to harvest, transport, and sell wildlife, including Live Rock and attached invertebrates, sea fans, bonnethead sharks, lemon sharks, and nurse sharks, with a fair market value in excess of $350.00, knowing the marine life were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), (a)(4), 3373(d)(1) and (2), and Title 18, United States Code, Section 554, all in violation of Title 18, United States Code, Section 371.
Pedersen was sentenced by U.S. District Judge Jose E. Martinez to 24 months in prison, followed by two years of supervised release and ordered to pay a fine of $10,000. Additionally, Pedersen was barred by the Court from any employment during his supervised release that involves the possession, display, transportation, exhibition, purchase, or sale of wildlife. Pedersen was also the subject of an Order of Forfeiture which forfeited the vessel used in perpetrating the illegal harvesting activities. Ercan received a sentence of one year and a day in prison, followed by one year of supervised release and a fine of $6,000.
According to the Indictment, Joint Factual Statements submitted to the Court, and arguments at sentencing, from approximately March 2012 through November 2012, Pedersen and Ercan engaged in a conspiracy to illegally harvest and market marine life from the Florida Keys to wholesalers throughout the United States and abroad through a business located on Grassy Key known as Key Marine, Inc. At the time of the offenses charged, Pedersen was Vice President and Ercan was Secretary of Key Marine. In addition to ornamental fish, the wildlife included Live Rock, Ricordea florida, sea fans, and several species of sharks, which were subject to specific required Florida licensing requirements and bag limits which the participants in the harvesting and sales operations ignored. According to the Factual Statements, Pedersen and Ercan were aware of the requirements of the law, and took actions to conceal the scope and nature of their activities from authorities. Unknown to Pedersen and Ercan, federal agents had begun to monitor their harvest and sales activities, including covertly recording harvest operations and marking illegally acquired products to trace them through their interstate sales. Key Marine, Inc. was dissolved in the wake of the federal prosecution.
Mr. Ferrer commended the joint investigative efforts of the Special Agents of the NOAA Office of Law Enforcement and the Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom, and the assistance of the Officers of the Florida Fish & Wildlife Conservation Commission who assisted the federal investigation. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes, with assistance from the U.S. Attorney?s Office for the District of Idaho.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fire Captain Jailed for Conspiring to Set FiresRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that George Allen, age 30, of Wallingford, Vermont, former Captain of the Wallingford Volunteer Fire Department, was sentenced to 13 months in jail yesterday by Chief Judge Christina Reiss, of the United States District Court in Rutland, Vermont. Allen was found guilty after a jury trial last July of conspiring with younger members of the fire department to set a series of outdoor fires in Wallingford in early 2008. Because several of the fires were in the Green Mountain National Forest, owned by United States, the arsons were charged in federal court.
At the July trial the jury determined that Captain Allen conspired with several teenaged members of the fire department to start the fires. The motive was the excitement of responding to a fire with the fire department, and the boredom of being on a department with few fire calls. After the younger firemen set fires and called 911, Captain Allen and the Wallingford Fire Department responded to extinguish them.
At sentencing yesterday, Chief Judge Reiss found that the offense was Aoutrageous@ and Adangerous,@ entailing risks of injury to both firefighters and the public, as emergency vehicles traveled the roads. Current Wallingford Fire Chief Stephane Goulet made a statement to the Court regarding the adverse impact of the offense on the department=s personnel, finances, equipment, and reputation.
Allen, represented by attorney Mark Furlan of Rutland, asked for a probationary sentence, urging that no-one had been hurt. The United States, represented by Assistant U.S. Attorney William Darrow, asked for a term of imprisonment of at least 15 months. The Court imposed a sentence of 13 months, to begin in January, and also ordered Allen to serve two years of supervised release, perform 75 hours of community service, and pay a $100 assessment.
The U.S. Attorney=s Office credited the Vermont State Police Arson Unit, and the U.S. Forest Service with the investigation, and thanked the Wallingford Fire Department for its cooperation.
Federal Jury Returns Guilty Verdicts in Gambling and Money Laundering CaseRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced today that a federal jury in the District of Guam returned a verdict finding defendants William M. Perez and Jennie Wen Chin Pau guilty, as follows:
Defendant William M. Perez –
Count 1 – Conspiracy to Commit Illegal Gambling
Count 2 – Illegal Gambling Business
Counts 18-38 – Money LaunderingDefendant Jennie Wen Chin Pau -
Count 1 – Conspiracy to Commit Illegal Gambling
Count 2 – Illegal Gambling Business
Counts 18-35 – Money Laundering
Counts 40-44 - StructuringThe jury found the defendants not guilty as to money laundering charges in Counts 3-17. Defendants Perez and Pau will be sentenced by the Hon. Frances Tydingco-Gatewood, Chief Judge, on March 28, 2014 at 10:00 A.M.
Two co-defendants, Jimmy Hsieh and Pauline Perez, pleaded guilty before trial and are awaiting sentencing. Co-defendant Wai Kam Ho remains charged, with a trial anticipated in early 2014.
The evidence at trial showed that from at least January 2006 until December 14, 2010, defendants Perez and Pau conspired with other individuals to conduct an illegal gambling business in a manner which violated the laws of the Territory of Guam. The defendants offered card games of chance, including baccarat and poker, at the MGM Spa building approximately five times a week. The games violated Guam law in that the defendants, as the “house,” took a percentage of the winnings from each poker game, and also charged $5 per $100 of bets for food and drink.
The evidence at trial also showed that defendants Perez and Pau committed money laundering by knowingly conducting financial transactions affecting interstate commerce, which transactions involved the proceeds of a specified unlawful activity, namely conducting an illegal gambling business.
The evidence at trial further showed that defendant Pau knowingly and for the purpose of evading reporting requirements, structured transactions with domestic financial institutions, in violation of federal law.
U. S. Attorney Limtiaco stated, “The defendants participated in illegal gambling and laundered illegal gambling proceeds. The convictions demonstrate the commitment of the U.S. Attorney’s Office, Department of Justice, to hold accountable those involved in facilitating illegal gambling businesses.” U.S. Attorney Limtiaco further stated, “This case involved the collaborative investigative efforts, skills and resources of the Internal Revenue Service Criminal Investigations Unit (IRS-CI), the Federal Bureau of Investigations (FBI) and the Naval Criminal Investigative Service (NCIS). We thank our law enforcement agencies for their diligent work in the investigation and prosecution of this illegal gambling operation. ”
The Conspiracy, Illegal Gambling, and Structuring counts each carries a maximum prison term of five years. Each count of Money Laundering carries a maximum prison term of 20
years.This case was investigated by Special Agents from the Internal Revenue Service Criminal Investigations Unit (IRS-CI), the Federal Bureau of Investigations (FBI) and the Naval Criminal Investigative Service (NCIS). Assistant United States Attorney Karon V. Johnson prosecuted the case.
Federal Jury Convicts Brunswick, Georgia Woman in $4 Million Medicaid Fraud SchemeRead the Press Release
Waycross, GA – Randy Strickland, 55, a former Pierce County, Georgia Deputy Sheriff, pled guilty last week before United States District Court Judge William T. Moore, Jr. for his role in trafficking methamphetamine.
According to the evidence presented during his guilty plea hearing, Strickland agreed to act as “security” for individuals he believed were dealing meth, by acting as the lookout. Strickland’s drug activities occurred while he was in uniform and armed, and while he was driving his police vehicle. After receiving information about Strickland’s apparent criminal activities, Pierce County Sheriff Ramsey Bennett immediately requested federal law enforcement assistance. As a result, Strickland’s last “security detail” was for a confidential informant and under the watchful eyes of several federal agents. On that occasion, Strickland agreed to act as the lookout for who he believed to be a drug dealer selling ounces of methamphetamine. Shortly after receiving his charged fee of $100, which at Strickland’s direction was placed in a potato chip bag on the side of a road, Strickland was arrested by federal authorities.
United States Attorney Edward Tarver stated, "Former Deputy Sheriff Strickland’s actions tarnished the badge and the community’s trust. Police corruption leaves a stain on the good work of our law enforcement community. Make no mistake that defendants who violate the trust of this community, law enforcement or otherwise, will be prosecuted to the fullest extent of the law.”
“Mr. Strickland abused his position of public trust and demonstrated a complete lack of integrity by protecting people he believed to be meth dealers,” said Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Atlanta. “Thanks to the hard work of HSI special agents and the assistance of our partners at the ATF, FBI, Pierce County Sheriff’s Office, and the U.S. Attorney's Office, his schemes have been broken.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “While the guilty plea of former Pierce County Deputy Sheriff Strickland concludes a sensitive and critical joint investigation, it also concludes one man's career in law enforcement. These law enforcement based public corruption cases clearly illustrate the harm that can be done to the community as well as the criminal justice system, but they also provide an opportunity for those many committed law enforcement officers to re-dedicate themselves to the oaths that they were sworn to uphold.”“The criminal conduct of former Pierce County Deputy Sheriff Strickland is unconscionable and unthinkable for those serving faithfully within the criminal justice community,” said ATF Special Agent in Charge Christopher Shaefer. “The guilty plea will provide many opportunities for him to reflect on his actions and serve as notice to others that the ATF and our law enforcement partners will not tolerate this type of conduct.”
Pierce County Sheriff Ramsey Bennett stated, “It is of utmost importance that the public not perceive that we in law enforcement act as though we are ‘above the law.’ The investigation and prosecution of Randy Strickland should reassure the general public that I, as Sheriff will not tolerate law enforcement officers in my jurisdiction that violate the law and the public trust. Those of us who take an oath to serve and protect the public and uphold the constitution must be vigilant in regard to our duties and what the public expects of us.”
Strickland faces up to 20 years in prison for his conviction. There is no parole in the federal system. Strickland’s sentencing will be scheduled after the U.S. Probation Office completes a presentence investigation report.
This case was investigated by ATF, HSI, FBI and local law enforcement. Assistant United States Attorneys Greg Gilluly and Tania Groover are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
DeBlasio’s Restaurant Owner Sentenced to Probation with Home Detention for Evading TaxesRead the Press Release
PITTSBURGH - A resident of Presto, Pa., has been sentenced in federal court to five years of probation, including 24 months of home detention, and a $10,000 fine plus 500 hours of community service, on his conviction of federal income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Donald J. DeBlasio, 69. According to information presented to the court, as the owner of DeBlasio's, defendant engaged in the practice of "skimming" cash from restaurant sales, resulting in a total tax loss of $341,128.62 from the filing of false personal, corporate and payroll tax returns during the years 2007-2009.
Prior to imposing sentence, Judge Cercone stated that he has “long felt that under-payment of taxes is one of the most serious problems in our country, but [the defendant’s] age is a factor and not every case warrants incarceration.”
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government. U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of DeBlasio.
Bridgeport Woman Sentenced to 30 Months in Federal Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that XANG NAKHOUNE, 38, of Bridgeport, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in October 11, 2012, NAKHOUNE served as an intermediary in the sale of 38 grams of crack cocaine to an individual working with law enforcement. On November 9, 2012, NAKHOUNE contacted the same individual with an offer to sell two ounces of crack in exchange for $2,400. NAKHOUNE was arrested after she arrived at the location that had been arranged for the intended sale. A subsequent search of her vehicle revealed approximately 49 grams of crack.
NAKHOUNE has been detained since her federal arrest on March 1, 2013. On September 10, she pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the New Haven and Bridgeport Police Departments. This case was prosecuted by Assistant U.S. Attorney Michael E. Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Brad Charles Fisher, an Insurance Salesman Convicted of Tax Evasion, Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on December 3, 2013, before Senior U.S. District Judge Charles C. Lovell, BRAD CHARLES FISHER, 51, a former resident of Helena and a current resident of Kenmore, Washington, was sentenced to a term of:
- ison: 45 months
- ecial Assessment: $100.00
- stitution: $729,794.16
- pervised Release: 3 years
FISHER was sentenced after a federal district court trial in which he was found guilty of attempt to evade or defeat income tax.
Assistant U.S. Attorney Chad C. Spraker and Department of Justice Tax Trial Attorney Joseph Rillotta prosecuted the case for the United States.
At trial, the following evidence and testimony was presented to the jury.
From April 2006 until January 2008, FISHER attempted to evade and defeat the payment of an income tax due and owing by him to the United States for the calendar years 2001 to 2006 by concealing and attempting to conceal from the Internal Revenue Service the nature and extent of his assets and by making false statements to Internal Revenue Service agents.
From 2001 through 2006, FISHER earned substantial amounts of income by selling insurance products. However, FISHER did not file any tax returns for these years until mid-2006. After IRS commenced a civil audit of FISHER for the 2001-03 tax years, and later sent him a notice of tax deficiency for this period, FISHER eventually filed his 2001-06 returns. In these tax returns, FISHER reported that he earned income and owed tax. However, contrary to his accountant(s instruction, he only paid a small portion of his tax due. By FISHER's own estimation, he owed a total of about $444,761 in tax for 2001-06 (not including interest and penalties). He paid a total of about $44,444. Accordingly, IRS referred this case to its Collections Division. An IRS agent was assigned to collect FISHER's back taxes, and he contacted FISHER in April 2006 to initiate the collections process. The agent asked that FISHER fill out a Collection Information Statement, which calls for the taxpayer to disclose his assets.
When the agent first met with FISHER on May 9, 2006, FISHER provided a partially filled out Collection Information Statement. Because the form did not list any motor vehicles, the agent asked FISHER what motor vehicles he owned. FISHER listed several cars, but failed to mention four to which he held title at the time: a 1967 Chevrolet Corvette, a 1974 Chevrolet Nova, a 1996 GMC K-1500, and a 1999 Chevrolet Tahoe. FISHER also failed to mention a 2004 Chaparral boat that he owned, until the agent inquired about a reference to a boat in FISHER's bank records during a later meeting. Even then, FISHER said he had "no equity" in the boat, when in fact he sold it shortly thereafter and received $17,227 net of encumbrances.
In late 2006, as it became apparent that FISHER was not selling assets voluntarily, the IRS began to take steps to levy certain of his assets. On April 9, 2007, FISHER sent a second Collection Information Statement to the agent. Again, however, it failed to disclose a vehicle that FISHER owned, this time a 2007 Chevrolet Silverado that he had recently purchased. As IRS Collections proceeded toward seizure of FISHER's assets, FISHER filed for bankruptcy on November 14, 2007. It was only during a subsequent bankruptcy hearing that the agent learned about the vintage classic cars that FISHER had previously concealed.
In addition to the agent's testimony and presentation of Department of Motor Vehicles (DMV) records concerning the concealed vehicles, the government offered testimony from the persons that sold certain cars (and the boat) to FISHER, as well as from the buyers who later purchased the vehicles from him. FISHER's travel agent also testified that, during the time his tax debt was outstanding, FISHER purchased expensive vacation packages instead, belying any suggestion that FISHER attempted to pay his debt in good faith.
The vast majority of American citizens pay their taxes when due. Mr. Fisher did not. A jury convicted him of willfully evading hundreds of thousands of dollars in tax liability. Today, Mr. Fisher was sentenced to 45 months in federal prison for his crime, which will serve as a deterrent to others who evade their tax liability." U.S. Attorney Michael W. Cotter.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FISHER will likely serve all of the time imposed by the court. In the federal system, FISHER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
Bells Man Convicted of Methamphetamine TraffickingRead the Press Release
Jackson, TN – Angel Hernandez, 33, of Bells, TN, was convicted last night by a federal jury on one count of possession with intent to distribute 351 grams of ice methamphetamine, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed during trial, on March 12, 2013, agents with the West Tennessee Violent Crime and Drug Task Force for the 28th Judicial District, the Drug Enforcement Administration and the Jackson Police Department executed a search warrant at the Deerfield Inn in Humboldt, Tennessee.
Hernandez was found in possession of 351 grams of ice methamphetamine. Agents also found a large amount of U.S. currency and other evidence that he intended to distribute the drugs. Agents with the task force testified that due to the purity of the methamphetamine, it had a potential street value of up to $50,000 and could have been distributed to more than one thousand individuals.
The jury deliberated approximately 30 minutes before returning its guilty verdict. Hernandez could be sentenced to between five and 40 years in prison and fined up to $5 million. There is no parole in the federal system.
This case was investigated by the West Tennessee Violent Crime and Drug Task Force for the 28th Judicial District and the Jackson Police Department. Assistant U.S. Attorney Matt Wilson represented the government.Bank Employee Pleads GuiltyRead the Press Release
Montgomery, Alabama - Christopher Todd Jones, 30 years old, of Montgomery, Alabama, pled guilty today before United States Magistrate Judge Wallace Capel, Jr., to a one-count Information charging Jones, a former employee of First Tuskegee Bank, with bank fraud, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Jones admitted that while an employee of First Tuskegee Bank, he set up fictitious credit card accounts which he used to steal approximately $580,000.00 from First Tuskegee Bank. Jones faces a potential sentence of not more than 30 years imprisonment, a fine of not more than $1,000,000, and not more than 5 years of supervised release.
This case was investigated by the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Brandon K. Essig and Assistant U.S. Attorney Donald G. Valeska.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Man Sentenced to Federal Prison for Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Clarence Hicks, of Montgomery, Ala., was sentenced to serve 57 months in federal prison and three years of supervised release and ordered to pay $210,555.62 in restitution for his role in a stolen identity refund fraud scheme, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. Hicks had previously pleaded guilty to filing a false claim for a federal tax refund and to aggravated identity theft.
According to court documents, Hicks had access to an Internal Revenue Service (IRS) Electronic Filing Identification Number assigned to another person and used that number to file false federal income tax returns in the names of stolen identities. The court found that Hicks intended to steal more than $300,000 from the IRS, which paid out $210,555.62 in false claims based on fraudulent returns Hicks filed.
This case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorneys Justin Gelfand and Jason Poole of the department's Tax Division prosecuted the case.
Additional information about the department's Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Monday 2 December 2013
Wisconsin Man Sentenced for Anonymous Attack on Koch IndustriesRead the Press Release
WICHITA, KAN. – A Wisconsin man has been sentenced to two years federal probation and ordered to pay $183,000 in restitution for taking part in a cyber-attack on Koch Industries in Wichita that was sponsored by a group known as Anonymous, U.S. Attorney Barr Grissom said today.
Eric J. Rosol, 38, Black Creek, Wis., pleaded guilty to one misdemeanor count of accessing a protected computer. In his plea, he admitted that on Feb. 28, 2011, he took part in a denial of service attack on a Web page of Koch Industries – Kochind.com. From Wisconsin, he used software called a Low Orbit Ion Cannon Code, which was loaded on his computer. He took part in the attack for approximately one minute. The attack, which was organized by a computer hacking group known as Anonymous, caused Kochind.com to go offline for approximately 15 minutes.
Koch Industries had hired a consulting group to protect its Web sites at a cost of approximately $183,000.
Grissom commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.Victoria Man Sentenced for Producing Child PornographyRead the Press Release
VICTORIA, Texas – Vincent Tyler Jimenez, 32, has been ordered to prison for 25 years following his conviction of sexual exploitation of a child, more commonly referred to as production of child pornography, announced United States Attorney Kenneth Magidson. Jimenez previously pleaded guilty July 1, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration testimony from the government and the victims in the case. Noting the need to protect the public and to reflect the seriousness of his crime, the court then handed down the 25-year sentence. In addition to the prison term, Jimenez will be required to serve 15 years of supervised release upon the completion of his prison term and will be required to register as a sex offender.
On July 3, 2012, law enforcement in Waller County conducted an investigation into a person pretending to be a child who was soliciting children to produce pornographic images of themselves. The investigation revealed that Jimenez, while pretending to be a female juvenile, used a cell phone to text a child. Jimenez was able to convince the child to produce nude images and then send those images to Jimenez.
Over time, Jimenez learned the identity of the child’s minor sibling and began communicating with that sibling as well. Jimenez was able to convince the second sibling to also produce nude images.
At some point, the first victim resisted demands for more nude images and Jimenez then began to blackmail the victim with threats to distribute the pictures online if Jimenez did not receive new images.
The criminal activity was discovered by a parent of the children and reported to law enforcement. A state search warrant was executed on his Victoria County home, at which time a cell phone was discovered containing some of the nude images.
Homeland Security Investigations investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Victoria Man Pleads Guilty to Possession of Child PornographyRead the Press Release
VICTORIA, Texas – Joshua Almeida, 23, has entered a plea of guilty to one count of possession of child pornography, announced United States Attorney Kenneth Magidson.
During the hearing, Almeida stipulated to the facts as presented in court. On March 18, 2012, the Victoria County Sheriff’s Office conducted an undercover online investigation into person trading child pornography. A computer which ultimately traced back to Almeida was determined to be offering numerous images of child pornography for distribution. A state search warrant was executed on Almeida’s home in Victoria on Sept. 27, 2012, at which time several electronic storage devices were seized and identified as belonging to Almeida. A subsequent computer forensics search of those devices led to the discovery of numerous files containing child pornography.
Senior U.S. District Judge John D. Rainey, who accepted the guilty plea, has set sentencing for March 3, 2014. At that time, Almeida faces up to 10 years imprisonment. He was permitted to remain on bond pending that hearing.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
US Attorney Lynch's testimony before NY County Lawyers' AssociationRead the Press Release
US Attorney Lynch's testimony before NY County Lawyers' Association
Two Men Sentenced for $39 Million FraudRead the Press Release
Montgomery, Alabama - After a three day sentencing hearing, on November 27, 2013, United States District Court Judge Myron S. Thompson sentenced Paul Hulse, Sr., to the statutory maximum of 10 years imprisonment followed by three years supervised release for interstate transportation of property by fraud, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Judge Thompson also sentenced Frank J. Teers to 8 years imprisonment followed by five years of supervised release for conspiracy to commit wire and financial institution fraud, and committing wire fraud and financial institution fraud.
Both men were ordered to pay $39,239,561.06 in restitution to the Federal Land Bank Association of South Alabama. Judge Thompson continued the sentencing co-defendant, Steven P. Mock, until 2014.
According to court filings, Paul Hulse, Sr. (“Hulse”) was a director of H&H Worldwide Financial Service, Inc., Paul Hulse, Jr. (“Hulse Jr.”) was H&H’s president, Steven P. Mock was an attorney in the Houston area, and Frank J. Teers was a bond broker employed by Tri-Star Financial Services in Houston. Beginning in 2003, Hulse began soliciting various persons and businesses for loans based on the false representation that he controlled a large portfolio of bonds—the amount ranged from tens to hundreds of millions of dollars—that could be used as collateral for the loans. Mock and Teers made false statements to the prospective lenders that supported Hulse’s claim that he owned a substantial bond portfolio. In fact, Hulse did not have a bond portfolio. None of the solicited institutions, which included Western National Bank of Midland, Texas, MetLife, UBS Securities, and Jefferies and Co. agreed to make a loan to Hulse or H&H.
In February 2005, Hulse began soliciting loans from the Federal Land Bank of South Alabama (the “Bank”) in Montgomery, Alabama. During the course of the discussions:
•Hulse falsely represented that he had a large bond portfolio that could serve as collateral for the loans to H&H and submitted documents that concealed Hulse’s plan to use approximately half the loan proceeds to purchase the bonds that were going to serve as collateral for the loans.
•Mock falsely claimed that he was Hulse’s “senior trust officer” and that the “trust agreements” permitted the use of $15 million of trust bonds in connection with the proposed loan.
•Teers falsely represented that he managed a significant bond portfolio for Hulse, provided documents to Hulse that Hulse used to support his claim of ownership, signed documents that represented that bonds were on account at Tri-Star, and failed to disclose to the Bank and to Tri-Star that he had been interviewed by IRS criminal investigators about Hulse’s fraudulent activities.
Based on those false representations, the Bank made two loans to H&H totaling $68.5 million in August and December 2005. H&H used more than half the money to buy the bonds that were to serve as collateral for the loan. A significant amount of the loan proceeds were used for the personal benefit of Mock, Hulse, and members of the Hulse family. Teers made more than $600,000 in commissions from the buying and selling of bonds on behalf of H&H. By Spring of 2007, the relationship between H&H and the Bank had deteriorated. In an effort to convince the Bank to allow the principal of the bonds to be used to make the quarterly loan payment, on June 28, 2007, Mock, Hulse, and Hulse Jr. sent a letter to the Bank that (a) falsely claimed that H&H was on the “doorstep” of obtaining a loan from Wells Fargo that would allow the Bank to be paid in full, and (b) described how the loan proceeds had been used without disclosing the fact that more than half the loan proceeds had been used to buy the bond collateral.
“These sentences are particularly fitting because these crimes were committed by professionals who have a fiduciary duty to our citizens of loyalty and trust,” stated U.S. Attorney Beck. “In order to maintain a level of confidence in our lending institutions, those closely involved with those lending institutions have to be forthcoming and honest. These defendants were not. These defendants lied and mislead these credit institutions for their own gain.”
The case was investigated by the FBI with assistance from the Internal Revenue Service, Criminal Investigations in Houston, Texas. This case was prosecuted by former Assistant United States Attorney Andrew O. Schiff and Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Sewage Dumper Sentenced to Six Months in PrisonRead the Press Release
United States Attorney Laura E. Duffy announced today that Las Vegas resident Eric Russell was sentenced by the Honorable Roger T. Benitez to time served (approximately six months) in custody for dumping thousands of gallons of raw sewage on Bureau of Land Management (BLM) land in Imperial County. Russell, who has been in custody since June 2013 after absconding from authorities, was also ordered to pay $21,244.19 in restitution.
Russell had been a driver for All-in-One Environmental Services of Havasu, Arizona. On January 3, 2012, Russell was driving an All-in-One waste disposal truck along Highway 72 in Imperial County. In order to save the time it would take to drive to a lawful disposal site and properly dispose of his cargo, Russell illegally dumped approximately 1,500-2,000 gallons of domestic sewage onto BLM land alongside Highway 72. BLM rangers responded to the scene, and saw Russell’s sewage tanker truck stuck in a wash along Highway 78 (SR 78), near mile post 66 in Imperial County, and smelled a strong stench of sewage. Russell, the driver of the truck, told the ranger that the trunk contained nothing but water, but he declined to take a sip of the “water” himself. The passenger in the sewage truck advised the ranger that they had ended up in the wash after pumping out the holding tanks at a commercial center in the Imperial Sand Dune Recreation Area. But the passenger also indicated that Russell’s stepfather directed him to dump the sewage, and it was their practice to drive 10-15 miles outside of Blythe and dump waste on Red Cloud Road. BLM had to send a team to remediate the dump site, at a cost to the taxpayers of $21,244.19
Another All-in-One Environmental Services driver, Dennis Johnson (Russell’s stepfather) previously pleaded guilty to dumping sewage on the ground in Imperial County and was sentenced to probation and a fine (12-cr-05096).
“Dumping sewage in the middle of nowhere is not only disgusting and harmful to the environment but it is a federal crime that is worthy of time in custody,” said U.S. Attorney Duffy. “These defendants couldn’t be bothered to do the right thing, and now they are paying a price.”
“Untreated sewage contains bacteria and other pathogens that can cause a wide variety of acute illnesses, which is why sewage disposal is a regulated activity that must be done legally and safely,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “Rather than abide by the law, the defendants in these cases devised a scheme to indiscriminately and dangerously dump untreated sewage onto federal lands located in Imperial County, California - saving them money and time. Today’s sentencing is a reminder that those who try to profit by committing environmental crimes will be held responsible for their actions.”
The BLM manages public lands -- many of which are remote areas that attract illegal dumping. Every year, California BLM Field Offices spend thousands of dollars to reverse the damage caused by abandoned automobiles, dumping and littering. In the California Desert District around 100-tons of solid waste was removed from public lands in 2013 according to Sterling White, Hazardous Materials Program Specialist. Illegally dumped wastes found on BLM lands are primarily nonhazardous materials that are dumped to avoid either disposal fees or the time and effort required for proper disposal. These materials typically include: (1) construction and demolition waste such as drywall, roofing shingles, lumber, bricks, concrete, and siding, (2) abandoned automobiles, auto parts, and scrap tires, (3) appliances or "white goods," (4) furniture, (5) yard waste, (6) household trash, and (7) tires. Such wastes end up being illegally dumped because they are banned from certain landfills, or because it costs money to properly dispose of them. BLM reminded the public that if they see anyone dumping these or other prohibited waste on public lands, please contact the nearest BLM Field Office or contact BLM through its web site, www.blm.gov.
DEFENDANT Criminal Case No. 13cr1273-BEN Eric Russell SUMMARY OF CHARGESUnlawful Disposal of Sewage, in Violation of Title 33, United States Code, Sections 1319 and 1345.
Maximum Penalties: 3 years in custody and $50,000 fine/day of violation, a minimum fine of $5,000/day of violation, $100 special assessment.
AGENCIESBureau of Land Management
U.S. Environmental Protection Agency, Criminal Investigations Division