Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
22 January 2014
Jury Finds Montgomery Man Guilty of Identity Theft and Bank FraudRead the Press Release
Montgomery, Alabama - Edmund Lee McCall, 39 years old of Montgomery, Alabama, was found guilty yesterday of conspiracy to commit bank fraud and wire fraud, and six counts of aggravated identity theft after a five day trial held before United States District Court Judge William H. Albritton. The same jury found United States Postal employee Vanessa Valease Gordon not guilty of the same charges.
McCall was the leader of a criminal conspiracy that ran from approximately 2004 to 2009 in Montgomery, Alabama, and elsewhere in the United States. McCall directed others to steal mail from the United States Postal Service that included credit cards and other personal information. McCall then sent runners to pick up the mail and bring it to his home in Montgomery where he used an online service to obtain basic biographical information on the mail theft victims.
Once he had this basic biographical information, McCall contacted his co-conspirators in Georgia who could access credit reports from Experian. The co-conspirators gathered additional biographical information such as the dates of birth, addresses, and social security numbers of the victims. Once a victim’s credit report was accessed and the information gathered, the co-conspirators sent the information back to McCall, who would then activate or reactivate credit cards in the name of the unsuspecting victims. McCall further used a number and voice masking phone service called “Spoofcard” to activate the credit cards.
McCall also had fake identifications made for himself and his co-conspirators in case they were required when using the victims’ credit cards. He and his co-conspirators then used the credit cards to purchase items and take cash advances for themselves. Altogether, there were more than one hundred and ten victims in this case, with losses to their financial institutions totaling $656,417.46.
McCall faces a statutory maximum sentence of 20 to 30 years imprisonment on the conspiracy to commit bank fraud and wire fraud count, and two years on each count of aggravated identity theft.
The case was investigated by the United States Postal Inspection Service, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Denise O. Simpson, Assistant United States Attorney Tommie B. Hardwick, and Assistant United States Attorney Donald Valeska. Assistance was also provided by the Internal Revenue Service in Montgomery, Alabama, and the Georgia and Alabama Bureaus of Investigation.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Juneau Man Sentenced to 60 Months in Drug ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Juneau resident was sentenced in Juneau to federal prison for drug conspiracy.
Bradley Arin Bethel, 26, of Juneau, Alaska, was sentenced January 22, 2014, by U.S. District Court Judge Timothy M. Burgess to 60 months in prison for his role in a drug trafficking conspiracy. Co-conspirator Joshua River Riley was sentenced for his role in the drug trafficking conspiracy on May 31, 2013 and received a 30 month prison sentence.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, Federal Bureau of Investigation, and the Juneau Police Department-Drug Metro Unit, as they investigated the importation of heroin into Juneau, Alaska.
Between October 2012, and continuing through November 2012, Bethel and his co-conspirator Riley conspired to import heroin from Portland, Oregon, to Juneau, Alaska. As part of the conspiracy, Riley contacted other co-conspirators in Oregon to supply heroin to him for subsequent distribution in Alaska. Riley and Bethel provided the money to purchase the heroin and Bethel recruited a drug courier and arranged for the courier’s flight to Oregon to pick up the heroin with Riley, who had traveled the previous day to Oregon. Bethel provided the courier with a cell phone and programmed the number for Riley in the cell phone for the courier to get in contact with Riley in Oregon. Riley and the courier met in Oregon and Riley provided 106.4 grams of heroin to the courier to transport back to Alaska via commercial air carrier for subsequent distribution.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense, the need to deter the defendant and others and to provide treatment in the most effective manner for the defendant as reasons for imposing the 60 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, Federal Bureau of Investigation, and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Riley and Bethel.Jamestown Woman Receives Prison Term for Wire FraudRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced that Angela Womack, age 51, of Jamestown, North Carolina, received a prison term on multiple counts of wire fraud and money laundering.
On January 17, 2014, United States District Judge Catherine C. Eagles sentenced Womack to 70 months in prison followed by three years of supervised release, and ordered her to pay restitution of $2,857,201.85 and a special assessment of $300.00. Womack will begin serving her sentence not later than March 7, 2014.
Womack worked as the Accounts Payable Manager of Carolina Steel Group, LLC, a business located in Guilford County. As Accounts Payable Manager, Womack prepared the company’s reports to provide that vendors would be paid.
While working at Carolina Steel Group, Womack opened non-profit accounts in the name of “IBOCF.” Unbeknownst to her employer, Womack created vendor checks payable to “International BOCF” even though this company was not a vendor to Carolina Steel Group, and also caused additional checks payable to “International BOCF” to be included on the company’s vendor reports. Womack then ensured that banks would honor the company’s checks (including the fraudulent ones) by uploading additional fraudulent reports to a financial clearinghouse website.
In an attempt to hide her scheme, Womack changed internal accounting entries so that the checks to “International BOCF” appeared to be written to legitimate vendors of Carolina Steel Group and altered internal accounting data using another employee’s access codes. Womack deposited fraudulently obtained checks into the “IBOCF” account she controlled, and used the funds from that account for her own benefit.
This case was investigated by agents of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Robert Hamilton.
Iyanbito, N.M., Woman Sentenced to Prison for Involuntary Manslaughter Conviction Involving the Death of a ChildRead the Press Release
ALBUQUERQUE – Sherie Rena Pete, 24, an enrolled member of the Navajo Nation who resides in Iyanbito, N.M., was sentenced this morning to a year and a day in federal prison followed by three years of supervised release for her involuntary manslaughter conviction.
Pete was arrested on May 14, 2013, on a criminal complaint charging her with involuntary manslaughter based on a single motor vehicle crash on May 5, 2013, in Iyanbito, which is located on the Navajo Indian Reservation that resulted in the death of a three-year old child. Two other individuals were injured as a result of the crash.
On Aug. 7, 2013, Pete pled guilty to involuntary manslaughter and admitted killing the victim while driving under the influence of alcohol. Pete admitted that she had been drinking alcohol before driving her vehicle off the roadway, overcorrecting, and flipping the vehicle one and a half times.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Indictment: 15 Pounds of Meth Seized from Driver in MerriamRead the Press Release
KANSAS CITY, KAN. - A man from Mexico was indicted in federal court here Wednesday on charges of possessing 15 pounds of methamphetamine, U.S. Attorney Barry Grissom said.
Guillermo Fernandez-Vera, 38, a citizen of Mexico, is charged with one count of possession with intent to distribute methamphetamine. Fernandez-Vera initially was charged in December in a criminal complaint filed in U.S. District Court in Kansas City, Kan. An affidavit filed in support of the complaint alleges that the investigation began when the Drug Enforcement Administration received information that a man driving a Toyota Tacoma with Mexican license plates could be found at the Drury Inn in Merriam with approximately 15 pounds of methamphetamine. When investigators stopped Fernandez-Vera’s car on Dec. 26, 2013, they found the methamphetamine in seven large rectangular packages hidden inside the seat-backs of the rear truck seats of the vehicle.
If convicted, he faces a penalty of not less than 10 years and not more than life in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
OTHER INDICTMENTS
Patrick C. Hains, 38, Wichita, Kan.; Wyatt Leedy, 35, Wichita, Kan.; and Jose Ramon Monelongo-Castrejon, 28, Wichita, Kan., are charged with conspiring to sell a pound of methamphetamine to an undercover investigator for $20,000.
The three men are charged with one count of conspiracy to distribute methamphetamine. In addition, Hains is charged with four counts of possessing a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 14, 2014, in Sedgwick County, Kan.
The men initially were charged in a criminal complaint filed Jan. 16 in U.S. District Court in Wichita. An affidavit in support of the complaint alleges investigators agreed to pay Hains $20,000 for a pound of methamphetamine. Hains was arrested Jan. 14, 2014, at Pelican Point apartments in Wichita when he attempted to make the sale.
Upon conviction, the conspiracy charge carries a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The firearms charges carry a mandatory penalty of five years -- consecutive to the sentence on the drug charge -- and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Faustino Soto, 41, who is being held in the Shawnee County Jail, is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred Jan. 13, 2014, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the charge of possession with intent to distribute methamphetamine, not less than five years and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the remaining count. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Topeka Police Department and the Kansas Bureau of Investigation Task Force investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Lioncio Borjas-Madrid, 25, Kansas City, Kan., and Luis Borjas-Madrid, 20, Kansas City, Kan., are charged in an indictment.
Lioncio Borjas-Madrid is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm by a person who is unlawfully in the United States and one count of unlawfully re-entering the United States after being deported.
Luis Borjas-Madrid is charged with one count of unlawful possession of a firearm by a person who is unlawfully in the United States and one count of unlawfully re-entering the United States after being deported.
Upon conviction, the crimes carry the following penalties: Possession with intent to distribute methamphetamine: A maximum penalty of 20 years and a fine up to $1 million.
Possession of a firearm by a person not lawfully in the United States: A maximum penalty of 10 years and a fine up to $250,000.
Unlawfully re-entering the United States after being deported: A maximum penalty of two years and a fine up to $250,000.ICE-DHS investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Independence Man Sentenced for Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man has been sentenced in federal court for an investment fraud scheme in which he stole $724,000 from 13 victims.
Richard J. Gumerman, 67, of Independence, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, Jan. 21, 2014, to three years and 10 months in federal prison without parole. The court also ordered Gumerman to pay $722,326 in restitution.
On July 26, 2013, Gumerman pleaded guilty to one count of mail fraud and one count of filing a false income tax return. Gumerman admitted that he stole at least $724,000 from investors from 2007 through December 2011. Gumerman used investor funds for personal living expenses, to pay other investors, to give money to Hooters’ restaurant waitresses and in other businesses he owned.
Gumerman did business as Gumerman Trading Company (GTC). Gumerman is not registered as a broker-dealer agent, investment adviser representative, or issuer agent in the state of Missouri, nor has he ever been. Despite not being registered to sell securities, Gumerman sold investments with the GTC Trading Fund.
Between January 1992 and December 2010, individuals and groups invested more than $948,000 in the GTC Trading Fund. Gumerman told investors that the GTC Trading Fund pooled investor funds to trade in the commodities futures market. Prior to opening the GTC Trading Fund, Gumerman had only traded commodities for one year in a personal account, and lost money in that personal trading account. Gumerman did not disclose this material fact to investors.
Gumerman mailed statements, sometimes monthly (with the December statements showing yearly totals), to investors. The statements listed a fictional ending balance, fictional “interest” earned and a fictional rate of return on investment. The account statements did not reflect actual balances in the accounts, actual interest earned, or an actual rate of return. Gumerman sent to investors Internal Revenue Service Forms 1099 which reflected that they had earned interest from their investment accounts, when in fact they had not earned interest. Investors used these forms to pay taxes on interest they had not earned.
Gumerman also admitted that, when he filed his tax return in April 2011, he stated that his taxable income was $42,534 in 2010. Gumerman failed to declare income he had obtained by fraud; his taxable income was actually $248,350. The total tax loss from Gumerman’s false tax returns was $96,635.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, U.S. Secret Service and the Lee’s Summit, Mo., Police Department.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Jose Israel Gutierrez-Garcia, age 28, a citizen of Mexico, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for a felony.
If convicted, Gutierrez-Garcia faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.St. Paul felon charged with possessing shotgun, ammunition
Michael John Walker, age 45, of St. Paul, was charged with one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition. Because he is a felon and three or more of his prior convictions were for violent crimes, Walker is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction on either or both of the charges.
This case is the result of an investigation by the Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Franklin County Man Sentenced on Drug and Money Laundering ChargesRead the Press Release
St. Louis, MO - CRAIG MOLITOR was sentenced to 84 months in prison on January 22 for distributing multi-ounce quantities of methamphetamine in the St. Louis metropolitan area.
According to statements presented to the court at the time of his plea, Craig Molitor began to obtain and distribute methamphetamine before 2010. Molitor obtained bulk quantities of actual methamphetamine, which he distributed to others. He was the main supplier for co-defendant Eric Wessler, who redistributed a large portion of the methamphetamine he received. At times, Wessler also made contact with different sources of supply for actual methamphetamine, which he met through co-defendant Kellen Lincoln. The sources for actual methamphetamine included Peter Coyle, Gerald Dement, Luz Angelica Carrillo and others. Additionally, Eric Wessler obtained ounces of actual methamphetamine from co-defendant Jason Knox.
As Craig Molitor began to distribute actual methamphetamine before 2010, he utilized various credit cards to fund his trips. The credit cards used were obtained by his grandmother. Funds from their joint accounts were used to pay the credit card balances, bills and to make periodic payments for various high-end vehicles utilized by Molitor. Molitor had his grandmother make deposits from cash derived from the distribution of actual methamphetamine, which was used to pay the various bills. The purpose was to conceal the true nature of the proceeds of actual methamphetamine distribution.
The following co-defendants have previously pled guilty to related charges:
- Eric Wessler, Lake Saint Louis, MO, scheduled for sentencing March 25, 2014
- Gerald Dement, Liberty, MO, sentenced in October to 120 months in prison
- Peter Coyle, Larexa, KS, sentenced in August to 120 months in prison
- Jason Knox, Foristell, MO, scheduled for sentencing February 6, 2014
- Kellen Lincoln, Kansas City, MO, sentenced in August to one year and one day in prison.
Luz Angelica Carrillo, is currently a fugitive and still faces trial. She is presumed innocent until and unless proven guilty.
This case was investigated by the Drug Enforcement Administration, Franklin County Narcotics Unit and IRS Criminal Investigation.
Four Martinsburg Residents Sentenced on Drug and Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Four Martinsburg residents involved in a crack cocaine distribution ring were recently sentenced to federal prison.
According to United States Attorney William J. Ihlenfeld, II, the following individuals were sentenced by U.S. District Court Judge Gina M. Groh for their roles in the trafficking of crack cocaine.
- ARTHUR LEE WALKER, age 28, was sentenced to 120 months in prison and six years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of the Rosemont Elementary School,” and “Felon in Possession of a Firearm.”
- TIMOTHY LOVE CRITES, age 36, was sentenced to 30 months in prison and six years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of the Burke Street Elementary School.”
- TREY CARDALE CAMPBELL, age 21, was sentenced to 15 months in prison and six years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of the Burke Street Elementary School.”
- ADRIAN DEVONNE GREEN, age 41, was sentenced to 5 years probation for “Aiding and Abetting in the Distribution of Crack Cocaine.”
The case was investigated by the Eastern Panhandle Drug & Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Task Force consists of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
According to Ihlenfeld, the following persons were also sentenced to prison by Judge Groh:
TYRIEK KEARNEY, age 33, of Martinsburg, was sentenced to 57 months in prison and three years of supervised release for “Felon in Possession of a Firearm.” This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department.
TRACEY LONG, age 48, of Martinsburg, West Virginia, was sentenced to 12 months in prison and three years of supervised release for “Aiding and Abetting the Distribution of Crack Cocaine.”
AUTUMN CULLEN, age 31, of Martinsburg, was sentenced to 4 months in prison and three years of supervised release for “Aiding and Abetting the Distribution of Heroin.”
The LONG and CULLEN cases were investigated by the Eastern Panhandle Drug & Violent Crime Task Force
The cases referenced herein were prosecuted by Assistant United States Attorneys Paul T. Camilletti, Stephen L. Vogrin, David J. Perri and Robert H. McWilliams, Jr.Four Individuals Sentenced This Week for <br /> Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
Four individuals were sentenced this week for their respective roles in trafficking the identities and corresponding identity documents of Puerto Rican U.S. citizens.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico made the announcement. The sentencings took place in front of U.S. District Judge Gustavo A. Gelpí in the District of Puerto Rico.
Domingo Pablo Gutierrez, 52, a Guatemalan national formerly of Albertville, Ala., was sentenced today to serve 30 months in prison to be followed by three years of supervised release. Gutierrez agreed to forfeit $40,000 in proceeds and to be removed from the United States after the completion of his sentence. On Aug. 22, 2013, Gutierrez pleaded guilty in front of U.S. Magistrate Judge Bruce J. McGiverin of the District of Puerto Rico to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain.
On Jan. 21, 2014, Moises Lara-Ceballos, 38, a Mexican national formerly of Seymour, Ind., was sentenced to serve 54 months in prison to be followed by three years of supervised release. Lara-Ceballos agreed to forfeit $422,793 in proceeds and to be removed from the United States after the completion of his sentence. On Sept. 20, 2013, Lara-Ceballos pleaded guilty in front of U.S. Magistrate Judge Marcos E. López to one count of conspiracy to commit identification fraud, one count of aggravated identity theft, and one count of illegal reentry after deportation.
Juan Quero-Mendez, 28, a Mexican national formerly of Lilburn, Ga., was also sentenced on Jan. 21, 2014, to serve 36 months in prison and three years of supervised release. The court ordered the defendant to forfeit $17,180 in proceeds and to be removed from the United States after the completion of his sentence. On Sept. 20, 2013, Quero-Mendez pleaded guilty in front of U.S. Magistrate Judge Camille L. Vélez-Rive of the District of Puerto Rico to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain.
Adonis Ramirez-Segura, 54, a Dominican national and a legal permanent resident of Columbus, Ohio, was sentenced on Jan. 21, 2014, to serve 22 months in prison to be followed by three years of supervised release. On Sept. 20, 2013, Ramirez-Segura pleaded guilty in front of U.S. Magistrate Judge Camille L. Vélez-Rive to one count of conspiracy to commit identification fraud and one count of Social Security fraud.
The four defendants were charged in a superseding indictment returned by a federal grand jury in Puerto Rico on March 22, 2012. To date, 53 individuals have been charged for their roles in the identity trafficking scheme. All 49 arrested defendants have pleaded guilty and 36 defendants have been sentenced.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that these identity brokers in the United States ordered the identity documents from the document suppliers in Savarona on behalf of their customers by making coded telephone calls. The conspirators are charged with using text messages, money transfer services, and express, priority or regular U.S. mail to complete their illicit transactions.
Court documents allege that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, DeKalb and Aurora, Ill.; Seymour, Columbus and Indianapolis, Ind.; Hartford, Conn.; Clewiston, Fla.; Lilburn and Norcross, Ga.; Salisbury, Md.; Columbus and Fairfield, Ohio; Dorchester, Lawrence, Salem and Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington and Hickory, N.C.; Hazelton and Philadelphia, Pa.; Houston; Abingdon and Albertville, Ala.; and Providence, R.I.
According to court documents, Quero-Mendez was an identity broker who operated in Lilburn, Ga.; Ramirez-Segura was an identity broker who operated in Columbus, Ohio; Lara-Ceballos was an identity broker who operated in Seymour, Ind.; and Gutierrez was an identity broker who operated in Albertville, Ala.
The charges are the result of Operation Island Express, an ongoing, nationally coordinated investigation led by the ICE Homeland Security Investigations’ (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report them to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft . Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html ; www.ssa.gov/pubs/10064.html ; www.fbi.gov/about-us/investigate/cyber/identity_theft ; and www.irs.gov/privacy/article/0,,id=186436,00.html .Four Chicago and Suburban Men Indicted in Alleged $1.4 Million Automobile Loan Fraud SchemeRead the Press Release
CHICAGO — Four Chicago and area defendants were indicted on federal bank fraud charges for allegedly engaging in a scheme to fraudulently obtain 46 automobile loans totaling approximately $1.4 million without ever intending that the borrowers would purchase the highend luxury cars that they claimed to be buying. As a result, various credit union lenders, Including Great Lakes Credit Union, Pentagon Federal Credit Union, and Sherwin-Williams Credit Union, incurred losses totaling at least $914,000, the charges allege.
One defendant, PRECIOUS W. HOUSE, 47, of Chicago, the president of Rolling Auto, Inc., a Plymouth, Ind., wholesale auto dealership that purported to be selling many of the autos, was arrested today. He pleaded not guilty to five counts of bank fraud and one count making false statements on a loan application, and is scheduled to have a detention hearing at 9:15 a.m. next Tuesday before Magistrate Judge Sidney I. Schenkier in U.S. District Court.
Another defendant, BRIAN K. HUGHES, 41, of Homewood, was arrested Jan. 9 and was ordered detained in federal custody. He was charged with four counts of bank fraud and one count of making false statements on a loan application.
Co-defendants MICHAEL O. TURNER, 44, of Richton Park, who was charged with one count of bank fraud, and KEITH B. FOSTER, 46, of Harvey, who was charged with one count each of bank fraud and making false statements on a loan application, were not arrested and will be arraigned next Tuesday in U.S. District Court.
The six-count indictment was returned by a federal grand jury yesterday and announced today. The indictment also seeks forfeiture of approximately $914,511 from all four defendants.
According to the indictment, between February and November 2013, the defendants fraudulently obtained at least 28 automobile loans of the 46 they fraudulently applied for, and obtained approximately $914,000 of $1.4 million they sought in loan proceeds. They made, and caused others to make, false representations in documents submitted to lenders, including loan applications, vehicle purchase orders, and verifications of employment, concerning the individuals’ income, employment, credit history, intent to use the loan proceeds to purchase automobiles, and the existence of contracts obligating the borrowers to purchase vehicles from House and Rolling Auto.
House, Hughes, and Turner allegedly recruited individuals seeking auto and personal loans and agreed to find loans for them in exchange for a fee of 20 to 30 percent of the loan. Then, they submitted false information in the borrowers’ loan applications, their income, employment, and credit history, as well as their intent to use the loan proceeds to purchase autos from Rolling Auto and other dealerships, and the existence of contracts obligating them to purchase luxury automobiles made by BMW, Chevrolet, Jaguar, Lexus, Mercedes-Benz, Nissan, and Porsche, the indictment alleges.
If the individual borrowers refused to cash checks obtained as part of the scheme, Hughes allegedly threatened them with civil lawsuits and criminal prosecutions. House allegedly deposited the loan proceeds into bank accounts he controlled in Illinois, California, and Georgia.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Christopher R. McFadden.
Each count of bank fraud and making false statements on loan applications carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. The Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Inmate Turned Pastor Barry Minkow Pleads Guilty to Bilking CongregationRead the Press Release
United States Attorney Laura E. Duffy announced today that former convict, turned fraud investigator and pastor, Barry Minkow, admitted embezzling and defrauding the San Diego Community Bible Church (“SDCBC”) and its congregation out of more than $3 million. Minkow, who is currently in custody after his conviction on unrelated securities fraud charges, entered a guilty plea today in federal court in San Diego before the Honorable William Gallo, United States Magistrate Judge.
As part of his guilty plea, Minkow admitted to a litany of improper conduct, including opening unauthorized bank accounts on behalf of the SDCBC, forging signatures on SDCBC checks, using funds drawn on legitimate church accounts for his personal benefit, and charging unauthorized personal expenses on church credit cards. In addition, Minkow confessed to diverting SDCBC member donations for his own benefit and embezzling money intended as church donations. In all, Minkow admitted purloining – and concealing from the IRS – at least $3 million from SDCBC’s parishioners and lenders. As described in court documents, Minkow’s conduct continued for over a decade.
U.S. Attorney Laura E. Duffy remarked: “Barry Minkow is again convicted of fraud, this time for stealing money from the parishioners of San Diego Community Bible Church. With our law enforcement partners, we stand vigilant against those who cheat and steal without regard to the consequences wrought on their victims and their communities.” The U.S. Attorney observed that in the course of each fraudulent transaction, Minkow abused the position of trust bestowed upon him by SDCBC and its congregation.
Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation for the Los Angeles Field Office, Joel P. Garland stated, "Barry Minkow pled guilty today to embezzling over $3.0 million in money intended as church donations (while employed as a pastor) and concealing it all from the IRS. Barry Minkow has admitted not only his fraud, but his omission of over $890,000 in unreported income and over $250,000 in tax. Today's court action reaffirms IRS Criminal Investigation's commitment to investigating crimes involving tax and other financial crimes."
The fraud on SDCBC is just the latest fraud perpetrated by Minkow. In December 1988, Minkow was convicted of running a Ponzi scheme related to his ZZZZ Best carpet cleaning enterprise, a NASDAQ-traded entity. In that case, Minkow bilked banks and investors of millions of dollars, for which he was sentenced to 25 years in prison. While incarcerated, Minkow became involved in the Christian ministry, and upon his release in 1995 after having served approximately seven and a half years, he went to work at the Church at Rocky Peak in Chatsworth, California.
In 1997, Minkow became the pastor at SDCBC and soon thereafter founded the Fraud Discovery Institute (“FDI), a for-profit entity, which allegedly was aimed at the detection and prevention of fraudulent business practices. Through the work of FDI, Minkow soon garnered national media attention as a fraud detection expert, and his turn-around story was profiled on 60 Minutes in August 2006.
Yet even while working through FDI to detect fraud, Minkow was engaged in manipulating the stock prices of the companies he was investigating. Most prominently in 2009, Minkow released a report accusing major homebuilder Lennar of massive accounting irregularities and fraud. In the wake of this report, Lennar’s share price was sliced in half – from 11.57 a share to $6.55 a share. According to court records, unbeknownst to the public, Minkow shorted Lennar stock in advance of the issuance of his report. Based on these transactions, Minow was charged with conspiracy to commit securities fraud, and on March 30, 2009, he pled guilty in Miami to conspiring to manipulate Lennar’s share price, for which he was sentenced to serve five years in prison and to pay $583.5 million in restitution to Lennar. Minkow is currently serving that sentence at the Federal Medical Center in Lexington, Kentucky.
After pleading guilty today, Minkow faces a maximum of five years in prison, a fine of up to $250,000, and the payment of restitution to his victims. Sentencing is scheduled for April 7, 2014 before U.S. District Court Judge Michael Anello.
U.S. Attorney Laura E. Duffy praised the exacting effort and close cooperation of the Federal Bureau of Investigation and IRS Criminal Investigations -- the investigative agencies on this case.
DEFENDANT Case Number:Barry Minkow
14CR0153-MMA SUMMARY OF CHARGESConspiracy To Commit Mail Fraud, Wire Fraud, Bank Fraud and To Defraud the United States, in violation of Title 18, United States Code, Section 371 - Maximum penalties: Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYFederal Bureau of Investigation
IRS Criminal InvestigationsFormer Executive Director of Albuquerque-Based Halfway House Sentenced to Two Years in Federal Prison for Conviction on Embezzlement and Tax ChargesRead the Press Release
ALBUQUERQUE – Robin Cash, 56, of Albuquerque, N.M., was sentenced this morning to 24 months in federal prison followed by three years of supervised release for her conviction on embezzlement and tax charges. Cash also was ordered to pay $202,775 in restitution to the victim of her criminal conduct and $66,575 in tax loss for years 2008 to 2010 to be paid directly to the IRS. Cash’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Cash was charged in a seven-count indictment with four counts of theft concerning programs receiving federal funds, and three counts of willful failure to file a tax return. At the time of the offenses charged in the indictment, Cash was employed as the Executive Director of the La Pasada Halfway House (La Pasada), a residential center in Albuquerque that provides housing for defendants in the federal criminal justice system, including those awaiting trial and those who are re-entering society after serving a prison sentence. Court filings reflect that the Pretrial Services Office (PTS) of the U.S. District Court for the District of New Mexico contracted with the not-for-profit corporation that operates La Pasada to cover the costs of providing a custodial residential environment for federal defendants. PTS made monthly payments of approximately $60,000 to $80,000 to La Pasada to cover these costs, and La Pasada deposited the funds in its business bank account.
According to court filings, after Cash became Executive Director of La Pasada in April 2008, she was added as a signatory on the halfway house’s business bank account and received a debit card for the account. Between Sept. 2008 and Jan. 2011, Cash made unauthorized debits to La Pasada’s business bank account and used the proceeds for her own benefit and not for La Pasada’s benefit. The unauthorized debits included checks written for services that were never provided to La Pasada; ATM withdrawals at various Albuquerque locations, including casinos; and debit card charges at casinos in Las Vegas, Nev.
In April 2010, Cash opened a checking account and corresponding bank account in the name of La Pasada without authorization. Thereafter and until Feb. 2011, Cash regularly took funds that La Pasada residents were required to pay to defray their housing costs and deposited the funds into the unauthorized account. She then used the funds to pay for personal expenses that did not benefit La Pasada.
On May 15, 2013, Cash entered a guilty plea to all seven counts in the indictment without the benefit of a plea agreement. In entering her guilty plea, Cash admitted that, while acting as an agent of an organization that received at least $10,000 in funds on an annual basis under a federal program, she embezzled funds from the organization and converted those funds for her own use. Cash also admitted that she failed to file federal income returns for calendar years 2008, 2009 and 2010.
The case was investigated by IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Fred J. Federici.Former Bank Supervisor Charged with Embezzling $316,324.00Read the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that today in U.S. District Court in Harrisburg, a criminal information has been filed against Shelly Ann Kocher, 42, Lehighton, Pennsylvania, for embezzling approximately $316,324 from customer accounts while she worked as a customer service supervisor at Jim Thorpe National Bank in Jim Thorpe, Pennsylvania. A plea agreement was also filed indicating that Kocher intends to plead guilty to the charge when she appears in federal court for her arraignment.
According to U.S. Attorney Peter J. Smith, Kocher was employed by Jim Thorpe National Bank from 1999 until May 2013. Kocher allegedly embezzled the funds by making unauthorized withdrawals from customers' CD and savings accounts between April 2010 and April 2013. Upon discovery of the activity, the bank reimbursed the victims for their losses.
If convicted, Kocher faces up to 30 years' imprisonment, $1 million in fines, and mandatory restitution.
The case was investigated by the Scranton office of the FBI and is assigned to Senior Litigation Counsel Bruce Brandler.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Baltimore Police Officer Pleads Guilty to Operating A Prostitution BusinessRead the Press Release
Baltimore, Maryland – Former Baltimore Police officer Lamin Manneh, age 32, of Baltimore, pleaded guilty today to traveling across state lines and using the telephone and internet to operate a prostitution business.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.
According to the indictment and information presented at today’s plea hearing, between February 2013 and May 9, 2013, Manneh operated a prostitution business that serviced over 300 customers. The business provided prostitution services to customers who came to an agreed location (“in-call”), as well as at locations specified by the customers (“out-call”). Manneh’s 19 year old wife and another 19 year old woman worked as prostitutes for Manneh. The government alleges that as part of his business, Manneh drafted, paid for, and posted more than 50 prostitution advertisements for the two women on internet websites; rented an apartment and hotel rooms to facilitate “in-call” commercial sex acts with clients who responded to the prostitution advertisements and drove the women to “out-call” commercial sex acts at residences and hotel rooms.
According to the information presented at the plea hearing, Manneh provided the women with cell phones and taught them to use “voice over internet” phone services to communicate with prospective clients and with one another. Manneh waited outside the commercial sex act locations and sent the women electronic messages when they were with clients; and that Manneh carried his police-issued firearm and agreed to forcibly interrupt a commercial sex interaction if the client was aggressive or non-compliant; and that he supplied both women with synthetic marijuana. Manneh collected all of his wife’s prostitution earnings and a percentage of the other woman’s prostitution earnings.
Manneh faces a maximum sentence of five years in prison, followed by up to lifetime of supervised release, for operating a prostitution business. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 8, 2014 at 9:30 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police and Anne Arundel County State’s Attorney’s Office for their work in the investigation and recognized the Baltimore Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.Florida Man Convicted of Tax FraudRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced today that on Jan. 21, 2014, a federal jury in Palm Beach, Fla., convicted Paul F. Wrubleski, a resident of Weston, Fla., of one count of corruptly impeding the due administration of the internal revenue laws and four counts of filing false claims for tax refunds. Wrubleski was remanded into custody yesterday.
According to court documents and the evidence presented at trial, Wrubleski had a decade-long pattern of filing false documents with the IRS. Wrubleski impeded the IRS by filing false W-4 forms that claimed he was exempt from income tax withholding and by filing false tax returns, including four tax returns that requested over $1.5 million in federal refunds. Wrubleski also sent obstructive letters, tax returns and other false documents to the IRS between 1999 and 2010. In addition, the indictment alleged and the evidence proved that Wrubleski filed for bankruptcy in 2006 in order to impede IRS collection actions.
Sentencing is scheduled for April 3, 2014. Wrubleski faces a statutory maximum potential sentence of 23 years in prison and faces a fine of up to $1.2 million.
Assistant Attorney General Kathryn Keneally of the Tax Division commended the efforts of special agents of IRS – Criminal Investigation who investigated the case, as well as Tax Division Trial Attorneys Charles Edgar Jr. and Jed Silversmith, who prosecuted the case, with local assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Five Sentenced in Kidnapping CaseRead the Press Release
Jackson, Miss. – Five defendants were sentenced in federal court today by U.S. District Judge William H. Barbour, Jr. for their involvement in the kidnapping of Jashayla Hopson from East Kemper Elementary School on April 30, 2013, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Wanda Faye Dancy, of DeKalb, Shamarius S. Ruffin, of Porterville, and Shaquayla S. Johnigan, of Porterville, were each sentenced to 12 months and one day in federal prison followed by three years of supervised release for conspiracy to kidnap. They were also ordered to pay restitution in the amount of $1400 each.
Joyce M. Johnigan and James Shurman Johnigan both of Porterville, Mississippi, were sentenced to 8 months in federal prison followed by one year of supervised release with home confinement. They had previously pled guilty to a criminal information charging them with misprision of a felony. They were also ordered to pay restitution in the amount of $1400 each.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Criminal Division Chief John M. Dowdy, Jr.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Five Co-Conspirators Plead Guilty to Federal Drug Trafficking ChargesRead the Press Release
POCATELLO – Five members of an Idaho Falls area drug trafficking organization pleaded guilty today in United States District Court in Pocatello, U.S. Attorney Wendy J. Olson announced.
Federico Cervera, 56, and Antonio Tamez, 39, both of Blackfoot, Idaho, and Imelda Ramos, 36, of Pocatello, pleaded guilty to possession with intent to distribute in excess of 50 grams of methamphetamine. The charge is punishable by a minimum term of ten years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
Jesse J. Short, 33, of Pocatello, pleaded guilty to possession with intent to distribute in excess of five grams of methamphetamine. The charge is punishable by a minimum term of five years up to 40 years in prison, a maximum fine of $5 million, and at least four years of supervised release.
Dominga Tamez, 67, of Blackfoot, pleaded guilty to possession with intent to distribute methamphetamine. The charge is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
According to the plea agreements, on various dates in May 2013, the five defendants, distributed various quantities of methamphetamine in Pocatello and Heyburn, Idaho.
The defendants are scheduled to be sentenced on April 15, 2014, before U.S. District Edward J. Lodge at the federal courthouse in Pocatello.
The charges are the result of an investigation by the Idaho State Police, assisted by the Pocatello Police Department, Blackfoot Police Department, Bannock County Sheriff’s Office, Bingham County Sheriff’s Office, Power County Sheriff’s Office, the Mini-Cassia Drug Task Force, Drug Enforcement Administration (DEA), and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Five Appear in Federal Court on Drug Trafficking ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Five men from Wheeling, West Virginia appeared in federal court on charges of drug trafficking.
United States Attorney William J. Ihlenfeld, II, announced that the following individuals appeared before Judge Frederick P. Stamp, Jr. for plea and sentencing hearings:
DEON YOUNG, age 27, was sentenced to 108 months in prison and three years of supervised release and CARLOS MOORE, age 27, was sentenced to 42 months in prison and three years of supervised release for “Conspiracy to Distribute Cocaine Base and Heroin” from November of 2012 to January of 2013. The Court also ordered the forfeiture of $2,260 from YOUNG and $1,541 from MOORE. YOUNG and MOORE were remanded to the custody of the United States Marshal pending designation to a Federal institution.
DEVON BERTRAM, age 24, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Wheeling Central Catholic High School.” BERTRAM, who is in custody pending sentencing, faces up to 40 years in prison.
GARY MOE WADE, age 39, entered a plea of guilty to “Aiding and Abetting the Distribution of Crack Cocaine within 1,000 Feet of Wheeling Central Catholic High School.” WADE faces up to 40 years in prison.
Finally, in a matter before U.S. Magistrate Judge James E. Seibert, JEROME MELVIN ROSS, age 22, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Riverview Towers.” ROSS faces up to 40 years in prison.
These cases were prosecuted by U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Randolph J. Bernard and investigated by the Ohio Valley Drug Task Force, which is comprised of officers and agents from the West Virginia State Police-BCI, the Wheeling Police Department, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on January 22, 2014: Shawn C. Norman, 54, of Fort Wayne, Indiana, is charged in a three count Indictment with distribution of heroin on or about October 4, 2013, and November 20, 2013, and possession with intent to distribute heroin on or about December 20, 2013. The Indictment also alleges forfeiture of United States currency. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, FBI Safe Streets Task Force and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Sheila Robinson, 49, of Fort Wayne, Indiana, is charged in a twenty count Superseding
Indictment with wire fraud and making a false claim on or about January 18, 2012, January 26, 2012, January 31, 2012, February 13, 2012, February 15, 2012, February 29, 2012, April 23, 2012, and August 6, 2012; mail fraud on or about March 2, 2012, and aggravated identity theft on or about February 13, 2012, February 15, 2012, and August 6, 2012. These charges were filed as the result of an investigation by the Internal Revenue Service and United States Postal Inspection Service. This case has been assigned to and will be prosecuted by Assistant United States Attorneys Lovita Morris King and Deborah M. Leonard.
Deantre L. Rogers, 35, of Fort Wayne, Indiana, is charged in a three count Indictment with distribution of cocaine on or about October 1, 2013, distribution of cocaine base, “crack” on or about November 22, 2013, and possession with intent to distribute cocaine on or about December 20, 2013. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, FBI Safe Streets Task Force and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Christopher R. Smith, 30, of Fort Wayne, Indiana, is charged in a single count
Indictment with being a felon in possession of a firearm on or about December 30, 2013. The
Indictment also alleges forfeiture of a firearm, ammunition and a magazine. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Etters Couple Sentenced on Federal Tax Evasion and Bribery ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mayra Garces, age 47 and Ivan Garces, age 45, Etters, Pennsylvania, were sentenced yesterday in U.S. District Court in Harrisburg on charges involving tax evasion and bribery.
U.S. District Court Judge John E. Jones, III sentenced Ivan Garces to 18 months’ imprisonment, a $7,700 fine and a term of supervised release of one year. The Court sentenced Mayra Garces to 12 months plus one day of imprisonment, a $7,700 fine and a term of supervised release of one year.
According to United States Attorney Peter J. Smith, on September 27, 2011, the Garces offered to pay a Revenue Agent, who was conducting an audit, $50,000 if the agent would reduce their tax liability and not expand the audit to include the years before and after the current audit. On November 10, 2011, during an undercover operation, the couple paid the Revenue Agent $50,000 in cash.
A review of the couples’ business records established that the couple intentionally failed to report $1,091,267 in income for the years 2008, 2009 and 2010.
The Garces pleaded guilty to tax evasion and bribery of a public official in May 2013. The couple has paid the IRS a total of $843,866.47 in penalties, back taxes and interest. The $50,000 used for the bribe was relinquished to the United States Treasury.
“Tax evasion is not a victimless crime,” said IRS Special Agent in Charge Akeia Conner. “We all pay when others swindle the government. This sentence should send a clear message: schemes to evade the payment of taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time. Honest taxpayers have been reassured today that no one is above the law--especially when the integrity of tax administration is at stake.”
Robert Geary, TIGTA Special Agent in Charge, stated “today’s sentence also sends a clear and convincing message that those individuals who use bribery as a criminal vehicle to escape their just federal tax obligation face substantial criminal and financial penalties. TIGTA stands in close partnership with the U.S Attorney's Office to identify, thoroughly investigate, and prosecute such criminal conduct.”
This case was investigated by the Treasury Inspector General for Tax Administration (TIGTA) and the Internal Revenue Service-Criminal Investigations. Prosecution was handled by Assistant United States Attorney Daryl F. Bloom.
****Eastern Idaho Man Pleads Guilty to Selling Methamphetamine and GunsRead the Press Release
POCATELLO — Harold Thomas Barker, 59, of Rexburg, Idaho, pleaded guilty today to unlawfully transferring firearms and distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Barker was indicted by a federal grand jury in Pocatello on May 29, 2013.
According to the plea agreement, between May and July 2011, Barker sold eight firearms, assorted ammunition, and methamphetamine to an individual Barker knew was prohibited from possessing firearms. One of the firearms was a sawed-off shotgun. Barker agreed to forfeit $3,040, which constitute proceeds of his offenses.
The charge of unlawful transfer of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of distribution of methamphetamine is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Sentencing is set for April 14, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison County Sheriff’s Office, with the assistance of the Department of Homeland Security.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Dickinson Man Pleads Guilty to Medina Bank RobberyRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Jan. 21, 2014, Satrone Rashard Boyd, 38, of Dickinson, N.D., pleaded guilty to one count of bank robbery before U.S. District Judge Ralph R. Erickson.
On Oct. 25, 2013, at approximately 9:30 a.m., Boyd and another individual wearing clown masks, forcefully robbed Northland Financial in Medina, N.D. One of the individuals possessed a handgun and brandished it as they entered the bank. After quickly approaching the teller, the two individuals demanded money from a bank employee after which the two men fled the scene. Law enforcement received numerous leads regarding the suspects from several citizens near Medina and Jamestown, N.D. Both men were later apprehended. Boyd was apprehended in Fargo, N.D. His codefendant in the case, Rendell Charles Hardy, was apprehended in Dickinson, N.D.
Judge Erickson set sentencing for April 14, 2014, at 1:30 p.m. U.S. District Court.
The case was investigated by the Federal Bureau of Investigation, along with several state and local law enforcement agencies, including the Stutsman County Sheriff’s Office, Dickinson Police Department, Fargo Police Department and North Dakota Bureau of Criminal Investigation.
Assistant U.S. Attorney Keith Reisenauer is prosecuting the case.
Dallas Psychologist Remanded into Federal Custody After Pleading Guilty to Health Care Fraud OffenseRead the Press Release
Treated Disabled Federal Workers
DALLAS — Psychologist Michael Ellis Wolf, 62, of Dallas, was remanded into federal custody today after pleading guilty, before U.S. District Judge Jorge A. Solis, to an Information charging one count of health care fraud. Wolf faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and restitution, and he agrees to surrender his license to practice psychology. Sentencing is set for May 7, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Wolf provided psychotherapy to individuals, including civilian employees of the federal government who sustained on-the-job injuries or employment-related occupational illness. The Federal Employees Compensation Act (FECA) provides disability compensation benefits and payment for medical and rehabilitation care for federal civilian employees who sustain on-the-job injuries or employment-related occupational illness. The FECA is a health care benefit program administered by the U.S. Department of Labor (DOL), Office of Workers Compensation Program.
As part of his scheme to defraud a health care benefit program, Wolf filed claims for payment of services that were never rendered and for services that were rendered in far less quantities than billed.
For example, through his billings, Wolf claimed he provided therapy for one particular injured federal employee, from January 2008 through mid-2013, seven days a week, when he in truth and fact he would only provide it once or twice a week, for 60 minutes. He also falsely claimed through billings that he provided therapy to this individual on holidays and on Sundays, and that on multiple days, he provided eight hours of therapy, per day, for this patient. Wolf also falsely claimed, through billings, that he provided four-eight hours of explanations to this patient’s family and employers multiple times a week, when in fact, he only offered occasional phone or in-office consultation with the family.
During this time period, the total amount billed by Wolf, on behalf of this patient, was more than $1.9 million. Of the amount billed, Wolf was paid more than $1 million.
The investigation is being conducted by DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney P. J. Meitl is in charge of the prosecution.
Columbia Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Devereaux L. Davis, a 36-year old Columbia, Illinois, man was sentenced on January 22, 2014, in federal district court, in East St. Louis, Illinois, on one count of to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis was sentenced to 27 months in federal prison, to be followed by five years of supervised release, and ordered to pay a $100 special assessment.
The violation occurred in 2009, when Davis moved from Illinois to Missouri. He signed an Illinois Sex Offender Registration Act Notification Form on August 14, 2008, acknowledging his requirement to either update his sex offender registration in Illinois to reflect his change of address, or register as a sex offender in Missouri. Davis had been previously convicted of Aggravated Criminal Sexual Abuse on September 15, 2005, in Monroe County, Illinois. Because of his failure to register in Missouri and his failure to update his registration in Illinois, Davis was charged in federal court with Failure to Register as a Sex Offender pursuant to the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Cincinnati Man Indicted for Producing Child Porn Involving A Child He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has charged Caleb Zachary Storey, 30, Cincinnati, with one count each of production of child pornography and possession of child pornography, alleging that he took sexually explicit photographs of a child he regularly babysat.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, FBI Cincinnati, announced the indictment returned today.
FBI agents and members of the FBI Child Exploitation Task Force began investigating Storey when an image traceable to an address where he babysat was recovered during a child pornography investigation in Georgia. The image was of a three-and-a-half year old prepubescent male who was naked from the waist down and had an adult male’s hand in the picture. Agents obtained a search warrant for Storey’s apartment and conducted preliminary forensic exams of some items of computer equipment where they found images of child erotica and child pornography.
The FBI arrested Storey on January 8 based on a criminal complaint. He has been in custody since his arrest.
The indictment charges Storey with one count of production of child pornography, punishable by at least 15 and up to 30 years in prison, and one count of possession of child pornography, punishable by up to ten years in prison. Senior U.S. District Judge Sandra S. Beckwith will schedule a trial for Storey.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The FBI Child Exploitation Task Force includes the Regional Electronics and Computer Investigations (RECI) unit from Hamilton County Sheriff Jim Neil’s Office and the Cincinnati Police Department.
U.S. Attorney Stewart commended the FBI agents and task force officers who are investigating the case, as well as Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Capital District Men Appear in Federal Court on Charges Relating to the Development of Lethal Radiation DeviceRead the Press Release
ALBANY, NEW YORK – Two men who were arraigned in June on a scheme to create a mobile, remotely operated, radiation emitting device appeared in U.S. District Court in Albany in separate proceedings today.
Eric J. Feight pleads guilty to Providing Material Support to Terrorists
Eric J. Feight, 55, of Hudson, New York, appeared before U. S. District Court Chief Judge Gary L. Sharpe this morning and entered a guilty plea to a felony Information charging him with Providing Material Support to Terrorists in violation of 18 U. S. C. Section 2339 A(a). Judge Sharpe scheduled sentencing for Feight on May 22, 2014 in U. S. District Court. Feight is being detained pending his sentencing. Feight faces a maximum term of imprisonment of 15 years and a fine of $250,000 and a term of supervised release, upon release, of up to life.
Glendon Scott Crawford is arraigned on new Indictment
In a separate proceeding, co-defendant Glendon Scott Crawford, 49, of Galway, New York, was arraigned before Magistrate Judge Christian F. Hummel on an Indictment, filed late last week, containing three charges relating to the development of and plans to use a remotely-operated radiation-emitting device to kill humans. In his appearance, Crawford entered not guilty pleas to the Indictment charging him with: (Count 1) Attempting to produce and use a radiological dispersal device, in violation of Title 18, United States Code, Section 2332h(a) and (c)(1); (Count2) Conspiracy to use a weapon of mass destruction, in violation of Title 18, United States Code, Section 2332a(a)(2)(C); and (Count 3) Distributing information relating to weapons of mass destruction, in violation of Title 18, United States Code, Section 842(p)(2)(A). The penalties for these offenses are, respectively: (Count 1) a maximum of life in prison, with a mandatory minimum of not less than 25 years and a $2,000,000 fine; (Count2) a maximum of life in prison and a $250,000 fine; (Count3) a maximum of 20 years in prison and a $250,000 fine. He was ordered detained pending further disposition of the charges. The charges are merely accusations and Crawford is presumed innocent until and unless proven guilty.
These cases resulted from a long term investigation conducted by the Albany FBI Joint Terrorism Task Force, which includes the Department of Homeland Security, New York State Police, Albany Police Department, Troy Police Department, and New York City Police Department. The United States Attorney’s Office also acknowledged the assistance of the Criminal Division and National Security Division of the United States Department of Justice. The case is being prosecuted by Assistant United States Attorneys Stephen C. Green and Richard Belliss, and Counterterrorism Section Trial Attorney Joseph Kaster.
Further questions or inquiries may be directed to Executive Assistant United States Attorney John G. Duncan at 315-448-0672.
Bay-Area Real Estate Agent Arrested for Orchestrating Fraudulent Short Sale in Stanislaus CountyRead the Press Release
FRESNO, Calif. — Minerva Sanchez, 47, was arrested at her home in Fremont today for conspiring to commit bank fraud in connection with a fraudulent short-sale scheme, United States Attorney Benjamin B. Wagner announced.
The indictment, unsealed today, was returned by a federal grand jury in Fresno on December 19, 2013. Sanchez was arraigned today in San Jose federal district court and pleaded not guilty to the charges. She is scheduled to appear in Fresno before U.S. Magistrate Judge Barbara A. McAuliffe on February 10, 2014.
According to court documents, in March 2010, Sanchez, a licensed real estate agent, represented Agustin Simon, 52, of Gustine, in the sale of his home in Patterson. Sanchez recommended that he undertake a short-sale of his home using her son as a straw buyer. Simon submitted to Tri Counties Bank and Freddie Mac fraudulent short-sale applications that caused them to approve the charge-off of funds for the short-sale of his home. Sanchez and Simon falsely claimed that the transaction was “arm’s length,” and the made false statements about Simon’s assets and ownership of other real estate. Sanchez wrote a “hardship letter” for Simon to include with the short-sale application that misrepresented his inability to make his monthly mortgage payments. They made other false statements in order to conceal their agreement that Simon would provide Sanchez’s son with the money for the short-sale but ultimately would regain ownership of his home following the short-sale.
With Sanchez’s knowledge, Simon provided her son with $355,000, the purchase price of the home. In addition to her commission as the listing agent, Sanchez received 75 percent of the commission paid to her son’s real estate agent. As a result of her conduct, Tri Counties Bank suffered a loss of $247,000 and Freddie Mac lost $107,348.
On June 10, 2013, Simon, pleaded guilty to conspiring to commit bank fraud in connection with this scheme. He is scheduled to be sentenced on October 6, 2014, before U.S. District Judge Lawrence J. O’Neill.
“The alleged actions of Minerva Sanchez were harmful to Freddie Mac and the taxpayers,” said Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency (FHFA). “Every fraud causes harm or loss and we will work with our law enforcement partners to stop any and all criminal activity.”
This case is the product of an investigation by the FHFA Office of Inspector General and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
If convicted, Sanchez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Baltimore Felon Exiled to 20 Years in Prison for Gun and Drug CrimesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antoin Lamont Garrison, age 46, of Baltimore, Maryland, today to 20 years in prison followed by three years of supervised release for illegal possession of guns and ammunition by a convicted felon, possession of cocaine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Judge Blake enhanced Garrison’s sentence upon finding that he is an armed career criminal based on three previous convictions for drugs and violent crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; and Maryland Attorney General Douglas F. Gansler.
According to testimony presented at Garrison’s five day trial, in May 2011, Baltimore Police officers and FBI agents received information from a source that Garrison had offered to sell the source guns and drugs. Witnesses testified that after additional investigation, law enforcement arranged for the source to purchase ammunition, firearms and cocaine from Garrison. On May 20, 2011, Garrison met with the source and sold the source 200 rounds of ammunition. On May 24, 2011, the source contacted Garrison. The two agreed to meet and Garrison provided the source with a police issued bullet proof vest. Later that same day, Garrison and the source met again at a residence on Bartlett Avenue. Garrison brought a black bag out of the residence and showed the source two handguns that were in the bag. Garrison explained that those guns were for protection but that he had other guns he could sell to the source. The source paid Garrison $3,750 in FBI funds to purchase three ounces of cocaine. Garrison told the source he would contact the source to arrange delivery of the cocaine. According to trial testimony, Garrison met with the source the next day and provided 70.7 grams of cocaine.
On May 27, 2011, a search warrant was executed at the Bartlett Avenue residence. Law enforcement agents seized a .22 LR rifle; a 30-30 caliber rifle; 9mm handgun loaded with 10 rounds of ammunition; a .22 caliber revolver and various rounds of ammunition.
Garrison was prohibited from possessing firearms or ammunition due to his previous felony convictions.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Baltimore City State’s Attorney=s Office and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Assistant United States Attorney Benjamin M. Block, who prosecuted the case.
Bakken Drug Case Defendant Robert Farrell Armstrong, Aka Dr. Bob Pleads Guilty in Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 22, 2014, before U.S. District Judge Susan Watters, ROBERT FARRELL ARMSTRONG, who used the nickname "DR. BOB", 49, of Moses Lake, Washington, pleaded guilty to Possession With the Intent to Distribute Methamphetamine. Armstrong's plea could result in a term of life in prison, and his sentence can be no less than 10 years. There is no parole in the federal system.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Joe Thaggard informed that in early 2013, the Montana Division of Criminal Investigation (MDCI), Sidney, Montana Police Department, and the Drug Enforcement Administration (DEA) began to investigate a drug trafficking organization that was distributing methamphetamine in the Sidney, Montana area. Ultimately, the investigation revealed that Armstrong and his associates, including co-conspirator Kera Evans, were transporting methamphetamine from the State of Washington to Montana, where it was then distributed in an area that stretched from southern Montana to the Bakken oil region in northeastern Montana.
On February 7, 2013, Armstrong distributed approximately 1.8 grams of actual methamphetamine to a confidential informant during the course of an undercover operation monitored by law enforcement agents and that took place in Richland County, Montana, and then three weeks later, on February 20, 2013, distributed an additional five grams or more of actual methamphetamine during a separate undercover transaction. This buy also took place in Richland County.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
On March 15, 2013, Evans disclosed to the MDCI that a person named "Jennifer" and Armstrong were in a vehicle located in the vicinity of Three Forks, Montana and in possession of approximately six ounces of methamphetamine. Evans identified "Jennifer" as Armstrong's driver. The MDCI requested that the Montana Highway Patrol stop the vehicle, at which time Armstrong and a woman identified as Jennie Britt were taken into custody. Approximately six ounces of methamphetamine and a pistol were recovered from the vehicle's console.
Attorney Pleads Guilty to Laundering Client Fraud MoniesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas attorney pleaded guilty today to assisting a client launder approximately $2.25 million that had been obtained fraudulently in an online investment scheme, in which over 1,400 persons lost $16 million, announced the United States Attorney’s Office for the District of Nevada.
R. Christopher Reade, 43, of North Las Vegas, pleaded guilty to one count of accessory after the fact to laundering of monetary instruments. Reade faces up to 10 years in prison and a $1,125,000 fine, and is scheduled to be sentenced on May 2, 2014.
Reade was a licensed attorney in Las Vegas and practiced business law. His client, Rick Young, owned and operated a Nevada corporation known as Global One Group, LLC, a web-based company which purported to train others how to trade in the foreign currency exchange market, or FOREX. Young advertised that he was an experienced and highly successful trader in the FOREX market, who for a fee would teach persons his winning trading strategies and techniques. Young solicited persons to become members of Global One which would allow them access to his web-based live training seminars. Young claimed that he had developed an automated trading program that traded according to his strategies simply by “flipping a switch.” Young enticed members into providing money for “loans” to Global One and told them that they would be able to earn high yield returns on their investments. In actuality, the automated trading program did not exist in the form that Young represented and Young was running an elaborate Ponzi scheme in which proceeds from the member loans were diverted to Young his own use. From about 2006 to 2008, Young derived approximately $16 million in proceeds from the scheme.
Beginning in February 2007, Reade represented Young and Global One in connection with business litigation and transactions. In March 2007, Young intended to use Global One loan monies to purchase a FOREX brokerage company named Trend. To disguise the source and ownership of the illegal proceeds, Young authorized Reade to create and control a holding corporation called Way FX Corp. In April 2007, Young transferred approximately $2.25 million from Global One accounts to the Way FX bank account controlled by Reade, and Reade signed an agreement to purchase Trend. On August 21, 2007, Reade received $75,000 from Global One for his services related to Way FX and the purchase of Trend.
From about May 2007 to August 2007, in connection with an investigation by the National Futures Association about the ownership and funding of Trend, Reade falsely told investigators that he was unaware who owned Global One or how Global One raised money, and that the funds used to purchase Trend came from his personal contributions and not from Global One. Reade knew that his statements were false and that Young had committed the offense of money laundering. Reade also knew that he had assisted Young in order to hinder or prevent the investigation of Young in connection with the money laundering.
In March 2011, Young was convicted by a federal jury in the District of Nevada of conspiracy, fraud and money laundering charges. In December 2011, he was sentenced to 25 years in prison and ordered to pay $13.3 million in restitution.
The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by First Assistant United States Attorney Steven W. Myhre and Assistant United States Attorney James E. Keller.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
21 January 2014
“Pill Shoppers" and Meth Cooks Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Members of a ring of methamphetamine manufacturers were sentenced in federal court on Friday, January 17, 2014. The group, most of whom are from the Mt. Vernon area, was engaged in activity characterized as “pill shopping,” that is, the practice of buying pseudoephedrine pills for use in the methamphetamine manufacturing process. Court documents establish that members of the group were traveling from Alabama to Georgia, Florida and Texas to buy large quantities of pseudoephedrine and then returned with it to Mobile County, where the manufacturing took place. The “pill shoppers” received cash or small quantities of finished methamphetamine in exchange for their acquisition of pseudoephedrine. Pseudoephedrine records established that more than 3.2 kilograms of pseudoephedrine was acquired by members of the conspiracy from 2009 through 2012.
Ray Anthony Lofton, 35, of Mt. Vernon, was characterized by District Court Judge Kristi K. Dubose as the ring leader just before she imposed a sentence of 120 months imprisonment in his case. Lofton was also ordered to serve five years of supervised release following the completion of his custody sentence. Jeremy Scott Lofton, 34, of Mt. Vernon, who was identified as one of the defendants actually manufacturing the pseudoephedrine into methamphetamine, was ordered to serve 72 months imprisonment, to be followed by a term of supervised release of five years. Michael Thomas Lofton, 27, of Mt. Vernon, one of the so-called “pill shoppers” and an occasional meth cook, was sentenced to 48 months imprisonment, followed by five years of supervised released. Dustin Lee Sullivan, another of the “pill shoppers,” was sentenced to time served, followed by five years of supervised release, which included 10 months in a half-way house. All the defendants were ordered to undergo drug testing and treatment, and each was required to pay a mandatory special assessment of $200. Each defendant entered guilty pleas to charges of conspiracy to manufacture methamphetamine and conspiracy to possess a List I chemical (pseudoephedrine) with knowledge or reasonable cause to believe it would be used to manufacture a controlled substance.
The case was investigated by the Mobile County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
United States Forfeits $304,050 and A G-35 Infiniti as Drug ProceedsRead the Press Release
Fort Myers, Florida, – U.S. District Judge John E. Steele last week forfeited $304,050.00 in United States Currency and a G-35 Infiniti to the United States, as traceable proceeds of illegal drug activity.
According to court documents, the $304,050 was found hidden within the tires of a salvaged G-35 Infiniti that was being transported on Interstate 75. The currency, mostly $20 bills, was bundled inside the tires, in heat-sealed packaging. The Infiniti, which was also equipped with a hidden after-market GPS transponder, allowing it to be remotely monitored, had been loaded onto a car-hauler in New Jersey. The car was scheduled to be delivered to an address in Miami, which Homeland Security Investigations special agents later determined to be non-existent.
The United States commenced a civil forfeiture action against the property, alleging that it was the proceeds of drug trafficking. An individual (Johnny A. Melo) came forward to contest the forfeiture, asserting that the seized money was the proceeds of his Miami-based business, “Images Windows and Doors,” not drug proceeds. Following his conviction in the Southern District of Florida for a federal narcotics offense, aggravated identity theft and related criminal offenses, he abruptly abandoned his claim.
In the Middle District of Florida, enforcement of asset forfeiture laws is an integral part of our law enforcement mission. Taking the profit out of crime is important in disrupting and dismantling illegal enterprises, deterring crime, funding law enforcement efforts, and restoring property to victims. In fiscal year 2013, more than $46.2 million in criminal and civil forfeitures was deposited into the Department of Justice and Department of Treasury Assets Forfeiture Funds as a result of forfeitures completed in the Middle District of Florida.
“This case is yet another example of the outstanding work done by both our law enforcement partners and the attorneys in our Asset Recovery and Victims Rights Division,” said Acting U.S. Attorney A. Lee Bentley, III.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with support from U.S. Customs and Border Protection, Office of General Counsel, and the Florida Department of Transportation. It is being prosecuted by Assistant United States Attorneys David G. Lazarus and Bonnie Glober.
Two Sentenced for Illegally Possessing Firearms with Plans to ExportRead the Press Release
McALLEN, Texas – The second of two defendants has been ordered to federal prison for being a prohibited person in possession of firearms, announced United States Attorney Kenneth Magidson. Eduardo Villanova-Anaya, 21, a Mexican citizen illegally present in the United States, and Jorge Rodriguez, 35, of Pharr, had previously entered guilty pleas in the case.
Today, U.S. District Judge Randy Cane sentenced Rodriguez to 78 months in federal prison to be followed by a three-year-term of supervised release. Villanova-Anaya was previously sentenced to 120 months and, as a non-U.S. citizen, is expected to face deportation proceedings following his release from prison.
The investigation into both defendants began after agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were alerted to individuals who had made straw purchases of firearms. Villanova-Anaya was determined to be their recruiter and organizer.
During the investigation, Villanova-Anaya contacted an undercover ATF agent to determine if he could procure firearms for him to take to Mexico. After several discussions, Villanova ordered six highly-trafficked firearms and the agent was to be paid upon delivery.
On July 26, 2012, Villanova, Rodriguez and the agent met for the purposes of the transaction, at which time Villanova stated the firearms were going to be smuggled into Mexico. Rodriguez aided and abetted Villanova-Anaya by acting as a driver, assistant and protection at the meeting. They were arrested as Villanova-Anaya picked up and moved the firearms from the agent’s vehicle to his own.
Villanova-Anaya and Rodriguez have been in custody without bond where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation. Assistant United States Attorney Steven Schammel prosecuted the case.
Two Sentenced for Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Two defendants were sentenced today for child pornography offenses, United States Attorney Benjamin B. Wagner announced.“Every time a sexually explicit image of a minor is produced, transmitted, or viewed, a child is victimized,” said Ray Greenlee, assistant special agent in charge for HSI San Francisco. “These sentences send a strong message to online child sex predators that there is a high price to pay for their actions. HSI will continue to work tirelessly to seek justice for those who mistakenly believe the Internet makes them invisible and invincible.”
Kern County Man Sentenced to More than 12 Years in Prison
(1:13-cr-265 AWI)
Senior United States District Judge Anthony W. Ishii sentenced Clark Alan Tyler, 53, of Rosamond, to 12 years and seven months in prison for distribution of child pornography.According to court documents, between February 2012 and March 2013, Tyler received and distributed more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Tyler was indicted on June 27, 2013, charged with receipt and distribution of child pornography and pleaded guilty to this charge on November 25, 2013. He has been in custody since July 3, 2013.
Fresno Man Sentenced to Six and a Half Years in Prison for Distributing Child Pornography
(1:12-cr-083 AWI)
Judge Ishii sentenced Daniel Oluwa Sesan Leitch, 31, of Fresno, to six and a half years in prison for distribution of child pornography.According to court documents, from December 18, 2011, through December 20, 2011, Leitch received more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Leitch was indicted on October 23, 2013, and in March 2012, he went to trial but pleaded guilty on the second day of trial. He was remanded into custody after sentencing today.
These cases were the product of investigations by the Central California Internet Crimes Against Children Task force with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos prosecuted both cases, and Special Assistant United States Attorney Ian P. Whitney was co-prosecutor on the Leitch case.
These cases were 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Two Charleston Men Enter Guilty Pleas to Federal Drug Distribution ChargesRead the Press Release
Defendants charged as part of Charleston’s West Side Drug Market Intervention initiative
CHARLESTON, W.Va. – Two Charleston men each face up to 20 years in prison after pleading guilty today to federal drug charges, U.S. Attorney Booth Goodwin announced. Deandre D. Coleman, 22, pleaded guilty to distribution of crack cocaine. In a separate hearing, defendant Jamaal D. Davis, also known as “DT,” pleaded guilty to heroin distribution. Both men pleaded guilty in front of United States District Judge John T. Copenhaver, Jr. in Charleston federal court.
Davis and Coleman were prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative. The defendants were designated members of the DMI A-list, which comprises the most serious offenders identified in the initiative.
On July 9, 2013, Coleman sold crack cocaine to a confidential informant working in cooperation with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $100. A lab test determined that the crack cocaine weighed .52 grams.
Davis, 22, sold heroin to a police informant on June 13, 2013 in exchange for $180. The illegal drug transaction took place on Roane Street in Charleston.
The Charleston Police Department and other law enforcement agencies, including MDENT, have conducted undercover operations and completed investigations culminating in federal charges being filed against thirteen individuals.
The DMI initiative was launched in February 2012 by U.S. Attorney Booth Goodwin and Charleston Police Chief Brent Webster, in collaboration with other federal, state, local law enforcement agencies and leaders representing several West Side community development organizations. A continuation of the DMI initiative was announced last month in Charleston.
The DMI strategy also included a staged community intervention that was held at the New Covenant Missionary Baptist Church on Charleston’s West Side. The community intervention meeting offered a rare second chance for five low-level, non-violent offenders to end their criminal activity and avoid being prosecuted, if a strict set of guidelines set by law enforcement are obeyed. The Dec. 12 community intervention call-in meeting was attended by offenders’ relatives, concerned citizens, and faith-based leaders from the West Side community. The call-in meeting was coordinated and attended by federal, state and local law enforcement officials.
Davis and Coleman are scheduled to be sentenced on April 22, 2014.
Assistant United States Attorney John Frail is in charge of the prosecutions.
Twenty-Six Individuals Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
KNOXVILLE, Tenn.-- A federal grand jury in Greeneville returned a 24-count indictment on Jan. 14, 2014, against John A. Ayers, a.k.a. Blondie, 31, of Rutledge, Tenn.; Gary S. Valentine, 53, of Knoxville, Tenn.; Victor M. Lynn, 51, of Rutledge, Tenn.; Paula W. Teague, 45, of Fairmont, Ga.; Eric R. Sizemore, 37, of East Berndstadt, Ky.; Drew A. Gregg, Jr., 36, of Newport, Tenn.; Joseph A. Jackson, a.k.a. Joey Jackson, 47, of Russellville, Tenn.; Teresa J. Turner, a.k.a. Terri Red, 52, of Whitesburg, Tenn.; Charles E. Bishop, a.k.a. Chucky, 51, of Whitesburg, Tenn.; Donna S. Roberts, 58, of Thorn Hill, Tenn.; Casper G. Hurley, 39, of McKee, Ky.; Harold E. Long, 61, of Tazewell, Tenn.; Robert D. Purkey, 43, of White Pine, Tenn.; Christopher M. Lawson, 35, of Rutledge, Tenn.; James E. Hayes, 56, of Talbott, Tenn.; Bradley S. Johnson, 29, of Bean Station, Tenn.; Troy R. Eads, 40, of Tazewell, Tenn.; Lisa A. Meece, 35, of Mooresburg, Tenn.; Stephanie Ellis, 22, of Rutledge, Tenn.; Phillip R. McNeil, Jr., 31, of Corryton, Tenn.; Floyd S. Simpson, 44, of Taylor, Mich.; Jeffrey W. Flynn, 33, of Mascot, Tenn.; Adam W. Houchins, 32, of Mooresburg, Tenn.; Amanda C. Roach, 36, of Rutledge, Tenn.; Luciano Castro, 74, of Savannah, Ga.; and Smokey E. Fleenor, 32, of Morristown, Tenn., for a conspiracy to distribute methamphetamine.
In addition, Ayers, Valentine, Lynn, Gregg, and Jackson, were indicted for firearms violations, including possessing a firearm and/or after having been convicted of a crime punishable by a term of more than one year in prison, or for being a drug addict. Lynn and Jackson were also indicted for possession of a firearm in furtherance of a drug trafficking offense.
Thirteen of these individuals appeared in court on Jan. 16, 2014, and one appeared in court on Jan. 21, 2014, before U.S. Magistrate Judge C. Clifford Shirley and pleaded not guilty to the charges in the indictment.
The investigation has shown that individuals involved were obtaining methamphetamine from individuals in Georgia and were distributing these drugs in Tennessee and Kentucky.
If convicted, all face a minimum and mandatory term of 10 years in prison and a maximum term of life, a maximum fine of $10,000,000.00, and a term of supervised release of at least five years. In addition, Ayers, Valentine, Lynn, Gregg, and Jackson, face a maximum term of 10 years in prison, a maximum fine of $250,000.00, and a term of supervised release of up to three years, as to the possession of firearms by a prohibited person charges. Lynn and Jackson, face a mandatory minimum and mandatory five year sentence up to life, which by statute must be served consecutively with any other prison term imposed, a maximum fine of $250,000.00, and a term of supervised up to five years as to the possession of a firearm in furtherance of a drug trafficking crime charges. All also face mandatory court assessments.
This indictment is the result of an investigation by the Third Judicial Drug Task Force, Fourth Judicial Drug Task Force, Eighth Judicial Drug Task Force, Claiborne County Tennessee Sheriff’s Department, Grainger County Tennessee Sheriff’s Department, Knox County Tennessee Sheriff’s Department, Knoxville Police Department, Bean Station Police Department, Rutledge Police Department, Morristown Police Department, Kentucky State Police, Tennessee Highway Patrol, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets will represent the United States.
Three Men Charged in Federal Court for Starting Illegal Campfire in Angeles National Forest That Became Colby FireRead the Press Release
LOS ANGELES, California – Three men were charged this afternoon in United States District Court with illegally setting a campfire above Glendora that erupted in Santa Ana winds last week to become a destructive wildfire called the Colby Fire.
Federal prosecutors filed a criminal complaint that charges the three men with unlawfully setting timber afire, a felony offense that carries a possible five-year prison term.The three men named in the criminal complaint are:
Clifford Eugene Henry Jr, 22, of Glendora;
Steven Robert Aguirre, 21, a transient; and
Jonathan Carl Jarrell, 24, also a transient.
The three men were taken into custody by local officials last Thursday after the fire started. Henry, Aguirre and Jarrell are expected to be turned over to federal authorities this afternoon. The defendants are expected to make their first appearance in federal court tomorrow, possibly as early as 11:00 a.m.
The Colby Fire started on the morning of January 16. By that evening, the fire had consumed more than 1,700 acres of federal, state, local and private lands. The fire had also destroyed five residences, damaged 17 additional structures, and resulted in injuries to one civilian and two firefighters.
Henry, Aguirre and Jarrell were detained by Glendora Police Officers after they were seen escaping the fire. During interviews with Glendora Police and personnel with the Los Angeles County Fire Department’s Arson Investigations Unit, all three defendants admitted playing a role in the starting of a campfire that started the Colby Fire after wind blew burning paper into the brush in the hills above Glendora, according to the affidavit in support of the criminal complaint.
A United States Forest Service fire investigator has determined that the origin of the Colby Fire was at a point near a fire ring built by Henry, Aguirre and Jarrell; the cause of the fire was embers from the campfire that set dry grass adjacent to the campfire ring afire; and both the campfire ring and the origin of the fire are clearly located on federal lands within the Angeles National Forest.
The investigation is being conducted by the United States Forest Service, the Glendora Police Department and the Los Angeles County Fire Department.
Release No. 14-007
Tampa Woman Sentenced in Stolen Identity Income Tax Relief SchemeRead the Press Release
TAMPA, FL - U.S. District Judge James S. Moody, Jr. today sentenced Beverly McFadden (23, Tampa) to six years and nine months in federal prison for her role in a stolen identity income tax refund scheme. As part of the sentence, the Court also entered a money judgment in the amount of $351,431.44.
On September 24, 2013, McFadden pleaded guilty to one count of conspiracy to defraud the United States and to steal government funds, and to one count of aggravated identity theft.
According to court documents, McFadden, who maintained an account with Suncoast Schools Federal Credit Union, conspired with a teller (Louren Velez) to cash 47 fraudulently obtained income tax refund checks, totaling more than $350,000, through that financial institution. McFadden also recruited Larry Walker, another account holder, to assist in the scheme.
On April 23, 2013, Walker pleaded guilty for his role in the conspiracy and was sentenced to time served, six months’ home detention, and a 3-year term of supervised release. Velez was charged by information on June 28, 2013.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
Springfield Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for using two minors to produce child pornography.
Ronald Mazza, 33, of Springfield, was charged in a three-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Mazza used two minors, identified as “Jane Doe” and “John Doe,” to produce child pornography between Aug. 1 and Dec. 1, 2013. Each count, upon conviction, carries a mandatory minimum sentence of 15 years in federal prison without parole.
Mazza is also charged with one count of receiving and distributing child pornography over the Internet between Aug. 1 and Dec. 1, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Sex Offender Sentenced to 30-Months in Prison for Failure to Comply with Registration LawRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama announced that John David Smith, 55, of Robertsdale, Alabama, was sentenced today by Chief Judge William H. Steele to 30-months imprisonment, followed by a supervised release term of life, for failing to comply with the Sex Offender Registration and Notification Act. Smith was convicted in 1989 of Criminal Sexual Contact of a Minor, Third Degree, in New Mexico, and of Production of Child Pornography in Baldwin County, Alabama, in August of 2013.
The United States Marshals Service conducted the investigation, and Assistant United States Attorney Donna B. Dobbins represented the United States.
Settlement Agreement Approved in Manhattan Federal Court in Pension Class Action Lawsuit Brought Against the City of New York and NYPDRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that after a fairness hearing on January 13, 2014, United States District Judge Richard J. Sullivan has approved the proposed Settlement Agreement entered into between the United States Attorney’s Office and the City of New York (the “City”), resolving the issues raised in the August 2012 class action lawsuit brought against the City in Manhattan federal court. The suit concerns the City’s illegal calculation of pensionable earnings, in violation of the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”), of retired New York City Police Department (“NYPD”) officers who were called up to active military service since September 11, 2001, and are collecting a pension from the City (“NYPD Class Members”).
Manhattan U.S. Attorney Preet Bharara said: “This Settlement Agreement will ensure that the brave men and women at all the City agencies who served both their city and their country get the pension that they have earned. Now we can turn to implementing the Settlement Agreement, which will require continued coordination between the City and this Office to put into effect these critically important changes.”
According to the Amended Complaint and other documents filed in Manhattan federal court:
On August 2, 2012, the United States Attorney’s Office filed a class action lawsuit against the City, the NYPD, and the New York City Police Pension Fund, on behalf of all current and retired NYPD officers who have performed active military service since September 11, 2001, or who will do so in the future. The class action suit alleges that the City unlawfully calculates the pensionable earnings of NYPD officers called to active military duty by relying exclusively on their base pay rate, instead of including the overtime or night shift differential compensation they would have earned had they not been on active military duty, as required by USERRA. As a result, service members are being deprived of pension benefits they would have been reasonably likely to receive but for their military service.
The class action lawsuit sought to require the City to lawfully calculate the pensionable earnings of all current and former NYPD officers who were called to perform active military service after September 11, 2001, or who will be called to service, to recalculate the pension benefits they are currently receiving, and to remit any additional pension benefits owed as a result of performing these recalculations.
On July 2, 2013, the Court preliminarily approved the Settlement Agreement, and ordered that notice be given to the approximately 630 potential members of the class. Following a four-month period in which potential class members had an opportunity to submit objections to the Settlement Agreement, the Court found on January 14, 2014, that there were no objections that warrant withholding approval of the Settlement Agreement, and, by orders dated January 14 and 21, 2014, the Court approved the Settlement and closed the case.
The Settlement Agreement provides the following relief:
- All NYPD Class Members will receive the past pension benefits that they are entitled to under USERRA as well as have their future pension benefit payments adjusted to reflect any increase that results from the recalculation of their pension benefits.
- All active NYPD officers who have been or will be called up to active military service will have their future pensionable earnings calculated in accordance with USERRA, and can request in writing to have their past pensionable earnings recalculated.
- The City will implement the terms of the Settlement Agreement in the other retirement systems so that all other municipal workers will have their pensions appropriately calculated.
More information can be obtained by calling the civil rights hotline number at (212) 637-0840, or e-mailing [email protected].
This case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Tara M. La Morte and Arastu K. Chaudhury are in charge of the case.
Goodman v. City of New York, et al. Final Order Approving Settlement
Goodman v. City of New York, et al. Approved Settlement AgreementSecond Individual Convicted in False Claims ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Earl Rojelio Blanchett, Jr. (37, Tampa) to 10 years and 4 months in federal prison for tax fraud charges, including charges of aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $22,500.
Blanchett pleaded guilty to all fourteen counts of the indictment on October 29, 2013.
According to court documents and statements made at the sentencing hearing, in June and July 2013, Blanchett sold seven United States Treasury checks, with a face value of over $77,000, at a discounted price, to undercover law enforcement agents. These Treasury checks were issued as a result of tax returns filed in the names individuals who were victims of identity theft. The victims either did not authorize the filing of those returns, the issuance and cashing of the resulting Treasury checks, and/or confirmed that the Treasury checks were fraudulently and falsely endorsed in their names. Personal identifying information related to some of the stolen identities was found in a search of Blanchett’s residence, where he lived with his girlfriend. Inside the residence, agents also found thousands of other individuals’ personal identifying information in computers, ledgers and notebooks, along with notes about the filing of tax returns, debit cards, passwords, and user names. The information totaled over $7 million, with nearly $3 million confirmed by the IRS.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, Hillsborough County Sheriff’s Office and Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Second Individual Convicted in False Claims ConspiracyRead the Press Release
Orlando, Florida, – Acting United States Attorney A. Lee Bentley, III announces that Marcus Dwayne Robertson (45) was found guilty yesterday of conspiring to defraud the Internal Revenue Service. This is Robertson’s second conviction in this District. On August 23, 2011, he was arrested by the Federal Bureau of Investigation and charged for being a previously convicted felon in possession of a firearm. Robertson pleaded guilty to that crime on January 5, 2012. He was then indicted, on March 14, 2012, for conspiring to defraud the IRS. A bench trial ensued in December 2013, in which he was convicted for that offense. Robertson faces a maximum penalty of 20 years in federal prison for both convictions. His sentencing hearing has been scheduled for April 14, 2014, before Senior U.S. District Judge Gregory A. Presnell.
According to court documents and evidence presented at Robertson’s trial and the sentencing of a co-conspirator (Jonathan Paul Jimenez), the FBI was investigating an international terrorism matter regarding the operation of a travel facilitation network by Robertson and others that sends individuals overseas to commit violent jihad. In November 2010, Jimenez relocated from New York to Central Florida, where he began training with Robertson in the skills necessary to participate in violent jihad overseas. The training included martial arts, firearm and knife training, reading the Quran, and learning Arabic. During Jimenez’s training, Robertson stressed that Jimenez needed to focus on the religious aspects of his training, prior to perfecting the skills needed to commit violent acts.
In late May and early June of 2011, Jimenez, with the assistance of Robertson and others, began making preparations for his overseas travel. Robertson assisted Jimenez with getting his photographs for his visa application and his vaccinations. On June 17, 2011, Jimenez departed Central Florida and traveled to New York by airplane, where he expected to get his visa and then travel overseas.
During the course of the investigation, the FBI obtained evidence about the nature of Robertson’s training of Jimenez and the plan for Jimenez to travel overseas to engage in violent jihad. As part of the investigation, the FBI obtained consensually recorded conversations with Jimenez and others, in which Jimenez stated his goals. When interviewed by the FBI on September 22, 2011, Jimenez lied about making those statements.
In order to have funds available for him when he was overseas, Robertson, Jimenez, and another individual conspired to submit a false 2010 tax return for Jimenez, in which Jimenez falsely claimed three of Robertson’s children as his dependents and falsely represented that he lived with each of the three children for all of the year 2010. As a result of those false representations, Jimenez obtained a refund from the IRS in the amount of $5,587.
On August 28, 2012, Jimenez pleaded guilty to making a false statement to a federal agency in a matter involving international terrorism and conspiring to defraud the IRS. On April 18, 2013, he was sentenced to 10 years in federal prison, ordered to serve a 3-year term of supervision following his release, and to pay $5,587 in restitution.
These cases were investigated by the FBI’s Joint Terrorism Task Force and the Internal Revenue Service - Criminal Investigation. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Rock Island, IL, Man Sentenced to 100 Months of Imprisonment for Possession of A Firearm in Connection with Attempted MurderRead the Press Release
DAVENPORT, IA – On January 16, 2014, DeMarko Onslow Williams, age 25, of Rock Island, Illinois, was sentenced by Chief United States District Judge James E. Gritzner to 100 months in prison for being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Williams was also ordered to serve two years of supervised release.
On March 31, 2013, Williams walked into the parking lot of The Chorus Line gentlemen’s club and fired multiple shots at a group of people standing near the entrance of the business. Williams did not hit anyone but his shots hit vehicles and the business’ front door in the immediate vicinity of numerous bystanders. Williams is a known affiliate of Fifth St. Mafia, aka Zone Fifth, a street gang in Rock Island, Illinois. Multiple members of the rival Davenport gang, Savage Life, aka 12th Street Boys, were standing in front of The Chorus Line when Williams opened fire. Davenport, Iowa, Police officers responded to the scene and Williams and another individual led the police on a high-speed vehicle pursuit that ended with Williams’ vehicle crashing into a fence. Williams then fled on foot and discarded the handgun that he had used in the shooting. Bullet casings recovered from The Chorus Line were analyzed and were determined to have been fired by the gun discarded by Williams.
This case was investigated by the Davenport, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Project Safe Childhood Manchester Woman Pleads Guilty to Child ExploitationRead the Press Release
CONCORD, NEW HAMPSHIRE: Erin Upham, 21, of Manchester, pled guilty In United States District Court for the District of New Hampshire to one count of sexual exploitation of children, announced United States Attorney John P. Kacavas.
The investigation began in 2013 when the Manchester Police received information from the United States Air Force, Office of Special Investigations that the defendant, a resident of Manchester, was communicating with a member of the armed services who was stationed at Kadena Air Base in Okinawa, Japan. Specifically, the Air Force Special Agents informed the Manchester Police that they had information that the defendant’s communication was of a sexual nature and involved a minor child. A federal search warrant was obtained for the search and seizure of various electronic items belonging to the defendant, including a lap top and cell phones. A forensic examination of the items revealed digital images of the defendant and a minor child engaged in sexually explicit conduct.
The defendant is facing a minimum term of fifteen years in prison and is scheduled to be sentenced on April 29, 2014 at 10:30.
The charge was the result of an investigation by the United States Air Force, Office of Special Investigations, the Federal Bureau of Investigation, and the Manchester and Derry Police Departments and is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being prosecuted by Assistant United States Attorney Helen White Fitzgibbon who is the U.S. Attorney’s coordinator for Project Safe Childhood.Ozark Man Indicted for Child Sexual ExploitationRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man was indicted by a federal grand jury today for using two minors to produce child pornography.
Dennis Lee Whitaker, 53, of Ozark, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Whitaker used two minors, identified as “Jane Doe” and “John Doe,” to produce child pornography between Jan. 1, 2010, and Jan. 1, 2013, in Stone and Taney counties. Each count, upon conviction, carries a mandatory minimum sentence of 15 years in federal prison without parole.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Stone County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Oahu Man Sentence to Six Years in Prison for Drug Offense, Identity Theft, and Naval Exchange TheftRead the Press Release
HONOLULU – Chief U.S. District Judge Susan Oki Mollway sentenced defendant Ashon L. Fain-Farias, age 25, on January 13, 2014, to an imprisonment term of six years following a plea to (i) one count of possession with intent to distribute five grams or more of methamphetamine; (ii) one count of conspiring to steal government property; and, (iii) one count of aggravated identity theft. These offenses occurred in December 2012 at Joint Base Pearl Harbor-Hickam, Hawaii, and the theft and aggravated identity theft offenses involved two other co-defendants, Joseph Routt, age 37, and Chanice Viloria, age 20, who were sentenced to 14 months and ten days imprisonment, respectively, for their roles in the conspiracy. All three are Oahu residents.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced to the court, Fain-Farias, Routt, and Viloria attempted to steal over $17,000 of high-value electronic items from the Navy Exchange at Pearl Harbor (NEX) by using a military identification card obtained from a military retiree to gain access to the NEX on December 18 and 19, 2012. All three, however, were apprehended on December 19. During the ensuing search of Fain-Farias’ car by Naval Security Forces, a bag containing over 35 grams of methamphetamine, 17 grams of cocaine base, and drug distribution material were recovered from the trunk.
Fain-Farias sentence consisted of terms of four years imprisonment for the drug and theft conspiracy charges, to be served concurrently, and a mandatory two-year term of imprisonment for identity theft which must be served consecutively to the four-year terms, for a total of six years imprisonment.
The charges resulted from an investigation conducted by the Naval Criminal Investigative Service, Drug Enforcement Administration, and Naval Security Forces. Special Assistant U.S. Attorney Robert Singer and Assistant U.S. Attorney Michael Kawahara prosecuted this case.
Niagara County Woman Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Roberta Hannon, 46, of the Town of Niagara, who was convicted of conspiring to manufacture methamphetamine, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, the defendant was arrested along with three others during the execution of a search warrant of a mobile home at 314 Quain Place, Town of Niagara, on May 3, 2012. Hannon resided in a mobile home at that address. During the execution of the search warrant, members of the Niagara County Drug Task Force and Drug Enforcement Administration seized, among other things, an active one-pot methamphetamine lab "cooking" on the stove in the kitchen, substantial quantities of precursor chemicals and ingredients used to manufacture methamphetamine, a digital camera, spent blister packs from pseudophedrine tablets, and drug paraphernalia. The digital camera contained photographs of the defendant and others engaged in drug-related activity.
The defendant’s husband, Jason Hannon, was sentenced to 63 months in prison; her nephew Robert Gardiner was sentenced to 12 months in prison; and a third co-defendant, Keith Crossley, was sentenced to 37 months in prison.
The sentencing is the result 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, and members of the Niagara County Drug Task Force, under the direction of Sheriff James Votour.New York Man Sentenced to 175 Months for Leadership Role in Mortgage Office Burglary and Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – Jeffrey Washington, 36, of New York, NY, was sentenced today to 175 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. The defendant was ordered to pay restitution in the amount of $254,995.71.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
Washington plead guilty on August 28, 2014. According to court documents, Washington admitted his involvement in a multi-defendant ring of individuals that burglarized Wells Fargo mortgage offices throughout NY, NJ, CT and MD in 2012 -2013. The defendants stole over 1,800 mortgage files that were then used in a variety of bank customer impersonation and retail credit fraud schemes, targeting various banks and retailers. Washington recruited individuals to go into banks, impersonate customers and remove funds via setting up business accounts and transferring funds from the accounts of bank customers. Washington and other defendants traveled from NY to EDVA on multiple occasions throughout 2012 and 2013. Following the arrest of a co-defendant in August, 2013, the defendant continued to burglarize mortgage offices until his arrest in May, 2014. Washington was on probation at the time of the offense. Thus far, three defendants have pled guilty and a fourth remains pending trial.
This case was investigated by United States Secret Service and United States Postal Inspection Service. Assistant U.S. Attorney Brian J. Samuels is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR32.Tweet