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Friday 15 November 2013
Palatka Man Found Guilty of Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced that a federal jury in Jacksonville today has found Travis Rocky Dixon (35, Palatka) guilty of receiving and possessing videos of child pornography using the Internet. Dixon faces a minimum of 5 years, up to 20 years in prison on each of the two receipt charges and a maximum of 10 years in prison on the possession charge. After the return of the jury’s verdict, Dixon was remanded to the custody of the United States Marshals Service. A sentencing hearing has been scheduled for February 24, 2014.
Travis was indicted on March 28, 2012.
According to testimony and evidence introduced during the trial, during 2011, two different law enforcement officers downloaded videos depicting child pornography over the Internet from a host computer using Internet Protocol (IP) addresses that resolved back to Dixon’s residence located at 2011 Locust Avenue in Palatka. On January 18, 2012, a federal search warrant was executed at this residence. FBI Forensic examiners entered the residence and discovered that Dixon’s computer was, at that time, actively downloading video files with titles indicative of child pornography. During an interview, Dixon told agents, among other things, that he was the primary user of the computer, that he used a file sharing program to download video files of young girls, and that he had been looking at child pornography for about one year. Dixon also stated that on the morning of January 18, 2012, he got on the file sharing program and “just started looking around.” He stated that one thing led to another and he started downloading.
A subsequent forensic analysis of Dixon’s computer revealed that it contained at least 64 videos depicting children engaged in sexually explicit conduct and that at least two videos of child pornography were downloaded on the morning of January 18, 2012.
This case was investigated by the Federal Bureau of Investigation in Daytona Beach, Miami and Jacksonville, the Clewiston (Florida) Police Department, and the Putnam County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Onebanc Borrower Indicted for $1.5 Million Bank FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; Howard S. Marshall, Acting Special Agent in Charge of the Federal Bureau of Investigation, and Christy Romero, Special Inspector General for TARP (SIGTARP) announced that an Indictment charging Alberto Solaroli, age 59, of Jacksonville, Florida, with one count of bank fraud was unsealed November 14, 2013. The indictment also seeks $1.5 million in forfeiture. A warrant has been issued for his arrest.
“As the financial institutions recover from the economic downturn, our investigative partners on the Financial Fraud Task Force are closely scrutinizing irregularities in loan transactions to determine if deceit is involved,” stated Thyer. If it is, those who circumvent a lender’s loan requirements through fraud will have to face justice and a substantial prison sentence.”
“Bank fraud burdens lenders with bad loans and weakens our economy. Today's indictment is strong reminder of the seriousness of these crimes," said Christopher A. Henry, Special Agent in Charge of the IRS Criminal Investigation. "Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
“The charge against Mr. Solaroli for defrauding OneBanc is the result of a strong collaborative effort among partners,” stated Acting FBI Special Agent in Charge Howard Marshall. “We will continue to work together with the goal of bringing Mr. Solaroli to Arkansas to answer these allegations.”
Solaroli, a Canadian citizen purporting to be the owner of patents for technology related to a more efficient combustion engine, was living and working in Jacksonville, Florida when he borrowed $1.5 million, via a personal line of credit, from OneBanc in April 2007. He was approved for the loan based on financial statement he signed in which he claimed assets of $170,900,000 with a net worth of more than $169 million. According to the Indictment, Solaroli falsified the nature and scope of his assets, the value of his assets, and his overall personal net worth. As a result of his sworn financial statement, Solaroli received a one year line of credit which he took within the first month of the loan approval, with over $900,000 being paid to Porche Motorsport, N.A. Solaroli never made a single payment on the loan causing OneBanc to sue Solaroli. In 2008, OneBanc received a civil judgment in Florida for $1.5 million dollars which Solarioli has not paid.
The maximum sentence for bank fraud is not more than 30 years imprisonment, not more than a $1,000,000 fine and/or not more than five years of supervised release.
The case was investigated by special agents from the IRS-Criminal Investigations, Federal Bureau of Investigation, SIGTARP, Federal Reserve, and the FDIC. The case is prosecuted by First Assistant United States Attorney Pat Harris and Assistant United States Attorney Angela Jegley.
According to TARP records, One Financial Corporation, the parent company of One Bank and Trust of Little Rock, Arkansas, received $17.3 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP) in June 2009. To date, these funds are still outstanding.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Northern California Couple Indicted for Filing False Claims for Refunds and for Filing Liens Against the IRS CommissionerRead the Press Release
Robert Eldon Robertson and his wife Esther Lynne Robertson of Manteca, Calif., were indicted on charges of filing two false claims for federal tax refunds, filing liens against the former Internal Revenue Service (IRS) commissioner and impeding the administration of federal tax laws, the Justice Department and IRS announced today. The indictment was unsealed yesterday in the Eastern District of California.
According to the indictment, the Robertsons filed two false federal income tax returns claiming large refunds based on fictitious Form 1099-OID withholdings: one for tax year 2005 claiming a $90,538 refund and one for 2007 claiming a $313,248 refund. The indictment also charges each of the Robertsons with filing a false lien against the property of the IRS commissioner for “a sum certain amount determined as triple the stated amount of any purported determination of tax liability.” According to the indictment, the Robertsons also sent a bogus “international promissory note” with a request that the IRS apply the purported $800,000 face value of the note towards their outstanding tax liabilities. The IRS also received a letter containing credit card bills belonging to the Robertsons asking the IRS to pay nearly $20,000 worth of their credit card debt.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the Robertsons face a maximum of five years in prison for each false claim count, three years for the obstruction count and 10 years for the count of filing false liens.
The case was investigated by both IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration. It is being prosecuted by Trial Attorney Ignacio Perez de la Cruz of the department’s Tax Division and Assistant U.S. Attorney Matthew Segal in the Eastern District of California.
Newnan Dentist Sentenced to Prison for Unlawfully Distributing Controlled SubstancesRead the Press Release
ATLANTA - Hugh Maddux, the former owner of a dental practice in Newnan, Ga., has been sentenced for drug distribution.
"Opiate abuse has risen to epidemic levels both in Georgia and nationally with deadly consequences," said United States Attorney Sally Quillian Yates. “In a small dental practice where the defendant had known many of his patients for years, things quickly spiraled out of control as the number of prescriptions and addicted patients grew. This dentist, whether he was motivated by greed or was simply blind to the consequences, completely abandoned his responsibility as a health care provider, dispensing controlled substances to his patients without any regard for medical necessity.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented on the sentencing, “It is disturbing when healthcare providers break the law by unlawfully distributing pain medications. This individual distributed highly addicting opiates with total ill-will and disregard for the safety of those receiving them. The success of this investigation is a direct result of the hard work put forth by dedicated DEA Atlanta Field Division Diversion investigators and the United States Attorney’s Office.”
According to United States Attorney Yates, the charges and other information presented in court: Maddux owned a dental practice in Newnan, Ga., until he sold it. Shortly after his practice was sold, it came to light that Maddux had written hundreds of prescriptions for controlled substances to his patients, many of whom were addicted to the drugs he prescribed. In October 2011, DEA Diversion Investigators received a complaint from a source who wished to remain anonymous that Maddux was writing illegal prescriptions from his dental office. In response to the complaint, DEA Investigators examined prescriptions from three pharmacies for controlled substances issued by Maddux to several patients named in the original complaint. Investigators discovered an unusually large number of narcotic prescriptions had been issued to these patients.
Shortly thereafter, Investigators interviewed one of Maddux’s patients who had been named in the original complaint as an abuser of opiate pain pills. This patient was a long-time dental patient at Maddux’s dental clinic. The patient explained that she received numerous controlled substance prescriptions from Maddux’s dental office, even though she had not been examined by him for at least eight months. She admitted to being addicted to opiate pain pills.
In January 2012, Investigators interviewed the owner of a nearby pharmacy. The owner told investigators that in early 2011 he became suspicious of the numerous prescriptions called in by Maddux’s clinic. The pharmacy owner told Maddux that his pharmacy would no longer accept prescriptions from his dental office unless Maddux spoke with pharmacy staff and approved it. Investigators soon discovered that Maddux had issued hundreds of prescriptions for Schedule II narcotics between October 2009 and October 2011.
From March 2012 to October 2012, Investigators interviewed several former patients, most of whom admitted to seeking Schedule II pain pills from Maddux for the purpose of supporting their drug addictions. Most of these patients routinely received prescriptions from Maddux without being examined, and many stated that prescriptions were left for them outside of the clinic for them to pick up after regular business hours. One patient even admitted to obtaining the prescriptions for the purpose of selling pills on the street.
On March 21, 2013, Investigators interviewed Maddux. He confirmed his signature on numerous prescriptions that could not be accounted for in the patient's chart. Maddux also confirmed that he left prescriptions for controlled substances taped to the back door of his practice for his patients to pick up after business hours – a practice he conceded was ripe for abuse. He acknowledged that many of the narcotic prescriptions he wrote were not medically necessary or supported by sound medical judgment.
Maddux, 62, of Newnan, Ga., has been sentenced by United States District Judge William S. Duffey to one year, one month in prison to be followed by three years of supervised release, an $8,000 fine, and 250 hours of community service. Maddux was convicted on these charges on August 14, 2013, after he pleaded guilty.
This case is being investigated by the Drug Enforcement Administration.
Assistant United States Attorney Kurt R. Erskine prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
New Jersey Man Pleads Guilty in Manhattan Federal Court in Connection with Waste-Hauling Industry Extortion SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PETER LECONTE pled guilty in Manhattan federal court to participating in a conspiracy to commit extortion in connection with his role in a scheme to exert control over the commercial waste-hauling industry in the greater New York City metropolitan area and in parts of New Jersey. LECONTE, who was among 32 defendants charged in the case in January 2013, pled guilty today before U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “Today, Peter Leconte became the fourteenth defendant to be convicted in this scheme to control parts of the waste disposal industry that reached across the New York City metropolitan area and into New Jersey. We remain committed to ensuring that all those connected to this conspiracy are held to account.”
According to the Indictment against LECONTE, other documents filed in Manhattan federal court, and statements made at related court proceedings:
LECONTE who is a made member of the Genovese Crime Family, participated in a scheme, along with other members and associates of three different Organized Crime Families of La Cosa Nostra (“LCN”) – the Genovese, Gambino, and Luchese Crime Families – to control various waste disposal businesses in the New York City metropolitan area and multiple counties in New Jersey. Members of the scheme engaged in various crimes including extortion, loansharking, mail and wire fraud, and stolen property offenses. As part of his involvement in the scheme, LECONTE demanded that a waste disposal company owner turn over a percentage of his company to LECONTE and his associates by threatening that the waste hauling company would be economically harmed if the owner did not comply with LECONTE’s demands.
LECONTE, 43, of Lodi, New Jersey, pled guilty to one count of participating in a conspiracy to commit extortion, and he faces a maximum sentence of 20 years in prison. LECONTE is scheduled to be sentenced by Judge Castel on April 4, 2014, at 11:00 a.m.
Eight other defendants have also recently pled guilty before Judge Castel in connection with this case:
- JONATHAN GREENE, 48, of Teaneck, New Jersey, pled guilty on September 19, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on March 7, 2014, at 2:00 p.m.
- JOSEPH BERTOLINO, 47, of Wantage, New Jersey, pled guilty on September 26, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on March 28, 2014, at 2:30 p.m.
- ROBERT ZARZUELA, 39, of North Bergen, New Jersey, pled guilty on September 26, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on March 28, 2014, at 11:30 a.m.
- WILLIAM RIVERA, 48, of Queens Village, New York, pled guilty on October 18, 2013, to misprision of extortion. He faces a maximum sentence of three years in prison and is scheduled to be sentenced on March 14, 2014, at 11:00 a.m.
- BRIAN PETROLL, 47, of Columbia, New Jersey, pled guilty on October 21, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on March 20, 2014, at 11:00 a.m.
- ROBERT FRANCO, 51, of Hartsdale, New York, pled guilty on October 21, 2013, to one count of participating in a conspiracy to transport stolen waste hauling containers across state lines and one count of participating in a conspiracy to transport stolen cardboard across state lines. He faces a maximum sentence of five years in prison on each count and is scheduled to be sentenced on March 21, 2014, at 12:00 p.m.
- STEPHEN MOSCATELLO, 53, of Piermont, New York, pled guilty on November 4, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on April 11, 2014, at 2:00 p.m.
- HOWARD ROSS, 54, of Brooklyn, New York, pled guilty on November 5, 2013, to participation in a conspiracy to commit extortion. He faces a maximum sentence of 20 years in prison and is scheduled to be sentenced on March 26, 2014, at 11:00 a.m.
The charges against the remaining defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Westchester County Police Department.
The prosecution of this case is being handled by the Office’s Organized Crime Unit.
Assistant United States Attorneys Brian R. Blais, Natalie Lamarque, and Patrick Egan are in charge of the prosecution. Assistant United States Attorney Micah Smith of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
U.S. v. Carmine Franco et al. Indictment
Middlesex County, N.J., Man Sentenced to Four Years in Prison in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, N.J., man was sentenced today to 48 months in prison for his role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in losses to the United States of more than $12 million.
Manuel Rodriguez, 50, of New Brunswick, N.J., previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to defraud the United States, theft of government property and aggravated identity theft. Judge Cecchi imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (“SIRF”) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Individual Income Tax Return Form 1040s (“Form 1040”) using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S.Treasury Department to issue the refunds through checks (“Tax Refund Treasury Checks”) generated by the fraudulent 1049 forms to locations they control or can access, in various ways.
- With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Rodriguez and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that led to the issuance of tax refund checks.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
In addition to the prison term, Judge Cecchi sentenced Rodriguez to three years of supervised release and ordered to pay restitution of $5.2 million.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Marie L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinavasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.13-438
Defense Counsel: Mark A. Berman, River Edge, N.J.
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
Maryland Man Sentenced to Five Years in Prison for Obstruction of Justice-Defendant Threatened Witness in Confrontation on Street; Witness Was Murdered Weeks Later-Read the Press Release
WASHINGTON – Antoine Mayhand, 28, of Capitol Heights, Md., was sentenced today to five years in prison for obstructing justice by confronting a witness in a criminal case that was pending at the time against his brother, U.S. Attorney Ronald C. Machen Jr. announced.
Mayhand was found guilty in September 2013 following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Stuart G. Nash. Upon completion of his prison term, Mayhand will be placed on three years of supervised release.
At trial, the government’s evidence established that on Dec. 11, 2012, Christopher Ballard reported to the police that two men had tried to steal his car and then, when he resisted, shot at him. Mr. Ballard informed the police that he knew one of the assailants as “Unc.” Detectives with the Metropolitan Police Department (MPD) conducted an investigation, and Mr. Ballard identified a man named Delonte Smith as “Unc.”
As a result, on Jan. 30, 2013, Smith was arrested, charged with armed carjacking, and ordered held without bond pending trial. Smith and Mayhand are brothers. They grew up in and frequented the Benning Park area of Southeast Washington, which is where Mr. Ballard lived.
On May 28, 2013, at about 7:15 a.m., Mayhand encountered Mr. Ballard on Benning Road SE. Mayhand said, “I should put a knife on you and stab you!” Mr. Ballard called 911 and reported the threat while he walked up Benning Road to the Sixth District police station. During the following 17 minutes, Mr. Ballard stayed on the line with the dispatcher and Mayhand followed Mr. Ballard down the street. Moments before the police arrived on scene, Mayhand charged at Mr. Ballard as if he was going to assault him. When the police officers stopped Mayhand, and asked him what was going on, he responded, “Man, I don’t have time to f--- with that snitch!” He also told police that Mr. Ballard “got my brother locked up over some bull---.”
The criminal case against Mayhand stemmed from the May 28, 2013 confrontation. Mayhand has been in custody since his arrest that day.
On July 8, 2013, less than 48 hours before he was scheduled to testify in the trial against Delonte Smith, Mr. Ballard, 38, was murdered in Southeast Washington. Smith, 20, was nonetheless convicted of conspiracy to commit a crime of violence, two counts of assault with a dangerous weapon, and multiple related firearms offenses. He is awaiting sentencing.
The murder of Mr. Ballard is under investigation and no arrests have been made.
In announcing the sentence, U.S. Attorney Machen recognized the outstanding efforts of the detectives and officers from the Metropolitan Police Department who investigated the case. He also acknowledged the efforts of Supervisory Paralegal Specialist Anthony Griffith as well as Paralegal Specialists Antoinette Sakamsa and Theresa Nelson. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who prosecuted the case.
13-396Manhattan Man Found Guilty in Federal Court of Sex Trafficking Three Minors and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROYCE CORLEY, of New York, New York, was found guilty today in Manhattan federal court of sex trafficking of minors and possessing child pornography. CORLEY was convicted after a four-day jury trial before U.S. District Judge Robert P. Patterson.
U.S. Attorney Preet Bharara stated: “Sexually exploiting underage runaways by selling them for prostitution is a heinous and unfortunately all too common crime. Today’s guilty verdict against Royce Corley is a victory for the vulnerable girls he exploited, and for the larger fight to put an end to the sex trafficking of children.”
According to the Superseding Indictment filed in Manhattan federal court, other court filings, and the evidence presented at trial:
Between at least June 2011 and January 2012, using the alias “Ron Iron,” the defendant ran a prostitution ring in Manhattan that sold underage girls for sex. CORLEY’s victims included at least three 16-year-old runaway girls who had no place to stay when they met CORLEY (the “Minor Victims”). He prostituted each of his Minor Victims using the same methods. CORLEY photographed them in sexually-explicit poses, created advertisements for prostitution on Backpage.com, provided the Minor Victims with cell phones to communicate with potential clients, and furnished them with apartments all over Manhattan in which they were to meet clients for paid sex. CORLEY posted the advertisements to Backpage.com from his home and work computers.
For six months in the fall of 2011, CORLEY made thousands of dollars a week from trafficking his Minor Victims for sex on Backpage.com, all while CORLEY knew that they were each 16 years old.
On January 25, 2011, CORLEY was arrested by members of the New York City Police Department following an undercover sting which rescued one of the Minor Victims. At the time of his arrest, CORLEY had in his pocket a thumb drive, which contained child pornography of one of his Minor Victims.
CORLEY, 29, of Manhattan, New York, was found guilty of three counts of sex trafficking of minors and one count of possessing child pornography. He faces a mandatory minimum term of 10 years in prison, and a maximum term of life in prison. CORLEY is scheduled to be sentenced by Judge Patterson on February 20, 2014.
Mr. Bharara praised the efforts of the Federal Bureau of Investigation, the New York City Police Department, and the New York County District Attorney’s Office for their work in this case.
This case is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Tatiana R. Martins and Amanda Kramer are in charge of the prosecution.
Liberty Man Indicted for Meth Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man was indicted by a federal grand jury today on charges related to methamphetamine trafficking and illegally possessing firearms.
Alan Glenn Hampton, 42, of Liberty, was charged in a 10-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Hampton participated in a conspiracy to distribute methamphetamine from Feb. 18, 2011, to March 1, 2012. Hampton is also charged with six counts of distributing methamphetamine and one count of possessing methamphetamine with the intent to distribute.
The indictment also charges Hampton with two counts of being a felon in possession of a firearm. According to the indictment, Hampton, who has a prior felony conviction, was in possession of a Jimenez Arms 9mm pistol on Nov. 22, 2011, and a Ruger .380-caliber semi-automatic handgun on Dec. 1, 2011.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Patrick Edwards. It was investigated by the Jackson County Drug Task Force, the Independence, Mo., Police Department, the Holt County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration.Justice Department and San Francisco Restaurant Settle Immigration-Related Discrimination ClaimRead the Press Release
The Justice Department today reached an agreement with Kim Hoang Coffee and Fast Food, a restaurant in San Francisco, resolving claims that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA).
In a charge filed with the department, a work-authorized immigrant alleged, and the department found, that Kim Hoang Coffee and Fast Food improperly rejected valid work-authorization documents when re-verifying her authorization for employment, which caused the immigrant to believe she had been terminated. The investigation also revealed that the employer believed she could ask non-U.S. citizens to produce specific documents to establish work authorization upon initial hire, but did not need to make similar demands of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against non-U.S. citizens in the employment eligibility verification process by demanding different documentation than U.S. citizens are required to present.
In response to the department’s investigation, Kim Hoang Coffee and Fast Food offered to rehire the charging party and provide back pay for the charging party’s month of lost wages. Under the terms of the agreement, Kim Hoang Coffee and Fast Food must pay $485 in civil penalties to the United States, undergo department training on the anti-discrimination provision of the INA and be subject to monitoring of its employment eligibility verification practices for a period of three years. The employer also agreed to post the Office of Special Counsel for Immigration-Related Unfair Employment Practices’ (OSC) “Right to Work” poster, which highlights the anti-discrimination provision of the INA. The case settled prior to the department filing a complaint in this matter.
“Imposing different documentary requirements on individuals based on their citizenship status during the employment eligibility verification process is discrimination prohibited by the INA,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “The Department of Justice is committed to protecting U.S. citizens and all work-authorized immigrants from document abuse.”
The OSC is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Jeremy Hammond Sentenced to 10 Years in Prison for Hacking into the Stratfor Website and Other Company, Federal, State, and Local Government WebsitesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JEREMY HAMMOND, a/k/a “Anarchaos,” was sentenced in Manhattan federal court to 10 years in prison in connection with his role in, among other hacks, the December 2011 hack of Strategic Forecasting, Inc. (“Stratfor”), a global intelligence firm in Austin, Texas, that affected hundreds of thousands of victims, including employees and subscribers. HAMMOND was also sentenced in connection with his involvement in multiple additional hacks, including computer intrusions into the Federal Bureau of Investigation’s Virtual Academy, the Arizona Department of Public Safety, the Boston Police Patrolmen’s Association, and the Jefferson County, Alabama, Sheriff’s Office. HAMMOND pled guilty in May 2013, and was sentenced today by Chief U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara stated: “As he admitted through his plea of guilty, Jeremy Hammond launched a series of computer hacks that stole confidential information pertaining to companies, law enforcement agencies, and thousands of innocent individuals. His sentence underscores that computer hacking is a serious offense with damaging consequences for victims, and this Office is committed to punishing the perpetrators of such crimes.”
According to the Complaint, the Superseding Indictment, the Superseding Information, and statements made in other public filings and in court:
In December 2011, HAMMOND and other members of “AntiSec” – an off-shoot of “Anonymous,” a loose confederation of computer hackers and others – hacked into computer systems used by Stratfor. HAMMOND and his co-conspirators stole confidential information from those computer systems, including Stratfor employees’ emails as well as account information for approximately 860,000 Stratfor subscribers or clients. HAMMOND and his co-conspirators also stole credit card information for approximately 60,000 credit card users and used some of the stolen data to make more than $700,000 in unauthorized charges.
In addition, at his guilty plea, HAMMOND admitted his involvement in multiple additional hacks, including: the June 2011 hack of computer systems used by the Federal Bureau of Investigation’s Virtual Academy; the June 2011 hack of computer systems used by the Arizona Department of Public Safety, a state law enforcement agency in Arizona; the July 2011 hack of computer systems owned by Brooks-Jeffrey Marketing, Inc., a company based in Mountain Home, Arkansas, and various law enforcement-related websites; the August 2011 hack of computer systems used by Special Forces Gear, a company based in California; the August 2011 hack of computer systems used by Vanguard Defense Industries, a company based in Texas; the October 2011 hack of computer systems used by the Jefferson County, Alabama Sheriff’s Office; the October 2011 hack of computer systems used by the Boston Police Patrolmen’s Association; and the February 2012 hack of computer systems used by the Combined Systems, Inc., a company based in Pennsylvania.
HAMMOND and his co-conspirators publicly disclosed some of the confidential information they had stolen from these various hacks, including personal information such as the home addresses of hundreds of current and retired law enforcement officers and financial information such as the credit card data of thousands of individuals.
HAMMOND, 28, of Chicago, Illinois, was sentenced in connection with his guilty plea to one count of conspiracy to engage in computer hacking. Restitution will be determined at a later date.
The Office’s Complex Frauds Unit is handling the case.
Hartford Man Sentenced to Federal Prison for Illegally Distributing Prescription PainkillersRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANDREW PARENTE, 76, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment, followed by three years of supervised release, for illegally distributing prescription narcotics.
According to court documents and statements made in court, in October and November 2011, PARENTE and Robert Gentile conspired to distribute and distributed Schedule II controlled substances, including oxycodone, in a form commonly known as OxyContin, and hydromorphone, in a form commonly known as Dilaudid.
PARENTE was arrested on February 10, 2012. On January 2, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute a Schedule II controlled substance, and one count of possession with intent to distribute, and distribution of, a Schedule II controlled substance.
In November 2012, Gentile pleaded guilty to multiple drug and firearms offenses and, on May 9, 2013, he was sentenced to 30 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Health and Human Services, Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney John H. Durham.
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[email protected]Goldfield, Nev. Man Sentenced to Two Years in Prison for Unlawful Possession and Attempted Purchase of FirearmsRead the Press Release
LAS VEGAS, Nev. – A long-time resident of Goldfield, Nev. was sentenced today to two years in federal prison and three years of supervised release for improperly possessing and attempting to purchase firearms, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Michael Rippie, 67, was sentenced by U.S. District Judge Gloria M. Navarro. Rippie was convicted by a jury on Aug. 9, 2013, of possession of a firearm by a person previously found to be a mental defective and committed to a mental institution and making false statements to acquire firearms. Rippie, who was arrested and charged in April 2013, had been released pending trial with special conditions and was residing in Pahrump with his former wife. Rippie was placed in federal custody immediately following sentencing.
“Federal laws prohibit certain individuals from prohibiting firearms, including felons, drug addicts, illegal aliens, persons convicted of domestic violence offenses or subject to restraining orders, and persons who have been previously adjudicated as a mental defective or committed to mental institution,” said U.S. Attorney Bogden. “Too many recent shooting incidents have demonstrated how dangerous firearms can be when they are in the hands of someone with a mental disorder. We will work with our local and federal law enforcement partners to ensure that persons who unlawfully possess firearms in violation of these laws are prosecuted federally.”
The case was investigated by ATF and prosecuted by Assistant United States Attorney Eric Johnson.
According to the court records, in 1971, Rippie was adjudicated not guilty by reason of insanity for a 1970 armed robbery in Colorado and was committed to a mental institution. On about Sept. 10, 2010, Rippie knowingly made a false written statement to a firearms dealer in Tonopah, Nev., in an attempt to purchase a long gun, stating that he had not been adjudicated a mental defective or committed to a mental institution. On April 10, 2013, Rippie was arrested at his home in Goldfield with 15 firearms, including two loaded semi-automatic assault-type rifles with extended 30-round clips and a loaded semi-automatic .40 caliber pistol. Rippie also possessed over 22,000 rounds of ammunition at his residence. Rippie was well-known to law enforcement and others in the Goldfield and Tonopah areas and had one conviction and 13 arrests over the last 48 years, including six involving firearms.Gettysburg Attorney Pleads Guilty to Defrauding Clients of OverRead the Press Release
$3 Million
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wendy Weikal-Beauchat, age 46, of Gettysburg, Pennsylvania, pleaded guilty today to wire fraud and money laundering before U.S. District Court Judge John E. Jones, III.
According to United States Attorney Peter J. Smith, Weikal-Beauchat, a former attorney at a Gettysburg law firm, was charged earlier this month with defrauding eight clients of more than $3 million from 2007 through 2013. She misappropriated client funds to pay for her business and personal expenses.
Weikal-Beauchat concealed her fraudulent actions by providing clients with bogus Certificates of Deposit and IRS 1099 Interest Forms. The investigation is continuing in an effort to identify other clients who may have been victimized by her scheme.
The investigation is being conducted by Internal Revenue Service, Criminal Investigations, and the FBI.
The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz and Special Assistant U.S. Attorney Brian Sinnett from the Adams County District Attorney’s Office.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In this case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, a forfeiture and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Watertown Police Officer Sentenced for Passing False Prescriptions Using Another's IdentityRead the Press Release
BOSTON - A former Watertown Police Officer was sentenced today for passing false prescriptions, using a stolen identify.
Joseph Deignan, 58, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 90 days in prison and three years of supervised release. In August 2013, Deignan pleaded guilty to unlawful possession of a controlled substance by fraud and of fraud in connection with identification documents.
Deignan, a former Watertown Police Officer who retired in February 2012, used the identity of another person to obtain oxycodone and other controlled substances by forging prescriptions in the other person’s name. Deignan stole the driver’s license of the person in 2010, while he was working as the traffic supervisor for the Watertown Police Department. Using various doctors’ information, Deignan forged over 100 prescriptions for controlled substances and used the stolen identity to fill the scripts.
United States Attorney Carmen M. Ortiz and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case was prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Former Vice President at Harrisburg Area Community College Pleads GuiltyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nancy Rockey, age 55, of Harrisburg, Pennsylvania, pleaded guilty Thursday to wire fraud before U.S. District Court Chief Judge Christopher C. Conner.
According to United States Attorney Peter J. Smith, Rockey was employed by Harrisburg Area Community College (HACC) from 1980 until her resignation in February 2012. At the time of her resignation, Rockey was Vice-President of the Harrisburg campus and Vice-President of College and Community Development.
In October 2013, Rockey was charged with using a credit card issued by HACC, to make online purchases of Target gift cards which she then used to purchase non-work-related items for herself, her family, and her friends. Rockey then created bogus invoices, later submitted to the HACC Finance Office, to conceal the unauthorized purchases.
Rockey is charged with purchasing $228,000 worth of gift cards with her HACC credit card.
The investigation was conducted by the FBI and the Dauphin County Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Skagit County Bank CEO Sentenced to Three Years in Prison for Falsifying Regulatory DocumentsRead the Press Release
The former Chairman and CEO of Summit Bank, a Skagit County community bank, was sentenced today in U.S. District Court in Seattle to three years in prison and two years of supervised release for Making a False Entry in a Report of an Insured Bank, announced U.S. Attorney Jenny A. Durkan. JAMES E. BISHOP, 70, of Mount Vernon, Washington pleaded guilty August 21, 2013. In his plea agreement BISHOP admits that between 2009 and 2011, BISHOP and his son, who was the bank president, concealed from regulators the mounting number of loans that were in default. Summit bank was ultimately closed by state regulators and sold in May 2011. At sentencing Chief U.S. District Judge Marsha J. Pechman noted the length of the scheme, the number of accounts manipulated and the control BISHOP exerted over employees to stop them from notifying regulators. “This conduct hurts communities greatly,” Chief Judge Pechman said.
“This defendant falsified reports to save ‘his’ bank and his fortune,” said U.S. Attorney Jenny A. Durkan. “Rather than be up front with the regulators about the condition of the bank, the defendant and his son initiated a high-stakes shell game to deceive the FDIC. Through his actions he shifted the risk for losses to the FDIC, and consequently to the public.”
According to the records filed in the case, in 2005 JAMES E. BISHOP became CEO of Summit Bank and Chairman of Summit Bank’s Board of Directors. His son, James E. Bishop II, served as president of the bank, and both were significant shareholders in the bank. James E. Bishop II has also been charged in the case. The younger BISHOP served as president of Summit Bank from 2005-2011. According to the statement of facts in the plea agreement, the bank was required to file various reports with the Federal Deposit Insurance Corporation (FDIC) disclosing the loans the bank had made and the status of the loans. In his plea agreement BISHOP admits that between 2009 and 2011, he caused the bank to undertake financial transactions related to past due loans, which concealed the overdue loans in the quarterly reports that went to the FDIC, essentially hiding millions of dollars in loans that were past due, and causing the bank to appear financially healthier than it actually was. For example, in one report on June 30, 2010, the Bank reported past due loans of approximately $6 million in outstanding loans, payments on which were past due for 30 or more days. In truth, the bank had at least $13 million in outstanding loans, payments on which were past due for 30 or more days.
“The FBI values its partnership with the FDIC Office of Inspector General because the complexity of a fraud like this requires tremendous time and expertise,” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office. “Collaboration between our offices brought specialized resources to bear and the USAO commendably used the uncovered information to bring a significant schemer to justice.”
“Today Mr. Bishop is being held accountable for deceiving regulators and seeking to undermine the integrity of the FDIC’s examination process,” said Fred W. Gibson Jr., Acting Inspector General for the Federal Deposit Insurance Corporation. “In addition to his prison sentence, it is fitting that he will be banned from participating in the affairs of any federally insured financial institution going forward. We appreciate the U.S. Attorney’s Office’s efforts in bringing this matter to a successful conclusion and achieving results that should deter others from similar criminal activity.”
As part of a civil enforcement agreement entered with the FDIC, BISHOP will pay $300,000 to the FDIC.
James E. Bishop II is scheduled for sentencing on December 6, 2013.
The case was investigated by the FDIC Office of Inspector General (FDIC-OIG) and the FBI. The case was prosecuted by Assistant United States Attorney Matthew Diggs.
Former Omaha Police Officer Sentenced for Improper Computer SearchesRead the Press Release
United States District Court Judge Joseph F. Bataillon, sentenced Kevin Cave, age 36 of Bellevue, Nebraska, following his conviction for Exceeding Authorized Access to a Protected Computer. Cave was sentenced to three years of probation and fined $8.000.00.
Cave worked as an Omaha Police Officer and, in that capacity, had been granted access to the NCJIS, (Nebraska Criminal Justice Information System), database. NCJIS is a protected database that links numerous databases together and provides law enforcement officers with a broad range of information on suspects and witnesses. Officers granted access to NCJIS are trained that the database contains sensitive information, is protected from unauthorized disclosures, and can only be searched for legitimate law enforcement purposes. Commencing in approximately March of 2010 and continuing up to August of 2012, Kevin Cave began conducting unauthorized searches of the NCJIS database looking for information that would assist car dealerships, owned by relatives of his, locate cars for repossession. Cave conducted the improper searches because he was being paid up to $200 for every successful lead he provided. In total, Cave received over $16,000.00 for having conducted the improper searches.
This case was investigated by the Federal Bureau of Investigation.
Former Miami Mortgage Broker and Real Estate Agent Sentenced for Role in Multimillion-Dollar Mortgage Fraud SchemeRead the Press Release
A former Florida-licensed real estate associate and mortgage broker was sentenced to serve 135 months in prison for his role in a $2.4 million mortgage fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Jose Armando Alvarado, 64, of Miami, was found guilty on Sept. 9, 2013, of eight counts of wire fraud and six counts of bank fraud and was sentenced on Nov. 14, 2013, by U.S. District Judge William J. Zloch of the Southern District of Florida. In addition to his prison term, Alvarado was ordered to serve three years of supervised release.
Two of Alvarado’s co-conspirators previously convicted at the same trial of various counts of wire and bank fraud were also sentenced on Nov. 14, 2013. Alberto Morejon, 27, of Miami, a former loan closer and title agent, was sentenced to serve 36 months in prison. Alvarado’s sister, Reyna Orts, 58, of Miami, a former mortgage broker and the mother of Morejon, was sentenced to serve 50 months in prison.
According to court documents and evidence presented at trial, Alvarado, along with his co-conspirators, operated a mortgage fraud scheme by controlling and operating three real estate entities in the Miami area: South Florida Realty; American Mortgage Lending, a mortgage broker; and Royal Atlantic Title, a title insurance agency. From February 2004 through November 2009, Alvarado and his co-conspirators used their control over these three companies to falsify and misrepresent important facts provided to financial institutions in order to fraudulently secure loans totaling more than $2.4 million. The loans were often obtained through submitting falsified supporting documentation, such as false tax returns, W2 forms, bank statements and employment verifications.
Evidence at trial showed that Alvarado and his co-conspirators subsequently enriched themselves by diverting loan proceeds, collecting brokerage fees and inflating real-estate commissions generated by the sales of the properties. Alvarado and his co-conspirators obtained control of multiple properties during the real estate market boom with the intent to flip and sell them for a profit or control them as rental properties. The defendants used their knowledge and experience in the real estate industry to conceal the scheme by executing quit-claim deeds and failing to record, and falsely recording, mortgage deeds and other documentation with the State of Florida.
The case was investigated by the FBI’s Miami Field Office and the Miami-Dade Police Department. The case was prosecuted by Trial Attorney Nathan Dimock of the Criminal Division’s Fraud Section.
Former Jefferson Parish Sheriff's Deputy, Mark Hebert, Pleads Guilty to Civil Rights, Bank Fraud and Aggravated Identity Theft ViolationsRead the Press Release
Former Jefferson Parish Sheriff’s Deputy MARK HEBERT, 48, pled guilty today to one civil rights violation, five bank fraud violations and one aggravated identity theft violation, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Kenneth A. Polite Jr. for the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI New Orleans Field Office and Sheriff Newell Normand from the Jefferson Parish Sheriff’s Office.
According to the plea agreement and other documents, HEBERT engaged in a scheme to defraud J.P. Morgan Chase Bank (Chase Bank) from Aug. 2, 2007 through Nov. 21, 2007. The scheme began when HEBERT, in his capacity as a Jefferson Parish Sheriff’s Deputy, responded to an automobile accident involving Albert Bloch and stole Bloch’s VISA debit card, as well as other items. While Bloch was hospitalized following the accident, HEBERT used that debit card to make unauthorized purchases of merchandise, including two Global Positioning System units, and to withdraw funds from Bloch’s Chase Bank account via Automatic Teller Machines (ATMs). After Chase Bank cancelled the debit card due to Bloch filing a dispute with the bank, HEBERT continued his scheme to defraud by negotiating and attempting to negotiate forged checks drawn from Bloch’s account. HEBERT then obtained the replacement debit card sent to Bloch and used that card to make further unauthorized transactions at Chase Bank ATMs. Bloch has not been seen since 2007.
By pleading guilty, HEBERT admitted that he violated Bloch’s civil rights when he responded in his official capacity to Bloch’s automobile accident and unreasonably seized and converted Bloch’s property, including funds that Bloch had on deposit with Chase Bank. HEBERT also admitted that on at least five occasions he executed his bank fraud scheme against Chase Bank by unlawfully using Bloch’s original ATM card, replacement ATM card and Chase Bank checks. In addition, HEBERT admitted that on at least one occasion he used Bloch’s driver’s license number and social security number in order to execute his bank fraud scheme and thereby committed aggravated identity theft.
“When the defendant officer responded to an automobile accident and stole the victim’s credit cards and used them to commit fraud, he violated not only the law, but the core law enforcement values of trust and respect for civil rights,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to work with our partners in the U.S. Attorney Offices and FBI to ensure that civil rights violations are identified and where appropriate prosecuted.”
“Mark Hebert’s guilty plea occurred as a result of the successful collaboration of local and state law enforcement agencies in our continued fight to eradicate corruption in our community,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “The U.S. Attorney’s Office and its law enforcement partners are delivering the same message in a unified voice: we will not tolerate abuse of power and official position. If you violate the public trust in Southeast Louisiana, you will be held accountable.”
“In as much as I am very disappointed in the behavior of former JPSO officer Mark Hebert as outlined in his guilty plea today, I am extremely proud of the persistence of my criminal investigators and the efforts of the U. S. Attorney's Office in this investigation,” stated Jefferson Parish Sheriff Newell Normand. “My office will not tolerate any form of corruption.”
A sentencing hearing has been scheduled before the Honorable Jane Triche-Milazzo on March 24, 2014. For each of the five counts of bank fraud, HEBERT faces a maximum statutory sentence of 30 years in prison and a $1,000,000 fine. For the count of aggravated identity theft, HEBERT faces a maximum statutory sentence of two years in prison and a $250,000 fine. For the count charging a civil rights violation, HEBERT faces a maximum statutory penalty of one year in prison and a $100,000 fine.
The investigation of this matter was conducted by the Jefferson Parish Sheriff’s Office Detective’s Bureau and the FBI. The case is being prosecuted by Assistant U.S. Attorney Steve Parker, Assistant U.S. Attorney Tony Sanders and Civil Rights Division Trial Attorney Shan Patel.
Former Davenport Man Sentenced for Robbery of Family Credit UnionRead the Press Release
DAVENPORT, IA - On November 15, 2013, Elbert Lee Karr, Jr., age 48, formerly from Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 151 months imprisonment, after pleading guilty to bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Karr was also ordered to serve three years of supervised release following the period of imprisonment, and to pay $2,920 in restitution and $100 towards the Crime Victims Fund.
On October 22, 2012, Karr entered the Family Credit Union in Davenport, Iowa, received cash after presenting a demand note, and left the bank. Karr was arrested later that evening, after refusing repeated attempts by law enforcements to stop while driving a stolen semi-tractor. Karr was found in possession of some of the stolen money and admitted committing the robbery.
This case was investigated by the Federal Bureau of Investigations, the Davenport, Iowa, Police Department, the Iowa State Highway Patrol, and the Cedar County Sheriff’s Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Broadlands Loan Officer Convicted of FraudRead the Press Release
ALEXANDRIA, Va. – Ging-Hwang “Felicia” Tsoa, 59, of Broadlands, Va., was convicted today by a federal jury of conspiracy to commit bank fraud and two counts of bank fraud in connection with her role in a large-scale mortgage fraud scheme.
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 the verdict was accepted by United States District Judge James C. Cacheris.
Tsoawas indicted on April 4, 2013, by a federal grand jury, and faces a maximum penalty of 30 years on each count when she is sentenced on February 7, 2014.
According to court records and evidence at trial, Tsoa used her position as a loan officer at First Empire Mortgage in Fairfax, Va. and Lifetime Financial Services in Herndon, Va., to defraud mortgage lenders as part of a scheme to profit from fraudulently-obtained mortgage loans and the purchase of residential real estate in northern Virginia. As part of the scheme, co-conspirator Robert Mikail recruited five individuals, known as “straw buyers,” to serve as nominal purchasers in these transactions. Tsoa worked with Mikail and co-conspirator Bing-Sing “Cindy” Wang, the owner of Lifetime Financial Services, to falsify critical information on the straw buyers’ loan applications in order to get the loans approved and the transactions closed. In particular, virtually all of the fraudulent loan applications falsely identified Mikail’s Ashburn, Va., jewelry store, Opus Jewelry, as the borrower’s employer, which the conspirators would then falsely verify to the lenders as part of the loan approval process.
In total, the conspiracy involved the purchase of approximately 36 homes in Ashburn, Va., from 2005 through 2007, and approximately $19.9 million in loan proceeds disbursed on the basis of fraudulent loan applications. According to the evidence at trial, Tsoa served as the loan officer on at least nine of these transactions, which resulted in approximately $1.4 million in losses to lenders.
Co-conspirator Wang pleaded guilty to a conspiracy charge on November 20, 2012, and was sentenced to 24 months in prison on February 26, 2013. Co-conspirator Mikail pleaded guilty to a conspiracy charge on July 17, 2013, and will be sentenced on January 10, 2014
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson and Jasmine H. Yoon 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.Five Defendants Sentenced for Auto Accident Insurance FraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that five defendants were sentenced on Wednesday and Thursday by U.S. District Judge S. Maurice Hicks Jr. for their roles in a staged accident insurance scheme. The defendants pleaded guilty July 15, 2013.Larry Kimble, 33, of Athens, La., was sentenced to 13 months in prison and three years of supervised release for conspiracy and wire fraud. He was also ordered to pay $7,463 in restitution.
Bobby Lee Kimble, 42, of Athens, La., was sentenced to 14 months in prison and three years of supervised release for conspiracy, wire fraud and health care fraud.
Joe Abbott, 54, of Arcadia, La., was sentenced to four months in prison and three years of supervised release for conspiracy, mail fraud and health care fraud.
Marcus Kimble, 30, of Arcadia, La., was sentenced to one day in prison, time served and three years of supervised release for conspiracy, wire fraud, and health care fraud.
Monica Jenkins, 25, of Athens, La., was sentenced to five years of probation for conspiracy, mail fraud and health care fraud.
The members of the ring conspired to stage automobile accidents and submit fraudulent claims to various insurance companies for bodily injury and property damage. The “Kimble Ring,” was composed of family, friends and associates who staged two automobile rear-end collisions, single automobile collisions with trees, and false hit-and-run claims. The false claims were filed for accidents occurring in Bienville Parish; Ruston, La.; Athens, La.; and Claiborne Parish between December 2007 and March 2008.
Sentencing of co-defendant Damario Henderson, 29, of Homer, La., who is charged with conspiracy and health care fraud, has been delayed until December 18, 2013.
“The consumers pay the ultimate price through higher costs and premiums when fraudulent schemes like this are carried out,” Finley stated. “This group was motivated by greed, and their goal was to get as much money as possible by defrauding insurance companies out of thousands of dollars. Their actions placed unnecessary burdens on the local insurance system, causing money and time to be misspent on the false claims. This office will continue to prosecute these types of cases to the fullest extent of the law.”
The Louisiana State Police investigated the case. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.Federal Grand Jury Indicts Dallas Police Department Vice DetectiveRead the Press Release
DALLAS — A detective who worked in the Dallas Police Department’s (DPD) Vice Unit, Jose Luis Bedoy, 39, of Dallas, was arrested this morning, by special agents with the FBI, on federal felony charges of obstruction of official proceedings and obstruction of the due administration of justice, as outlined in an indictment that was returned earlier this week by a federal grand jury in Dallas and was just unsealed. Bedoy made his initial appearance before U.S. Magistrate Judge David L. Horan this afternoon and was released on conditions. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the indictment charges Bedoy with three counts of obstruction of an official proceeding and one count of obstruction of due administration of justice.
According to the indictment, from November 28, 2007 through July 2013, Bedoy was assigned to the DPD’s Vice Unit. In early 2009, after a DPD Vice raid on an adult entertainment establishment, Bedoy met a female prostitute who worked at the establishment. Later, when she tried to reclaim property DPD seized during the raid, Bedoy assisted her.
Bedoy later contacted her and expressed an interest in seeing her and wanting a massage from her. They began communicating on a weekly basis, and Bedoy began giving her advice on the adult entertainment establishments at which she could work. Bedoy later met her for a massage, and during the massage, he explained how to screen her clients to avoid being arrested. Bedoy and the female began an intimate relationship.
From 2008 until 2013, while they were engaged in a sexual relationship, Bedoy provided law enforcement-sensitive information to her about DPD Vice Unit prostitution raids and other enforcement actions. In January 2013, Bedoy met her at her residence and showed her a DPD investigative case file targeting “Wet,” an adult entertainment establishment, which he had brought with him. Two days later, Wet was raided, and after the raid, Bedoy arranged to meet her at her residence.
In early 2013, according to the indictment, the Coppell Police Department began an investigation of “Studio Serene,” an adult entertainment establishment, and enlisted the help of the DPD Vice Unit in its investigation. In March 2013, Bedoy advised the female that Studio Serene was being targeted and advised her against working there. Bedoy told her that the information was only for her benefit, but she relayed the information to Studio Serene’s owner. Based on that information, Studio Serene closed for a number of days.
After it reopened, on April 25, 2013, the Coppell Police Department and the DPD Vice Unit raided Studio Serene. While law enforcement conducted interviews of individuals working at Studio Serene, members of the Coppell Police Department were informed that a DPD Vice Unit detective, named “Jose,” had “tipped off” the business weeks earlier about the pending raid. The phone number provided for “Jose” matched Bedoy’s contact information on his DPD personnel file. Based on the information received by the Coppell Police Department, an FBI and federal grand jury investigation of Bedoy were initiated.
According to the indictment, on multiple occasions in June 2013, Bedoy instructed the female on how to avoid being arrested while using Backpage.com for prostitution. He advised her to not only change her phone number every two weeks, but also advised her of the best days and times to work and the best days and times to avoid. On June 25, 2013, Bedoy contacted her to ensure that she wasn’t working Backpage.com during that week because DPD Vice was “working Backpage” that week. In fact, that same day, DPD Vice Unit and the FBI conducted a joint operation that was designed to deter prostitution by directing enforcement efforts at Internet-based prostitution. Bedoy was listed on the DPD Vice Unit roster of operation participants. On July 11, 2013, the FBI advised Bedoy and other DPD Vice Unit detectives that a federal grand jury investigation had been initiated and that the FBI was attempting to locate this female, as well as another woman, based on information that they were receiving law enforcement-sensitive information from a police officer.
The indictment alleges that on:
July 8, 2013, Bedoy told the female, a witness in the investigation, to leave Dallas and move somewhere else and to never give her real name if pulled over in a traffic stop by law enforcement.
July 11, 2013, Bedoy instructed the female to not let anyone into her apartment to talk to her, including FBI agents.
July 14, 2013, Bedoy told the female to get rid of her cell phone so that there would not be a connection between them.
July 23, 2013, Bedoy falsely told FBI agents that he never gave sensitive law enforcement information to this female.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count of obstruction of an official proceeding carries a maximum statutory penalty of 20 years in federal prison and the obstruction of due administration of justice count carries a maximum statutory penalty of 10 years in federal prison. Each count of conviction also carries a maximum statutory fine of $250,000.
The investigation is being conducted by the FBI and the DPD’s Public Integrity Unit. Assistant U.S. Attorneys Errin Martin and Mindy Sauter are prosecuting.
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Fairfield Man Pleads Guilty to Possessing Stolen FirearmsRead the Press Release
Chance W. Young, 29, of Fairfield, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with knowingly possessing stolen firearms, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on September 4th, alleged that Young possessed the firearms between June 30th and July 1st of this year. Young possessed a total of 4 stolen firearms which had been taken during a burglary of a Wayne County residence between those dates. Thus far, only two of the firearms have been recovered.
Sentencing was set for February 28, 2014, at 10:00 a.m. at the United States District Courthouse in Benton. At that time, Young faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Young has been held without bond in the custody of the United States Marshal since his arrest on the federal charges in September. He was again remanded to the Marshal’s custody to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Dudley Sentenced to 60 Months in Federal Prison in Connection with Investment Fraud SchemeRead the Press Release
SALT LAKE CITY - John S. Dudley, age 59, of Sandy, who pleaded guilty to wire fraud in February in connection with a fraudulent investment scheme, will serve 60 months in federal prison. U.S. District Judge Robert J. Shelby, who imposed the sentence this week, also ordered Dudley to pay $6.8 million in restitution to victims of the fraud scheme.
“Mr. Dudley's web of lies damaged or destroyed the financial future of more than a hundred victims,” David B. Barlow, U.S. Attorney for Utah, said today. “After serving his five-year term of incarceration, Mr. Dudley will be deported from the United States. These steps should help make sure that Mr. Dudley is not able to harm residents of Utah again.”
Dudley was charged in a 17-count indictment returned in May 2011 in connection with what the indictment alleged was a scheme to induce individuals to invest money with him for use in various investment programs.
The indictment alleged Dudley made a variety of representations to potential investors, including telling them they could expect monthly returns of 5-10 percent; that he had not suffered a trading loss since 1978; that investors’ funds would be used exclusively for investment purposes; that he had personally done very well in his investments and had never made less than 5 percent per month over the last 30 years; that investors’ money was backed by a “senior life settlement policy” that reduced or eliminated investors’ risk of loss; and that investing with him was an exclusive opportunity with only a limited number of investors allowed to invest with him at one time.
As a part of the plea agreement reached with federal prosecutors, Dudley admitted he sent an e-mail to an individual, identified as U.A. in the plea agreement, with the subject line “Re: Castle Creek Bank Details.” He admitted that the e-mail was a part of his attempt to execute the fraud scheme by obtaining money under false representations. Investor U.A. is identified in the indictment as a Utah Department of Commerce’s Division of Securities investigator acting in an undercover capacity in the indictment.
“The successful prosecution of John Dudley was a joint effort between federal and state agencies in addressing an egregious Ponzi scheme. Mr. Dudley’s victims, ranging from young adults to the elderly, funded a lavish lifestyle which included a $1.5 million home, luxury cars and exotic vacations. The FBI and its law enforcement partners are committed to investigating and prosecuting those who fund a luxurious lifestyle at the expense of hard-working, trusting investors. Some victims in these types of cases have their life savings tied up in fraudulent investments and never fully recover. We encourage the public to remain vigilant—check your investments; ask your investment manager hard questions; obtain timely investment updates and reports; and report suspected fraud to the FBI,” Mary Rook, Special Agent in Charge of the FBI in Salt Lake City, said today.
“Mr. Dudley touted various investment programs, including a foreign exchange trading program, mining speculation, and European and domestic stock options. He then diverted the investors’ funds for his own personal benefit,” Paul Camacho, Special Agent in Charge of IRS Criminal Investigation, said today. “Investors, as we often see in our trusting community, became victims to Mr. Dudley’s scheme. Those who operate Ponzi schemes have mastered the ability to earn the trust and confidence of their victims, and these crimes are very personal. We urge the public to be cautious and diligent in deciding where to invest their hard-earned money,” Camacho said.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents and investigators of the FBI, IRS Criminal Investigation, and the Utah Department of Commerce.
District Man Sentenced to 29 Years in Prison for 2010 Murder of His Mother and Assault on His Younger Brother-Jury Rejected Defendant’s Insanity Defense-Read the Press Release
WASHINGTON - Christopher Martin, 27, of Washington, D.C., was sentenced today to 29 years in prison on charges stemming from the May 2010 murder of his mother and a subsequent attack on his brother, U.S. Attorney Ronald C. Machen Jr. announced.
Martin was found guilty in June 2013, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed, assault with a deadly weapon, and simple assault. He was sentenced by the Honorable Ronna L. Beck.
According to the government’s evidence, on May 20, 2010, Martin’s younger brother, Demetrius Martin, escaped from a second-floor window of a home in the 4200 block of Fourth Street SE. He alerted a neighbor that he had been beaten by his brother, Christopher, who had also stabbed their mother. When police finally gained entry to the locked apartment, they found the body of Patricia Ann Martin, 58, in an advanced stage of decomposition spurred on by the heat in the apartment and the fact that the defendant had covered her with multiple blankets.
Upon entering the apartment, it became apparent that Martin had attempted to conceal his crime from discovery by covering his mother’s body with cleanser and dryer sheets and using odor-eating gels, and various perfumes, room deodorizers and bleach to cover her scent. Later that day, when Martin was arrested, police discovered that he had a long, deep gash to the palm of his hand, consistent with his hand having slid down the blade of a knife.
At trial, the defendant proceeded on an insanity defense, calling experts to establish that because of mental illness, he lacked the substantial capacity to conform his conduct to the requirements of the law or lacked a substantial capacity to recognize the wrongfulness of his conduct. The government countered with experts to establish that, although the defendant does have a diagnosed mental illness (schizo-affective disorder), there was no evidence that his criminal conduct resulted from his mental illness. The jury found Martin guilty of all charges and rejected the defense of insanity.
In announcing the sentence, U.S. Attorney Machen commended the efforts of those who investigated the case for the Metropolitan Police Department (MPD). He also extended his appreciation to Victim/Witness Advocate Marcia Rinker; Paralegal Specialists Alesha Matthews Yette, Sandra Lane, Fern Rhedrick and Benjamin Kagan-Guthrie, and Litigation Technology Specialists Jeanie Latimore-Brown, Kimberly Smith, and Paul Howell. He also expressed thanks for the assistance provided by Patricia A. Riley, Special Counsel to the U.S. Attorney, Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and Assistant U.S. Attorney Colleen Kennedy. Finally, he praised the work of Assistant U.S. Attorney Vinét Bryant, who indicted the case and prosecuted the case at trial.
13-395Defendant Convicted of Arranging Fraudulent Marriages to Deceive Immigration OfficialsRead the Press Release
ATLANTA - Rex Anyanwu has been found guilty of deceiving Immigration officials by helping aliens enter into fraudulent marriages to U.S. citizens and guilty of obtaining his own citizenship in violation of the law and of conspiracy to commit visa fraud and alien harboring.
"For at least eleven years, the defendant ran a fraudulent marriage factory," said United States Attorney Sally Quillian Yates. “He paid U.S. citizens to marry aliens and then lied to Immigration officials to assist the aliens in their illegal efforts to stay in the United States. Anyanwu's illegal business has been shut down and he will now lose his own citizenship.”
“By undermining the integrity of our immigration system, the defendant caused numerous people to receive immigration benefits to which they were not entitled, including the ability to fraudulently naturalize as U.S. citizens in some cases,” said Special Agent in Charge Brock D. Nicholson, head of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Georgia and the Carolinas. “By enlisting vulnerable homeless and destitute citizens in his scheme, the defendant exposed them to a criminal conspiracy in which they otherwise would likely never have been involved in.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in February 2001 and continuing until April 2012, Rex Anyanwu conspired with aliens and U.S. citizens to defraud immigration officials to obtain lawful status for the aliens in the United States. At trial, the United States called numerous U.S. citizen witnesses from Huntsville, Ala. who testified how they were recruited and paid $700 by Anyanwu to marry aliens, predominantly from Kenya and Nigeria. Alien witnesses were also called to testify that they had agreed to pay Anyanwu as much as $10,000 to find them a U.S. citizen willing to marry them, but not live with them.
The U.S. citizens and aliens testified that they typically did not meet each other until the very day of the wedding when they were introduced, sometimes on the court house steps, by Anyanwu. The defendant told the “couple” to bring multiple changes of clothes and in one case provided the U.S. citizen with the shirt off of his own back. He would then take pictures of the supposedly happily married couple in different clothing for use in proving to Immigration officials that the couple shared a life.
A true marriage, one where the couple intends to remain together, is one path through which an alien can become a U.S. citizen. Engaging in a marriage solely for immigration purposes is a crime. Evidence at trial showed that Anyanwu continued his scheme by filing fraudulent applications for visas with Citizenship and Immigration Services. Many witnesses testified the defendant would forge the U.S. citizens' names on the paperwork submitted to Immigration. For an additional fee, Anyanwu would create fraudulent documents to show the couple lived together, including false Form 1040 tax returns, false W-2s, fraudulent verification of employment letters, fraudulent leases and bills all intended to demonstrate that the couple was in fact sharing their life and living together.
When Immigration scheduled an interview with the couple, Anyanwu would then send the U.S. citizen spouse in to a Department of Motor Vehicles’ office to obtain a fraudulent Driver's License or Identification card. The U.S. citizens testified they were again paid by the defendant to do this and were told by him what address to put on the identification document. These documents were intended to deceive Immigration into believing the couple actually lived together when, in fact, they never did.
Lastly, Anyanwu would again contact the U.S. citizen spouse when it was time for the “couple” to go in for their Immigration interview. The defendant would meet with the couple and go through the questions, and the answers to questions, typically asked by Immigration to determine if a marriage is valid; simple questions that any legitimately married couple that lived with each other would know. However, since these couples did not live together and share their lives, they needed Anyanwu's coaching to pass the interview. The U.S. citizens testified that they were paid more money by the defendant for attending the interviews. The aliens testified that they paid Anyanwu additional money before the interview.
One Huntsville, Ala., witness testified that she was made to pose as another person and go to Immigration pretending to be the spouse of an alien. When she was arrested for using fraudulent identification, Anyanwu abandoned her in Atlanta, Ga., and later threatened her not to tell anyone about him. Another witness testified that she referred 50 U.S. citizens to Anyanwu to get paid to marry people born in Africa.The charges in this case - visa fraud in violation of 18 U.S.C. 1546(a), conspiracy to engage in visa fraud in violation of 18 U.S.C. 371, alien harboring in violation of 8 U.S.C. 1324(a)(1)(A)(iv) and (v)(II) and (B)(i), conspiracy to do the same in violation of 8 U.S.C. 1324(a)(1)(A)(v)(I), and procuring naturalization for himself in violation of 18 U.S.C. 1425(a) - carry a maximum sentence of up to 5 years in prison for the 371 conspiracy charge and 10 years in prison for the remaining charges, and a fine of up to $250,000 on each count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but which provide appropriate sentencing ranges for most offenders.
Sentencing for Rex Anyanwu, 51, of Lithia Springs, Ga., is scheduled for sentencing on January 27, 2014, at 2:00 p.m. before United States District Judge Thomas W. Thrash.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. U.S. Citizenship and Immigration’s Fraud Detection National Security Unit and U.S. Department of State, Diplomatic Security Service also assisted in the case.
Assistant United States Attorney Susan Coppedge, Special Assistant United States Attorney Njeri Maldonado, and Intern Annalise Lisson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Dallas Man Sentenced in Witness Intimidation SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 48-year-old Dallas man has been sentenced to federal prison for the carjacking of a witness in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Dietrick Lewis Johnson pleaded guilty to carjacking and tampering with a witness on Oct. 15, 2013 and was sentenced to 240 months for the carjacking violation and 125 months for the witness tampering charge today by U.S. District Judge Marcia Crone. Johnson was ordered to serve the sentences consecutively for a total of 365 months in federal prison.
According to information presented in court, on Mar. 21, 2011, Johnson kidnapped an ex-girlfriend who had a restraining order against him for stalking her. Johnson forced the woman into her vehicle at gunpoint and drove away with her in the car. Once they arrived at Johnson’s apartment, he forced the woman to call the Dallas county District Attorney’s office and request the stalking charges be dropped. Johnson was indicted by a federal grand jury on Apr. 11, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the McKinney Police Department and the Dallas Police Department and prosecuted by Assistant U.S. Attorney Tracey Batson.
Convicted Felon Sentenced for Possessing A Firearm with an Obliterated Serial NumberRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that William Thomas Holland III, 31, of Norfolk, Va., was sentenced Thursday by U.S. District Judge Tom Stagg to 24 months in federal prison and three years of supervised release for possessing a firearm after being convicted of a felony and for possessing a firearm with an obliterated serial number. He pleaded guilty July 11, 2013.
According to evidence presented at the guilty plea, on June 23, 2012, members of the 2nd Security Forces Squadron at Barksdale Air Force Base (BAFB) noticed a vehicle parked near a wooded area on BAFB. Upon looking through the window of the vehicle, officers saw a large knife, marijuana and evidence of marijuana use. Holland then walked from the woods and approached the vehicle and stated that he owned the vehicle. The defendant was detained and a warrant was obtained to search the vehicle to retrieve the knife and marijuana. Holland was the civilian spouse of a member of the military who lived on BAFB. A second search warrant was obtained to search Holland’s residence on BAFB. A loaded .357 caliber revolver was found along with other items. The serial number on the firearm was obliterated. Holland admitted to possessing the firearm, knowing that the serial number was obliterated on the firearm and that he had a prior felony conviction prohibiting him from possessing the firearm. He told law enforcement agents that he had bought the ammunition for the firearm from a local sporting goods store.“Barksdale Air Force Base is one of the largest Air Force bases in the world and is home of the 8th Air Force and B-52H bombers,” Finley stated. “The safety of the military and its civilian protection is a priority of our office. Vigilant action by Security Forces and the Air Force Office of Special Investigations (AFOSI) agents resulted in the arrest, conviction and imprisonment of this felon. It is a testament to the great working relationship between the military investigative personnel and the Alcohol, Tobacco, Firearms and Explosives.”
Members of the 2nd Security Forces Squadron, the AFOSI at Barksdale Air Force Base and the Shreveport Office of the ATF investigated the case. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted this case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program started in 2001 designed to reduce violence by aggressively enforcing existing federal firearms laws.
Conspirators Sentenced in Alien Harboring CaseRead the Press Release
One Defendant Was a Police Officer with the Dallas Independent School District
DALLAS — Favian LaTorre, 57, of Dallas, was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to one year and one day in federal prison, and ordered to pay $10,493 in restitution, following his guilty plea in February 2013 to one count of conspiracy to harbor an alien. His co-conspirator, Gloria Palacios, 40, also of Dallas, pleaded guilty to the same offense and was sentenced earlier this month to 24 months in federal prison. LaTorre must surrender to the Bureau of Prisons on January 7, 2014; Palacios has been in custody since her arrest in December 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
LaTorre was a police officer with the Dallas Independent School District (DISD).
According to his filed factual resume, in July 2008, LaTorre began recruiting “F.P.,” who was 15-years-old, to come to the U.S. illegally to provide care for a young child he and co-conspirator Palacios had together. LaTorre had taken his young child to El Salvador for a brief period during 2008, and during that time, F.P. had cared for the child in El Salvador.
LaTorre and Palacios promised F.P.’s parents that they would arrange for F.P. to travel to the U.S. with the help of a “coyote.” LaTorre and Palacios also promised F.P.’s parents that they would pay to smuggle F.P. into the U.S. and that she would be safe.
F.P. traveled from El Salvador to the U.S. with the “coyote” hired by LaTorre and Palacios. When F.P. entered the U.S. with the “coyote,” LaTorre picked F.P. up in Houston and transported F.P. to Palacios’s residence in Dallas.
F.P. lived and worked in Palacios’s residence, caring for LaTorre and Palacios’s young child, from September 2008 until approximately February 2009. During this time, LaTorre concealed, harbored and shielded F.P., an alien from El Salvador, from detection in Palacios’s residence, and elsewhere.
The case was investigated by the FBI and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Errin Martin prosecuted.
Co-Defendant of Bridgeport Mayor Sentenced for Lying to the Federal Bureau of InvestigationRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on November 15, 2013, Paul R. Kramer, 63, of Vincennes, Indiana, was sentenced to two years of probation, with six months of home confinement and was ordered to pay fines and special assessments of $700.00, after pleading guilty to two counts of making false statements to the Federal Bureau of Investigation (FBI).
On November 6, 2012 Kramer, was indicted along with Max R. Schauf, the former Mayor of Bridgeport, Illinois. Schauf was charged with three counts of mail fraud and one count of obstruction, Kramer was charged with the two counts of making false statements. At his plea, on March 20, 2013, Kramer admitted that he had lied to FBI agents on two separate occasions when federal authorities were conducting a financial fraud investigation regarding the former mayor.
Kramer’s co-defendant, Max R. Schauf, was sentenced on October 17, 2013, to eighteen months in prison and ordered to pay fines and restitution totaling $59,000.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
Chinese National Sentenced to 108 Months' Imprisonment for International Weapons TraffickingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Zhifu Lin, a Chinese national and resident of West Virginia, was sentenced to 108 months’ imprisonment for violating the Arms Export Control Act and engaging in illegal weapons trafficking. From 2010 to 2012, Lin and others, including a former member of the United States Marine Corps and National Guard, exported multiple shipments of high-powered firearms from the United States to China. Lin and his accomplices secreted the weapons in packages and transported them to shipping companies in Queens, New York, and elsewhere, to be sent to Shanghai, China’s largest city. The weapons included dozens of semi-automatic handguns, rifles, shotguns, and military-style assault weapons.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, John P. Carlin, Acting Assistant Attorney General for National Security, James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division; Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, New York Field Office; and Sidney Simon, Special Agent-in-Charge, Department of Commerce, Office of Export Enforcement, New York Field Office.
Authorities uncovered the weapons trafficking ring after police in China seized a package containing firearms with defaced serial numbers, which had been shipped from Queens, New York. Upon learning of the seizure, American law enforcement officials traveled to China to examine the evidence. The types of weapons seized by the Chinese authorities have been designated by the President of the United States on the United States Munitions List, and may not be exported without a license from the U.S. State Department. With the aid of forensic techniques, agents determined that one of the weapons seized in China had originally been purchased by a former United States Marine in North Carolina. Agents then traced the shipments back to Lin and his accomplices. Agents arrested Lin in West Virginia in April 2012, and he has been in federal custody ever since. Lin, who originally entered the United States in 2009 on a student visa and briefly attended an American university, faces deportation upon the conclusion of his prison term.
“ The defendant traded the promise of the American dream for a jail cell and deportation by flagrantly violating federal gun laws and export regulations. All those who seek profits through the black market for illegal weapons – whether a former U.S. Marine who traded his honor for easy money, or a foreign national who took advantage of our country’s freedoms – will face the full force of the law. We will not cease in our efforts to stem the flow of illegal weapons that threaten the safety of our communities and our national security,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the federal agencies that worked closely together to investigate the case.
The sentence was imposed by United States District Judge Eric N. Vitaliano. To date, four individuals have been convicted of weapons trafficking and export offenses in connection with this case.
The government's case was prosecuted by Assistant United States Attorney Seth DuCharme, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section. Assistance also was provided by the U.S. Attorneys= Offices in the Northern District of West Virginia and the Eastern District of North Carolina and Trial Attorney Dan Stigall of the Department of Justice Office of International Affairs.
The Defendant
ZHIFU LIN
Age: 27Chief Executive Officer and President of Investment Fund Sentenced in Manhattan Federal Court for Orchestrating $10 Million Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ABDUL WALJI and RENIERO FRANCISCO, the Chief Executive Officer and President, respectively, of Arista LLC (“Arista”), a California investment fund, were sentenced today in Manhattan federal court to 151 months and 97 months, respectively, in connection with a multimillion-dollar fraud scheme. WALJI and FRANCISCO defrauded 40 investors of approximately $10 million through a series of misrepresentations concerning the nature and performance of the investment fund, and issued fraudulent account statements to investors to cover up massive losses. WALJI also perpetrated a separate multimillion-dollar scheme involving pension plan funds that he managed through three California-based trusts: Allied Benefits, Inc., Allied Benefits Trust, and Stone Lamm Trust (collectively, the “Trusts”). Both defendants were charged in December 2012, and pled guilty on July 2, 2013 before U.S. District Judge Denise Cote, who also imposed today’s sentences.
Manhattan U.S. Attorney Preet Bharara said: “Abdul Walji and Reniero Francisco defrauded dozens of investors who put trust – and millions of dollars – in their hands. The crimes they committed have earned them more than two decades of collective prison time.”
According to the three-count Superseding Information to which WALJI pled guilty, the Indictment to which FRANCISCO pled guilty, the defendants’ plea agreements, other documents in the public record, and statements made during their guilty pleas:
The Arista Fraud Scheme
Arista began operations as an investment firm in February 2010, with its principal place of business in Newport Coast, California. In April 2011, Arista became a registered commodity pool operator with the United States Commodity Futures Trading Commission (“CFTC”), and a member of the National Futures Association.
In early 2010, WALJI and FRANCISCO began to solicit individuals to invest in Arista. From 2010 through 2011, the defendants carried out a fraudulent scheme through three main methods. First, WALJI and FRANCISCO misrepresented to several Arista investors the nature of the company’s investments and the returns that investors would receive from investing in Arista. For example, WALJI and FRANCISCO falsely told investors that their money would be invested in safe, risk-free securities, when in fact much of the money was invested in options and futures. Second, WALJI and FRANCISCO sent fraudulent account performance statements to Arista investors that misrepresented the value of their investments. In an effort to secure additional contributions, the defendants also concealed Arista’s trading losses, and told investors that they were profiting from their investments when they were actually losing money. Finally, WALJI and FRANCISCO misappropriated at least $2.7 million from Arista’s investors through fees to which they were not entitled, and which WALJI and FRANCISCO diverted for their own personal benefit. Based on their false representations, WALJI and FRANCISCO collected $10 million from 40 investors, and they ultimately misappropriated a large portion of the money.
Walji’s Pension Plan Fraudulent Scheme
From early 2008 through June 2013, WALJI also perpetrated a separate fraudulent scheme using pension plan funds that he administered. Similar to the scheme set forth above, WALJI executed his fraudulent scheme through three principal methods. First, WALJI made oral misrepresentations to existing and potential clients of the Trusts concerning: (i) the nature of the Trusts’ pension plan investments; (ii) the investment value and past performance of the pension plans; and (iii) the source of funds distributed to plan participants who had reached retirement and/or who had requested distributions. Second, WALJI distributed fraudulent statements to clients concerning the value of their accounts and the prior performance of their pension plans in order to forestall redemption requests, to induce new clients to contribute to the plans, and to induce existing clients to make additional contributions. As selected clients reached retirement age or requested disbursements, WALJI sent those clients money that he represented to be proceeds of their individual pensions, when in fact he knew that the purported disbursements were often funds contributed by other clients. Third, WALJI misappropriated approximately $300,000 of client funds for his personal use. In total, this scheme caused losses to approximately 40 additional victims in an aggregate amount of approximately $11.3 million.
In addition to their prison terms, Judge Cote sentenced WALJI to three years of supervised release, and FRANCISCO to three years of supervised release. WALJI was also ordered to forfeit $13.6 million and to pay over $21 million in restitution. FRANCISCO was ordered to forfeit $4.1 million. The defendants also agreed to forfeit the proceeds of several bank and trading accounts.
WALJI, 60, of San Juan Capistrano, California, pled guilty in July 2013 to one count of conspiracy to commit securities fraud and wire fraud, one count of commodities fraud, and one count of securities fraud. FRANCISCO, 57, of Newport Coast, California, pled guilty in July 2013 to one count of conspiracy to commit securities fraud and wire fraud and one count of securities fraud.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the CFTC for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Christopher D. Frey are in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the forfeiture-related aspects of the case.
California Man Arrested; Dea Task Force Seizes Six Kilograms of Heroin, More Than $300kRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration in New England, today announced that LUIS CEDILLO, 31, recently of Sylmar, Calif., has been arrested on a federal criminal complaint charging him with trafficking heroin.
CEDILLO was arrested last night in Wolcott. He appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained.
According to court documents and statements made in court, members of the Drug Enforcement Administration’s New Haven Task Force initiated surveillance of CEDILLO as part of an ongoing investigation. On November 14, 2013, agents followed a white Cadillac Escalade that CEDILLO was driving to a store where it is alleged that CEDILLO purchased items used in the processing and packaging of illegal drugs. After the Escalade traveled to a garage in Wolcott, agents approached CEDILLO, secured him in handcuffs and received consent from the owner of the property to search the garage.
As alleged in the complaint, agents observed that the vehicle, which was raised on a lift, had sheet-rock screws coming through the metal of the bottom of the car. After a canine alert, agents located and opened a trap in the rear of the vehicle and retrieved approximately six kilograms of heroin. CEDILLO was placed under arrest at the time.
A subsequent search of a residence in Danbury connected to CEDILLO revealed between $300,000 and $400,000 in cash.
The complaint charges CEDILLO with possessing with the intent to distribute one kilogram or more of heroin.
This matter is being investigated by the DEA New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia and Meriden Police Departments, and the U.S. Marshals Service. This case is being prosecuted by Assistant U.S. Attorney Dave Vatti and Special Assistant U.S. Attorney Natasha Dye.
Acting U.S. Attorney Daly stressed that a complaint 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.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Brothers Plead Guilty to Federal Murder ChargesRead the Press Release
ANTOINE BROOKS, age 23, DON BROOKS, a/k/a “Crip,” age 21, both of New Orleans, Louisiana, pled guilty yesterday before U.S. District Judge Lance M. Africk to violations of the Federal Gun Control Act, announced U.S. Attorney Kenneth Allen Polite, Jr.
ANTOINE BROOKS pled guilty to using a firearm to murder Tamira Johnson on September 23, 2011. DON BROOKS pled guilty to using a firearm to murder Tamira Johnson on September 23, 2011; Harry Howard on January 1, 2012; and Lamont Phillips on January 4, 2012. Pursuant to their 11(c)(1)(C) plea agreements with the government, which the Court may accept or reject, ANTOINE BROOKS will be sentenced to a term of imprisonment of 25 years and DON BROOKS will be sentenced to a term of imprisonment of 20 years for each murder, to be served consecutively, for a total of 60 years imprisonment.
According to court documents, the defendants admitted that on September 23, 2011, they were driving in New Orleans looking for Roosevelt Rumbley, a rival drug dealer with whom they had an ongoing drug feud, in order to kill him. As ANTOINE and DON BROOKS approached Rumbley, ANTOINE BROOKS reached out of the car window holding a .40 caliber handgun and began shooting. Rumbley shot in the hand (and survived), but Tamira Johnson, who was coincidentally walking on the street near Rumbley, was also shot and died.DON BROOKS admitted that on January 1, 2012, he murdered Harry Howard during the course of a drug transaction. DON BROOKS further admitted that on January 7, 2012, he attempted to kill an individual who was seen talking with the police about the Howard murder.
DON BROOKS also admitted that on January 4, 2012, he murdered Lamont Phillips in front of his residence in New Orleans during the course of a drug transaction. According to a cooperating witness who was with Phillips just before the murder, Phillips engaged in a cellphone conversation with an individual he/she knew as “Crip” discussing making a drug deal. After the cell phone conversation, Phillips retrieved the drugs “Crip” requested from his house. Phillips then left to conduct the deal with “Crip.” The witness then heard numerous gunshots, looked out the window, and saw Phillips lying in street. According to the responding NOPD officers and other cooperating individuals, Phillips made a dying declaration that “Crip did me” just before expiring.
The case was investigated by the Drug Enforcement Administration and the New Orleans Police Department. The prosecution was handled by Assistant United States Attorney Sean Toomey.
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Bristol Man Sentenced to 210 Months for Illicit Sexual Conduct with A MinorRead the Press Release
ABINGDON, VIRGINIA -- - United States Attorney Timothy J. Heaphy announced today that David Lee Huggard, 48, of Bristol, Va., was sentenced last week to 210 in prison at a sentencing hearing in the United States District Court for the Western District of Virginia in Abingdon.
Huggard had earlier entered a plea of guilty to one count of traveling in interstate commerce with the intent to engage in illicit sexual conduct.
According to evidence presented at his guilty plea and sentencing hearings by Assistant United States Attorney Zachary T. Lee, Huggard, a long-haul interstate truck driver, made a cross-country trip with a four-year old minor child during the month of December 2012. Following the child’s return to Bristol, the child was interviewed at the Bristol-Washington County Children’s Advocacy Center and disclosed that sexual contact had occurred with Huggard during the course of the cross-country trip.
Huggard was arrested on January 26, 2013, by agents with the Federal Bureau of Investigation and a detective with the Bristol Virginia Police Department. Upon his arrest, Huggard admitted to engaging in oral sex with the four-year old child.
The investigation of this case was conducted bythe Bristol Virginia Police Department Criminal Investigation Division and the Federal Bureau of Investigation. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Arlington Man Sentenced to 480 Months in Federal Prison for Emailing Child PornographyRead the Press Release
FORT WORTH, Texas — Barry Robert Turner, 43, of Arlington, Texas, was sentenced this morning by U.S. District Judge John McBryde to 480 months (40 years) in federal prison following his guilty plea in July 2013 to one count of distribution of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, in December 2012, Turner used the Internet and Google G-mail to email a one-minute video of child pornography, depicting a toddler, to another individual.
According to the complaint filed in the case, in October 2012, Turner responded to an advertisement on Craigslist for taboo phone sex and continued to correspond with the individual who had placed the ad. Turner sent the individual a video of child pornography and in subsequent emails and texts they discussed the child porn images they shared.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Aisha Saleem.
Alorton Man Pleads Guilty to “Crack” Cocaine DistributionRead the Press Release
On November 14, 2013, Dione J. Joyce, a thirty-one year old Alorton, Illinois, man pled guilty in federal district court, in East St. Louis, to distribution of cocaine base, in the form commonly known as “crack” cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Joyce is scheduled for sentencing on March 7, 2014, at which time he faces a maximum sentence of 20 years in prison and a fine of up to $1,000,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100.
Facts presented in court revealed that Joyce sold over 100 grams total of cocaine base in the form of “crack” on April 26, 2013, May 1, 2013, and May 22, 2013, to a confidential informant in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Alabama Man Indicted in Scheme to Defraud Military Sub-ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), and Frank Robey, Director, Major Procurement Fraud Unit (MPFU), U.S. Army Criminal Investigation Command, announce the indictment of defendant Stanley P. Phillips, 47, of Dothan, Alabama. Phillips is charged with seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Phillips is scheduled for arraignment on November 20, 2013 in West Palm Beach before U.S. Magistrate Judge James M. Hopkins.
According to the indictment, Phillips engaged in a scheme to defraud a subsidiary of Day & Zimmermann International, Inc. (D&Z) of over $600,000. D&Z was a military sub-contractor who had been engaged to build a Weak Acetic Acid Recovery Facility Plant, known as the WAARP Project, at the Holston Army Ammunition Plant in Kingsport, Tennessee. Phillips was the D&Z Construction/Site Manager on the WAARP Project. Phillips used his position with D&Z to influence D&Z into hiring a small company called HSIII as a subcontractor on the WAARP Project. In turn, Phillips had HSIII hire a company called RGS Professional Services, Inc. (RGSPS) to ostensibly do work on behalf of HSIII on the WAARP Project. In fact, RGSPS had been incorporated by Phillips in Florida and was actually a nursing registry which was not capable of providing any services on the WAARP Project. Phillips did not disclose his ownership in RGSPS to HSIII, and made sure HSIII did not disclose RGSPS to D&Z. Phillips directed D&Z to pay HSIII monies which were earmarked for RGSPS, and which were ultimately used by Phillips for his personal benefit.
If convicted, the maximum penalties for each charge are twenty years in prison, up to three years supervised release, and a fine of $250,000 or not more than twice the gross gain or loss form the offense, whichever is greater.
Mr. Ferrer commended the investigative efforts of the FBI, DCIS and the U.S. Army Criminal Investigation Command. This case is being handled by Assistant U.S. Attorney Carolyn Bell.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
"Trick or Treat Bandit" Sentenced to Federal Prison for Series of Austin Bank RobberiesRead the Press Release
In Austin today, 34-year-old Antonio Cervantez of Austin, dubbed by law enforcement as the “Trick or Treat Bandit,” was sentenced to 11 years in federal prison followed by five years of supervised release for committing several Austin bank robberies announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, San Antonio Division, and Austin Police Chief Art Acevedo.
Cervantez, who has remained in custody since his arrest on May 29, 2013, received four years in federal prison for bank robbery plus a mandatory seven-year-consecutive prison term for possession of a firearm during a crime of violence. In addition to the prison term, United States District Judge Sam Sparks ordered that Cervantez pay a combined restitution in the amount of $127,885.49 to four different financial institutions—Bank of America, Wells Fargo, Capital One and International Bank of Commerce.
“It’s hard to know what someone considers when planning and committing an armed robbery, but this case should make them think about the fact that they’ll likely spend a long time in prison if we have anything to do with it,” stated United States Attorney Robert Pitman.In August, Cervantez pleaded guilty to the charges. By pleading guilty, Cervantez admitted that on the afternoon of May 29, 2013, he robbed the Bank of America located on West Parmer Lane in Austin. A bank customer, who witnessed the robbery from the drive-through banking lane, called the police and followed Cervantez after he fled the scene. Cervantez drove to his residence in the 4300 block of Northridge where authorities subsequently arrested him and recovered approximately $30,000 stolen from the bank and a .380 caliber firearm. According to court records, Cervantes is also responsible for committing seven other bank robberies in Austin dating back to October 2009.
“This case highlights the FBI’s commitment to working with our partners in the Central Texas Violent Crime Task Force, to aggressively investigate and prosecute dangerous serial armed bank robbers, who threaten the safety of our public,” stated FBI SAC Armando Fernandez.
This case was investigated by the Austin Violent Crime Fugitive Task Force. The Task Force is made up of investigators from the Federal Bureau of Investigation, Austin Police Department and the Round Rock Police Department. Assistant United States Attorney Gregg N. Sofer prosecuted this case on behalf of the Government.
Thursday 14 November 2013
Zimbabwean Man Sentenced for Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A 39-year-old Zimbabwean man living in Dallas, Texas has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Moses Mukuka, formerly living in Pocatello, Idaho, was sentenced to 46 months in federal prison for his role in two conspiracies to file false claims for refunds with the IRS. Mukuka was sentenced on Nov. 12, 2013, by U.S. District Judge Thad Heartfield.
According to the court documents, Mukuka entered into one conspiracy with another individual to place flyers around the Idaho State University campus, advertising himself as an accounting student, which he was not, and offering to do income tax returns for a $10 fee. Mukuka received paperwork from students to prepare their taxes and then sent the information out-of-state to the other individual to prepare the tax returns. The tax returns were submitted to the IRS with false information, including the number of dependents, claims as head-of-household, and other fictitious entries designed to increase the refund amount. Mukuka then distributed a small portion of the actual refund to the taxpayer, representing it was the entire refund, and failed to provide copies of the returns to the taxpayers. Mukuka admitted that he was aware the tax returns were false. As part of his sentence for this conspiracy, Mukuka was ordered to pay restitution in the amount of $1,463,116.00.
In the other conspiracy, Mukuka and his co-conspirators acquired the personal identification information of others, including their Electronic Filing Identification Numbers, and they used that information to file false tax refund claims with the Internal Revenue Service. Mukuka and his co-conspirators received at least $1,056,681.00 in fraudulent tax refunds and intended to cause a loss of $1,700,000 as a result of these false tax refund claims. As part of his sentence for this conspiracy Mukuka must pay restitution in the amount of a $1,056,681. Mukuka was ordered to be deported after he completes his prison term
This prosecution resulted from an investigation conducted by special agents with the IRS Criminal Investigation. The matter was prosecuted by Assistant U.S. Attorney Jack B. Haycock in Idaho before it was transferred to the Eastern District of Texas and prosecuted by Assistant U.S. Attorney Christopher Eason.
Youngstown Man Indicted for $1 Million Fraud Involving Distressed HomesRead the Press Release
A federal grand jury returned a 59-count indictment charging a Youngstown fraudulently obtaining ownership of more than two dozen distressed properties in Mahoning County and resold them for about $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Ondrea Shabazz, 47, faces multiple counts of real estate fraud, identity fraud and mail fraud.
“This defendant is accused of taking advantage of blight and distress in Youngstown neighborhoods as a way to enrich himself,” Dettelbach said.
“This defendant willfully decided that greed beat out any sense of decency when he forged signatures to fraudulently obtain ownership of distressed, soon-to-be-demolished homes and sold them to his clients for a profit,” Anthony said.
Counts 1 through 29 of the indictment charge that beginning in or about October 2011, through June 2013, Shabazz knowingly devised a scheme to defraud real estate owners and unsuspecting third parties in order to obtain money and property by means of false and fraudulent pretenses, representations, and promises. The manner and means used to accomplish the objectives of the scheme included the following, according to the indictment:
a. Shabazz and others known and unknown operated Real Estate Investment Connection, LLC, a company that fraudulently obtained and resold distressed properties in the Youngstown, Ohio, area.
b. Shabazz identified distressed properties that were foreclosed and/or targeted for demolition. After identifying these properties, Shabazz created fraudulent quit claim deeds that contained forged signatures of the real estate owners and, in some instances, the forged signature of a Notary Public. The deeds purported to transfer the property to Ondrea Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.
c. Shabazz and others working at his direction then filed the fraudulent quit claim deeds with the Recorder’s Office or the Auditor’s Office in Mahoning County. Once the filing fee was paid and the deed was recorded, the recorded deed was mailed to Ondrea Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.
d. After receiving the recorded deed in the mail, Shabazz resold the property to individuals and companies under the false pretense that the property was legally owned by Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.
e. In other instances, Shabazz fraudulently acted as an intermediary who had the authority to broker real estate transactions between the real estate owners and an unsuspecting third party. Shabazz prepared quit claim deeds with forged signatures of the property owners and/or of a notary public. Shabazz then gave the deeds to the unsuspecting third party and instructed them to record the deeds with the Recorder’s Office or the Auditor’s Office in Mahoning County. Once the filing fee was paid and the deed was recorded, the recorded deed was mailed to the unsuspecting third-party.
f. As a result of this activity, Shabazz defrauded property owners and unsuspecting third parties out of money and property valued over $1 million.
g. Shabazz, for the purpose of executing such scheme and artifice, placed and caused to be placed in any post office and any authorized depository for mail matter, any matter or thing, to-wit: 29 fraudulent quit claim deeds to be delivered by the United States Postal Service to Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.
Counts 30-59 of the indictment charge that from October 2011 through June 2013, Shabazz did knowingly possess and use, without lawful authority, a means of identification of another person during and in relation to mail fraud.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wayne Man Sentenced in Connection with Scheme to Defraud Huntington Small BusinessRead the Press Release
Shawn Osburn created falsified work orders that were used to steal more than $10K in supplies from Huntington-based Justice Glass and Supply Co.
CHARLESTON, W.Va. – A Wayne County man who defrauded a Huntington-based small business out of more than $10,000 in supplies was sentenced today to five years’ probation, announced U.S. Attorney Booth Goodwin. Shawn Osburn, 44, previously pleaded guilty in April to wire fraud. Osburn, a former employee for Huntington-based residential window supplier Justice Glass and Supply Company (“Justice Glass”), prepared and submitted false work orders for supplies at various times during his employment with Justice Glass that began in 2008 and continued through October 2010.
During the scheme, Osburn prepared work orders that contained false information and submitted the orders, generally by using telephone and fax, to suppliers. After receiving the products from the company’s supplier, Osburn stole the items and later sold them for cash.
Osburn told investigators that the profits in which he had obtained as a result of the fraudulent work orders were not given to Justice Glass. Osburn illegally sold a total of at least $13,000 in stolen supplies.
The Court ordered Osburn to pay full restitution, with interest, to Justice Glass in the amount of $260 each month.The FBI conducted the investigation. Assistant United States Attorneys Philip Wright and Meredith George Thomas handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was brought as part of the United States Attorney’s Office’s initiative to prosecute crimes against small businesses. In September 2010, U.S. Attorney Goodwin created and launched a comprehensive plan to protect small businesses and nonprofit agencies from fraud and abuse. Goodwin has redoubled efforts to identify, investigate and prosecute dishonest employees and other criminals who defraud or embezzle from small businesses.
The Crimes Against Small Business Initiative strives to protect businesses and nonprofit organizations by working in partnership with the business community, along with state and local law enforcement officials, to ensure that occurrences of fraud, embezzlement, scams and other crimes targeting small businesses are prosecuted to the fullest extent of the law.
Waialua Brothers Convicted of Methamphetamine TraffickingRead the Press Release
HONOLULU – After a five day trial in United States District Court in Honolulu, a federal jury today found Jacob Drummondo-Farias, 30, of Waialua, guilty of conspiring to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine between 2011 and January, 2012. Earlier during the trial, on November 8, 2013, Drummondo-Farias’ brother and co-defendant, Joshua Lew, 28, also of Waialua, pled guilty to conspiring to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine. The jury acquitted Drummondo-Farias of a second charge of a distribution of approximately 54 grams of methamphetamine in December 2010.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to evidence presented at trial Drummondo-Farias and Lew agreed with other individuals to distribute methamphetamine that was sent from California, via express mail services, to Honolulu during 2011 and 2012. The evidence also reflected that Drummondo-Farias and Lew orchestrated the shipment of 852 grams of methamphetamine which was intercepted at the Honolulu Airport on January 26, 2012 by federal law enforcement authorities.
Lew faces up to life in prison with a mandatory minimum ten year term of imprisonment. Drummondo-Farias also faces up to life in prison, however, because he was previously convicted of a federal drug felony, he faces a mandatory minimum sentence of 20 years imprisonment. Both defendants will be sentenced by U.S. District Judge J. Michael Seabright on February 24, 2014.
The investigation which resulted in the charges in the case was conducted by the Drug Enforcement Administration and United States Postal Service. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Visa Fraud Scheme Results in Federal Criminal ChargesRead the Press Release
SAIPAN — Alicia A.G. Limtiaco, United States Attorney for the District of Guam and the Northern Marina Island, announced the filing on October 22, 2013, of federal criminal charges against MARIANO K. PANGELINAN, ROSABELLA P. CRUZ, and HELEN N. APARENTE, stemming from their involvement with a corporation called ARCH INTERNATIONAL (hereinafter called ARCH).
The federal criminal indictment is attached. It alleges that the three individuals held ARCH out as a recruiting agency that could help aliens obtain jobs and employment-based CW-1 permits for certain fees, but, after taking various fees from the aliens, did not find them jobs but instead submitted CW-1 petitions to federal immigration authorities in which they falsely stated that ARCH itself employed the aliens.
The indictment charges Conspiracy to Commit Visa Fraud and to Defraud the United States, in violation of Title 18, United States Code, § 371; Visa Fraud, in violation of Title 18, United States Code, § 1546(a); and False Statement, in violation of Title 18, United States Code, § 1001(a)(2). The Conspiracy and False Statement charges carry maximum potential sentences of five years in federal prison and a $250,000 fine. The Visa Fraud charges carry a maximum potential sentence of ten years in federal prison and a $250,000 fine.Defendants PANGELINAN and CRUZ made their initial appearances before U.S. Magistrate Judge Heather L. Kennedy on October 25, 2013, and were arraigned before U.S. District Court Judge Ramona V. Manglona on November 4, 2013. Trial is scheduled for December 30, 2013, at 10:00 AM. Defendant APARENTE is still at large.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty. The investigation was conducted by Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Ross K. Naughton.
Indictment
Utah Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on November 13, 2013, Tahlene Shaw Serawop, a 25-year-old Ute Tribal Member, was sentenced by Chief United States District Judge Nancy D. Freudenthal to 21 months imprisonment, three years of supervised release, and was ordered to pay a $100.00 special assessment and $616,657.43 in restitution. Ms. Serawop previously pled guilty to the offense of assault resulting in serious bodily injury. This case was investigated by the FBI and BIA law enforcement.
U.S. Attorney Heaphy Presents Members of Abbott Prosecution Team with Department of Justice Achievement AwardRead the Press Release
ROANOKE, VIRGINIA –Assistant United States Attorneys Randy Ramseyer and Rick Mountcastle of the U.S. Attorney’s Office for the Western District of Virginia, were two of 154 Department of Justice employees nationwide to be recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett with a 2013 Director’s Award.
United States Attorney Timothy J. Heaphy presented the Director’s Awards to members of the Abbott prosecution team at a ceremony yesterday in Roanoke.
“The prosecution of Abbott Labs resulted in a total settlement of $1.5 billon, the largest single-drug settlement of an off-label pharmaceutical fraud case in the history of the Department of Justice,” U.S. Attorney Heaphy said at today’s ceremony. “Significant federal cases like the Abbott matter help deter waste, fraud and abuse in the health care system. AUSAs Ramseyer and Mountcastle and other lawyers in this office have historically tackled a number of these labor-intensive cases. Time and again our AUSAs have proven to be the very best in the business in handling these complex cases. We will try to perpetuate their success and continue our work in this important area.”
In May 2012, global health care company Abbott Laboratories Inc., pleaded guilty in United States District Court in Abingdon, Virginia, to unlawful promotion of the prescription drug Depakote for uses not approved as safe and effective by the Food and Drug Administration. As part of its plea agreement with the Department of Justice, the company agreed to pay $1.5 billion to resolve criminal and civil liability arising from the company’s conduct. Following a lengthy investigation led by AUSAs Ramseyer and Mountcastle, Abbott pleaded guilty to misbranding Depakote by promoting the drug to control agitation and aggression in elderly dementia patients and to treat schizophrenia when neither of these uses were supported by evidence or were FDA approved. During a ceremony today at the United States Attorney’s Office for the Western District of Virginia in Abingdon, U.S. Attorney Timothy J. Heaphy honored those on the prosecution team for their hard work and dedication to the lengthy successful federal investigation of Abbott Laboratories.
In letters to Ramseyer, Mountcastle, Attorney General Eric Holder told the awardees that they showed “exceptional efforts to promote the fair and impartial administration of justice for all Americans.”
“Each day the members of the US Attorneys’ community go to work for the citizens of this country with one goal in mind – to do everything they can to protect the rights of all Americans,” said EOUSA Director Jarrett. “I am continually humbled by their resiliency, dedication, and unparalleled work ethic to accomplish this noble mission. Today’s awardees exemplify what it truly means to be a patriot and it is an honor to recognize them for their extraordinary service.”
U.S. Attorney Heaphy presented AUSA Randy Ramseyer, and members of Abbott prosecution team, with Department of Justice Achievement Award at a ceremony on November 13, 2013
U.S. Attorney Files Civil Complaint and Stipulation of Settlement to Forfeit Ancient Italian Tomb PaintingRead the Press Release
A civil complaint was docketed today in federal court in the Eastern District of New York to forfeit a triangular Italian fresco fragment (the “Fresco”) that was falsely described as Macedonian when it was shipped from Switzerland to the United States in April 2011. The complaint alleges that the Fresco is the property of Italy and is protected under that country’s laws. Upon its arrival in the United States, the Fresco was seized by U.S. Customs and Border Protection (“CBP”) with the assistance of Homeland Security Investigations (“HSI”). The government also filed a stipulation of settlement with the shipper, in which the shipper abandoned its interest in the Fresco and consented to its forfeiture.
The complaint and settlement were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent in Charge, U.S. Department of Homeland Security, HSI, New York.
“Returning looted cultural property to its country of origin remains a priority of this office,” stated United States Attorney Lynch. “This artifact belongs to the people of Italy. It is a part of their history and heritage. By filing this action, we are using the legal tools available to us to return it to its rightful owners.” Ms. Lynch thanked the Italian Ministry of Cultural Heritage and the Italian Carabinieri Protection of Cultural Heritage Command for their assistance.
“The unlawful theft, transportation, smuggling and sale of precious cultural property – like the ancient tomb painting being forfeited today – has become increasingly difficult as a result of increased collaboration amongst law enforcement around the globe," said James T. Hayes Jr., special agent in charge of HSI New York. “HSI and our partners at CBP work more closely than ever to ensure the legitimacy of cultural property and antiquities that are brought into the United States”.
Italian authorities have identified the Fresco as the pediment of a painted tomb that originated near the ancient city of Paestum, Italy. The Paestum archeological site, which has been designated as a UNESCO World Heritage site, has suffered from thefts and illegal excavations. The painted tombs of Paestum were first excavated in 1969 and typically had four walls with pitched roofs, like small houses. Thus, as the pediment of one end of a painted tomb, the Fresco would have stood opposite a wall with a similarly painted pediment. Indeed, an exact match – a single wall whose pediment is identical to the Fresco in both dimensions and decoration – stands in the National Archeological Museum of Paestum in Italy.
When the Fresco was shipped to the United States, the shipper declared that the Fresco’s country of origin was Macedonia. CBP detained the Fresco on arrival and requested additional information on the Fresco’s history of ownership, or provenance. The shipper then supplied an affidavit repeating that the Fresco was Macedonian. The affidavit further stated that the Fresco had been purchased from a Swiss art gallery in 1959 – ten years prior to the excavation of the painted tombs at Paestum. An expert in ancient paintings advised HSI that the piece originated in Italy, not Macedonia, leading HSI to inquire with Italian authorities.
Upon being presented with evidence that the Fresco originated in Italy, not Macedonia, the shipper entered into a stipulation with the United States agreeing to forfeit the piece so that it can be repatriated to Italy.
The government’s case is being handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 13-CV-6286 (CBA)
Fresco Stipulation of Settlement
Fresco ComplaintTwo Mahoning Valley Men Indicted on Federal Firearms ChargesRead the Press Release
Two men from the Mahoning Valley were indicted on federal firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A federal grand jury returned a one-count indictment charging Kenneth D. Key, age 28, of Warren, Ohio, with being a felon in possession of a firearm.
The indictment charges that on or about August 18, 2013, Key possessed a Ruger, model P95, 9mm pistol, serial number 316-53865, and ammunition, despite a previous conviction for possession of firearms in furtherance of drug trafficking crime, United States District Court, Northern District of West Virginia Case No. 2:04CR22 on or about May 12, 2005.
In an unrelated case, a federal grand jury returned a one-count indictment charging Leroy Gore, age 40, of Campbell, Ohio, with being a felon in possession of a firearm.
The indictment charges that on or about October 12, 2013, Gore possessed a Glock, model 30, .45 caliber pistol, after he had been previously convicted of involuntary manslaughter and felonious assault in the Mahoning County, Ohio, Court of Common Pleas.
If convicted, the defendants’ sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigations preceding the indictments were conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Campbell Police Department. The cases are being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.