Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 January 2014
Navajo Man from Arizona Sentenced to Forty-Six Months for Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Donovan Eric Williams, 24, an enrolled member of the Navajo Nation who resides in Whippoorwill, Ariz., was sentenced to 46 months in federal prison followed by three years of supervised release for assaulting a federal officer, announced Acting U.S. Attorney Steven C. Yarbrough and Director John Billison of the Navajo Nation Division of Public Safety.
Williams was arrested on April 24, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. According to the complaint, Williams assaulted a Sergeant of the Navajo Nation Division of Public Safety by deliberately veering his vehicle into her police vehicle on March 21, 2013, near Church Rock, N.M. Williams subsequently was indicted and charged with assaulting a federal officer who was engaged in the performance of her official duties because the tribal officer possessed a Special Law Enforcement Commission from the BIA at the time of the assault.
On Oct. 21, 2013, Williams pled guilty to the indictment and admitted intentionally assaulting a federal officer on March 21, 2013. In his plea agreement, Williams acknowledged that, at the time of the assault, he was being pursued by a tribal officer who was attempting to pull his vehicle over and the federal officer was approaching him from the opposite direction. Williams admitted intentionally striking the federal officer’s vehicle even though the officer had pulled her marked police vehicle off to the side of the road to avoid a collision. Williams subsequently learned that the officer was commissioned as a federal law enforcement officer at the time of the assault.
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.
Mortgage Broker Pleads Guilty to Conspiring to Commit Mortgage FraudRead the Press Release
TAMPA, FL – Acting United States Attorney A. Lee Bentley, III announces that Michelle Carducci (37, Tampa) today pleaded guilty to conspiracy to commit wire fraud affecting a financial institution and making false statements to a federal agency. She faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, in 2001, Carducci moved from Ohio to Florida and, in 2002, became a Florida-licensed mortgage broker. Subsequently, she entered into a conspiracy with a Florida-licensed real estate agent and a primarily Pinellas County-based developer. The real estate agent was recruiting buyers to purchase houses that were being “flipped” by the developer, through a series of companies. Buyers were falsely told that these deals would require no money from them. Instead, to hide the fact that the seller (the developer) was really providing closing funds (down payments) to otherwise unqualified buyers, Carducci, among other things, inflated the buyers’ assets on their loan-related documents.
Carducci’s role in the conspiracy is estimated to have caused losses between $400,000 and $1,000,000, for transactions that she handled in 2005 and 2006.This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Modesto Woman Pleads Guilty to Structuring Cash Proceeds of Interstate Oxycodone and Hydrocodone TraffickingRead the Press Release
FRESNO, Calif. —Phally Thach, 30, of Modesto, pleaded guilty today to one count of conspiracy to structure cash transactions and one count of aggravated structuring, United States Attorney Benjamin B. Wagner announced.According to court documents, Phally Thach and co-conspirators obtained prescriptions for oxycodone and hydrocodone from pharmacies in Modesto and then transported and mailed the pills to other states, including Washington, for distribution on the black market. In addition, Phally Thach opened bank accounts at Bank of America into which co-conspirators deposited the cash proceeds of the oxycodone and hydrocodone sales for $10,000 or less. After receiving the cash deposits, Phally Thach withdrew the cash from those accounts in amounts of $10,000 or less to attempt to prevent Currency Transactions Reports from being filed by the banks on her cash deposits. Currency Transactions Reports are reports prepared by financial institutions for any transactions involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Phally Thach is scheduled to be sentenced by United States District Judge Anthony W. Ishii on April 7, 2014. She faces a maximum statutory penalty of five years in prison and a $250,000 criminal fine for conspiracy and 10 years in prison and a $500,000 criminal fine for structuring. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Plea Agreement
Millcreek Township School District Agrees to Pay Government $350,000 to Resolve Allegation of Improper Medicaid ReimbursementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Millcreek Township School District has agreed to pay the United States $350,000 to resolve allegations that it submitted improper claims to the Medicaid-funded School Based Access Program. Millcreek Township School District is the public school system for students residing in Millcreek Township, Pennsylvania, a suburb of Erie.
According to United States Attorney Peter J. Smith, Millcreek Township School District has agreed to pay $350,000 to resolve allegations that from August 11, 2005, through June 28, 2007, the School District improperly submitted claims to the Pennsylvania School Based Access Program for payment when those claims did not satisfy the necessary program requirements. Payment is due within 60 days from the date of the Settlement Agreement (January 14, 2014).
The Pennsylvania School Based Access Program provides federal Medicaid reimbursement to schools for health related services provided by those schools to special needs students as part of an Individualized Education Plan. Schools submitting claims to Access for payment must satisfy a number of requirements, and the amount of reimbursement depends on the type of service performed.
The U.S. Attorney’s Office in Harrisburg had jurisdiction because Access is managed by the Pennsylvania Department of Public Welfare and the Pennsylvania Department of Education, both of which are based in Harrisburg.
In regard to Millcreek, the government determined that the School District submitted Access claims and received federal reimbursement for claims that were improper due, generally, to discrepancies including the absence of recipients on dates billed for services, claims for non-compensable services, improper grouping of services for billing purposes, lack of adequate documentation, and claims for unlisted services. The specific types of violations are set out in the Settlement Agreement. (A copy of the Settlement Agreement is available from the U.S. Attorney’s Office on request.)
The U.S. Attorney’s Office credited the assistance provided by the Pennsylvania Department of Public Welfare, which conducted the audit of Millcreek Township School District’s Access claims. The U.S. Attorney’s Office also acknowledged Millcreek Township School District’s cooperation with the investigation. The Settlement Agreement is not an admission of liability by the School District.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Department of Education, Office of Inspector General. The case was handled by Assistant United States Attorneys D. Brian Simpson and Anthony Scicchitano, Civil Division, United States Attorney’s Office.
****Middle Georgia Methamphetamine Organization DismantledRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that a major methamphetamine organization has been dismantled. On January 16, 2014, Shawn Foster Phillips, age 35, of Bibb County, Marty Bass, age 51, of Bibb County, and Jonathan McBride, age 39, of Houston County, appeared in federal court and entered guilty pleas to conspiracy to possess with the intent to distribute methamphetamine. Travis Walker McElhenny, age 40, of Houston County, entered a plea of guilty to possession with the intent to distribute more than 50 grams of methamphetamine. John Rylander, age 32, of Houston County, entered a plea of guilty to possession of methamphetamine. Chad Minter, age 39, of Houston County, appeared in court on January 21, 2014 and entered a plea of guilty to conspiracy to possess with the intent to distribute methamphetamine. The guilty pleas were entered before U.S. District Court Judge Marc T. Treadwell in Macon, Georgia.The conspiracy charge carries a maximum statutory penalty of up to twenty (20) years confinement. The charge of possession with the intent to distribute methamphetamine carries a maximum penalty of a mandatory minimum of ten (10) years, up to life in prison. The possession charge carries a penalty of up to twelve (12) months incarceration. The Court has scheduled sentencing for April 9, 2014 in Macon, Georgia.
As a part of their guilty pleas, the respective defendants admitted that between January 1, 2011 and December 31, 2012, Mr. Phillips traveled from Warner Robins, Georgia, to Atlanta, Georgia, to obtain methamphetamine from a source of supply. The drugs were transported by Mr. Phillips from Atlanta to Warner Robins where they were sold to Mr. Rylander, Mr. Bass, Mr. McBride, Mr. McElhenny, and others in the Warner Robins area. These men in turn sold the methamphetamine to street level dealers. Conservative estimates suggest that during its operation, the organization distributed more than 50 kilograms of methamphetamine. Federal and state authorities seized 250 grams of methamphetamine and three firearms. The Government anticipates that additional indictments will be filed targeting other members of the organization.
The case was investigated by the Federal Bureau of Investigation, U.S. Marshals Service, and Houston County Sheriff’s Department. Assistant U.S. Attorney Charles L. Calhoun is prosecuting the case.
US Attorney Michael Moore stated, “My office will continue to target and dismantle these types of drug trafficking organizations. Methamphetamine use and distribution poses a significant threat to the public and must be vigorously prosecuted.”For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Methamphetamine Trafficker Sentenced to Federal PrisonRead the Press Release
FRESNO, Calif. — Victor Torres, 28, of Selma, was sentenced today by United States District Judge Lawrence J. O'Neill to five years and 10 months in prison for methamphetamine trafficking, United States Attorney Benjamin B. Wagner announced.
According to court documents, Torres pleaded guilty to a methamphetamine trafficking conspiracy that spanned May 2012 through December 2012. In June 2012, wiretap information led investigators to stop a vehicle in which Torres was a passenger. The car was impounded and a subsequent search revealed approximately one pound of methamphetamine. In December 2012, a search warrant was executed at Torres’s Selma residence, and approximately two ounces of methamphetamine were seized.
This case was the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Department with assistance from the Bakersfield Police Department and the Kings County Sheriff’s Department. Assistant United States Attorney Kevin Rooney prosecuted the case.
Torres was ordered to begin serving his sentence on March 5, 2014. On October 7, 2013, co-defendant Daniel Ochoa, 36, of Fresno, was sentenced to 55 months in prison.
Men Plead Guilty to Transporting Teenage Girls from California to Nevada to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – Two California men pleaded guilty today to felony sex trafficking crimes for inducing and enticing two minor girls to travel from Oakland, Calif., to Las Vegas, Nev., to work as prostitutes during April and May 2013, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ray Darnell Webb, 19, and Seagram Joshua Miller, 21, both of Hayward, Calif., who were arrested and indicted in May 2013, pleaded guilty to one count of coercion and enticement, and are scheduled to be sentenced on April 29, 2014, by U.S. District Judge Kent J. Dawson. The men face up to 20 years in prison and a $250,000 fine, and will have to register as sex offenders.
“We must work together as a community to prevent children from getting involved with sex trafficking,” said United States Attorney Bogden. “The pimps who scour the streets, schools, and online communities preying on boys and girls are predators and we will work with our local, state and federal law enforcement partners to ensure that they are prosecuted.”
According to their plea agreements, in early 2013, Webb and Miller met one of the victims, a 12-year-old female, in Oakland, Calif. where she was working as a prostitute. Shortly thereafter, the 12-year-old began working as a prostitute for Webb and Miller, and provided the money she made working as a prostitute to them. In about April 2013, Miller met a 16-year-old female on Facebook, and she also began working as a prostitute for Miller and Webb. In April 2013, Miller, Webb, and the two minor girls, decided to travel to Las Vegas to make money. Before leaving, Webb and the 16-year-old girl posted an advertisement on MyRedbook.com so that they would have dates lined up when they arrived in Las Vegas. The advertisement contained photographs of the 16-year-old. On April 29, 2013, Webb, Miller, and the two minor girls, drove from Oakland to Las Vegas and stayed in a rented hotel room on Las Vegas Boulevard. Both girls worked as prostitutes on April 30 and in early May.
The cases were investigated the FBI and Las Vegas Metropolitan Police Department, as part of the Innocence Lost Task Force. The cases were prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr.The cases were brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit www.usdoj.gov/psc.Los Gatos Man Sentenced to Two Years for Conspiracy to Commit Mail and Wire Fraud, and Conspiracy to Commit Bank FraudRead the Press Release
SAN JOSE – David Foley, the former chief technology officer of Santa Clara, California video game developer Global VR, and former owner of NexTune Corporation, d/b/a UltraCade Technologies, was sentenced today to two years in prison and ordered to pay a $5,000 fine for engaging in a conspiracy to commit mail and wire fraud, and conspiracy to commit bank fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Foley, 48, of Los Gatos, pleaded guilty on January 6, 2012 to one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349, as charged in a superseding indictment filed on January 9, 2009, and one count of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, as charged in an indictment filed on August 18, 2011. The charges contained in the separate indictments were consolidated for the guilty pleas.
In his plea agreement, Foley admitted that he manufactured thumb drives, known as “game packs,” containing video gaming software that could be loaded onto arcade video game machines made for the home market. Foley illegally produced the products from his home while working as the chief technology officer of Global VR, which had previously acquired all rights to produce and sell games under the UltraCade name. After producing the game packs, Foley sold the products to a co-defendant located in Milford, Conn., and agreed to sell the game packs to the public using packaging and advertisements that falsely represented the goods to have been genuinely manufactured by UltraCade. Foley thereafter received payment for the illegally manufactured game packs by mail and wire.
Foley further admitted that he defrauded Countrywide Home Loans (now owned and operated by Bank of America) of mortgage and home equity line of credit loans in the amounts of $2,624,475 and $374,925. He did this by falsely claiming that he was still employed at Global VR. Foley had been fired from his job by the time the loan applications were submitted. Foley admitted that he instructed a co-defendant to contact Countrywide Home Loans to falsely confirm his continued employment after his employment had been terminated and prior to receiving the funds.
The sentence was handed down by the Honorable Edward J. Davila, United States District Court Judge in San Jose. Judge Davila also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence on March 27, 2013.
Hanley Chew, Susan Knight, and Richard C. Cheng are the Assistant United States Attorneys who prosecuted the case with the assistance of Laurie Worthen and Tracey Andersen. The prosecution was the result of an investigation by the Federal Bureau of Investigation.
(Foley Indictment 11-0054)
(Foley Indictment 09-00670)
(Foley Superseding Indictment 09-00670)
Last Man Heads to Prison for Area Bank RobberyRead the Press Release
HOUSTON – Kendrick Deswhan Castille, 20, has been ordered to prison for his involvement in the November 2012 robbery of Amegy Bank in Houston, announced United States Attorney Kenneth Magidson. Castille pleaded guilty as did co-defendants Terrance Trent Batiste, 21, and Joshua Demond Clay, 29.
Today, U.S. District Judge Kenneth Hoyt sentenced Castille to 31 months for conspiracy to commit bank robbery as well as 31 months for aiding and abetting aggravated bank robbery which will be served concurrently. He was also convicted of aiding and abetting the brandishing of a firearm during a crime of violence for which he received a consecutive 84-month sentence for a total term of imprisonment of 117 months in federal prison. He will be further required to serve three years of supervised release following completion of the prison term.
Batiste was previously sentenced to 60 months for conspiracy to commit bank robbery as well as 78 months for aiding and abetting aggravated bank robbery which will be served concurrently. He was also convicted of aiding and abetting the brandishing of a firearm during a crime of violence for which he received a consecutive 84-month sentence for a total term of imprisonment of 162 months in federal prison. He will be further required to serve five years of supervised release following completion of the prison term. Clay was sentenced to 60 months in prison for conspiracy to commit bank robbery.
On Nov. 7, 2012, at approximately 12:00 p.m., the Amegy Bank on 1502 Eldridge Parkway in Houston was robbed. Batiste, Castille and Clay were apprehended by Houston Police Department (HPD) officers a short distance from the bank following a pursuit.
The investigation revealed Castille and Batiste entered the bank wearing baseball hats. Batiste was armed with a dark colored revolver which was given to him by Castille before they entered the bank. Castille and Batiste both jumped over the teller counter and demanded money. Clay did not enter the bank, but all three got back into their vehicle and fled after the robbery. After a pursuit by HPD, the vehicle carrying the defendants stopped into the Forest Park Cemetery, located at 12800 Westheimer in Houston, where it ran over and destroyed several tombstones. Clothing and hats worn by Batiste and Castille were recovered from the vehicle along with a large amount of U.S. currency.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Kittery Man Pleads Guilty to Structuring Cash TransactionsRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that
John W. Price, 58, of Kittery, Maine pleaded guilty today in U.S. District Court to structuring over $157,000 in cash transactions to evade federal cash transaction reporting requirements.
Under federal law, financial institutions that dispense more than $10,000 in cash to a customer are required to report the transaction to the Internal Revenue Service
(IRS). Structuring occurs when a customer breaks up cash withdrawals into multiple increments of less than $10,000, to avoid the cash transaction reporting requirement.
Court records reveal that between 2008 and 2010, Price, the owner of J.P.’s Shellfish, a seafood distributor in Eliot, Maine, directed his employees who withdrew cash from the J.P.’s
Shellfish business bank account to pay for lobsters not to withdraw more than $10,000 in cash at any one time, so as to avoid the cash transaction reporting requirement.Price faces up to 5 years in prison and a $250,000 fine on each of the 12 counts. He will be sentenced after the completion of a presentence investigation report by the United States
Probation Office.The charges are the result of a collaborative investigation conducted by the IRS, the
National Oceanic and Atmospheric Administration Office of Law Enforcement, and the Knox
County Sheriff’s Office.Kiosk Operators in Music City Mall in Odessa Plead Guilty in Counterfeiting CaseRead the Press Release
In Midland, 41-year-old Raja Zafar Iqbal and 50–year-old Javed Iqbal Raja of Odessa, TX, face up to ten years in federal prison after pleading guilty to trafficking in counterfeit goods announced United States Attorney Robert Pitman, Homeland Security Investigations Special Agent in Charge Dennis Ulrich and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before United States Magistrate Judge David Counts this morning, Raja Zafar Iqbal admitted to trafficking in counterfeit goods from January 2001 to September 2013. According to court records, Iqbal, with assistance from Raja between November 2008 and September 2013, operated Music City Mall kiosks Gold-N-Silver, ICEE Jewelry, Jewel Time, Pretty-N-Sassy, Famous Stars and Straps, and Right Jewelry. During that time, the defendants knowingly sold counterfeit jewelry, watches, buckles, key chains, lanyards and other items. The counterfeit goods bore trademarks identical to or substantially indistinguishable from trademarks used by Angry Bird, Fox Head, Monster, Nike, Playboy, Polo Ralph Lauren, Chanel and Juicy Couture. The defendants admitted that they were not authorized to sell or distribute any of the goods bearing the counterfeit trademarks.
On September 5, 2013, federal agents arrested the defendants and executed search warrants at the kiosks where they seized over 300 counterfeit items.
Both defendants are currently on bond pending sentencing. No sentencing date has been scheduled. Charges are still pending against a third defendant in this case, 33-year-old Muhammad Asif Raza, formerly of Odessa.
This investigation was conducted by Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Austin Berry is prosecuting these cases on behalf of the Government.
KC Woman Sentenced to 30 Years for Large-scale Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for her role in a conspiracy that was responsible for distributing hundreds of kilograms of cocaine in Jackson County, Mo.
Tamiko Grandison, 41, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 30 years in federal prison without parole.
On Aug. 20, 2013, Grandison was found guilty of participating in a conspiracy to distribute cocaine in Jackson County between Jan. 1, 2004, and June 17, 2010. Evidence introduced during the trial indicated that Grandison was the conduit who made deliveries of cocaine to customers in the Kansas City area on behalf of her then-boyfriend, Jiles Johnson, formerly of Kansas City, Mo. Johnson, who testified at Grandison’s trial, is being prosecuted in a separate case in the Northern District of Georgia. The government alleges that tons of cocaine was smuggled across the Mexican border and distributed throughout the United States to Johnson and others.
Johnson brought cocaine to Kansas City in 30- and 50-gallon drums and broke it down into kilogram quantities in Grandison’s basement. Grandison stored multi-kilogram quantities of cocaine at her residence until it was delivered.
Grandison delivered hundreds of kilograms of cocaine to co-conspirators over the course of the conspiracy. She also picked up the money from these customers for Johnson, and helped him conceal the drug-trafficking conspiracy by laundering some of the proceeds.
This case was prosecuted by Assistant U.S. Attorney Charles E. Ambrose, Jr. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Justice Department Releases Investigative Findings Showing the Alabama Department of Corrections Fails to Protect Women Prisoners at the Julia Tutwiler Prison for Women from Sexual Abuse and Sexual HarassmentRead the Press Release
Montgomery, Alabama - The Justice Department’s Civil Rights Division released last week its’ letter of findings determining that prison officials at the Alabama Department of Corrections (“ADOC”) and the Julia Tutwiler Prison for Women (Tutwiler) violate women prisoners’ constitutional rights by failing to protect them from harm due to sexual abuse and sexual harassment by correctional staff. The Justice Department found that ADOC and Tutwiler officials have failed to take reasonable steps to protect people in their custody from the known and readily apparent threat of sexual abuse and sexual harassment. Specifically, the Justice Department found that prison officials have long been on notice of the risks to women prisoners and have chosen to ignore them.
The Justice Department found that women prisoners at Tutwiler live in a toxic environment with repeated and open sexual behavior. The conduct to which women are exposed, includes: officers requiring women to engage in sexual acts with officers in exchange for basic sanitary supplies; male officers openly watching women shower or use the toilet; a staff facilitated “strip show;” a constant barrage of sexually offensive language; punishment of prisoners who report improper conduct; and encouraging improper sexual contact between prisoners. The sexual abuse and harassment is grossly underreported due to insufficient staffing and supervision, inadequate policies and procedures, a heightened fear of retaliation, and an inadequate investigative process.
“Our investigation has revealed serious systemic operational deficiencies at Tutwiler that have exposed women prisoners to harm and serious risk of harm from staff-on-prisoner sexual abuse and sexual harassment,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “These problems have been festering for years, and are well known to Alabama prison officials. Remedying these deficiencies is critical to ensuring constitutionally protected treatment of women prisoners at Tutwiler and will promote public safety.”
The Justice Department’s comprehensive investigation involved an in-depth review and analysis of documents, including policies and procedures, incident reports, investigative reports, orientation materials, and staff training materials. The Justice Department also interviewed prison officials and administrative and security staff, as well as current and former women prisoners.
In its letter of findings, the Justice Department also notified ADOC and Tutwiler officials of its intent to expand its investigation to examine allegations of excessive use of force, constitutionally inadequate conditions of confinement, constitutionally inadequate medical and mental health care, and discriminatory treatment based on national origin, sexual orientation, and gender identity. The decision to expand its investigation of conditions at Tutwiler stemmed from the Justice Department’s review of information suggesting that the systemic deficiencies at Tutwiler that facilitated staff sexual misconduct may also lead to constitutionally inadequate conditions of confinement.
The Justice Department commends Commissioner Kim Thomas and his staff for the cooperation they have shown, and for their receptivity to concerns raised. The Justice Department looks forward to continuing to work with ADOC and Tutwiler officials in a collaborative manner to timely resolve these findings under mutually agreeable terms and to work on the expanded investigation.
For more information on the Justice Department’s Civil Rights Division, please visit justice.gov/crt.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617John Quinn Pleads Guilty to Internet Sales of Tools Stolen from Ge AviationRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Quinn, 55, of Rutland, pleaded guilty today in United States District Court in Burlington to a charge of mail fraud. U.S. District Judge William K. Sessions III released Quinn on conditions pending his sentencing, which has been set for April 21.
According to the information to which Quinn pled guilty, Quinn had been employed for a number of years as a subcontractor for GE Aviation in Rutland. The GE facility manufactures components for jet engines on military and commercial aircraft. Quinn served as an account manager and was involved in the ordering, stocking and delivering of tools and other materials. According to the information, Quinn began stealing tools from GE Aviation's inventory no later than 2009 and resold the stolen tools over the Internet. Most of the stolen hardware consisted of high-speed carbide drill bits. Purchasers paid for the stolen tools by depositing funds into Quinn's personal PayPal account. According to PayPal records, between 2009 and July 2013, Quinn realized more than $108,000 from sales of carbide drill bits.
GE Aviation came to suspect that Quinn might be stealing company property last spring and conducted a sting operation where security personnel made three undercover purchases from Quinn. Quinn typically used the U.S. mails to send the stolen tools to the purchasers.
As part of his plea agreement, Quinn consented to the entry of a $108,000 forfeiture money judgment.
Quinn faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Rutland office of the Federal Bureau of Investigation.
Quinn is represented by Barry Griffith. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Indictment Unsealed Charging El Paso County Juvenile Probation Officer with Federal Sex Trafficking ChargesRead the Press Release
In El Paso, federal authorities have arrested a juvenile probation officer indicted on federal sex trafficking charges announced United States Attorney Robert Pitman, Homeland Security Investigations Special Agent in Charge Dennis Ulrich and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On Friday, authorities arrested El Paso County juvenile probation officer 28–year-old Timothy McCullouch, Jr., without incident. McCullouch is charged in a superseding federal grand jury indictment, returned on Wednesday (1.15.14) and unsealed following his arrest, with one count of conspiracy to commit sex trafficking of persons and one substantive count of sex trafficking of a minor. McCullouch remains in federal custody pending a detention hearing on January 24, 2014, before United States Magistrate Judge Anne T. Burton. He faces up to life in federal prison upon conviction.
In addition to McCullouch, the indictment charges five El Paso gang members for their roles in the sex trafficking scheme including: 25-year-old Deion Lockhart, 21-year-old Brandon Shapiro, 20-year-old Tai Von Lynch, 24-year-old Richard Gray, and 23–year-old Emmanual Lockhart. All five remain in custody pending trial scheduled for June 6, 2014, before United States District Judge Philip Martinez. Upon conviction, each defendant faces up to life in federal prison.
Court records allege that the defendants have been involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang between May 2012 and March 2013. The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and in Colorado.
This investigation, conducted by Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the El Paso Police Department Gang Unit, also resulted in a separate, but related, indictment. Folk Nation/Gangster Disciples members Kiry Hakeem Nalls, age 24, and Grant Rutledge, age 24, were indicted in July of last year on forced prostitution charges. Nalls and Rutlege also face up to life imprisonment upon conviction. Their trial is currently set for March 3, 2014, before Judge Martinez.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Assistant United States Attorneys Rifian Newaz and Robert Almonte are prosecuting these cases on behalf of the Government.
Income Tax Return Fraudsters Headed to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Margo Marvette Stafford, Richard Clayton and Mark Jerome Jackson have been sentenced to federal prison for conspiring to use stolen identities to file fraudulent income tax returns, announced United States Attorney Kenneth Magidson. All previously entered guilty pleas in relation to the case.
Today, Senior U.S. District Judge John D. Rainey sentenced Stafford to a term of 12 months and one day in federal prison followed by three years of supervised release. She was further ordered to pay restitution of $98,493. Jackson and Clayton had been sentenced previously to respective terms of six and 14 months, each to be followed by three years of supervised release. The court further ordered restitution to be paid by Jackson and Clayton in the amounts of $19,871 and $75,668, respectively.
In 2011, Internal Revenue Service – Criminal Investigation (IRS-CI) and the U.S. Postal Inspection Service (USPIS) began investigating a fraudulent tax refund scheme in the Corpus Christi area. During the course of the investigation, nine bank accounts were identified which received numerous fraudulent tax refund deposits. Those accounts were opened and controlled by Stafford, Clayton and Jackson.
At the time of their pleas, each admitted they were part of a conspiracy to defraud the United States, acknowledging they opened and maintained bank accounts for the purpose of receiving funds generated by fraudulent tax returns filed using stolen identities. Clayton also admitted he prepared and submitted some of the fraudulent tax returns using stolen identifying information provided by a co-conspirator. Stafford acknowledged stealing identity information from medical files at two nursing homes where she was employed and forwarding that information to a co-conspirator to use in the preparation of fraudulent tax returns. Stafford further admitted to receiving debit cards through the U.S. mail used to access $40,242 resulting from an additional 15 fraudulent tax returns.
Stafford opened and maintained three accounts which had received deposits tied to 47 fraudulent tax returns filed in the names of 47 different victims resulting in electronic tax refund deposits totaling $54,910. An additional seven fraudulent tax returns requested $14,848 in tax refunds, but were detected as fraudulent and not deposited. Agents found 43 fraudulent tax refunds were deposited into five accounts Clayton controlled totaling $56,732.30, with an additional 19 fraudulent income tax returns requesting $31,841 determined to be fraudulent and not deposited. The one account used by Jackson had 17 electronic tax refund deposits related to fraudulent tax returns filed in the names of 17 different individuals, totaling $19,871.
Stafford was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons (BOP) facility to be determined in the near future. Jackson has also been allowed to voluntarily surrender, while Clayton has already reported to a BOP facility to serve his sentence.
These cases were investigated by IRS-CI and USPIS and are being prosecuted by Assistant United States Attorney Robert D. Thorpe Jr.
Honolulu Tax Preparer Sentenced for Tax Crimes Related to Hawaii Clients and Her Own Tax ReturnRead the Press Release
HONOLULU - United States District Court Judge J. Michael Seabright today sentenced Honolulu tax preparer Merla Balubar, age 59, to 24 months imprisonment for falsifying information on an income tax return she prepared for another person and for falsifying her own tax return. Judge Seabright ordered Balubar to pay restitution totaling $326,799 to the United States.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said according to documents filed in connection with the case:
- Balubar a resident of Ewa Beach, provided tax preparation services while doing business as Filcom Tax Services LLC. Balubar would prepare returns for clients for a fee and her activities covered tax years 2006 through 2009, with specific returns being prepared and submitted to the Internal Revenue Service (IRS) from 2007 through 2010. The returns contained materially false information that resulted in refunds, to which the clients were not entitled, or reduced the tax liability for the filer. This was accomplished by including within the returns false overstatements of deductible expenses.
- Balubar also prepared a Joint United States Individual Income Tax Return, Form 1040, for herself and her husband, for tax year 2007. This tax return contained materially false statements of fact by under reporting income from business operation, income from rental property, and gambling income. In addition, the return also contained false itemized deductions. Balubar also admitted to filing false returns for tax years 2008 and 2009.
The case resulted from an investigation conducted by IRS - Criminal Investigation. Assistant United States Attorney Ronald G. Johnson handled the prosecution.
Hawthorne Man with History of Mental Illness Indicted on Gun ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces the arrest and charging of David Harris Dunaway (58, Hawthorne) for being an individual adjudicated as mentally defective and having been committed to a mental institution, in possession of a firearm and ammunition. If convicted, Dunaway faces a maximum penalty of ten years in federal prison.
Dunaway was indicted on December 18, 2013.
According to the indictment, on or about October 9, 2013, Dunaway knowingly possessed a Smith & Wesson .40 caliber semi-automatic pistol and 50 rounds of ammunition. In 1992, he was found not guilty of homicide, by reason of insanity. Subsequently, Dunaway was involuntarily committed to a mental institution for five years. When arrested, in Alachua County, Florida, Dunaway had 37 guns and more than 1,000 rounds of ammunition in his vehicle.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
Four Sentenced for Involvement in A Straw Purchases RingRead the Press Release
McALLEN, Texas – Four people associated with making false statements in the acquisition of firearms from federal firearms licensees (FFL), commonly referred to as straw purchasing, have been sentenced to prison, announced United States Attorney Kenneth Magidson. Jose Maria Flores, 21, and Arnulfo Torres, 33, both of McAllen; Rene Rene Olivo, 25, of Alamo; and Mario Reynoso Jr., 39, of Mission, all pleaded guilty to making false statements and/or aiding and abetting the making of the false statements to FFLs on Aug. 7, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed prison sentences to each of the defendants. Flores received 60 months in federal prison, while Torres, Olivo and Reynoso received respective sentences of 60, 37 and 30 months. All were further ordered to serve two-year-terms of supervised release following completion of their prison sentences. At the hearing today, additional evidence was presented indicating a total of 125 firearms were purchased between all the defendants and co-conspirators.
In March 2011, agents with the Bureau of Alcohol, Tobacco, Firearms and explosives (ATF) began an investigation into the purchase of high-powered rifles from local FFLs in McAllen. Through their investigation, agents identified the defendants as being involved in the straw purchasing of multiple firearms and admitted to doing so at their respective plea hearings.
The sentences imposed today were further enhanced as the court determined the firearms were being trafficked and used or possessed for another felony offense.Reynoso was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future, while Flores, Torres and Olivo have been and will remain in custody.
The investigation was conducted by the ATF and prosecuted by Assistant United States Attorney Juan Villescas.
Former Virginia Governor and Former First Lady Indicted on Public Corruption and Related ChargesRead the Press Release
RICHMOND, Va. – A federal grand today returned a 14-count indictment against former Virginia Governor Robert F. McDonnell and former First Lady Maureen G. McDonnell for allegedly participating in a scheme to violate federal public corruption laws.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
The indictment, returned in the Eastern District of Virginia, charges Robert McDonnell and Maureen McDonnell, both 59 and of Glen Allen, Va., with one count of conspiracy to commit honest-services wire fraud; three counts of honest-services wire fraud; one count of conspiracy to obtain property under color of official right; six counts of obtaining property under color of official right; and one count of making false statements to a federal credit union. Robert McDonnell is also charged with an additional count of making a false statement to a financial institution, and Maureen McDonnell is charged with one count of obstruction of an official proceeding.
“I thank the Assistant U.S. Attorneys, FBI, Virginia State Police and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation of this case,” said Acting U.S. Attorney Boente. “We will continue to work tirelessly with our law enforcement partners to investigate and prosecute public corruption.”
“Today’s charges represent the Justice Department’s continued commitment to rooting out public corruption at all levels of government,” said Acting Assistant Attorney General Raman. “Ensuring that elected officials uphold the public’s trust is one of our most critical responsibilities.”
“One of the most important investigative responsibilities with which the FBI is tasked is ensuring that the integrity of our elected public officials has not been compromised,” said FBI SAC Mazanec. “The Richmond Division of the FBI and our law enforcement partners have diligently worked this lengthy, detailed and sensitive matter. I want to thank all those who have worked very hard and with great care on this investigation.”
“The state police and FBI agents assigned to this case have devoted an extensive amount of time and effort to this matter,” said Colonel Flaherty. “They are to be commended for their professionalism, objectivity and dedication to duty in conducting this highly complex and sensitive investigation.”
“Public officials hold positions of trust and must accept the transparency and accountability that our laws require and their constituents expect,” said IRS-CI Chief Weber. “IRS-CI stands committed to investigating those officials. This case should serve as a strong warning to those who might consider similar behavior. No one is above the law and everyone is accountable for their misdeeds.”
According to the indictment, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific, a Virginia-based corporation, and “JW,” then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc®.
As alleged in the indictment, the McDonnells obtained from JW more than $135,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the alleged scheme, the official actions that Robert McDonnell performed included arranging meetings for JW with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The indictment further alleges that the McDonnells attempted to conceal the things of value received from JW and Star to hide the nature and scope of their dealings with JW from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements. Moreover, the indictment alleges that on Oct. 3, 2012, Robert McDonnell sent loan paperwork to a lender that did not disclose the loans from JW, and on Feb. 1, 2013, the McDonnells signed loan paperwork submitted to another lender that did not disclose the loans. Similarly, the indictment alleges that on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with JW. Three days later, on Feb. 18, 2013, Robert McDonnell is alleged to have sent loan paperwork to one of the previously mentioned lenders disclosing the loans from JW. Additionally, after her interview with law enforcement, Maureen McDonnell allegedly wrote a handwritten note to JW in which she falsely attempted to make it appear that she and JW had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence and impede the investigation.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; a maximum statutory sentence of 30 years in prison and a fine of the greater of $1,000,000 or twice the gross gain or loss on the false statement counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI and the Virginia State Police.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Philadelphia Resident Sentenced for Assaulting A Deputy US MarshalRead the Press Release
ERIE, Pa. - A former resident of Philadelphia, Pennsylvania has been sentenced in federal court to 27 months in jail on his conviction of assaulting a federal officer, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Ryan Bell, 27.
According to information presented to the court, on January 15, 2013, Bell assaulted a Special Deputy United States Marshal, a member of the U.S. Marshal’s Western Pennsylvania Task Force, who was engaged in official duties as the task force was executing an arrest warrant against Bell.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Bell.
Former Operator of Rehabilitation Therapy Clinic Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
WASHINGTON – A south Florida woman who had been the president of CORF National Development Inc. has pleaded guilty for her involvement in a Medicare fraud scheme involving physical and occupational therapy services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge Christopher Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Milagros Cruz, 42, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiring to commit health care fraud. She faces a maximum penalty of 10 years in prison when she is sentenced.
According to court documents, Cruz conspired with others to execute a health care fraud scheme involving the submission of claims for reimbursement to Medicare for rehabilitation therapy services that were not legitimately prescribed by physicians and not legitimately provided to Medicare beneficiaries. Cruz, as president of CORF National Development, located in Doral, Fla., paid cash kickbacks to Medicare beneficiaries who came to CORF National Development in exchange for using the beneficiaries’ identifying information in the fraud scheme. Cruz would combine the Medicare beneficiaries’ identifying information with other billing information and provide the information to other conspirators. These conspirators then converted the information into reimbursement claims submitted to Medicare in the name of a completely different clinic known as Renew Therapy Centers of Port St. Lucie LLC. From January through August 2008, Cruz’s clinic received approximately $90,950 from Renew Therapy in connection with the fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Madera Resident Sentenced for Fraudulent Sale of WebsitesRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Phillip Jacob Shinen, 33, formerly of Madera, today to 27 months in prison for wire fraud relating to the fraudulent sale of websites, United States Attorney Benjamin B. Wagner announced.According to court documents, between February 2007 and March 2008, Shinen advertised and sold various websites to the public. He guaranteed to purchasers that the websites would produce a certain threshold income and promised that he would train purchasers to use the websites. The websites, however, did not generate the level of income or Internet traffic claimed by Shinen. In order to make it difficult for the website purchasers to contact him, Shinen used a number of aliases.
This case was the product of an investigation by the Federal Bureau of Investigation’s Cyber Crimes Task Force, which is made up of law enforcement officers from the FBI, Fresno Police Department and the Fresno County Sheriff’s Office. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Former IRS Employee Pleads Guilty to Claiming More Than $1,745,000 in False Tax ReturnsRead the Press Release
FRESNO, Calif. — Monica Nanette Hernandez, 41, of Fresno, pleaded guilty today to one count of filing false income tax returns, one count of wire fraud, and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.According to court documents, Hernandez worked for the IRS Service Center in Fresno as a part-time data entry clerk. While employed in that capacity, Hernandez filed three tax returns for herself claiming excessive federal tax withholdings as a result of falsely claimed interest and dividend income. Based on these fraudulent returns, Hernandez obtained more than $175,000 in refunds from the IRS.
In addition, in April 2010, Hernandez stole 68 tax returns from the IRS Service Center and filed fraudulent tax returns using information contained on the stolen tax returns to claim excessive federal tax withholdings. In total, Hernandez attempted to claim more than $1,745,000 in fraudulent tax refunds.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said IRS Special Agent-in-Charge José M. Martinez, “especially in those situations where individuals with positions of trust commit fraud by taking taxpayer information to file fraudulent tax returns in the name of the stolen identity to obtain a larger tax refund. This resulted in significant harm to those taxpayers whose identities were stolen, as well as a monetary loss against the U.S. Treasury.”
“Identity theft has become a modern-day scourge in American society, for the damage it inflicts on its victims can be personally, professionally, and financially devastating,” said Rod Ammari, Special Agent in Charge, San Francisco Field Division, Treasury Inspector General for Tax Administration (TIGTA). “Those who engage in such crimes need to know that TIGTA and its law-enforcement partners will actively investigate IRS-related identity theft cases, and work with the U.S. Attorneys’ offices where perpetrators will be prosecuted to the fullest extent of the law.”
This case is the product of an extensive investigation by the Internal Revenue Service, Criminal Investigation and TIGTA. Assistant United States Attorneys Grant B. Rabenn and Christopher D. Baker are prosecuting the case.
Hernandez is scheduled to be sentenced by U.S. District Judge Anthony W Ishii on April 14, 2014. She faces a maximum statutory penalty for filing false income tax returns of three years in prison and a $250,000 fine. The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a minimum mandatory term of two years in prison to be served consecutively with any other sentence and it carries a maximum statutory penalty of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Plea Agreement
Former Executive Indicted for Defrauding Health Care Company of Nearly $3 MillionRead the Press Release
HOUSTON – Joseph S. Antonucci, 41, of Houston, has been charged with defrauding his former employer, Patriot Managed Health Care Systems Inc., and causing a loss of more than $2.9 million, announced United States Attorney Kenneth Magidson.
Antonucci was charged in a sealed indictment, returned Jan. 14, 2014, and unsealed today upon his arrest. He made his initial appearance before U.S. Magistrate Judge Mary Milloy this morning and was ordered into custody pending a detention hearing set for tomorrow afternoon.
The indictment alleges Antonucci was employed by Patriot as executive vice president and treasurer at the company’s Houston headquarters. In this position, Antonucci ran the daily operations of the company, including soliciting and retaining clients, supervising other employees and controlling the company’s bank accounts, according to the indictment.
From at least January 2007 through September 2012, Antonucci allegedly defrauded Patriot by embezzling approximately $2.9 million from the company’s bank accounts. The indictment alleges Antonucci made unauthorized withdrawals and transfers from Patriot’s bank accounts using a corporate debit card and wrote checks from these accounts to himself. Antonucci further caused Patriot’s account to transfer money by wire into both his own accounts and the accounts of third parties who provided services to Antonucci personally, according to the allegations.
Antonucci allegedly executed the scheme by creating false financial documents. The indictment alleges these documents misrepresented key accounting figures for the company and overstated the company’s net worth while concealing Antonucci’s embezzlement. Antonucci allegedly sent these false documents via email to the managing partner of the investment fund that owned Patriot. Antonucci also used emails to request additional capital investment from the managing partner, falsely claiming the funds were needed for legitimate business operations and concealing that the company actually needed money because of his own embezzlement.
The indictment charges Antonucci with 15 counts of wire fraud based on these emails and personal expenses paid by Antonucci (with Patriot’s money) for his American Express bill, gambling at the Palms Casino in Las Vegas and private jet travel. The indictment also charges Antonucci with five counts of engaging in a monetary transaction with the proceeds of specified unlawful activity based on his use of Patriot funds to pay for additional personal expenses, including repayment of an Internal Revenue Service lien and a down payment on his home. The indictment also alleges one count of making false a statement, based on alleged false statements Antonucci made when FBI agents interviewed him in February 2013.
A conviction for wire fraud carries as possible punishment a maximum penalty of 20 years in federal prison on each count and a $250,000 maximum fine or twice the pecuniary gain or loss. Engaging in monetary transactions with the proceeds of specified unlawful activity carries as possible punishment a maximum penalty of 10 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss. If convicted of making a false statement, Antonucci also faces up to five years in federal prison and another $250,000 maximum fine.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Former East Haven Police Officer Sentenced to 30 Months in Federal Prison for Civil Rights OffensesRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police Officer DAVID CARI, 36, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, this matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports. As a result of the investigation, CARI, Sergeant John Miller and Officers Dennis Spaulding and Jason Zullo were charged with various civil rights offenses.
According to the evidence presented during the trial of CARI and Dennis Spaulding, in February 2009 the defendant officers illegally searched a vehicle parked outside of a Latino-owned grocery store. Inside the store, CARI then arrested a Catholic priest, who is also an advocate for Latinos, on false pretenses. The officers then conducted an illegal search of the back room of the store in an effort to unlawfully seize the store’s video recording equipment. In the days following the arrest, CARI drafted various false versions of an arrest report to cover up the false arrest of the religious leader.
“David Cari was entrusted to protect the people of East Haven,” said U.S. Attorney Daly. “Instead, he violated that trust by arresting a priest when there was no basis to do so and attempting to cover up that illegal arrest with a false police report. Today’s sentence is appropriate as corrupt law enforcement cause great harm to the integrity of the legal system. It is always a sad day when a police officer is sentenced to prison as the vast majority of officers in East Haven and in this country serve honorably and bravely.”
“There is a basic trust the public has in those who are sworn to enforce the law – they are there to keep the public safe, not promote their own agenda,” said FBI Assistant Director-in-Charge Venizelos. “It is our hope that today's sentencing allows the community of East Haven to rebuild the trust they have with their police department.”
On October 21, 2013, the jury found CARI guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report to justify the false arrest. He has been detained since that date.
Spaulding was also found guilty of the same offenses, as well as use of unreasonable force by a law enforcement officer. He is scheduled to be sentenced on January 23.
On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation. On December 16, 2013, he was sentenced to 24 months of imprisonment.
On September 21, 2012, John Miller pleaded guilty to one count of violating an individual’s civil rights by using unreasonable force during the course of an arrest. He awaits sentencing.
This matter has been investigated by the Civil Rights Squad of the FBI’s New York Field Office, and is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Connecticut Resident Indicted for Attempting to Ship Sensitive Military Documents to IranRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Bridgeport returned an indictment today charging MOZAFFAR KHAZAEE, also known as “Arash Khazaie,” 59, formerly of Manchester, Conn., with two counts of interstate transportation of stolen property. The indictment stems from KHAZAEE’s alleged attempt to ship to Iran proprietary material relating to military jet engines and the U.S. Air Force’s F35 Joint Strike Fighter program that he had illegally retained from defense contractors where he had been employed.
As alleged in court documents, federal law enforcement agents began investigating KHAZAEE in November 2013 when officers with U.S. Customs and Border Protection Service (“CBP”), assisted by Homeland Security Investigations (“HSI”) special agents, inspected a shipment that KHAZAEE sent by truck from Connecticut to a freight forwarder located in Long Beach, Calif., which was intended for shipment from the U.S. to Iran. The documentation for KHAZAEE’s shipment indicated that it contained household goods. Upon inspecting the shipment, however, CBP officers and HSI personnel discovered that the content of the shipment primarily contained numerous boxes of documents consisting of sensitive technical manuals, specification sheets, and other proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines. Upon further investigation, law enforcement learned that KHAZAEE holds Iranian and U.S. citizenship and, as recently as August 2013, worked as an engineer for defense contractors, including firms that are the actual owners of the technical and proprietary documents and materials in KHAZAEE’s shipment.
KHAZAEE, who became a naturalized U.S. citizen in 1991 and holds a valid U.S. passport, recently moved from Connecticut to Indianapolis.
On January 9, 2014, KHAZAEE was arrested by HSI and FBI agents at Newark Liberty International Airport in New Jersey after flying from Indianapolis to Newark, before he was able to board a connecting flight to Frankfurt, Germany. KHAZAEE’s ticketed destination was Tehran, Iran.
KHAZAEE is detained pending his transport to Connecticut. His arraignment is not yet scheduled.
The indictment charges KHAZAEE with two counts of transporting, transmitting and transferring in interstate commerce goods obtained by theft, conversion, or fraud. Each charge carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Daly stated that there is an ongoing investigation in this matter and encouraged anyone with information that may be relevant to that investigation to call HSI at 203-773-2155, or the FBI at 203-503-5000.
This matter is being investigated by Homeland Security Investigations in New Haven and Los Angeles, the New Haven Division of the Federal Bureau of Investigation, the Defense Criminal Investigative Service in New Haven, the U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles and Boston, and the Department of Commerce’s Boston Office of Export Enforcement.
U.S. Attorney Daly also commended the efforts of the many other agencies and offices that have been involved in this investigation, including the U.S. Attorney’s Offices for the Central District of California, the Southern District of Indiana and the District of New Jersey, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.
This case is being prosecuted by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut and Trial Attorney Brian Fleming of the Justice Department’s Counterespionage Section (CES).
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Clayton County Police Officer Assigned to U.S. Marshal’s Service Fugitive Task Force Pleads Guilty to Drug TraffickingRead the Press Release
ATLANTA – Dwayne Penn, formerly a police officer with the Clayton County Police Department assigned to the U.S. Marshals Service Fugitive Task Force, has pleaded guilty to conspiring to distribute over five kilograms of cocaine.
“This Office is committed to protecting the public’s trust in law enforcement,” said United States Attorney Sally Quillian Yates. “Penn was a drug dealer with a badge. He used his official position to traffic drugs and now faces a significant sentence for his betrayal of trust.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea brings to an end one man’s law enforcement career while providing an opportunity for those many others working within the criminal justice system to re-examine their own oaths and re-dedicate themselves to those oaths. The FBI will continue to make public corruption matters, in particular those involving law enforcement officers, a priority investigative matter.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This case is a reminder that law enforcement officers are held to a higher standard and are not above the law. This officer is not representative of the honest and hard-working men and women in law enforcement who do not violate their oaths, but faithfully protect and serve the public daily.”
According to United States Attorney Yates, the charges, and other information presented in court: In August 2013, Penn, who was employed with the Clayton County Police Department at the time, conspired with Adrian Austin, an Atlanta-based drug dealer, to use Penn’s official position as a police officer to stage a fake traffic stop of a car that he and Austin believed would contain six kilograms of cocaine, conduct a fake arrest of the car’s occupant, seize the cocaine for themselves, and then sell the cocaine, sharing their ill-gotten gains. Fortunately, the person whom Penn and Austin sought to recruit for this corrupt endeavor was cooperating with federal law enforcement and agreed to record his/her meetings with Penn and Austin.
In the lead up to the fake arrest and seizure, Penn and Austin met face-to-face with the confidential informant on two separate occasions to plan their operation. Penn drove his police car to the planning meetings. While together, Penn, Austin, and the confidential informant discussed the confidential informant obtaining cocaine from his/her drug source of supply. Penn would then conduct a fake traffic stop and arrest of the confidential informant in front of the source, using Penn’s police vehicle and lights, and seize the cocaine, leading the source to mistakenly believe the drugs had been seized by law enforcement. They would divide up the seized cocaine among themselves according to the plan. As part of the charade, Penn agreed to handcuff the confidential informant, put the drugs in the trunk of his police car, and drive the confidential informant to a second location. During one of the meetings, Penn even drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day. Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.
As planned, on the morning of August 28, 2013, Penn and Austin arrived at the appointed Decatur parking lot. Penn drove his police car and parked it in view of where the drug deal was to occur. While waiting, Penn ran the tags of a number of vehicles in the area through law enforcement databases. Penn also called task force officers with the DeKalb County Police Department and DeKalb County Sheriff’s Office and asked if DeKalb County had any surveillance vehicles that fit the description of vehicles Penn saw in the parking lot that morning. Penn rebuffed offers of assistance from his fellow officers, claiming he was just doing surveillance.
Before the deal’s consummation, the confidential informant met with Austin in Austin’s car in the parking lot. Austin relayed information between the confidential informant and Penn over his cellphone. The confidential informant and Austin discussed the imminent deal, with the confidential informant’s describing where s/he would put the drugs after receiving them.
The confidential informant exited Austin’s car and shortly thereafter met with the supposed drug dealer (also a law enforcement source) in the parking lot in view of Penn. The confidential informant received a shopping bag containing six kilogram-size bricks of fake cocaine, walked back to his/her vehicle, and placed the bag inside, placing two kilogram bricks in the back seat and leaving the remaining four kilogram bricks in the shopping bag in the front seat.
After the confidential informant emerged from his/her vehicle, Penn sped over in his police car with the lights on and blocked the confidential informant from leaving. Penn jumped out of his car with his firearm drawn and pointed it at the confidential informant. Penn was wearing a bulletproof vest, which read “Police,” and a black baseball hat. Penn ordered the confidential informant to get on the ground and to keep his/her “hands behind your back,” which the confidential informant did. Penn holstered his firearm, picked up the confidential informant from the ground, and patted him/her down. Penn then ushered the confidential informant into Penn’s police car. The confidential informant told Penn that s/he had already taken his/her two and that there were four in the bag. Penn walked over to the confidential informant’s vehicle and removed the shopping bag with the four kilogram bricks from the front seat, leaving the confidential informant’s share (two kilograms) in the car. Penn placed the shopping bag in the trunk of his police car, told the confidential informant to “get out of here,” and drove away with the cocaine-like substance, leaving the confidential informant and the two kilogram bricks behind at the parking lot.
Penn and Austin were arrested shortly afterward in the vicinity of the Decatur parking lot. Each had a loaded firearm with a round in the chamber. The shopping bag with substituted cocaine was recovered from Penn’s vehicle.
On August 28, 2013, Penn was terminated from the Clayton County Police Department and the Marshals Service Task Force. His codefendant, Adrian Austin, pleaded guilty to the same charge on January 14, 2014.
Pursuant to the negotiated plea agreements into which Penn and Austin entered, they each have agreed to a binding ten-year term of imprisonment, to be followed by five years of supervised release.
Sentencing for Penn is scheduled for February 21, 2014, at 2:00 p.m., before United States District Judge Amy Totenberg. Sentencing for Austin is scheduled for April 10, 2014, at 2:00 p.m. also before United States District Judge Totenberg.
The case is being investigated by Special Agents of the Federal Bureau of Investigation and Drug Enforcement Administration.
Assistant United States Attorney Scott Ferber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Baptist Missionary Sentenced for Wire FraudRead the Press Release
RICHMOND, Va. – Brady Nurse, 38, of Bothell, Washington, was sentenced today to 24 months in prison, followed by 3 years of supervised release for his role in connection with the fraudulent reimbursement of expense invoices while he served as a Baptist missionary in Portugal.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Richmond Division, made the announcement after sentencing by U.S. District Judge James R. Spencer.
Nurse pleaded guilty on October 21, 2014, to wire fraud. According to court documents, Nurse admitted that from 2008 to 2012, while working in Portugal as a Baptist missionary for the International Mission Board (“IMB”), he fraudulently obtained $284,479.74 through 135 fraudulent reimbursement requests. The IMB is an entity of the Southern Baptist Convention, the nation's largest evangelical denomination, with more than 40,000 churches and nearly 16 million members. It is headquartered in Richmond, Virginia. The IMB is dedicated to evangelizing around the world with approximately 4,800 missionaries worldwide.
During the course of the fraud, Nurse served as the Logistics Coordinator (“LC”) in Portugal, responsible for ensuring the payment of certain expenses for himself, other missionaries, and the IMB overall while overseas. He was also responsible for the financial support activities for IMB field personnel assigned to Portugal. As a Logistics Coordinator, Nurse was paid on an as-needed basis, for field personnel housing, car maintenance, applicable taxes, and major purchases.
IMB LC’s located overseas conducted business from both IMB bank accounts and personal accounts. Nurse acknowledged that when an authorized expense was incurred, he would prepare a request for reimbursement, supported by appropriate documentation. He would then submit the reimbursement request by wire transfer/email from Portugal to the IMB offices in London, U.K., which were then routed to IMB offices in Richmond, Virginia. Once the reimbursement requests were approved by the IMB, Nurse was paid by electronic funds transfers to his overseas bank account through on line banking from Richmond. The internal auditing and control staff of the IMB initially detected, and then determined the extent of Nurse’s fraudulent scheme, subsequently reporting it to the FBI.
In pleading guilty, Nurse admitted using a variety of techniques to submit for, and fraudulently receive, funds from IMB. For instance, he increased amounts on valid documents/invoices submitted on expense reports to fraudulently increase his reimbursement; submitted fraudulent, manufactured, and/or duplicated documentation on expense reports for reimbursement; submitted inadequate documentation, such as quotes and estimates for services to be performed by vendors rather than actual paid invoices, but falsely represented them as services actually provided; altered documentation; and was reimbursed for non-reimbursable expenses such as a jewelry purchase disguised as vehicle painting.
On January 30, 2014, Nurse officially resigned from IMB.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney S. David Schiller prosecuted 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. 3:14-cr-138.
Tweet
Former Afro Dogs President Sentenced on Drug Conspiracy and Other ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dewey Taylor, a/k/a Road Rash, 42, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute cocaine and structuring financial transactions following a five week jury trial, was sentenced to 144 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Thomas S. Duszkiewicz and Eric M. Opanga, who handled the prosecution of the case, stated the Government’s evidence established that the defendants in this case used the Afro Dogs Motorcycle Clubhouse as a front for a cocaine trafficking operation. Dewey Taylor was the former president of the Afro Dogs Motorcycle Club. Between 2006 and March 2, 2011, Taylor supplied Afro Dogs National Vice-President John C. Smith, a/k/a Kazoo, with cocaine for distribution to members and non-members throughout the Buffalo area. The evidence presented by the Government at trial included five months of wiretap conversations recorded on John Smiths’ cellular phone. The Government also presented evidence of 14 undercover purchases of cocaine from Smith. John Smith was awaiting sentencing in June 2013 when he died.
In addition to being found guilty of drug conspiracy, Taylor was also convicted of seven counts of structuring financial transactions to evade currency reporting requirements. On seven separate occasions, Taylor deposited funds into personal and business accounts in the name of DT Liquors at the Erie Metro Federal Credit Union. The individual deposits totaled more than $10,000 which requires the filing of a Currency Transaction Report with the Internal Revenue Service. But the defendant split the transactions into smaller amounts in an attempt to evade the reporting requirements.
Co-defendant Dale Lockwood pleaded guilty to conspiracy to possess with intent to distribute cocaine in August 2013 and was sentencing to 60 months in prison. Co-defendants William Szymanski, Anthony Burley, and Van Miller were acquitted of the same charge.
The five defendants were arrested in March 2011 along with seven other defendants who were previously convicted of related charges.Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the New York State Police, under the direction of Major Wayne Olson, the Buffalo Police Department under the direction of Commissioner Daniel Derenda, the Amherst Police Department, under the direction of Chief John Askey, the Tonawanda Police Department under the direction of Chief Anthony Palombo, the Lockport Police Department under the direction of Chief Lawrence Eggert, and the Internal Revenue Service, under the direction of Toni M. Weirauch, Special Agent in Charge.
Forest Marijuana Cultivation Supplier Pleads GuiltyRead the Press Release
FRESNO, Calif. — Javier Rios Morales, 25, of Jalisco, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute 3,405 marijuana plants and 350 pounds of processed marijuana seized from a grow site in Inyo National Forest, announced United States Attorney Benjamin B. Wagner.According to court documents, U.S. Forest Service agents found a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest. They set up trail cameras and photographed Rios making supply drops at a drop point to the site. Rios also picked up processed marijuana from the site. One of the load vehicles was tracked to several stash houses in Riverside County. Ultimately, agents executed four search warrants at the grow site and three residences in Riverside County.
Agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, and 2,200 pounds of trash from the Hogback Creek grow site. In pleading guilty, Rios agreed to pay $6,572.14 to the U.S. Forest Service for removal and dumping fees associated with eradication of the site. Agents in Riverside County seized two pounds of methamphetamine, a methamphetamine laboratory, five firearms, $10,000 in cash, and two pounds of marijuana from a residence in Moreno Valley. Agents seized another 450 marijuana plants and marijuana cultivation at a stash house in Homeland. At another stash house in Romoland, they seized a firearm, marijuana shake and residue, and shipping labels consistent with the shipment of marijuana to Chicago.
Rios is scheduled for sentencing on April 14, 2014, by United States District Judge Lawrence J. O’Neill. He faces a sentence of five years to 40 years in prison and a $5 million fine. He is also subject to deportation to Mexico, upon completion of any prison term. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Plea Agreement
Florida Man Arrested, Charged in New Jersey with Sale of Deadly Toxin on Underground Online MarketplaceRead the Press Release
NEWARK, N.J. - A Florida man is expected in court today after federal agents arrested him on Jan. 18, 2014, in LaBelle, Fla., on New Jersey federal charges alleging he sold the potentially deadly toxin abrin through an underground, Internet-based marketplace, New Jersey U.S. Attorney Paul J. Fishman announced.
Jesse William Korff, 19, of LaBelle, was arrested as a result of an investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) and the FBI. The criminal complaint charges Korff with one count of possession and transfer of a toxin for use as a weapon and one count of smuggling goods from the United States. Korff, who had posted a listing for the sale of the toxin on a website known as “Black Market Reloaded” (BMR), was unaware the customer who responded was an undercover HSI agent.
The defendant is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Douglas N. Frazier in Fort Myers, Fla.,federal court. He will be brought to New Jersey to appear in Newark federal court on a date to be determined.
“The criminal complaint alleges Jesse Korff was willing to sell a potentially deadly toxin to a stranger over the Internet,” said U.S. Attorney Fishman. “He allegedly peddled the poison on a virtual black market of illegal and dangerous goods, hidden in the shadow of a secretive computer network favored by cybercriminals. Had this been an actual sale to a real customer, the consequences could have been tragic. Fortunately, an undercover law enforcement officer posing as a buyer was able to get a dangerous chemical weapon and its alleged seller off our streets.”“HSI has worked tirelessly with the FBI and other law enforcement partners to combat underground websites such as BMR,” said Andrew McLees, Special Agent in Charge of HSI Newark. “Anyone who can sell abrin, a potential agent for chemical terrorism, must be stopped. The arrest of Korff shows HSI’s commitment to protecting the public from individuals who show a callous disregard for their safety in the interest of making a buck.”
According to the criminal complaint: Beginning in April 2013, HSI special agents conducted an investigation of illicit sales activity on BMR. The website provides a platform for vendors and buyers to conduct anonymous online transactions involving the sale of a variety of illegal goods, including biological agents, toxins, firearms, ammunition, explosives, narcotics and counterfeit items. Unlike mainstream e-commerce websites, BMR is only accessible via the Tor network – a special computer network designed to enable users to conceal their identities and locations. Transactions on BMR are conducted using Bitcoin, a decentralized form of electronic currency that only exists online.
Korff maintained a seller’s profile on BMR, through which he negotiated the sale of two liquid doses of abrin to the undercover agent. During their online conversations, Korff told the buyer about his delivery methods – concealing vials in a carved-out and re-melted candle – and discussed how much abrin was needed to kill a person of a particular weight and how best to administer the toxin. Korff also assured the buyer that a victim’s death would appear to be a bad case of the flu.
Korff and the buyer agreed on a total purchase price of $2,500 for two doses of the poison. The undercover transferred a deposit – the equivalent of $1,500 in Bitcoin – from a bank account in New Jersey to Korff on Jan. 6, 2014. The pair agreed that the buyer would travel from Canada on Jan. 15, 2014, to retrieve the abrin from a prearranged location. Korff sent the agent pictures of a specific spot at a rest stop approximately 10 miles outside Fort Myers where he planned to leave the package.
On the arranged day, Korff dropped off a fast food bag containing two wax candles at the location. An undercover agent collected the bag and left behind an additional deposit toward the remaining payment. Law enforcement had Korff under surveillance throughout the transaction.
The candles were found to contain vials of liquid containing a detectable amount of abrin. Even small doses of abrin are potentially lethal to humans if ingested, inhaled or injected – causing death within 36 to 72 hours from the time of exposure.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge McLees in Newark, and FBI Special Agent in Charge Paul Wysopal, Tampa Division, with leading the ongoing investigation. He also thanked special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, and HSI in Ft. Myers, under the direction of Special Agent in Charge Susan McCormick, for their work. The U.S. Attorney also recognized the FBI’s Joint Terrorism Task Force, including and along with the U.S. Postal Inspection Service and the Glades County, Hendry County and Lee County Sheriff’s Offices for their assistance. Vital support was provided by the Justice Department’s National Security Division Counterterrorism Section in Washington and the U.S. Attorney’s Office for the Middle District of Florida.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.14-024
Korff, Jesse William Complaint
Five North Side Residents Sentenced on Drug and Firearm Related ChargesRead the Press Release
RICHMOND, Va. – Christopher Canty, 33, of Richmond, Virginia was sentenced today to 27 months in prison, followed by 3 years of supervised release for distribution of heroin from his family home on Montrose Avenue. Canty was the last of five men sentenced for drug trafficking and/or firearms offenses arising out of activities at and around the residence on Montrose Avenue.
Chawn Beale, 21, a half-brother to Canty, was sentenced on January 15, 2015 to 15 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 15, 2014 to distribution of crack cocaine; Corey Beale, 25, also a half-brother to Canty, was sentenced on January 15, 2015 to 90 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 16, 2014 to possession of a firearm by a convicted felon, arising out of the sale of a firearm from the Montrose Avenue residence; Quintrell Smith, 19, was sentenced on January 16, 2015 to 37 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 20, 2014 to distribution of crack cocaine; and Corey Mayo, 24, who was determined to be a career offender, was sentenced on January 16, 2015 to 151 months’ imprisonment followed by 5 years of supervised release after pleading guilty on October 20, 2014, to distribution of crack cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the sentencings by U.S. District Judge James R. Spencer.According to court documents and statements made at the sentencings, each of the defendants admitted to being involved in a conspiracy for several months in 2014 to sell either crack cocaine or heroin. Many of the sales occurred at the Montrose Avenue residence. Additionally, Corey Beale admitted selling two firearms during the course of this conspiracy. Mayo also admitted to possessing a firearm during the course of this conspiracy, which was recovered by law enforcement officers on May 30, 2014. According to a witness who testified today, that neighborhood used to be a peaceful area, but over the last several years crime has increased, including shootings. On May 28, 2014, there was a drive-by shooting at the Montrose Avenue residence. However, information presented at sentencing indicated that the shootings in the area have decreased since the May arrests of the defendants.
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 Nos. 3:14-cr-81 and 3:14-cr-83.
This case was investigated by ATF and the Richmond Police Department. Assistant U.S. Attorney Olivia L. Norman prosecuted the case on behalf of the United States.Tweet
Federal Jury Convicts Husband and Wife on Conspiracy and Health Care Fraud ChargesRead the Press Release
Defendants Owned/Operated a Medical Supply Business and Lab in Arlington
DALLAS — Following a one-week trial before U.S. District Judge Jorge A. Solis, a federal jury has convicted Pamela Adenuga, 39, and her husband, Kehinde (Kenny) Adenuga, 46, both of Arlington, Texas, on all counts of a superseding indictment charging them with one count of conspiracy to commit health care fraud and seven substantive health care fraud counts, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Judge Solis remanded the defendants into custody. Each defendant faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each count; restitution could also be ordered. A sentencing date was not set.
Since approximately 2007, the Adenugas were the co-owners and operators of His Grace Medical Supply & More (HGMS), located in Arlington. The business also consisted of a lab component that drew and tested blood for Medicare and Medicaid beneficiaries. The defendants’ business was primarily adult incontinence supplies (diapers, wipes, cream, etc.). In fact, 98% of their business was billing Medicaid for these supplies.
Evidence revealed that several Medicaid beneficiaries, who HGMS billed for incontinence supplies, did not need them or they were never delivered the supplies. HGMS falsified files with forged prescriptions from doctors and forged delivery receipts of beneficiaries. The investigation revealed that HGMS billed in excess of $2 million solely for adult incontinence supplies.
During trial, the government called doctors and Medicaid beneficiaries to testify that the documents found at HGMS during a search were false and fraudulent. The government also introduced evidence that HGMS billed these Medicaid beneficiaries 96 times for adult incontinence supplies – each and every billing was false and fraudulent.
Dozens of other doctor forgeries were found at HGMS. These forgeries were accompanied by affidavits prepared by the defendants to attest to the accuracy of patient files that were the subject of a Medicaid audit. Medicaid had identified some issues with HGMS billing in 2010, and asked HGMS to substantiate its claims with proper documentation. This documentation was forged and false. More than 100 of those affidavits were prepared on the same day and notarized by a parent of one of the defendants.
The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Attorneys Mindy Sauter and Michael C. Elliott are in charge of the prosecution.
Defendant Sentenced in Manhattan Federal Court to Five Months in Prison for Role in Gambling RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWIN TING was sentenced today in Manhattan federal court to five months in prison and ordered to forfeit $2 million for conducting an illegal gambling business. TING was charged in April 2013 along with 33 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included charges of racketeering, money laundering, extortion, and various gambling offenses. He was sentenced by U.S. District Judge Jesse M. Furman.
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
From 2010 through 2013, TING ran what was likely the largest and highest-stakes illegal poker game in New York City. At these games, the pots frequently reached tens, or even hundreds, of thousands of dollars or more. TING collected percentages of the pots, known as “rakes.” He made millions of dollars in profits from operating his illegal poker games. These poker games employed at least five or more people to assist with the operation of the games, payments of debts, and collection of debts.
In addition to the prison term and forfeiture, TING, 42, of New York, New York, was sentenced to two years of supervised release.
Twenty-five defendants in this case have pled guilty. The defendants who have pled to date have agreed to forfeit, in total, more than $68,000,000.00. The following defendants have pled guilty, and have been sentenced or await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013, and was sentenced on November 25, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013, and was sentenced on December 16, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013, and was sentenced on December 19, 2014;
- Justin Smith pled guilty to gambling charges on September 4, 2013, and was sentenced on January 6, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013;
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013;
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013;
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013;
- Eugene Trincher pled guilty to gambling charges on November 14, 2013;
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013;
- Illya Trincher pled guilty to gambling charges on November 15, 2013;
- Ronald Uy pled guilty to structuring financial transactions on November 25, 2013;
- Moshe Oratz pled guilty to gambling charges on December 3, 2013;
- Michael Sall pled guilty to interstate travel in aid of an unlawful activity (illegal gambling) and Jonathan Hirsch pled guilty to gambling charges on December 4, 2013;
- Noah Siegel pled guilty to gambling charges on December 5, 2013;
- Molly Bloom pled guilty to gambling charges on December 12, 2013; and
- Alexander Katchaloff pled guilty to gambling charges on January 16, 2014.
The charges against the remaining eight defendants are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorney Alexander Wilson of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Defendant Charged in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce the unsealing of an indictment charging Louis A. Francois, 44, of Margate, with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and three counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. The defendant was arraigned today before U.S. Magistrate Judge Dave Lee in West Palm Beach.
According to the indictment, Francois owned and operated a tax preparation business called A&I Multi Services (A&I) located in Oakland Park, Florida. Francois stole personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers, and addresses, for the purpose of filing fraudulent U.S. income tax returns claiming tax refunds in those individuals' names. Subsequently, Francois printed out the refund checks payable to the persons whose PII was used at A&I. The checks were in the amount of the fraudulently obtained tax refunds minus Francois' “tax preparation” fees and other fees. The “tax preparation” fees were deposited into Francois’ bank account. Francois went to a check cashing store located next door to A&I with the fraudulently obtained tax refund checks and fraudulent Florida driver's licenses matching the stolen identities on the checks and cashed them.
If convicted, Francois faces a maximum sentence of twenty years in prison for each wire fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for each aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
An Indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Davenport Man Sentenced to 12 Months and One Day in Prison for Wire Fraud and Money LaunderingRead the Press Release
DAVENPORT, IA – On January 17, 2014, Charles Arthur Ruhl, Jr., age 59, of Davenport, Iowa, was sentenced to twelve months and one day of imprisonment for wire fraud and money laundering, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also imposed a $144,000 fine and a two-year term of supervised release.
From 2008 to 2012 Ruhl embezzled over $1.3 million from four limited liability companies that he managed. Ruhl used the stolen money for business expenses related to NAI Ruhl and Ruhl Commercial Company, and for personal expenses such as property taxes on a vacation home, real estate investments, and his daughter’s college tuition. For years, Ruhl concealed his fraud by directing his employees to generate false financial statements and distribute them to the members of the defrauded LLC’s. Ruhl’s fraud was discovered on May 31, 2012, after he had so depleted the bank accounts of the Lincoln Healthcare Building, LLC, that there was not enough money to pay the taxes on the property owned by the company. Over the next eighteen months Ruhl repaid all of the money that he had taken.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Couple Sentenced to Federal Prison for Selling Guns, Drugs to Prohibited PersonRead the Press Release
POCATELLO —Marilee Taylor Love, 45, of Rexburg, Idaho, and Rodney Lewis Hall, 55, of Rigby, Idaho, were sentenced today for conspiring to distribute marijuana and methamphetamine, and unlawfully possessing and selling various firearms, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Love to 32 months in prison followed by five years of supervised release. Hall was sentenced to 21 months in prison followed by three years of supervised release. They pleaded guilty to the charges on September 30, 2013.
According to the plea agreements, Love and Hall sold methamphetamine to another person in Madison County, Idaho, three times between February 2011 and February 2012. During one of the sales, Love and Hall also sold the individual a .22 caliber pistol, a .22 caliber rifle, and a silencer not registered in the National Firearms Registration and Transfer Record. On another occasion, Love sold the same individual a .45 caliber pistol and a loaded magazine of ammunition. Love’s plea agreement states that she knew the individual who purchased the firearms was prohibited from possessing firearms due to a conviction for a crime punishable by more than one year of prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison County Sheriff’s Office.
“Drug trafficking and firearms are a dangerous combination,” said Olson. “Where guns are unlawfully transferred to persons prohibited by law from possessing them, federal law enforcement and its cooperating state and local partners will act swiftly and aggressively to ensure that those responsible are fully prosecuted.”
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Columbus Man Pleads Guilty to Sex Trafficking of JuvenileRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Valerio V. Alexander, 45, of Columbus, pleaded guilty in U.S. District Court today to one count of sex trafficking involving a juvenile.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), Ohio Attorney General Mike DeWine, Ohio State Highway Patrol Commander Paul Pride and Columbus Police Chief Kim Jacobs announced the plea entered today before U.S. District Judge Edmund A. Sargus Jr.
The plea agreement includes a sentence of 15 years in prison for Alexander. The court will conduct a pre-sentence investigation prior to determining whether or not to accept the plea agreement and the sentence. The court will determine the length of any term of supervised release and the amount of any fine or restitution. Judge Sargus will set a date for sentencing.
“The investigation began following a tip called in to the National Human Trafficking Hotline,” U.S. Attorney Stewart said. “Prostitution of a juvenile is human trafficking as defined by federal law. We will prosecute it aggressively.”
According to court documents, a task force officer working for HSI received information in March 2013 that a 16-year-old child had been the victim of sex trafficking. Further investigation found that Alexander had taken photographs of the victim in February 2013 and used the pictures to create advertisements for prostitution on a website.
Alexander instructed the victim to stay at a Columbus apartment he provided and offered her condoms and marijuana to “calm her nerves.” The victim followed Alexander’s instructions and engaged in sexual activity for money.
Agents arrested Alexander on March 8, 2013. He has been in custody since his arrest. A federal grand jury indicted Alexander and a woman involved in the human trafficking, Thomasina Howard in April 2013. Howard pleaded guilty on August 9, 2013 to one count of conspiracy to commit sex trafficking of children and is scheduled for sentencing on February 13. Alexander was scheduled to go on trial today.
“Human trafficking is a horrendous crime, especially when it affects children, and this case shows why it is so important to work together to fight this problem,” said Ohio Attorney General Mike DeWine. “The task force has done an exemplary job, and I am proud of the work that my office, our local partners, and federal officials are doing to further awareness and expand efforts to fight human trafficking.”
The National Human Trafficking Resource Center (NHTRC) is a national, toll-free hotline, available to answer calls and texts from anywhere in the country, 24 hours a day, 7 days a week, every day of the year. The NHTRC is a program of Polaris Project, a non-profit, non-governmental organization working exclusively on the issue of human trafficking. Call the hotline at 1-888-373-7888or text HELP or INFO to BeFree (233733).
U.S. Attorney Stewart commended the investigation by HSI, Columbus Police and Ohio Attorney General DeWine’s Ohio Organized Crime Investigations Commission.U.S. Attorney Stewart also commended Assistant U.S. Attorneys Heather Hill and Deborah Solove, who prosecuted the case.
Co-Conspirator of Arlington Doctor Pleads Guilty to Oxycodone Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – Donald Alvin Petties, 51, of Sterling, Virginia, pleaded guilty today to conspiracy to distribute and dispense a controlled substance and to possession with intent to distribute and dispense controlled substances.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
Petties faces a maximum penalty of 20 years in prison and a $1 million fine for the conspiracy offense. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.In a statement of facts filed with the plea agreement, Petties admitted that during the course of the conspiracy, which began in February 2013, an Arlington, Virginia doctor, Derron McRae Simon, wrote numerous oxycodone prescriptions for Petties that were not for a legitimate medical purpose and were beyond the bounds of medical practice. Simon also wrote fraudulent oxycodone prescriptions in the names of Petties’s mother and children, without their knowledge or authorization, and Petties then filled these fraudulent prescriptions. Petties and Simon would sell the oxycodone to other co-conspirators for further distribution. Petties conspired to distribute at least 6,540 oxycodone 30 mg pills, while Simon conspired to distribute at least 11,000 oxycodone 30 mg pills.
Simon pleaded guilty on December 18, 2014, to conspiracy to distribute and dispense, and to possession with intent to distribute and dispense controlled substances. Simon also pleaded guilty to distributing a controlled substance to a person under the age of 21. In addition to Petties, seven other co-conspirators of Simon have previously pleaded guilty as a result of the investigation.
On July 28, 2014, Simon signed a consent order with the Virginia Board of Medicine and voluntarily and permanently surrendered his license to practice medicine and perform surgery in Virginia. The consent order states Simon will not be eligible for reinstatement of his license at any future date.
This case was investigated by the FBI’s Washington Field Office. Special Assistant U.S. Attorneys Adam Ptashkin, Jennifer A. Clarke, and Jason M. Scheff are prosecuting the case.
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. 1:14-cr-300.
Tweet
Campaign Services Professional Arraigned for Role in Campaign Finance CrimesRead the Press Release
As part of conspiracy, Former SDPD Detective Ernesto Encinas Allegedly Sought to Fire the SD Chief of Police and Pick His Replacement
SAN DIEGO, CA - Ravneet Singh, the proprietor of Washington, D.C.-based ElectionMall, Inc., was arraigned today on charges that he conspired to finance political campaigns using money from an illegal foreign source. Singh was arrested by FBI Agents on Friday, January 17, 2014, pursuant to an arrest warrant. According to the complaint, filed by an FBI Special Agent, unsealed by U.S. Magistrate Judge William V. Gallo, Singh conspired with former San Diego Police detective Ernesto Encinas and others to funnel more than $500,000 of illegal foreign money into San Diego municipal and federal campaigns, primarily in 2012 and 2013. Singh’s company, ElectionMall, Inc., was also charged as a defendant.
According to the complaint, Singh, who styled himself the “campaign guru,” was the President, Chief Executive Officer and founder of ElectionMall, Inc., a company that provided social media services and other campaign and election products to political candidates throughout the world. Encinas was the owner of a private security and consulting business in San Diego who oversaw the protection detail of a person identified in the complaint only as “the Foreign National.” Between approximately 2011 and 2013, Singh and Encinas helped the Foreign National donate hundreds of thousands of dollars to a series of candidates for elective office—including during the 2012 San Diego mayoral election, a 2012 Congressional campaign and the 2013 San Diego special mayoral election (up to, but not after, December 2013).
Despite the Foreign National’s willingness to contribute funds, he could not legally donate to any of these campaigns. Under federal law, “foreign nationals” are prohibited from making any contributions or expenditures in connection with any American electoral campaign—whether at the federal, state or local level. Knowing this, Singh and Encinas allegedly used a series of increasingly complex techniques to hide the fact that the Foreign National was the true source of these illicit campaign funds.
According to the complaint, Encinas—among other devices—helped mask the Foreign National’s contributions through the use of shell companies.
Similarly, Singh used his expertise to facilitate the donation of social media services to political candidates that the Foreign National favored. The complaint alleges that these contributions—sometimes classified as “in-kind contributions”—were not reported in any campaign filings and totaled nearly $300,000.
According to the complaint, the Foreign National’s illegal contributions included:
A $100,000 contribution to a SuperPAC
$100,000 in unreported compensation for campaign services
A $30,000 contribution to a political party committee
Another $190,000 in unreported compensation for campaign services
A $150,000 contribution to another SuperPAC
A $30,000 contribution to another political party committee
The promise of a “mill” in additional contributionsAccording to the complaint, Encinas wanted the next mayor to fire the Chief of Police and replace him with a person of Encinas’s choosing in exchange for the Foreign National’s financial help.
Complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Case Number: 14MJ0201Ravneet Singh
Age: 41
Washington, D.C.ElectionMall, Inc.
Ernesto Encinas
SUMMARY OF CHARGES AND MAXIMUM PENALTIES
Age: 57
San Diego, CACount 1: Conspiracy to Commit Offenses against the United States – 18 U.S.C. § 371. Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
INVESTIGATING AGENCIESFederal Bureau of Investigation
Internal Revenue Service Criminal Investigation
San Diego Police DepartmentBurlington Man Sentenced on Federal Cocaine ConspiracyRead the Press Release
DAVENPORT, IA – On January 21, 2014, Shane Francis Culbertson, age 29, of Burlington, Iowa, was sentenced by United States District Judge John A. Jarvey to 30 months of imprisonment for conspiracy to distribute cocaine, announced United States Attorney Nicholas A. Klinefeldt. Culbertson was also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately March 2012 and continuing until about April 24, 2013, Culbertson conspired with other persons to distribute cocaine in the Burlington, Iowa area. Specifically, during the above-mentioned time period Culbertson personally sold cocaine in quantities ranging from one to nine ounces to undercover law enforcement. Over the course of the conspiracy Culbertson was responsible for over 500 grams of cocaine. Culbertson’s three co-defendants, Zachary Robert Shullaw, Corey Damon Keys, and Akeem Levelle Eison, have each plead guilty to conspiracy to distribute cocaine and are awaiting sentencing.
This case was investigated by the Iowa Department of Narcotics Enforcement; the United States Drug Enforcement Administration; the Burlington, Iowa, Police Department; and the Southeast Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Bakersfield Woman Sentenced to 2.5 Years in Prison for Counterfeiting U.S. CurrencyRead the Press Release
FRESNO, Calif. —Shannon Nicole Johannsen, 35, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O’Neill to two and a half years in prison for counterfeiting U.S. currency and possessing images of currency for counterfeiting purposes, United States Attorney Benjamin B. Wagner announced.According to court documents, from October 2012 to March 2013, Johannsen counterfeited Federal Reserve Notes in $100 and other denominations. She possessed computers, printers, paints, powders, cleaning agents, and numerous digital images of U.S. currency. On several occasions, Johannsen passed the counterfeit currency at retail stores and at a casino in Kern County.
This case was the product of an investigation by the United States Secret Service, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney prosecuted.
Attempting to Smuggle More Than $2 Million Lands Illinois Man in PrisonRead the Press Release
LAREDO, Texas – Octavio Orizaba, 38, a legal permanent resident from Illinois, has been ordered to prison for attempting to smuggle more than $2 million to Mexico, announced United States Attorney Kenneth Magidson. Orizaba entered a guilty plea Sept. 6, 2013.
Today, U.S. District Judge Diana Saldana handed Orizaba a sentence of 37 months in federal prison and ordered the forfeiture of $2,147,985. In handing down the sentence, Judge Saldana noted the sentence takes into account the need to protect the public, noting “where there is money of this magnitude, there are people willing to protect it…which means danger.” Orizaba will also be required to serve a term of three years of supervised release following completion of the prison term.
On June 30, 2013, Orizaba attempted to exit the United States from Laredo with his wife and two children. At that time, he provided a negative declaration as to whether he was transporting weapons, ammunition or currency over the sum of $10,000 into Mexico. However, further inspection resulted in the discovery of 144 plastic-wrapped, vacuum-sealed bundles, which were concealed in the sofa and futon he was hauling in the bed of his pick-up truck. Specifically, 47 bundles were discovered in the sofa, while 97 were found in the futon. The hidden currency totaled $2,147,985.
At the time of the guilty plea, Orizaba acknowledged he concealed the currency and failed to report it to authorities. He further admitted he was hired by someone in the Illinois area to take the money to Guanajuato, Mexico, and expected to be paid for doing so.
Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U.S. However, if the quantity is more than $10,000, they are required to report it to Customs and Border Protection (CBP) officer. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, traveler’s checks in any form, money orders and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.
Orizaba will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by CBP and Homeland Security Investigations and is being prosecutes by Assistant United States Attorney Suntrease Williams.
Alabama Medical Clerk and Another Indicted in Stolen Identity Tax Refund Fraud SchemesRead the Press Release
Montgomery, Alabama - Sasha Webb and Charlie Jackson have each been indicted for stolen identity refund fraud crimes, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. Webb was arrested on December 20, 2013, and Jackson’s arrest took place on January 15, 2014.
Webb was charged with conspiracy to file false claims, mail fraud and aggravated identity theft. According to the indictment, Webb worked as a medical records clerk at an Alabama Department of Corrections facility in Elmore County, Ala. Webb had access to inmate identification data and sold the information to Jacqueline Slaton and Harvey James, who then used the inmates’ information to file hundreds of false tax returns that claimed over one million dollars in false refunds. Slaton and James knowingly paid Webb for stolen identities.
Charlie Jackson, a resident of Montgomery, Ala., was charged with wire fraud and aggravated identity theft. According to the indictment, between October 2010 and April 2013, Jackson obtained stolen identities and used those identities to file false tax returns. Jackson directed the tax refunds to prepaid debit cards in the names of other individuals.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jackson and Webb each face a statutory maximum potential sentence of 20 years in prison for each wire and mail fraud count and a statutory mandatory two-year sentence for the aggravated identity theft counts. Webb also faces a statutory maximum potential sentence of five years in prison for the conspiracy count. Both defendants are also subject to fines, forfeiture and mandatory restitution if convicted.
The cases were investigated by special agents of the Internal Revenue Service - Criminal Investigation, U.S. Postal Inspectors and the Elmore County Sheriff’s Office. Trial Attorneys Jason Poole, Charles Edgar Jr. and Michael Boteler of the Tax Division are prosecuting the cases with the assistance of Assistant U.S. Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
20 January 2014
Estill Man Sentenced to Prison for Identity Theft Tax FraudRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Angel Masdeu, age 52, of Estill, SC was sentencedin federal court in Charleston, South Carolina, for aggravated identify theft, a violation of Title 18, United States Code, Section 1028A. United States District Judge Richard M. Gergel of Charleston sentenced Masdeu to 24 months imprisonment and one year of supervised release.
Evidence presented in this case established that Masdeu stole the identifying information of individuals, and using this stolen identifying information, he filed fraudulent tax returns that claimed false tax refunds. After a thorough investigation, the IRS determined that Masdeu’s identify theft caused more than $260,000 in loss to the United States Treasury due to fraudulent tax refunds.
“Investigating refund fraud and identity theft is a top priority of IRS Criminal Investigation,” said IRS-CI Special Agent in Charge Thomas J. Holloman III. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those considering similar conduct. Law enforcement and the US Attorney’s Office will vigorously pursue these crimes and will hold those accountable who would defraud the government.”
The case was investigated by agents of the IRS-Criminal Investigative Division. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.# # #
18 January 2014
St. Louis Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO - ANTHONY LAMONT WINTERS, of St. Louis, was sentenced to two years imprisonment for aggravated identity theft. Winters appeared before Judge Stephen N. Limbaugh, Jr. in St. Louis. Winters admitted to stealing credit card numbers from patrons of a Maplewood restaurant at which he was employed in January 2013. Winters charged more than $12,000 to the stolen credit cards. Winters had fled to New York City by the time he was apprehended and awaits trial on other stealing and identity theft related charges in New York City; Pittsburgh, Pennsylvania; Arlington, Virginia; Chesapeake, Virginia; and Anne Arundel County, Maryland. In addition to the term of imprisonment, Winters will be ordered to repay the stolen funds.
This case was investigated by the Maplewood Police Department with the assistance of Amtrak Police Department and the United States Marshals Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Jury Finds Shreveport Men Guilty of Robbing Businesses in Louisiana and Texas at GunpointRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Myles W. Robinson, 20, and Halston M. Smith, 22, both of Shreveport, guilty of taking part in a string of robberies in Louisiana and Texas. United States District Judge Elizabeth E. Foote presided over the trial.
The trial started Monday and ended today with the jury returning a guilty verdict after deliberating for three and a half hours. Robinson was found guilty of all 27 counts of the indictment, and Smith was found guilty of 13 counts. Smith was found not guilty of interference with commerce by robbery, which is Count 10 of the indictment, and he was found not guilty of use of a firearm during a crime of violence, which is Count 11 of the indictment.
According to testimony and evidence presented at trial, the armed robberies took place between June 1, 2012 and November 14, 2012 at 15 businesses with the men stealing more than $17,900. Robinson took part in all of the robberies but perpetrated five of the robberies alone. In some cases a shotgun was used, in other cases a handgun, and sometimes both were used to rob the businesses. The defendants robbed businesses in Shreveport, La., Bossier City, La., Stonewall, La., Oil City, La., and Atlanta, Texas. In addition to Robinson and Smith, two other defendants, James D. Tyson, 22, and Tremario D. Washington, 23, took part in the robberies.
“These men threatened and frightened the citizens of the community out of greed,” stated Finley. “Hopefully, the citizens will feel safer now that they have been brought to justice. This verdict is the result of the dedicated prosecutors and various agencies who investigated this case, and they are to be commended for all of their hard work.”
Robinson faces a 312-year prison term and Smith a 134-year prison term. For the count charging conspiracy to interfere with commerce by robbery, they face up to 20 years in prison, a $250,000 fine, and five years of supervised release, and they also face 20 years in prison, a $250,000 fine, and five years of supervised release for each robbery count. For using firearms during a crime of violence, the first count requires seven years in prison, a $250,000 fine, and five years of supervised release. After that, each firearms count requires 25 years in prison, a $250,000 fine, and five years of supervised release. Sentencing for Robinson and Smith is set for June 4, 2014.
Washington pleaded guilty on June 6, 2013, and Tyson pleaded guilty on July 1, 2013 to one count of conspiracy and one count of using firearms during a crime of violence. Washington and Tyson are scheduled to be sentenced on February 5, 2014.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Caddo Parish District Attorney’s Office, DeSoto Parish District Attorney’s Office, Bossier Parish District Attorney’s Office, Caddo Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Shreveport Police Department, Bossier City Police Department, and the Atlanta, Texas Police Department took part in the investigation. Assistant U.S. Attorneys James G. Cowles and Seth D. Reeg are prosecuting the case.
17 January 2014
Woodbridge Man Sentenced to 51 Months in Prison for Fraudulent Loan and Credit SchemesRead the Press Release
Defendant and associates used forged documents to obtain multiple bank loans and credit cards
ALEXANDRIA, Va. – Atef Mekki Haj Hassen, 38, of Woodbridge, Va., was sentenced today to 51 months in prison, followed by three years of supervised release, for wire fraud in connection with multiple fraudulent schemes to obtain bank financing, mortgage loans and credit cards. Hassen will also be required to pay restitution to the victims in the amount of $683,749.10.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Anthony J. Trenga.
“Hassen engaged in a variety of frauds that victimized banks, credit card companies and other lenders,” said Acting U.S. Attorney Boente. “The kinds of loan fraud in which Hassen so profligately engaged were a microcosm of the activity that led to the collapse of credit nationwide in the fall of 2008 and to economic distress for so many people since that time.”
“Mr. Hassen provided forged and fake documents to multiple financial institutions to gain lines of credit. Believing that the documents submitted were authentic, these institutions invested in their community and in Mr. Hassen’s small business, but ultimately lost hundreds of thousands of dollars,” said Assistant Director in Charge Parlave. “We urge anyone with information about fraud or corruption to come forward and contact the FBI.”
Hassen pleaded guilty to wire fraud on Oct. 7, 2013.
According to court documents, Hassen and his brother-in-law, Atef Ben Amor Amri, operated the New York Pizza Factory, with two locations in Annandale and Fairfax, Va. In October 2005 and May 2007, Hassen and Amri obtained a total of $240,000 in loans from BB&T Bank to remodel their first restaurant, and to open at their second location. Hassen and Amri defaulted on both loans, and they then evaded foreclosure by creating a sham transfer of the business to another person. As a result of this scheme, BB&T Bank lost over $186,000.
Court documents further show that, in June 2008, Hassen obtained a loan from Acacia Federal Savings Bank by inflating his income and assets. In support of his loan application, Hassen forged documents such as W-2 earnings statements, payroll statements and bank account statements.
In addition to these fraudulent loans, Hassen forged similar documents for others to use in obtaining mortgage loans and credit on their own behalf. Using forged documents or templates created by Hassen, his associates purchased properties in Woodbridge, Va. and obtained bank and auto loans based on fraudulent pretenses. Each of those associates— Atef Amri, Henda Bkhairia, Haider Hagui, Khalil Bouzhghaia and Monica Rychel—has pleaded guilty in federal court and will be sentenced later this month.
Court documents further reflect that, from 2005 to 2008, Hassen obtained numerous credit cards by falsely inflating his income. As a result of Hassen’s fraud, four credit card providers—Bank of America, American Express, Discover and Chase—suffered over $169,000 in losses through 12 separate credit card accounts obtained by Hassen.
In addition, Hassen provided forged documents to several people who used those documents to purchase expensive vehicles, walk away from the loans and then ship the vehicles out of the country. Hassen also used multiple aliases and identities, including while he arranged a staged auto accident in Washington, D.C. to obtain insurance proceeds for an associate.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Gordon D. Kromberg prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Woman Admits to Smuggling Drugs in Wedge HeelsRead the Press Release
PHILADELPHIA – Iveliza Perez, 25, of Camden, NJ, pleaded guilty today to attempting to smuggle approximately two kilograms of cocaine into the United States from Jamaica using wedge heels. Perez was charged with conspiracy to possess with intent to distribute 500 or more grams of cocaine. A sentencing hearing is scheduled for May 23, 2014. Perez faces a mandatory minimum sentence of five years in prison with a maximum possible sentence of 40 years.
In early to mid-May 2013, Perez was approached by two individuals about participating in an operation to smuggle cocaine from Jamaica into the United States. The two individuals offered to pay her $500 before traveling to Jamaica and stated that they would pay her another $3,000 to $4,000 upon returning with the drugs which were to be hidden in shoes. Perez met with other co-conspirators on several occasions before the trip. The co-conspirators paid for her flight and took care of all of the arrangements for her to stay at a villa in Montego Bay, Jamaica. While Perez was at the villa, one of her co-conspirators arranged to have her bags packed with the cocaine, hidden in three pairs of wedge heels. The defendant and the co-conspirator returned from Jamaica together and were supposed to be picked up from the airport by the other co-conspirator. Upon her return to the U.S., the defendant was caught at the airport with 1.992 kilograms of cocaine concealed in her luggage.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and U.S. Customs and Border Protection with assistance from the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525