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Tuesday 12 November 2013
Topeka Man SentencedIn Commercial RobberiesRead the Press Release
TOPEKA, KAN. – A Topeka man has been sentenced to 30 months in federal prison after pleading guilty to two commercial robberies, U.S. Attorney Barry Grissom said today.
Brendon R. Thompson, 26, Topeka, Kan., pleaded guilty to two counts of robbery. On Nov. 16, 2012, he robbed the EZ Payday Advance store at 2613 S.W. 21st Street in Topeka. On Jan. 17, 2013, he robbed the Family Dollar at 1313 S.W. 21st Street in Topeka.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Topeka Man Sentenced to Federal Prison on Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to 15 months in prison after pleading guilty to a federal firearm charge, U.S. Attorney Barry Grissom said today.
Frederick L. Sanders, 41, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. Sanders was indicted by a federal grand jury May 29. The indictment alleged that on April 22, 2013, he unlawfully possessed a .45 caliber single-shot derringer pistol. At the time Sanders was prohibited by federal law from possessing a firearm because he had a prior felony conviction. He was convicted June 15, 2006, in Shawnee County District Court on a charge of possession of methamphetamine.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Tony Mattivi for their work on the case.Three More Charged in A Series of PNC Bank Robberies Across the StateRead 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 Investigation (FBI), Miami Field Office, John A. Bolduc, Chief, Port St. Lucie Police Department, Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office, J. Michelle Morris, Chief, Sebastian Police Department, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of Raven Simone Sayers, 23, of Hallandale, Florida, Joe JR Desilien, 24, and Herbert LeNorris Smith, 36, both of West Palm Beach, Florida. Sayers, Desilien and Smith were arraigned on November 5, 2013 on a Second Superseding Indictment before U.S. Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce, Florida, bringing the number of defendants charged in the series of PNC Bank armed robberies to eight. Trial has been set for January 27, 2014, in Ft. Pierce before U.S. District Judge Jose E. Martinez.
The Second Superseding Indictment, filed October 31, 2013, charges the defendants with conspiracy to obstruct, delay, or affect commerce or the movement of any article or commodity in commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951; with obstruction, delay, or affect commerce or the movement of any article or commodity in commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951; and using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c). If convicted of the Hobbs Act robbery conspiracy or Hobbs Act robbery, the defendants face a possible maximum statutory sentence of 20 years in prison. If convicted of using and carrying a firearm during and in relation to a crime of violence, the defendants face a mandatory minimum of seven years in prison. In the case of a second or subsequent conviction, the defendants face a mandatory minimum of 25 years in prison, up to a possible maximum sentence of life in prison, consecutive to any other sentence imposed.
According to the criminal complaints filed in these matters, on July 8, 2013, the PNC Bank located in Ft. Pierce, Florida and the PNC Bank in Port St. Lucie, Florida were robbed almost simultaneously at gunpoint by groups of black males wearing white clothing and white cloth masks. In each robbery, the groups of males fled in mini vans stolen earlier that morning. One group was apprehended after a police chase that ended near the intersection of Port St. Lucie Boulevard and Aster Road in Port St. Lucie, Florida. The driver Tomaleesha Jeffie Laqua McKeliver, and the three passengers, Anthony Isaac Johnson, Allan Demetrius Bradford, and Ivory Lee Robinson, III, were arrested.
The criminal complaints also state that shortly after two of the males fled the PNC Bank in Port St. Lucie, Florida, the third male became momentarily trapped inside, and was observed removing clothing as he fled the bank. A bag containing money was recovered near the PNC Bank and defendant Paul Edward Moore was arrested nearby. With the exception of Moore, the other individuals involved in the Port St. Lucie bank robbery remained at large until the recent arrests of defendants Sayers, Desilien and Smith.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, St. Lucie County Sheriff’s Office, Sebastian Police Department, Palm Beach County Sheriff’s Office, Port Orange Police Department, and Hillsborough County Sheriff’s Office for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Members of “La Onu” Found Guilty for Rico Act ConspiracyRead the Press Release
SAN JUAN, Puerto Rico – Today, after 12 days of jury trial, three members of La ONU, Edwin Bernard Astacio-Espino aka Bernard, Luis D. Rivera-Carrasquillo aka Danny KX, Danny Vorki and Ramón Lanza-Vàzquez aka Ramoncito, were found guilty of drug trafficking and murder charges. Namely, violations to the Racketeer Influenced and Corrupt Organizations Act (RICO), Violent Crimes in Aid of Racketeering Activity (VICAR), use of firearms in furtherance of crimes of violence, conspiracy to possess with intent to distribute controlled substances, and possession of firearms by prohibited persons, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The United States District Court Judge José A. Fusté presided over the trial.
The indictment alleged that from in or around 2004, the leaders of different drug points operating in the metropolitan area formed an alliance. This alliance would help them resolve conflicts between the previously rival drug gangs in a way that would not bring about the attention of local and federal authorities, thus ensuring increased profits from drug sales for all and reducing the risk of charges. It is further alleged that the alliance initially worked, but weakened over time. Several housing project gangs became disgruntled with La ONU and sought to break away from the organization. After several conflicts, La ONU broke into two (2) separate rival factions, La ONU and La Rompe ONU (La Rompe). The housing project gangs were split between those belonging to La ONU and La Rompe.
From the time of the split, the goal of La ONU was to maintain control through the use of force over the drug points in their members’ housing projects, and to kill La Rompe members and leaders in order to expand. Members of La ONU who committed murders and other violent acts were given benefits, including weapons, money and the ability to advance within the criminal enterprise. Though unwritten, the general rules followed by members of La ONU included, but were not limited to: 1) no associating with La Rompe members; 2) kill La Rompe members on sight; 3) no killing of other members of La ONU without leadership authorization; 4) no overtaking housing projects/drug points owned by other members of La ONU; and 5) no cooperating with law enforcement. Any violation of these rules was punishable by death of the violator and/or his/her family members.During the trial, evidence was presented relating to defendants’ participation in eleven (11) murders and three (3) attempted murders, all committed in furtherance of the activities of La ONU. These acts are as follows:
- On or about November 12, 2007, in Puerto Rico, defendant Ramón Lanza-Vàzquez, aka “Ramoncito” and other ONU members shot and killed Orlando Medina-Serrano.
- In October 2008, Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” tortured and killed Isaac Nair Ortiz-Rivera aka Kiki.
- On or about February 19, 2009, in Puerto Rico, defendant Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” and other ONU members killed Ángel Gonzàlez-Villanueva, aka “Chaple.”
- In July 2009, Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” killed Jayson Rivera Rivera, Camilo Ruiz Concepcion and Juan Pagan Lopez in what was known as the Cocobongo Massacre.
- On or about January 5, 2010, in Puerto Rico, defendants Luis D. Rivera-Carrasquillo, and others killed Luis Antonio De-Jesús-Pérez.
- On or about April 8, 2010, in Puerto Rico, ONU membersshot and killed Victor Vega-Ortega, aka “Victor El Nazi.”
- On or about May 4, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino, aka “Bernard” shot into a patrolling police helicopter and killed Jesús Quiñones-Santiago, and attempted to kill José Rivera-Quinoñes, Eduardo Alvelo-Meléndez, and Shakira Vàzquez-Nieves.
- On or about July 7, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino and others shot and killed Puerto Rico Police Officer Blanca De Los Santos-Barbosa and Manuel Medina-Rivera.
- On or about August 8, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino, and Luis D. Rivera-Carrasquillo and others killed Christian Toledo-Sànchez, aka “Pekeke.” During the course of the murder, Luis Gallardo-Rivera, aka “El Tuerto,” was shot and killed by the rival drug gang.
“These convictions demonstrate the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to eradicate drug trafficking and violent crimes in Puerto Rico. For many years these individuals intimidated the citizens of the metropolitan area with their violence and drug trafficking,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We are pleased with the jury’s verdict. “The jury trial which led to today’s conviction was one of the first ever RICO Act prosecutions of its nature in the District of Puerto Rico. We will use all the tools at our disposal to take dangerous criminals off the streets of Puerto Rico, until we break their grip on our communities and bring them to justice.”
The case was prosecuted by Assistant United States Attorney Jenifer Y. Hernàndez-Vega and Special Assistant US Attorney Victor Acevedo-Hernàndez.
The defendants face up to life imprisonment. The sentencing hearings were scheduled for February 10, 2014.
The United States and CA, Inc. Settle Federal Civil Fraud Claims for $8 MillionRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced the settlement of claims that CA, Inc. (CA), an Islandia, New York-based software and information technology company, defrauded the federal government in connection with contracts administered by the General Services Administration (GSA) and the Department of Defense (DOD). Pursuant to the settlement, which has been approved by United States District Judge Leonard D. Wexler, CA has paid the United States eight million dollars ($8,000,000.00).
The settlement announced today is the result of a joint investigation conducted by the GSA Office of the Inspector General, and, on behalf of DOD, the Defense Criminal Investigative Service (DCIS).
Between 2001 and 2010, federal government agencies purchased software maintenance services from CA, including upgrades and technical assistance, in accordance with contracts between CA and the GSA. The government’s investigation established that CA knowingly double-billed federal agencies by charging for periods of software maintenance for which the agencies had already paid. Specifically, when federal customers entered into software maintenance renewal agreements with CA, the company began the renewal periods on the day CA processed the order, rather than the day after the expiration of the customer’s then-existing maintenance period.
The government’s investigation also encompassed claims that CA prevented DOD buying commands, including military bases, from taking advantage of pre-paid software inventory and discounts available under several contracts known as Blanket Purchase Agreements (BPAs). The investigation established that CA fraudulently administered the BPAs by steering DOD customers away from BPA purchases and toward purchases under more costly contracts.
The settlement resolves claims filed under seal by Ann-Marie Shaw pursuant to the False Claims Act (FCA) in the action United States of America, et al., ex rel. Shaw v. CA, Inc. The FCA provides that a person with information that false claims for payment have been presented to the United States may bring a lawsuit for the United States and may share in any recovery. The Shaw suit also alleged fraud claims on behalf of California, Florida, Hawaii, Illinois, Massachusetts, Nevada, Virginia, New York, the District of Columbia, and the City of New York. The state claims are being settled pursuant to a separate agreement. The seal in the Shaw case was lifted on November 5, 2013.
CA has denied the government’s claims.
“The United States is not a deep pocket of taxpayer dollars to be exploited by private industry. We expect those who conduct business with the United States to honor their obligations accurately and honestly,” stated United States Attorney Loretta E. Lynch. “We will continue to vigorously enforce the False Claims Act for the protection of taxpayers and the United States government.” Ms. Lynch praised the successful partnership between the United States Attorney’s Office and the investigative agencies to carry out the mission to detect and prevent fraud.
“The federal government cannot afford to be overcharged,” said GSA Inspector General Brian D. Miller. “We need to save every taxpayer dollar we can.”
“By steering DOD customers away from the value-saving contract instruments, CA, Inc. took advantage of their federal customers and the U.S. taxpayers through their disregard for appropriate corporate governance. CA’s actions resulted in DOD paying again for software maintenance already paid for,” commented Special Agent in Charge Craig W. Rupert, DCIS Northeast Field Office. “The Defense Criminal Investigative Service, with our partner agencies, continues to aggressively pursue defense contractors who disregard the rules of commerce and law that disadvantage their customers.”
The United States’ claims were litigated by Assistant United States Attorney Robert W. Schumacher.
Suspended Border Patrol Agents Sentenced to PrisonRead the Press Release
TUCSON, Ariz. - On Nov. 12, 2013, United States District Court Judge Jennifer G. Zipps sentenced suspended Border Patrol Agents Dario Castillo, age 25, of Yuma, Ariz., and Ramon Zuniga, age 31, of San Luis, Ariz., to 24 months in prison, as a result of their convictions for civil rights offenses. Both were ordered to self-surrender for service of their sentence on or before Jan. 14, 2014.
On April 19, 2013, a federal jury in Tucson found Castillo guilty of four felony counts of deprivation of rights under color of law, and Zuniga guilty of four misdemeanor violations. The case was tried before Judge Zipps from April 8 through April 19, 2013.
“The United States Attorney’s Office will continue to hold accountable all federal law enforcement officers in Arizona who abuse their authority in violation of their oath of office,” said United States Attorney John S. Leonardo. “Violations of the law by those sworn to enforce it undermine public confidence in the entire criminal justice system and will not be tolerated. The sentences imposed today reinforce the fundamental principle that no one, including a law enforcement officer, is above the law.”
Evidence at trial showed that on Nov. 12, 2008, Zuniga and Castillo participated in a Border Patrol operation to track and contact border-crossers in Southern Arizona. At approximately 10:30 p.m., agents located a group of persons carrying backpacks containing marijuana. Most of these individuals fled, but four of the group were apprehended by the defendants and two other agents. During a search of the four, Zuniga discovered a small baggie of personal-use marijuana on one of them. He then shoved the marijuana into several of the victims’ mouths and yelled “cometela” (eat it). The defendants ordered the victims to take off their shoes, socks, jackets, and extra shirts, which the victims had layered to protect against the cold, leaving them barefoot and wearing a single layer of clothing. Defendant Castillo asked another agent for a cigarette lighter and then lit a fire which contained the victims’ shoes and clothing. Zuniga and Castillo then ordered the victims to run away, without shoes or socks, and wearing only a single layer of clothing. The four victims spent the night in the desert and were rescued the next morning by a Tribal Police Officer.
Following the completion of their prison sentences, each defendant will serve a three year term of supervised release.
The investigation in this case was conducted by the Department of Homeland Security’s Office of Inspector General. The prosecution was handled by Karen Rolley and Eric Markovich, Assistant United States Attorneys, District of Arizona, Tucson.
CASE NUMBER: 11-CR-02727-JGZ
RELEASE NUMBER: 2013-085_ Zuniga&CastilloFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Springfield Man Sentenced for Selling CocaineRead the Press Release
BOSTON - A Springfield man was sentenced in U.S. District Court in Springfield today for cocaine possession and distribution.
Bryan Murph, 24, was sentenced by U.S. District Court Judge Michael A. Ponsor to 14 months in prison and three years of supervised release. In April 2013, Murph pleaded guilty to two counts of possession with intent to distribute and distribution of cocaine base. On two occasions in February 2012, the defendant sold crack cocaine to a cooperating witness.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Mark Mastroianni, Hampden County District Attorney; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Commissioner William Fitchet of the Springfield Police Department; and Sheriff Michael J. Ashe, Jr., of Hampden County, made the announcement today. The case was prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Office Unit.
Phoenix, New York - Man was sentenced for a felony violation of the Clean Air ActRead the Press Release
SYRACUSE, New York - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Edward Palmer, 47, of Phoenix, N.Y., was sentenced in U.S. District Court in Syracuse before the Honorable Frederick J. Scullin, for a felony violation of the Clean Air Act, 42 U.S.C. § 7413(c), related to the illegal removal and disposal of asbestos. Palmer was sentenced to serve sixth months of home detention as part a two year term of Probation. He was further ordered to pay a criminal fine of $25,000 and to perform 50 hours of community service.
Palmer is the owner of Carbonsted, LLC, a company that owns the former Nestles Plant, 555 Fourth Street, Fulton, NY. The plant contains pipes with more than two thousand of feet of friable asbestos insulation. Palmer engaged in asbestos renovation activities without filing a notification with the United States Environmental Protection Agency. He directed unlicensed individuals to perform asbestos removal without wetting the asbestos and keeping it wet, and without properly disposing of the asbestos at a state-approved landfill.
Asbestos exposure has been determined to cause various forms of cancer, asbestosis, and mesothelioma, a nearly always fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos. This case was investigated by Special Agents of the Environmental Protection Agency, and N.Y. State Department of Environmental Conservation. Inspectors with the NYS Department of Labor also assisted. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0672.
Newport Man Detained on Federal Drug & Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Ian Andrade, 36, of Newport, was ordered detained today by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal drug and firearm charges, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva. Andrade was arrested by Newport Police on Friday.
According to an affidavit in support of an arrest warrant and a criminal complaint charging Andrade with one count each of possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime filed with the court, Newport Police executed court authorized search warrants on Friday at Andrade’s Newport residence and for his vehicle. Detectives seized approximately than 400 grams of cocaine and a loaded firearm from a hidden compartment discovered inside a rear passenger seat of the vehicle; nearly three-quarters of a pound of marijuana and a shotgun from Andrade’s residence; and $4,435 from Andrade’s person.
A criminal complaint is merely an allegation 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.
Possession of cocaine with the intent to distribute is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $1,000,000. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a statutory penalty of a minimum of 5 years and up to life imprisonment, to be served consecutive to any other sentence imposed, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys Pamela E. Chin and Stephen G. Dambruch.
The DEA and DEA Drug Task Force assisted Newport Police in the investigation of this matter.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New York Man Pleads Guilty in Huge Stolen Identity Refund Fraud CaseRead the Press Release
Admits He was Personally Involved in $9.9 Million in Phony Transactions
NEWARK, N.J. – A New York man today admitted his role as a leader of one of the nation's largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced.Jose Torres, a/k/a “Jose Quilestorres,” a/k/a “Carlos Jose Luis,” 47, of Bronx, N.Y., pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with conspiracy to defraud the United States, theft of government property and aggravated identity theft.
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 resulted in losses to the United States of more than $12 million. Torres admitted the fraudulently obtained tax refund checks in which he was personally involved totaled $9.9 million.
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. The schemes generally share a number of hallmarks:
• The 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.
• They complete individual income tax returns (Form 1040) using the fraudulently obtained information and falsifying wages, taxes withheld and other data. They use the 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 generated by the fraudulent 1040 forms to locations they control or can access.
• With the checks in hand, SIRF perpetrators generate cash proceeds. Some sell the checks at a discount to face value, and the buyers cash them, either themselves or using straw account holders, at banks or check cashing businesses or deposit them into bank accounts. They often use fraudulent identification documents to do this.
The Investigation
Federal law enforcement agencies in New Jersey created a multi-agency task force composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and the Drug Enforcement Administration.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 2008, 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.
Torres and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Torres then directed others to use those identifiers to create fraudulent 1040 forms to create the appearance they were entitled to tax refunds. The fraudulent 1040 forms were created and filed electronically. By tracing the specific IP addresses that submitted the electronically filed 1040s, law enforcement officers learned that only a handful of IP addresses created many of the fraudulent 1040 forms, which, in turn, led to the issuance of refund checks that the conspirators obtained, sold, cashed, and spent.
Torres and others gained control of the refund checks by bribing mail carriers to intercept checks and deliver them to other conspirators. In exchange for cash payments, the carriers gave checks to conspirators, who sold the checks to other conspirators.
Torres and others also purchased “mail routes,” lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the taxpayers, and obtained the refund checks sent to the addresses. In other instances, the conspirators applied for checks using addresses otherwise controlled by, or accessible to, certain conspirators, and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of tax refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, N.J., and Shirley, N.Y.
The New Jersey task force identified certain “hot spots” of activity; millions of dollars of tax refund checks were being directed to just a few towns and cities in and around New Jersey. Task force members then interacted with U.S. Postal Service employees in these hot spots and identified the characteristics of refund checks connected to the scheme. As a result of these efforts, more than $22 million in refund checks, applied for fraudulently, that had been issued by the U.S. Treasury were not delivered to the conspirators or others, but were interdicted by law enforcement officers.
The conspiracy count is punishable by a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive count of theft of government property is punishable by a maximum potential penalty of 10 years in prison and up to a $250,000 fine. The aggravated identity theft count is punishable by a statutory mandatory minimum sentence of two years in prison, which must run consecutively to any other sentence.
Torres previously pleaded guilty in the Southern District of New York to charges arising out of the same scheme. He will be sentenced in the Southern District of New York on the charges from both states at a date to be determined.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Maria L. Kelokates, with the investigation leading to today’s guilty pleas. He also thanked the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; and HSI-ICE, under the direction of Special Agent in Charge Andrew M. McLees, for their roles.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.
13-433
Defense Counsel: Joseph Bondy Esq., New York, and Paul Warburgh Esq., Huntington, N.Y.
Torres, Jose Information
Members of New York Cell of Cybercrime Organization Plead Guilty in $45 Million Cybercrime CampaignRead the Press Release
BROOKLYN, NY – Earlier today, Evan Jose Peña pleaded guilty to participating in two worldwide cyberattacks that inflicted $45 million in losses on the global financial system in a matter of hours. Peña’s plea followed two other guilty pleas in this case entered by defendants Emir Yasser Yeje and Elvis Rafael Rodriguez in October 2013. These three defendants were members of the New York-based cell of an international cybercrime organization that used sophisticated intrusion techniques to hack into the systems of global financial institutions, steal prepaid debit card data, and eliminate withdrawal limits. The stolen card data was then instantly disseminated worldwide and used in making fraudulent ATM withdrawals on a massive scale across the globe. The New York cell in which Pena, Yeje, and Rodriguez participated withdrew almost $2.8 million in a matter of hours.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Steven Hughes, Special Agent in Charge, United States Secret Service, New York Field Office.
“These three defendants participated in a criminal flash mob, using data stolen through the most sophisticated hacking techniques to withdraw millions of dollars in mere hours in an unprecedented cyber heist,” stated United States Attorney Lynch. “Their pleas demonstrate that the United States government will not relent in its efforts to investigate and prosecute the perpetrators of these financially devastating cyberattacks.” Ms. Lynch expressed her grateful appreciation to the United States Secret Service, New York Field Office for their work on the investigation.
The “Unlimited Operation”
As alleged in the indictment and other court filings, the cyberattacks employed by the defendants and their co-conspirators in this case are known in the cyber underworld as “Unlimited Operations” — through its hacking “operation,” the cybercrime organization can access virtually “unlimited” criminal proceeds.
The “Unlimited Operation” begins when the cybercrime organization hacks into the computer systems of a payment card processor, compromises prepaid debit card accounts, and essentially eliminates the withdrawal limits and account balances of those accounts and also manipulates the security protocols that would alert the victim to the attack. The compromised card data is then distributed to cells worldwide who use the data to encode magnetic stripe cards to use at ATMs. These sophisticated techniques enable the participants to withdraw literally unlimited amounts of cash until the operation is finally detected and shut down. “Unlimited Operations” are marked by three key characteristics: (1) the surgical precision of the hackers carrying out the cyberattack, (2) the global nature of the cybercrime organization, and (3) the speed and coordination with which the organization executes its operations on the ground. These attacks rely upon both highly sophisticated hackers and organized criminal cells whose role is to withdraw the cash as quickly as possible.
The Defendants’ Roles in the Charged Cyberattacks
Evan Peña, Elvis Rafael Rodriguez, and Emir Yasser Yeje participated in two recent “Unlimited Operations” of staggering size. The first operation, on December 22, 2012, targeted a payment card processor that processed transactions for prepaid MasterCard debit cards issued by the National Bank of Ras Al-Khaimah PSC, also known as RAKBANK, in the United Arab Emirates. After the hackers penetrated the credit card processor’s computer network, compromised the RAKBANK prepaid card accounts, and manipulated the balances and withdrawal limits, casher cells across the globe operated a coordinated ATM withdrawal campaign. In total, more than 4,500 ATM transactions were conducted in approximately 20 countries around the world using the compromised RAKBANK account data, resulting in approximately $5 million in losses to the credit card processor and RAKBANK.
The second, and even more damaging, of these Unlimited Operations occurred on the afternoon of February 19 and lasted into the early morning of February 20, 2013. This operation again breached the network of a payment card processor that serviced MasterCard prepaid debit cards, this time issued by Bank Muscat, located in Oman. Again, after the cybercrime organization’s hackers compromised Bank of Muscat prepaid debit card accounts and distributed the data, the organization’s casher cells engaged in a worldwide ATM withdrawal campaign. Over the course of approximately 10 hours, cyber cells in 24 countries executed approximately 36,000 transactions worldwide and withdrew about $40 million from ATMs.
Peña, Rodriguez, and Yeje operated the New York cell of “cashers,” who encoded magnetic stripe cards, such as gift cards, with the compromised card data. After receiving the compromised account information and personal identification numbers (PINs) for the hacked accounts, the defendants’ cells sprang into action, immediately fanning out across the New York area making thousands of withdrawals from ATMs. During the RAKBANK Unlimited Operation, over the course of just two hours and 25 minutes, the defendants and their co-conspirators conducted approximately 750 fraudulent transactions, totaling nearly $400,000, at over 140 different ATM locations in New York City. The Bank Muscat Unlimited Operation was even more devastating. From 3 p.m. on February 19 through 1:26 a.m. on February 20, the defendants and their co-conspirators withdrew approximately $2.4 million in nearly 3,000 ATM withdrawals in the New York City area.
The defendants then passed portions of the proceeds back to the hackers organizing the attack and kept the rest for themselves. Notably, defendants Rodriguez and Yeje laundered hundreds of thousands of dollars in illicit cash proceeds. In one transaction alone, nearly $150,000 in the form of 7,491 $20 bills, was deposited at a bank branch in Miami, Florida, into an account controlled by defendant Alberto Yusi Lajud-Peña, who is now deceased. New York cell members also invested the criminal proceeds in portable luxury goods, such as expensive watches and cars. To date, the United States has seized hundreds of thousands of dollars in cash, bank accounts, and luxury merchandise, including two Rolex watches and a Mercedes SUV, and is in the process of forfeiting a Porsche Panamera. The Mercedes and Porsche were purchased with $250,000 in proceeds of this scheme.
In announcing the pleas, United States Attorney Lynch praised the extraordinary efforts of the Secret Service in responding to these attacks and investigating both the complex network intrusions that occurred overseas and the criminal activity occurring locally, and also expressed gratitude to U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New York for their assistance in this investigation. Ms. Lynch also thanked MasterCard, RAKBANK, and Bank Muscat for their cooperation with this investigation.
Today’s plea took place before United States District Judge Kiyo A. Matsumoto. When sentenced, the defendants face up to 7.5 years in prison, as well as forfeiture and a fine of up to $250,000.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina Posa, Hilary Jager, David Sarratt, and Brian Morris.
The Defendants:EVAN JOSE PEÑA
Age: 35ELVIS RAFAEL RODRIGUEZ
Age: 24EMIR YASSER YEJE
Age: 24McKean County Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania, has been sentenced in federal court to 60 months in jail and ordered to pay a fine in the amount of $36,000 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Peter Nollen Hergenrother, 63.
According to information presented to the court, Hergenrother received computer images depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Hergenrother.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Maui Business Owner Sentenced to 12 Months Imprisonment for Tax Evasion and StructuringRead the Press Release
HONOLULU – United States District Judge Leslie E. Kobayashi today sentenced Roger Santos, age 54, of Kahului, Maui to 12 months and 1 day imprisonment, 6 months home confinement, 3 years supervised release, 100 hours of community service and restitution to the Internal Revenue Service in the amount of $317,599.00 for one count of income tax evasion and one count of structuring. Santos pled guilty to these offenses on May 22, 2013.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to documents filed in connection with the case, in 2008, Santos diverted approximately $959,883 from the checking account of the business he operated, Paradise Asian Foods, Inc., .into multiple personal checking accounts. He then reported as income only the money that was deposited into the business account. These actions fraudulently lowered his taxable income by approximately $365,267 for the 2008 tax year.
Information produced to the court also reflected that Santos deposited $30,000 in currency into multiple bank accounts on the same day in order to evade certain regulations relating to currency transactions. Under federal law, a Currency Transaction Report must be filed by a financial institution with the Internal Revenue Service in regard to any currency transaction over $10,000. It is illegal to structure transactions with financial institutions in order to avoid this filing requirement.
The charges resulted from an investigation conducted by IRS - Criminal Investigation. Assistant United States Attorney Leslie E. Osborne, Jr. handled the prosecution.
Massive Medicare Fraud Mastermind Sentenced to 15 Years in Prison in Connection with $77 Million SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Irina Shelikhova, 50, of Brooklyn, New York, was sentenced to 15 years in prison for her leadership role in a $77 million Medicare fraud scheme. In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Shelikhova to 3 years of supervised release with a concurrent exclusion from Medicare, Medicaid and all Federal health programs, ordered her to forfeit $36,241,545, and ordered her to pay restitution in the amount of $50,943,386. Shelikhova has been in custody since June 15, 2012, when she was arrested at JFK Airport after living as a fugitive in the Ukraine for almost two years. After serving her sentence, she faces deportation from the United States.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
Shelikhova pleaded guilty on December 18, 2012 to conspiracy to commit money laundering. Including Shelikhova, 13 individuals have been convicted of the massive fraud scheme, either through guilty plea or trial conviction.
“Irina Shelikova used fake doctors and forged documents to defraud Medicare out of millions of dollars of very real money. As the owner and operator of three medical clinics, Shelikova engaged in a brazen scheme of fraudulent billing and kickbacks, going so far as to pay kickbacks to elderly patients in exchange for their Medicare numbers and their silence. She relied upon her web of payoffs, kickbacks, and Russian propaganda to support her criminal scheme, but the truth caught up with her and justice has now been served,” stated United States Attorney Lynch. “Protecting taxpayer funded programs like Medicare is a priority of this Office and the Department of Justice. Today’s sentence represents a clear warning to those who seek to defraud Medicare that they will be held accountable for their crimes.”
According to court documents, from 2005 to 2010, Shelikhova owned and operated a clinic in Brooklyn that billed Medicare under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC (Bay Medical clinic). Shelikhova and her employees at the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary or never provided. The defendants billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
According to testimony at the trial of her co-defendants, Shelikhova masterminded the health care fraud at the Bay Medical clinic, which included hiring a medically unlicensed co-defendant to impersonate the clinic’s “no-show” doctor and render phony medical “care” to such patients. Shelikhova also directed employees to create fake medical notes in an attempt to back up the false billing and to forge doctors’ names on prescriptions and charts.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
To generate the large amounts of cash needed to pay the patients, Shelikhova directed the recruitment and operation of a network of external money launderers who cashed checks for the clinic. Shelikhova wrote clinic checks payable to various shell companies controlled by the money launderers. These checks did not represent payment for any legitimate service at or for the Bay Medical clinic, but rather were written to launder the clinic’s fraudulently obtained health care proceeds. The money launderers cashed these checks and provided the cash back to the clinic. Shelikhova used the cash to pay illegal cash kickbacks to the Bay Medical clinic’s purported patients.
This case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York. The case was investigated by the FBI and HHS.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Manhattan U.S. Attorney Files and Settles Lawsuit Against Owners and Operators of Carmine’s Restaurants for Violations of the Americans with Disabilities ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing and settlement of a lawsuit against the owners and operators of the two Manhattan locations of the popular Carmine’s restaurant chain for violations of the Americans With Disabilities Act of 1990 (“ADA”). The defendant owners and operators of the Carmine’s Restaurants and owners of the buildings in which the Carmine’s Restaurants are located are GREYSTONE OWNER LLC, CARMINE’S BROADWAY FEAST INC., PARAMOUNT LEASEHOLD L.P., LITTLE FISH CORP., and THE ALICART RESTAURANT GROUP. The settlement, in the form of a consent decree, was docketed today, November 12, 2013 and approved Friday November 8, 2013 by U.S. District Judge Kimba M. Wood.
The lawsuit was brought as part of the Manhattan Restaurants ADA Compliance Initiative, announced in September 2011. As part of the initiative, the U.S. Attorney’s Office is reviewing and evaluating the ADA compliance of the “most popular” restaurants in Manhattan as designated by the 2011 Zagat Guide. Pursuant to the initiative, the U.S. Attorney’s Office resolved its lawsuit against three ROSA MEXICANO locations by Consent Decree entered on January 30, 2013.
Manhattan U.S. Attorney Preet Bharara said: “As this suit and settlement demonstrate, we remain committed to ensuring that the owners and operators of New York City’s restaurants and cultural venues comply with the ADA.”
According to the Complaint and Consent Decree filed in Manhattan federal court:
The U.S. Attorney’s Office identified numerous violations of the ADA at each of Carmine’s Manhattan locations: 2450 Broadway (“Carmine’s Upper West Side”) and 200 West 44th Street (“Carmine’s Theater District”). Most significantly, Carmine’s Upper West Side lacks an accessible main entrance, its “alternate entrance” is also non-compliant in several respects, and it lacks an accessible restroom. The accessible restrooms in Carmine’s Theater District are also non-compliant in multiple respects.
The Consent Decree requires the restaurants to improve the accessibility of their entrances, waiting areas, bar areas, dining areas, restrooms, coat checks, and hostess stations. The Consent Decree provides for renovations to the main and alternate entrances and construction of an accessible restroom at Carmine’s Upper West Side, and alterations to the restrooms at Carmine’s Theater District. In addition, the owners and operators of the restaurants will pay a $10,000 civil penalty to the United States.
Since President George H.W. Bush signed the ADA into law in 1990, the U.S. Attorney’s Office for the Southern District of New York has taken a leading role in bringing numerous New York City institutions into compliance with the ADA regulations. They include Avery Fisher Hall at Lincoln Center, the Metropolitan Opera, Yankee Stadium, Madison Square Garden, the Apollo Theater, the Puck Building, the Shubert Theaters, the Rainbow Room, and Radio City Music Hall.
Mr. Bharara thanked the Disability Rights Section of the Department of Justice, in particular its architectural staff, for their assistance in this matter.
The Restaurants Initiative is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Amy A. Barcelo, Christopher Connolly, and Cristine Irvin Phillips are in charge of the Initiative.
To file a complaint alleging that a restaurant or any other place of public accommodation within the Southern District of New York is not accessible to persons with disabilities, use the Civil Rights Complaint Form available on the United States Attorney’s Office’s website, www.usdoj.gov/usao/nys. Complaints should be sent to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York, 10007
Attention: Chief, Civil Rights Unit
U.S. v. Greystone Owners, LLC, et al. Complaint
U.S. v. Greystone Owners, LLC, et al. Executed Consent Decree 2013.11.8Man Sentenced to More Than 10 Years in Federal Prison in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Deundrea R. Miller, 27, was sentenced today by U.S. District Judge Terry R. Means to 121 months in federal prison following his guilty plea in June 2013 to one count of count of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Miller’s co-defendant, Brittanie S. Brattain, 22, who pleaded guilty to the same offense, was sentenced in October 2013 to 72 months in federal prison.
According to documents filed in Miller’s case, prior to September 2012, Miller had a relationship with Brattain. In late September or early October 2012, Miller and Brattain met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Miller and Brattain used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
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 investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem prosecuted.
Lummi Tribal Member Sentenced to Ten Years in Prison for RapeRead the Press Release
An enrolled member of the Lummi Tribe was sentenced last week to ten years in prison for aggravated sexual abuse, announced U.S. Attorney Jenny A. Durkan. ROBERT DEWEY JOHNSON, 48, of the Lummi Indian Reservation, sexually assaulted a woman who was a guest in his home while her young children were present. The assault occurred on December 3, 2012. At the sentencing hearing Chief U.S. District Judge Marsha J. Pechman imposed the ten year sentence saying she was concerned about the emotional harm to the victim and to her children who heard their mother’s screams.
According to records filed in the case, the victim and her family were socializing in JOHNSON’s home. When the victim’s significant other left to run an errand, JOHNSON sexually assaulted the victim in a bedroom of the home. JOHNSON was indicted in May 2013 and pleaded guilty in July 2013.
In addition to the prison term, JOHNSON will be on supervised release for five years and will be required to register as a sex offender.
The case was investigated by the Lummi Police Department and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London.
Lonnie Dean Sentenced to Twenty Years in Federal Prison for Trafficking Methamphetamine in Valencia County and Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Lonnie Dean, 48, of Belen, N.M., was sentenced this afternoon to 20 years in federal prison followed by five years of supervised release for his conviction on methamphetamine trafficking and assault on a federal officer charges. Dean’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Joseph M. Arabit of the El Paso Division of the DEA, and Chief Roy E. Melnick of the Los Lunas Police Department.
Dean was one of twelve individuals from Valencia and Socorro Counties charged with federal methamphetamine trafficking charges in May and June 2011, following a 16-month investigation led by the DEA and the Los Lunas Police Department. The investigation, code-named “Vanilla Sky,” was pursued under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated attack against major drug trafficking and money laundering organizations.
According to court filings, Dean was part of a large scale methamphetamine trafficking organization that operated in Valencia County. Between March 2010 and May 2011, members of the organization conspired to sell ounce quantities of methamphetamine to undercover DEA agents on at least ten separate occasions. They sold more than a pound of methamphetamine to the undercover DEA agents during a 14-month period.On April 2, 2013, Dean pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, and assaulting a federal officer with a dangerous weapon. In entering his guilty plea, Dean admitted conspiring with others to distribute methamphetamine in Los Lunas and Belen, and assaulting a federal officer as he attempted to avoid arrest.
More specifically, Dean admitted that on May 26, 2011, he drove to a gas station in Belen for the purpose of selling methamphetamine to another person. As Dean was talking to his customer, DEA agents approached Dean and attempted to arrest him. One DEA agent, who had blocked Dean’s car from the front, exited his car and was moving on foot to a better tactical position with his gun and badge drawn, while another DEA agent parked his vehicle behind Dean’s car to block Dean in. Dean admitted that, instead of surrendering, he put his car into reverse and hit the DEA agent’s car causing it to go backward. Dean then put his car into drive and drove forward, missing the DEA agent only because the agent jumped to the side to avoid being struck. Less than a minute later, Dean drove into a road and entered an intersection where he struck a car driven by Roberta Torres, a 40-year-old resident of Belen, who died as a result of the injuries she sustained in the crash.
Dean faces several state charges, including a vehicular homicide charge, relating to Ms. Torres’ death in the 13th Judicial District Court for the State of New Mexico. Dean has entered a not guilty plea to the state charges.
Seven other defendants have entered guilty pleas in federal cases filed as a result of Operation Vanilla Sky. Three defendants have pleaded not guilty and are scheduled for trial on Nov. 18, 2013. The remaining defendant, Arturo Acosta-Astorga, has yet to be arrested and is considered a fugitive. The charges against the defendants pending trial and the fugitive are merely accusations and they are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the DEA and the Los Lunas Police Department and is being prosecuted by Assistant U.S. Attorneys Nicholas J. Ganjei and Joel R. Meyers.
Kansas City Man Sentenced in Carjacking CaseRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man has been sentenced to 10 years on a federal charge arising from a carjacking and armed robbery, U.S. Attorney Barry Grissom said today.
Terry D. Tillman, 26, Kansas City, Kan., pleaded guilty to one count of carjacking. In his plea, he admitted that on May 26, 2013, he and three co-defendants walked to a Stop Shop gas station at 6865 State Avenue in Kansas City, Kan., where co-defendant Derrick Freeman suggested they “get a car.” While co-defendant Anthony Irvin held the driver of a 2004 Ford Freestar minivan at gunpoint, Tillman and Freeman robbed the driver of wallet and keys. The defendants drove away in the minivan, with Tillman riding in a rear passenger seat.
When the defendants realized officers had spotted their vehicle they led police on a 17-minute chase at speeds up to 112 miles per hour. The minivan wrecked in a plowed field near Leavenworth Road and North 184th Street in Basehor, Kan., where the defendants fled on foot. Freeman fired a handgun at a law enforcement officer before being arrested. Tillman was arrested about 100 yards from the vehicle.
Co-defendants include:
Derrick Freeman, 28, Kansas City, Kan.,who is awaiting sentencing.
Anthony L. Irvin, 19, Kansas City, Kan., who is set for sentencing Nov. 25.
Melvin L. Shields, 20, Kansas City, Kan., who is set for sentencing Nov. 25.
Joe Freeman, 33, Kansas City, Kan., who is set for trial Jan. 21.
Jeffrey B. Jackson, 47, Leavenworth, Kan., who is awaiting trial.Grissom commended the Kansas City, Kan., Police Department, the Wyandotte County Sheriff’s Department, the Kansas Highway Patrol, the Basehor Police Department, the Edwardsville Police Department, the Bonner Springs Police Department, the Leavenworth County Sheriff’s Department and Special Assistant U.S. Attorneys Erin Tomasic and Trent Krug for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Kamiah Man Sentenced for Unlawfully Possessing AmmunitionRead the Press Release
COEUR D’ALENE – James Reuben Norton Blackeagle, 30, of Kamiah, Idaho, was sentenced today in United States District Court to 21 months in prison for unlawfully possessing ammunition, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Blackeagle to serve three years of supervised release and forfeit the ammunition he unlawfully possessed. He pleaded guilty to the charge on August 21, 2013.
According to the plea agreement, Blackeagle admitted that on February 28, 2013, he possessed ammunition within his residence and vehicle. Blackeagle was prohibited from possessing firearms and ammunition due to a previous conviction in 2007 for possession of a destructive device, a felony punishable by a term of imprisonment exceeding one year.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Nez Perce Tribal Police Department.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Justice Department and HUD Settle Discrimination Claims Against the City of Joliet, Ill.Read the Press Release
Comprehensive Agreement Will Preserve Affordable Housing for City Residents for Next 20 Years
The Justice Department, the Department of Housing and Urban Development (HUD) and the City of Joliet, Ill., have settled housing discrimination litigation that will preserve affordable housing for low-income residents in the southwest Chicago suburb for at least the next 20 years, the U.S. Attorney’s Office for the Northern District of Illinois and the Civil Rights Division announced today.
The agreement, which was approved today by the U.S. District Court for the Northern District of Illinois, resolves the claims of the United States in two lawsuits in which the government contended that the city had discriminated against African Americans in violation of the Fair Housing Act when it attempted to condemn a federally subsidized affordable housing development. The development, known as Evergreen Terrace, contains 356 units of affordable housing that are currently operated by a private owner pursuant to a 20-year contract with HUD. The agreement ensures that, if the city acquires the property through condemnation or otherwise, any displaced resident will be able to remain in affordable housing in Joliet, and at least 115 low-income housing units will continue to be available for families at the property or, subject to HUD approval, elsewhere in Joliet.
“The United States is committed to ensuring that individuals and families, regardless of their race or income, have an opportunity to live in the community of their choosing,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “This settlement ensures that, if the city prevails in its eminent domain action, Evergreen Terrace residents will not be forced to leave the city and low-income housing opportunities will be preserved in the city.
“This settlement guarantees that the United States will attain its major goal in this litigation, namely to preserve the affordable housing rights of low-income residents in Joliet and those at Evergreen Terrace in particular,” said U.S. Attorney for the Northern District of Illinois Zachary T. Fardon. “Local governments that try to reduce affordable housing opportunities without providing meaningful alternatives risk running afoul of anti-discrimination laws. As a result of this settlement, the low-income residents of Evergreen Terrace will be able to either stay at Evergreen Terrace or move to suitable alternative housing in Joliet.”
“This settlement protects the housing rights of minority families living in Joliet and preserves affordable housing options for many years to come,” said HUD General Counsel Helen Kanovsky. “Government at every level should make certain they cultivate affordable housing and avoid creating obstacles that close doors on families who deserve a place to call home.”
Under today’s settlement, if the city acquires the property, consisting of eight buildings on North Broadway Street and North Bluff Street, it will still be bound by certain restrictions designed to protect residents and preserve affordable housing within the city of Joliet. Among other things, the agreement:
· Ensures that tenants who wish to remain in Joliet will not be displaced unless and until Joliet finds suitable housing in the city that will also accept the residents’ federal housing subsidies. The city will also provide relocation counseling to displaced residents through a HUD-approved organization and will provide all assistance required by the Uniform Relocation Act;
· Requires the city to preserve at least 115 of the low-income housing units for the next 20 years. The housing units would remain at the property initially, but the city could seek to transfer the subsidy to another development in Joliet pursuant to HUD’s program requirements for such transfers. No such transfer could be carried out until the replacement housing is ready for occupancy, and current and former Evergreen Terrace residents would have first priority for residency;
· Provides that to the extent any other housing is developed at the property, it would include the minimum number of affordable units required by the Low-Income Housing Tax Credit Program;
· Requires the city to construct and maintain a community center to provide services to current and former Evergreen Terrace residents and other low- and moderate-income residents of the city;
· Maintains most of the Evergreen Terrace site for use as a public purpose for at least twenty years;
· Restores to the city HUD funding under HUD’s Community Development Block Grant and HOME Investment Trust Funds program that HUD had previously withheld because of its conclusion that the city was not complying with the Fair Housing Act and other applicable civil rights laws; and
· Ends HUD’s participation in the ongoing trial in the condemnation lawsuit.
The current property owners of Evergreen Terrace and four current tenants had also challenged the city’s condemnation action, and today’s agreement does not resolve their claims.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces can be found at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] , or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
Justice Department Sues to Stop Louisiana Tax Return PreparerRead the Press Release
Return Preparer in La Place, La., Allegedly Overstated Refunds through Inflated Expenses, Deductions, Credits, and Fabricated Businesses
The United States has asked a federal court in New Orleans to permanently bar Shawanda Nevers (aka Shawanda Bryant, aka Shawanda Hawkins, aka Shawanda Johnson) of La Place, La., from preparing federal income tax returns for others, the Justice Department announced today. According to the complaint, Nevers has prepared federal income tax returns in Louisiana through a business named 3LJ’s Industrial Service Solutions LLC. The complaint alleges that she has prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes.
According to the complaint, Nevers prepared returns that claimed losses by fabricating expenses for fictitious businesses or overstating expenses incurred by legitimate enterprises. The deductions for these fictitious or overstated expenses were claimed on a Form Schedule C – Profit or Loss From Business, which Nevers often included in her clients’ returns without their knowledge. The returns Nevers prepared directed the Internal Revenue Service (IRS) to deposit the resulting refunds into her account, from which she deducted a fee before remitting the balance to her clients. The complaint states that the IRS has examined a sample of tax returns that Nevers prepared for her clients for the tax years 2009 through 2011 and almost all of the returns examined had Schedule C losses that audits proved were either overstated or falsified. Altogether, the complaint alleges that Nevers’ activities may have resulted in as much as $6 million of loss to the United States.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013 . The IRS has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v.Shawanda Nevers, etc.
Complaint for Permanent Injunction and Other ReliefJustice Department Selects Four Courts to Identify Promising Practices <br /> in Custody and Visitation Decisions in Domestic Violence CasesRead the Press Release
The Department of Justice’s Office on Violence Against Women (OVW), in partnership with the National Council of Juvenile and Family Court Judges (NCJFCJ), announces the selection of four courts to participate in the Family Court Enhancement Project (FCEP) to improve custody and visitation decision-making for families who have experienced domestic violence. The four courts selected are: Circuit Court of Cook County in Chicago, Ill.; Family Court of the State of Delaware; Hennepin County Family Justice Center in Minneapolis, Minn.; and Multnomah County Family Court in Portland, Ore.
“In order to maintain safety for the entire family, it is crucial that judges weigh the dynamics of domestic violence and its impact on both adults and children when making custody and visitation decisions,” said OVW Acting Director Bea Hanson. “Ensuring the safety of domestic violence victims and their children during and after court proceedings is an essential component of the FCEP. This project will provide guidance to courts around the country in implementing proven procedures and practices that keep victims and children safe.”
The FCEP, a collaborative project of NCJFCJ, OVW, the Battered Women’s Justice Project, and the National Institute for Justice, is designed to determine what family court procedures, practices and structures related to custody and visitation can help keep victims of domestic violence and their children safe from further violence and trauma. The four courts chosen for the FCEP applied to an open call for concept papers that was issued by NCJFCJ. OVW, NCJFCJ and BWJP reviewed the concept papers based on the criteria set forth in the call.
OVW experts have identified, from a series of roundtable discussions and extensive research, challenges that affect the safety of domestic violence victims and their children involved in custody proceedings. These challenges include: failure to identify and understand domestic violence in court and in third-party assessments; structural and procedural barriers; limited legal and advocacy resources; and the effects of race, class, and gender biases on outcomes.
Over the next two years, the FCEP and the selected courts will work closely with national domestic violence and court improvement experts to implement better approaches for keeping domestic violence victims and their children safe through and beyond court proceedings. Additionally, the U.S. Department of Justice’s National Institute of Justice will lead efforts on data collection and assisting each site in measuring the impacts of their systems change.
According to the CDC, women experience two million injuries from domestic violence each year and approximately one third of all incidents involving female victims take place in homes in which children ages twelve and under reside. More than 15 million American children are exposed to domestic violence each year. Many domestic violence victims and their children will come before a family court, and these courts make custody, visitation and other decisions that will have a significant long-term effect on these children and adults.
OVW, a component of the U.S. Department of Justice, provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 22 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges. More information is available at www.ovw.usdoj.gov.
Justice Department Requires US Airways and American Airlines<br /> to Divest Facilities at Seven Key Airports to Enhance<br /> System-wide Competition and Settle Merger ChallengeRead the Press Release
The Department of Justice today announced that it is requiring US Airways Group Inc. and American Airlines’ parent corporation, AMR Corp. to divest slots and gates at key constrained airports across the country to low cost carrier airlines (LCCs) in order to enhance system-wide competition in the airline industry resulting in more choices and more competitive airfares for consumers.The department said the proposed settlement will increase the presence of the LCCs at Boston Logan International, Chicago O’Hare International, Dallas Love Field, Los Angeles International, Miami International, New York LaGuardia International and Ronald Reagan Washington National. Providing the LCCs with the incentive and ability to invest in new capacity and permitting them to compete more extensively nationwide will enhance meaningful competition in the industry and benefit airline travelers.
“This agreement has the potential to shift the landscape of the airline industry. By guaranteeing a bigger foothold for low-cost carriers at key U.S. airports, this settlement ensures airline passengers will see more competition on nonstop and connecting routes throughout the country,” said Attorney General Eric Holder. “The department’s ultimate goal has remained steadfast throughout this process - to ensure vigorous competition in airline travel. This is vital to millions of consumers who will benefit from both more competitive prices and enhanced travel options.”
Six state attorneys general–Arizona, Florida, Pennsylvania, Michigan, Tennessee and Virginia–and the District of Columbia joined in the department’s proposed settlement, which was filed in the U.S. District Court for the District of Columbia. If approved by the court, the settlement will resolve the department’s competitive concerns and the lawsuit.
“The extensive slot and gate divestitures at these key airports are groundbreaking and they will dramatically enhance the ability of LCCs to compete system-wide,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “This settlement will disrupt the cozy relationships among the incumbent legacy carriers, increase access to key congested airports and provide consumers with more choices and more competitive airfares on flights all across the country.”
On Aug. 13, 2013, the department, six state attorneys general and the District of Columbia filed an antitrust lawsuit against US Airways and American alleging that US Airway’s $11 billion acquisition of American would have substantially lessened competition for commercial air travel in local markets throughout the United States. The department alleged that the transaction would result in passengers paying higher airfares and receiving less service. In addition, the department alleged that the transaction would entrench the merged airline as the dominant carrier at Reagan National, where it would control 69 percent of take-off and landing slots, thus effectively foreclosing entry or expansion by competing airlines.
The settlement requires US Airways and American to divest slots, gates and ground facilities at key airports around the country. Specifically, the settlement requires the companies to divest or transfer to low cost carrier purchasers approved by the department:
All 104 air carrier slots (i.e. slots not reserved for use only by smaller, commuter planes) at Reagan National and rights and interest in other facilities at the airport necessary to support the use of the slots;
Thirty-four slots at LaGuardia and rights and interest in other facilities at the airport necessary to support the use of the slots; and
Rights and interests to two airport gates and associated ground facilities at each of Boston Logan, Chicago O’Hare, Dallas Love Field, Los Angeles International and Miami International.
The Reagan National and LaGuardia slots will be sold under procedures approved by the department. Under the terms of the settlement, JetBlue at Reagan National and Southwest at LaGuardia will be given the opportunity to acquire the slots they currently lease from American. The remaining 88 slots at Reagan National and 24 slots at LaGuardia plus any JetBlue or Southwest decline to acquire will be grouped into bundles, taking into account specific slot times to ensure commercially viable and competitive patterns of service for the recipients of the divested slots. The parties will divest these slot bundles and all rights and interests in any gates and other ground facilities (e.g., ticket counters, baggage handling facilities, office space and loading bridges) as necessary to support the use of the purchased slots.
The gates at the five airports will be transferred on commercially reasonable terms to the new acquirers. The acquirers of the slot and gate divestitures also require approval of the department. Preference will be given to airlines at each airport that do not currently operate a large share of slots or gates.
The proposed settlement allows the department to appoint a monitoring trustee to oversee the divestitures or transfers of the slots and gates. The settlement also prohibits the merged company from reacquiring an ownership interest in the divested slots or gates during the term of the settlement. The companies must also provide advance notice of any future slot acquisition at Reagan National regardless of whether or not it is a reportable transaction under the premerger notification law and further provides for waiting periods and opportunities for the department to obtain additional information in order to review the transaction.
AMR is a Delaware corporation with its principal place of business in Fort Worth, Texas. AMR is the parent company of American Airlines. Last year American flew more than 80 million passengers to more than 250 destinations worldwide and took in more than $24 billion in revenue. In November 2011, American filed for bankruptcy reorganization.
US Airways is a Delaware corporation with its principal place of business in Tempe, Ariz. Last year US Airways flew more than 50 million passengers to more than 200 destinations worldwide and took in more than $13 billion in revenue.
Jury Finds Laie Woman Guilty of Bankruptcy FraudRead the Press Release
HONOLULU –A jury in United States District Court found Michelle Malufau, 47, of Laie, Oahu, guilty today of bankruptcy fraud related to the Chapter 7 bankruptcy that she filed in 2011. Specifically, after a four day trial and less than an hour of deliberation, the jury convicted Malufau of making false statements under penalty of perjury on documents filed in that 2011 bankruptcy, and also of testifying falsely under oath at a hearing in that same proceeding.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the evidence presented at trial showed that Malufau knowingly and fraudulently concealed at least three assets that she owned and/or controlled during her 2011 bankruptcy: a house on the North Shore of Oahu, which had over $322,000 in equity in it; a bank account; and rental income. Malufau received a discharge of over $1 million of debt through that proceeding.
Malufau faces up to five years in prison on each charge when she is sentenced by Senior United States District Judge Helen Gillmor on February 27, 2014.
The investigation that resulted in the charges against Malufau was conducted by the Internal Revenue Service - Criminal Investigation, with assistance from the Federal Bureau of Investigation. Assistant United States Attorneys Michael Nammar and Andrea Hattan handled the prosecution.
Joliet Settles U.S. Housing Discrimination Case, Preserves Affordable Housing for Low-Income Residents for 20 YearsRead the Press Release
CHICAGO ― The United States and the City of Joliet have settled housing discrimination litigation that will preserve affordable housing for low-income residents in the southwest suburb for at least the next 20 years, the United States Attorney’s Office and the Justice Department’s Civil Rights Division announced.
The agreement, which was approved today by U.S. District Judge Charles Norgle, resolves the claims of the United States in two lawsuits in which the government contended that Joliet had discriminated against African-Americans in violation of the Fair Housing Act when it attempted to condemn a federally subsidized affordable housing development. The development, known as Evergreen Terrace, contains 356 units of affordable housing that are currently operated by a private owner pursuant to a 20-year contract with the U.S. Department of Housing and Urban Development. The agreement ensures that if Joliet acquires the property through condemnation or otherwise, any displaced resident will be able to remain in affordable housing in Joliet, and at least 115 low-income housing units will continue to be available for families at the property or, subject to HUD approval, elsewhere in Joliet.
“This settlement guarantees that the United States will attain its major goal in this litigation, namely to preserve the affordable housing rights of low-income residents in Joliet and those at Evergreen Terrace in particular,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “Local governments that try to reduce affordable housing opportunities without providing meaningful alternatives risk running afoul of anti-discrimination laws. As a result of this settlement, the low-income residents of Evergreen Terrace will be able to either stay at Evergreen Terrace or move to suitable alternative housing in Joliet,” he said.
“The United States is committed to ensuring that individuals and families, regardless of their race or income, have an opportunity to live in the community of their choosing,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “This settlement ensures that, if the city prevails in its eminent domain action, Evergreen Terrace residents will be protected from forced to leave the city and low-income housing opportunities will be preserved in the city.”
Under today’s settlement, if the city acquires the property, consisting of eight buildings on North Broadway and North Bluff streets, it will still be bound by certain restrictions designed to protect residents and preserve affordable housing within the City of Joliet. Among other things, the agreement:
- ensures that tenants who wish to remain in Joliet will not be displaced unless and until Joliet finds suitable housing in the city that will also accept the residents’ federal housing subsidies. The city will also provide relocation counseling to displaced residents through a HUD-approved organization and will provide all assistance required by the Uniform Relocation Act;
- requires the city to preserve at least 115 of the low-income housing units for the next 20 years. The housing units would remain at the property initially, but the city could seek to transfer the subsidy to another development in Joliet pursuant to HUD’s program requirements for such transfers. No such transfer could be carried out until the replacement housing is ready for occupancy, and current and former Evergreen Terrace residents would have first priority for residency;
- provides that to the extent any other housing is developed at the property, it would include the minimum number of affordable units required by the Low Income Housing Tax Credit Program;
- requires the city to construct and maintain a community center to provide services to current and former Evergreen Terrace residents and other low- and moderate-income residents of the city;
- maintains most of the Evergreen Terrace site for use as a public purpose for at least twenty years;
- restores to the city HUD funding under HUD’s Community Development Block Grant and HOME Investment Trust Funds program that HUD had previously withheld because of its conclusion that the city was not complying with the Fair Housing Act and other applicable civil rights laws; and
- ends HUD’s participation in the ongoing trial in the condemnation lawsuit. (City of Joliet v. Mid-City National Bank of Chicago, et al., No. 05 C 6746, and United States v. City of Joliet, No. 11 C 5305.)
The current property owners of Evergreen Terrace and four current tenants had also challenged the city’s condemnation action, and today’s agreement does not resolve their claims. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
The government was represented by Assistant U.S. Attorneys Patrick Johnson and Ernest Ling, together with trial attorneys from the Justice Department’s Civil Rights Division.
Inmate Sentenced to 30 Months in Prison for Assaulting Federal Correctional OfficerRead the Press Release
PROVIDENCE, R.I. – Earl Francis Hart, 53, an inmate at the Donald W. Wyatt Detention Facility in Central Falls, was sentenced today to 30 months in federal prison for assaulting a federal correctional officer in February 2013, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.
Hart was ordered by U.S. District Court Judge Mary M. Lisi to serve the sentence consecutive to a 30-year federal prison sentenced imposed in U.S. District Court in Boston earlier the same day the assault occurred at the Wyatt Detention Facility. Hart was convicted in October 2010 by a federal court jury in Boston on drug trafficking and firearms charges.
According to information presented to the court, on February 1, 2013, correctional officers at the Wyatt Detention Facility went to the cell where Hart was housed to lock him down following an alleged assault on another inmate. Hart refused commands to turn around and allow the officers to handcuff him. When officers entered his cell, Hart punched one of the officers repeatedly and continued to throw punches at four other officers who worked to subdue and handcuff him.
Hart pleaded guilty on November 8, 2013, to one count of assaulting a federal employee as charged in a federal indictment returned on April 10, 2013.
The case was prosecuted by Assistant U.S. Attorney Zechariah Chafee.
The matter was investigated by the United States Marshals Service and investigators at the Donald W. Wyatt Detention Center.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Huntington Woman Who Participated in Illegal Drug Distribution Scheme Enters Federal Guilty PleaRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who participated in an oxycodone and heroin distribution conspiracy pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Kimberly Gayle Hamlett, 39, pleaded guilty to distribution of oxycodone before Chief United States District Judge Robert C. Chambers in Huntington. From at least 2011 through August 8, 2013, Hamlett participated in a conspiracy to sell oxycodone pills and heroin. In May, Hamlett sold approximately one gram of heroin to a police informant in exchange for $200. The illegal heroin transaction took place near 16th Street and 6th Avenue in Huntington.
Hamlett told police that during the conspiracy, she provided residences for her associates to store and sell drugs. She also told police that firearms were kept at the residences.
Hamlett faces up to 20 years in federal prison when she is sentenced on February 24, 2014.
The Huntington Violent Crimes and Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Habitual Domestic Violence Offender Pleads Guilty to Assaulting Pregnant GirlfriendRead the Press Release
ALBUQUERQUE – Tayah Edwards, 40, pleaded guilty this morning to a felony information charging him with assault resulting in serious bodily injury and domestic assault by a habitual offender. Under the terms of his plea agreement, Edwards will be sentenced to 70 months in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Edwards, an enrolled member of the Navajo Nation who resides in Cudei, N.M., was arrested in Aug. 2013, based on a criminal complaint alleging that he assaulted his domestic partner with dangerous weapons, including a stick, a knife and a rock. According to court filings, the assault occurred at a location within the Navajo Indian Reservation on Aug. 20, 2013. The victim, who was pregnant, sustained numerous injuries, including a compound fracture to her left leg, a large scalp laceration and multiple contusions, as a result of the assault.
This morning, Edwards pled guilty to assaulting his intimate partner by striking her in the head and face numerous times and hitting her repeatedly with a stick and a rock. In his plea agreement, Edwards acknowledged that the victim, who was 35 weeks pregnant with the couple’s child at the time of the assault, sustained serious injuries as a result of the assault. Edwards also admitted that he previously has been convicted on at least two occasions for assaulting his spouse or intimate partner in Utah state courts.
Edwards has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Special Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Gonzales County, Texas, Woman Sentenced to 46 Months in Federal Prison for Possessing, with Intent to Distribute, Crack CocaineRead the Press Release
LUBBOCK, Texas — Catarina Munos Robledo, 24, of Waelder, Texas, was sentenced on Friday, by U.S. District Judge Sam R. Cummings, to 46 months in federal prison, following her guilty plea in August 2013 to one count of possession with the intent to distribute cocaine base (crack cocaine), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on March 20, 2013, an officer with the Early (Texas) Police Department stopped a Chrysler Town and Country vehicle, which was being driven by Robledo, for a traffic violation. After noting inconsistencies in the explanation she gave the officer about her travel, the officer asked for consent to search the vehicle, which she granted. The officer found a plastic bag containing eight “cookies” of suspected cocaine base in in the vehicle’s center console. Robledo was arrested and testing confirmed the substance was in fact, cocaine base, with a net weight of 72.25 grams.
The case was investigated by the Early Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
G.R.E.A.T. Graduation at Harry S. Truman Elementary SchoolRead the Press Release
United States Attorney Alicia A.G. Limtiaco, announced today that after undergoing a six-week curriculum taught by Gang Resistance Education And Training (G.R.E.A.T.) officers, over 71 fifth grade students at Harry S. Truman Elementary School will be receiving their certificates of completion on Wednesday, November 13, 2013, at 12:30 P.M., in the school's cafeteria.
Parents are invited and highly encouraged to attend and participate alongside our students, in the graduation. The G.R.E.A.T. Program's primary objective is awareness and prevention of delinquency, youth violence, and gang membership. The G.R.E.A.T. lessons, aimed at elementary and middle school students, focus on providing life skills to help students avoid delinquent behavior and violence to solve problems.
Mr. Jon Fernandez, Guam Department of Education Superintendent and Santa Rita Mayor Dale Alvarez have also been invited to attend.
U.S. Attorney Limtiaco stated, AWe praise the hard work, motivation and significant accomplishments of our students in completing the G.R.E.A.T. Program, and the continued commitment and dedication of the G.R.E.A.T. instructors to our youth in taking the G.R.E.A.T. message to our schools in Guam.
Anyone interested in learning more about the program can log on to www.great-online.org.
Former SunTrust Assistant Branch Manager Sentenced to 18 Months in Federal Prison for Theft of over $250,000Read the Press Release
Orlando, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Gabriel N. Nervig (39, Millville, Utah) to 18 months in federal prison for bank fraud. The court also ordered Nervig to pay restitution to SunTrust in the amount of $155,000 and to serve a four-year term of supervised release, following his release from prison.
Nervig pleaded guilty on August 29, 2013.
According to court documents, from January 2006 to January 2013, Nervig used his position as an Assistant Branch Manager at SunTrust Bank to steal over $274,000 in cash. To conceal his thefts, Nervig prepared General Ledger Debit tickets to correspond with each theft of cash from the bank. On those tickets, Nervig falsely represented that the cash was being used for legitimate SunTrust business purposes. To deceive SunTrust into believing that the proper policies were followed, Nervig made it appear that the General Ledger Debit tickets had been prepared by other employees and that they had been approved by him as the Assistant Branch Manager when, in fact, he had prepared the tickets himself.
Over a seven-year period, Nervig was successful in stealing over $274,000. His scheme was detected in January 2013 when SunTrust auditors found that a large sum of money was missing. After that discovery, Nervig agreed to sign over his bank account and 401(k) account to SunTrust, in order to repay a portion of the amount that he stole. On the date of his sentencing, Nervig made an additional payment towards his restitution. In total, he has paid over $119,000 to SunTrust towards his restitution, leaving a balance of $155,000.
This case was investigated by United States Secret Service. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Former School Counselor Sentenced to Prison for 30 Years for Sexually Exploiting MinorsRead the Press Release
BOISE — U.S. Attorney Wendy J. Olson announced that Mark Alan Saltzer, 46, of Boise, Idaho, was sentenced today in United States District Court to 360 months in prison, with credit for time served. Saltzer pleaded guilty in July 2013 to sexual exploitation of children by producing sexually explicit images of minors. In his plea agreement, Saltzer admitted producing sexually explicit videos of 11 different minors between April 2006 and April 2012. Chief U.S. District Judge B. Lynn Winmill also ordered Saltzer to be on supervised release for 20 years and pay a $10,000 fine. Prior to sentencing, Saltzer paid $50,000 in lieu of forfeiting his home, where the offense occurred.
Saltzer was arrested on August 17, 2012, at his home after federal investigators served a search warrant. Two minor boys, who were not related to Saltzer, were at the residence at the time. According to the plea agreement, Saltzer admitted to repeatedly sexually molesting one of the youths at his home beginning in the summer of 2012. It was disclosed during the sentencing proceedings that Saltzer was aware that the youth was a previous victim of sexual abuse and was at high risk to become victimized again. Saltzer was a counselor at Meridian Middle School when he met the youth. During the hearing it was also disclosed that Saltzer admitted to having five previous hands-on victims with ages ranging from 13 to 17 years, the first occurring when Saltzer was 21. Saltzer previously worked as a counselor in the Marsing and Caldwell school districts, and also as a counselor for sex offenders and victims of abuse at the Idaho Youth Ranch and at a treatment program in Ontario, Oregon.
According to court documents, the investigation into Saltzer’s activities began in October 2010, when the U.S. Postal Inspection Service, in conjunction with Toronto Police Services in Canada, initiated an investigation into a private Internet group established by members to communicate with one another about their shared sexual interest in young boys, and to exchange child pornography. Members of the group regularly traded child pornography files with other group members.
The group existed under various names for approximately 15 years. According to court documents, Saltzer had been a member of the group for more than a decade. Participants in the group resided in Idaho, New York, Virginia, Florida, Texas, Indiana, California, Pennsylvania, Canada, Lebanon, and Mexico, among other places.
According to the plea agreement, Saltzer admitted meeting boys between the ages of 10 and 17 in Internet chat rooms and engaging them in webcam sessions during which he encouraged them to masturbate. Saltzer used Skype and recorded webcam footage of the teenage boys performing sexual acts. He further admitted to using special software that allowed him to import a video of a child about 14 years old masturbating, and showing the video to the boy so it appeared that he was chatting with another teenager, instead of an adult.
According to the plea agreement, Saltzer also admitted that between 2006 and 2012, he produced sexually explicit videos of numerous boys between the ages of 11 and 17. Some of the videos he produced were distributed worldwide, according to the National Center for Missing and Exploited Children.
“Those who victimize children by producing and distributing images of children being sexually abused will be identified, investigated and prosecuted to the fullest extent of the law,” said Olson. “When it comes to crimes that target society’s most vulnerable members, we will not let boundaries or agency affiliation interfere with the work that must be done. Mr. Saltzer’s prison sentence sends the strong message that local, state, federal and international law enforcement agencies will work together in an efficient and coordinated manner to bring these predators to justice.”
The case was investigated by U.S. Postal Inspection Service inspectors from Boise, Seattle and Washington, D.C., and the Indiana State Police. The Boise Police Department, Meridian Police Department, and Idaho State Police assisted locally. Saltzer was originally charged by the Ada County Prosecuting Attorney; those charges were dismissed in August after Saltzer pleaded guilty in federal court.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Former Resident of Orange, CA Convicted of Scheme to Defraud Religious Order of Roman Catholic SistersRead the Press Release
SANTA ANA - Linda Rose Gagnon, also known as Linda Gualtieri-Gagnon, age 59, a former resident of Orange, CA, was convicted today by a jury on three counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343. Ms. Gagnon’s trial occurred before the Hon. Andrew J. Guilford in the Ronald Reagan Courthouse of the Central District of California.
The jury found that Ms. Gagnon executed a scheme to defraud the U.S. Province of the Religious of Jesus and Mary (“RJM”), an order of Roman Catholic Sisters devoted to educational and charitable work, out of $285,000, which the RJM had set aside for the care of elderly and infirm Sisters. According to the evidence, Gagnon represented that she was an expert in handling short sale and foreclosure transactions and offered to assist RJM buy a small home in San Diego for use by retired and infirm Sisters.
The evidence presented at trial demonstrated that, contrary to her promises, Gagnon did not use the RJM’s funds to purchase the retirement home for the Sisters. Instead, Gagnon used the funds to pay for her personal expenses and to fund the unprofitable operations of her real estate finance company, Rose Enterprise, Inc. After only 64 days, Gagnon spent the entire sum of the RJM’s $285,000. The evidence showed that Gagnon used the RJM’s funds for Gagnon’s personal expenses, including travel, lingerie, groceries, manicures, hair dressing, restaurants, lease payments for an Audi TT sports car, and valet pet-sitting services for her dog. The RJM monies were also used to pay salaries, office rent, and supplies for Rose Enterprise, Inc.
After stringing out RJM for months and not disclosing her fraudulent misappropriation of RJM’s funds, Gagnon asked RJM for another $285,000 to buy the San Diego residence, falsely representing that she needed the additional funds because RJM’s original $285,000 was tied up in a “triple escrow” on another property.
Ms. Gagnon’s sentencing date is scheduled for February 24, 2014, at 3:00 p.m. The maximum penalty for Ms. Gagnon is 60 years in prison, 20 years for each count charged.
The case was investigated by the Federal Bureau of Investigation.
Release No. 13-128
Former NSA Subcontractor Pleads Guilty to Making False StatementsRead the Press Release
AUGUSTA, GA: Allison Michelle Waddell, 33, of Beech Island, South Carolina pled guilty last week to information charging her with making false statements, in violation of 18 U.S.C. § 1001. The false statements concerned the number of hours she worked for a National Security Agency (“NSA”) subcontractor. In total, Waddell claimed she worked almost 750 more hours than she actually did, which caused the government to pay out $60,000 more than was actually owed.
According to the evidence presented during the guilty plea hearing, Waddell worked as an analytic reporter for an NSA subcontractor from August 2009 through October 2010 and again from October 2011 to September 2012. During those time periods, Waddell submitted numerous timesheets falsely stating the number of hours she had worked.
United States Attorney Edward J. Tarver said, “False claims submitted to our United States Government for payments not owed is theft and should be punished to the full extent of the law. Americans cannot afford, and can no longer turn a blind eye to, this type of corruption. The number one priority of the United States Attorney’s Office is the protection of the American people.”
Waddell faces a maximum penalty of 5 years in prison and a $250,000.00 fine. In addition, the Court can order Waddell to pay full restitution. As part of her plea agreement with the government, Waddell has already paid $10,000.00 toward restitution.
NSA Office of Inspector General Investigators Kristen M. McGrath and Robert L. Gaskill and Paul A. Tarnuzzer, an agent with the Defense Criminal Investigative Service, conducted the investigation which led to the information and plea. Assistant United States Attorney C. Troy Clark is the prosecutor in this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Employee of Defense Contractor and Wife Plead Guilty to Conspiring to Defraud Millions in Scheme Involving Supplies to Afghan National ArmyRead the Press Release
ALEXANDRIA, Va. – Keith Johnson, 46, and his wife, Angela Johnson, 44, of Maryville, Tennessee, pleaded guilty today to conspiracy to commit wire fraud.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office; John Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement after the pleas were accepted by United States District Judge Leonie M. Brinkema.
The Johnsons were indicted on July 16, 2013, by a federal grand jury on conspiracy to commit wire fraud and wire fraud charges. Keith Johnson faces a maximum penalty of 20 years imprisonment and Angela Johnson faces a maximum penalty of 5 years imprisonment when they are sentenced on February 14, 2014.
In a statement of facts filed with the plea agreement, Keith Johnson admitted to serving as the Program Manager for a Department of Defense contractor that operated a Central Maintenance Facility (CMF) in Kabul, Afghanistan and other facilities in that country to maintain and repair vehicles used by the Afghan National Army. In his position during 2007-2008, Keith Johnson was involved in purchasing vehicle parts from vendors. The Johnsons formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed. Angela Johnson operated the company. When Keith Johnson’s company solicited quotes for different vehicle parts that were needed, Angela Johnson, using her maiden name of “Angela Gregory” to conceal her relationship to Keith Johnson, responded with quotes based on parts that she was able to purchase from other vendors of vehicle parts. Keith Johnson used his position as Program Manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotes, and in instances in which there had been competitive quotes, approving recommendations that the awards be made to MLS.
The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to Keith Johnson’s company to have Keith Johnson similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings. Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor. Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons, so that MLS could win competitions for certain purchase orders. Eisner and Kieffer previously pleaded guilty to conspiracy and will be sentenced on December 18, 2013.
As a result of the scheme, Keith Johnson’s company awarded MLS at least $9.7 million worth of purchase orders for vehicle parts by Keith Johnson’s company.
This case was investigated by DCIS, the FBI, SIGAR, and Army MPFU. Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section, who is also a Special Assistant U.S. Attorney for the Eastern District of Virginia, are prosecuting 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.Former Employee at Ft. Meade Youth Center Charged with Sexually Abusing A MinorRead the Press Release
U.S. Attorney Warns that “Parents Must Be Relentless About Reading Children’s Text Messages and Checking Their Social Media Accounts”
Baltimore, Maryland - Anthony Dennis Williams II, age 27, of Severn, Maryland, a former employee at the Fort Meade Youth Center, was arrested today, on charges of sexually abusing a minor.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the U.S. Army Criminal Investigation Command.“Parents must to be relentless about reading children’s text messages and checking their social media accounts,” said U.S. Attorney Rod J. Rosenstein. “Keep your children’s passwords, read all of their incoming and outgoing messages, and take immediate action if they send or receive inappropriate messages.”
According to the affidavit filed in support of the criminal complaint, Williams worked at the Fort Meade Youth Center where he was a Child Youth and School-aged Services (CYSS) employee. Williams also taught a program at CYS called Passport to Manhood (P2M) which was a life course for juvenile males attending CYS. The criminal complaint alleges that in 2010 and 2011, while working at CYS, Williams sexually abused two minor males. According to the complaint, Williams communicated with the males through social media sites and text messages. Williams engaged in sexually explicit conversations with the victims and exchanged sexually explicit photographs and videos with the minor males.
The investigation is continuing.
Williams faces a maximum sentence of 15 years in prison for sexual abuse of a minor. An initial appearance is expected to be scheduled for tomorrow in U.S. District Court in Baltimore. Williams is detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and Army CID for their work in the investigation and thanked the Citrus County, Florida Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who is prosecuting the case.
Former El Paso County Assistant District Attorney Indicted by Federal Grand Jury in Connection with Bribery SchemeRead the Press Release
In El Paso, FBI agents arrested a former El Paso County Assistant District Attorney Antonio Reyes based on a federal grand jury indictment charging with conspiracy to commit wire fraud and the deprivation of honest services announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
The indictment, returned on Wednesday and unsealed today, alleges that from March 30, 2011, until April 15, 2011, Reyes conspired with others through text messaging to accept cash bribes in exchange for dismissing pending criminal cases.
Upon conviction, Reyes faces up to 20 years imprisonment.
“The arrest of Mr. Reyes demonstrates the FBI’s unwavering commitment to the citizens of El Paso that we will vigorously investigate allegations of public corruption in our community and bring those responsible to justice. The citizens of this community deserve to have a sense of confidence that their tax dollars are being spent efficiently for the public good and not for the private enrichment of those in a position of trust,” stated FBI Special Agent in Charge Douglas E. Lindquist.
This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation. Assistant United States Attorney William F. Lewis is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former Defense Contractor Employee and Wife Plead Guilty to Conspiring to Defraud Millions in Scheme Involving Supplies to Afghan National ArmyRead the Press Release
Keith Johnson, 46, and his wife, Angela Johnson, 44, of Maryville, Tenn., pleaded guilty today to their roles in a $9.7 million procurement fraud scheme.
Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office; John Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement after the pleas were accepted by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia.
The Johnsons were indicted on July 16, 2013, by a federal grand jury on conspiracy to commit wire fraud and wire fraud charges. Keith Johnson faces a maximum penalty of 20 years in prison, and Angela Johnson faces a maximum penalty of five years in prison when they are sentenced on Feb. 14, 2014.
In a statement of facts filed with the plea agreement, Keith Johnson admitted to serving as the program manager for a Department of Defense contractor that operated a central maintenance facility (CMF) in Kabul, Afghanistan, and other facilities in that country to maintain and repair vehicles used by the Afghan National Army. In his position during 2007 to 2008, Keith Johnson was involved in purchasing vehicle parts from vendors. The Johnsons formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed. Angela Johnson operated the company. When Keith Johnson’s company solicited quotes for different vehicle parts that were needed, Angela Johnson, using her maiden name of “Angela Gregory” to conceal her relationship to Keith Johnson, responded with quotes based on parts that she was able to purchase from other vendors of vehicle parts. Keith Johnson used his position as program manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotes, and in instances in which there had been competitive quotes, approving recommendations that the awards be made to MLS.
The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to Keith Johnson’s company, to have Keith Johnson similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings. Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor. Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons so that MLS could win competitions for certain purchase orders. Eisner and Kieffer previously pleaded guilty to conspiracy and will be sentenced on Dec. 18, 2013.
As a result of the scheme, Keith Johnson’s company awarded MLS at least $9.7 million worth of purchase orders for vehicle parts by Keith Johnson’s company.
This case was investigated by DCIS, FBI, SIGAR and Army MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the Eastern District of Virginia are prosecuting the case on behalf of the United States.
Former Children’s Minister Sentenced to Ninety-Seven Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Derek M. Schwartzrock, 35, of Albuquerque, N.M., was sentenced this morning to 97 months in federal prison followed by a lifetime of supervised release for his child pornography conviction. Schwartzrock will be required to register as a sex offender after he completes his prison sentence.
Schwartzrock’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Pete N. Kassetas of the New Mexico State Police (NMSP).
Schwartzrock was arrested by HSI and the NMSP on April 3, 2013, on a criminal complaint alleging that he received and possessed child pornography in Bernalillo County, N.M. At the time, Schwartzrock was a children’s minister in an Albuquerque-area church. He has been in federal custody since his arrest. On April 24, 2013, Schwartzrock was indicted and charged with three counts of receipt of child pornography and two counts of possession of child pornography.
On July 9, 2013, Schwartzrock entered a guilty plea to Count 2 of the indictment charging him with receipt of child pornography. Schwartzrock acknowledged that HSI and NMSP executed a search warrant at his residence on April 3, 2013 and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by HSI in Philadelphia that began in Oct. 2012, and targeted individuals who used a photo-sharing website to possess, receive and distribute child pornography. HSI in Albuquerque began investigating Schwartzrock in mid-March 2013 after HSI in Philadelphia determined that an individual in Albuquerque was accessing the targeted website and learned that Schwartzrock was the subscriber for the IP Address that allegedly was used to download sexually explicit images of children.
Schwartzrock admitted voluntarily participating in a recorded interview on April 3, 2013. During the interview, he admitted that he began looking for images of naked boys, with a preference for elementary school aged children, several months earlier and that he downloaded child pornography images from the Internet. Schwartzrock also acknowledged that a forensic preview of his computers and computer-related media have uncovered over 12,000 images consistent with child pornography and child erotica.
“Child pornography offenses are terrible crimes that involve the sexual abuse and exploitation of the most innocent members of our communities,” said Acting U.S. Attorney Steven C. Yarbrough. “It is particularly distressing when those who work with children commit these crimes. Thanks to the vigilance of our law enforcement partners, Derek Schwartzrock will no longer be around children but instead will be going to federal prison.”“It is always disturbing to see a person who through their employment has been entrusted with our children is found guilty of these types of charges,” said NMSP Chief Kassetas. “The New Mexico State Police is fully committed to investigating those who would participate in the exploitation of our children through these types of images. This case is another example of how Homeland Security Investigations (HSI) and New Mexico State Police in cooperation with the United State Attorney’s Office are leveraging their resources to protect our children. Though I take great pride in NMSP’s involvement in this case, the citizens of New Mexico should understand that there is much more work to be done in combating the exploitation of children through the internet and NMSP is committed to continue these efforts.”
This case was investigated by the Albuquerque office of HSI, the NMSP and the New Mexico Regional Forensic Lab. It was prosecuted by former Assistant U.S. Attorney Charlyn E. Rees and Assistant U.S. Attorney Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Austin Area Woman Sentenced to Federal Prison for Identity Theft and Wire Fraud SchemeRead the Press Release
In Sherman, TX, this morning, Lynetta Mae Washington, formerly of the Austin area and current Denton, TX, resident, was sentenced to 63 months in federal prison for her role in an identity theft and wire fraud scheme announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCullough in San Antonio.
In addition to the prison term, United States District Judge Thad Heartfield ordered that Washington pay $407,448.62 restitution and be placed under supervised release for a period of five years after completing her prison term.
On November 28, 2012, Washington pleaded guilty to two counts of making false claims, one count of misuse of a Social Security Number and one count of wire fraud. By pleading guilty, Washington admitted that in January 2007, she fraudulently assumed the identities of her father-in-law and deceased mother to present the Internal Revenue Service with two falsified 2006 Income Tax Returns in which she claimed entitlement to a total of $5,730.00 in tax refunds. According to court records, Washington also knowingly submitted a written Renewal Application for Loan Officer License with the Texas Department of Savings and Mortgage Lending in which she fraudulently claimed her mother’s Social Security Number as hers in order for her license to be renewed. Furthermore, Washington admitted that while working as a loan officer on behalf of one or more mortgage companies from 2006 to 2009, she collected a fee for providing fictitious employment and income information on a mortgage application in order to secure the loan
This prosecution resulted from an investigation conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Texas Department of Public Safety. The matter was prosecuted by Assistant United States Attorney Ashley Hoff.
The case was transferred to the Eastern District of Texas from the Austin Division of the Western District of Texas for plea and sentencing due to the defendant’s residency. United States Attorney Robert Pitman is grateful for the valuable assistance provided by the United States Attorney’s Office for the Eastern District of Texas.
Five Columbia Men Indicted for Heroin TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five Columbia, Mo., men have been indicted, in three separate cases, on charges related to distributing heroin.
All of the defendants were charged in a series of indictments returned by a federal grand jury in Jefferson City on Thursday, Nov. 7, 2013.
USA v. Smith
Ravid Donald Smith, 49, Lemont Michael Livingston, 26, and Clifford Andrew Lake, 53, all of Columbia, were charged with one count of participating in a conspiracy to distribute 100 grams or more of heroin from Sept. 24 to Oct. 28, 2013.
The indictment replaces a federal criminal complaint that was filed against the defendants on Oct. 29, 2013. According to an affidavit filed in support of the complaint, police officers received information that Livingston acquired large quantities of heroin in St. Louis, Mo., and, along with Lake and Smith, distributed the heroin in the Columbia area.
On Oct. 28, 2013, the affidavit says, law enforcement officers received information that Livingston was returning from Chicago with a shipment of heroin. When Livingston arrived at his residence, where officers had conducted a controlled buy of $150 worth of heroin about a month earlier, he was immediately detained. A bag containing 200 grams of heroin was recovered from a backpack inside the BMW X5 driven by Livingston. Officers executed a search warrant at Livingston’s residence and found a stolen handgun, products known to be cutting agents for heroin and a drug ledger. Lake was present in the residence when officers served the warrant, and was also arrested.
After learning that Smith had returned to Columbia with a heroin shipment, the affidavit says, law enforcement officers used a cooperating source to make a controlled buy of heroin from him on the same day, and Smith was arrested.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.
USA v. Anderson
Markielle Avion Anderson, 26, of Columbia, was charged with one count of possessing heroin with the intent to distribute and one count of being a felon in possession of a firearm.
The indictment replaces a federal criminal complaint that was filed against Anderson on Oct. 8, 2013. According to an affidavit filed in support of the complaint, law enforcement officers used a cooperating source to conduct a controlled drug transaction on Oct. 7, 2013. When Anderson arrived, the affidavit says, he was arrested. Approximately 10 grams of heroin and a loaded Davis .380-caliber handgun were seized from Anderson’s vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Anderson has two prior felony convictions for driving with a revoked license.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mid-Missouri Drug Task Force, the Columbia, Mo., Police Department and the Jefferson City, Mo., Police Department.
USA v. Nesbitt
Laron Christopher Nesbitt, Jr., 19, of Calumet City, Ill., was charged with one count of possessing heroin with the intent to distribute.
The indictment replaces a federal criminal complaint that was filed against Nesbitt on Oct. 8, 2013. According to an affidavit filed in support of the complaint, law enforcement officers used a cooperating source to conduct a controlled drug transaction on Oct. 7, 2013. Officers arrested Nesbitt, whom the affidavit says had 12 grams of heroin in his pocket.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force, the Columbia, Mo., Police Department and the Jefferson City, Mo., Police Department.
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.Federal Arrest and Search Warrants Served in Albany and Dawson, GeorgiaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that law enforcement officials with the Georgia Bureau of Investigation (GBI), Alcohol, Tobacco, Firearms and Explosives (ATF), Georgia State Patrol (GSP) Post 40, Albany Probation, and Albany Police Department served federal arrest warrants in Albany and Dawson, Georgia. In conjunction with the arrests, federal search warrants were also executed in Albany.These warrants stem from a two year narcotics investigation initiated by the ATF and GBI Sylvester with the assistance of the United States Attorney’s Office for the Middle District of Georgia. The investigation uncovered a major drug trafficking organization responsible for transporting multi kilograms of powder cocaine, crack cocaine, and firearms throughout the southwest Georgia area.
The following were arrested on federal arrest warrants and are in federal custody awaiting bond hearings scheduled on November 13, 2013:Toney Ricardo Mosley, age 44, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute;
Montravis Montez Luke, age 29, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute, Possession of a Firearm by a Convicted Felon;
Joe Lewis Guest III, age 26, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute;
Timothy Lemond Johnson, age 41, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute;Ontario Deshone Watson, age 40, of Dawson, GA, charged with Conspiracy to Possess with Intent to Distribute;
Darian Jay Gillison, age 36, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute;
Kenneth Fairbanks, age 39, of Dawson, GA, charged with Conspiracy to Possess with Intent to Distribute.
This investigation is an example of state and federal law enforcement agencies working together to make a positive impact in the local communities of southwest Georgia.
The case was investigated by the Georgia Bureau of Investigation (GBI), Alcohol, Tobacco, Firearms and Explosives (ATF), Georgia State Patrol (GSP) Post 40, Albany Probation, and Albany Police Department and is being prosecuted by Assistant United States Attorney Leah McEwenInquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Eleventh Circuit Affirms Convictions of White Supremacist Murderer of Two Homeless MenRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that the United States Court of Appeals for the Eleventh Circuit today affirmed the convictions of James L. Robertson on charges that he had murdered two homeless men to further his position in the white-supremacist hate group known as “Blood and Honor.” The bodies of Alfred Williams and Richard Arseneau were found in 1998, in Tampa, after both had been severely beaten and died from head trauma. Although authorities were unable to identify the perpetrators of the crimes at the time, newly discovered evidence, in early 2005, revealed that, on the night of the murders, Robertson and three others had sought out the victims, beaten them severely, and left them for dead.
All three of the other participants in the assaults pleaded guilty to related charges and testified at Robertson’s trial. They all identified Robertson as the primary instigator of the attacks and that Robertson had bludgeoned the men with a tire iron or similar instrument, inflicting multiple blows to the victims’ heads and bodies.
On appeal, Robertson argued that the district court had erred by refusing to permit him to strike one of only three African-American members from the jury pool, that his prosecution should have been barred by an alleged immunity agreement with the United States, and that the government had failed to present sufficient evidence of his participation in the murders or of the connection with his membership in the Blood and Honor organization. The United States Court of Appeals for the Eleventh Circuit rejected each of these arguments, finding sufficient evidence that Robertson had attempted to strike the African-American jury pool member for an unconstitutionally discriminatory reason, approving of the district court’s finding that Robertson had not been promised immunity from prosecution, and finding ample trial evidence proving both Robertson’s participation in the murders and the murders’ connection to his membership in the Blood and Honor organization.
Robertson is currently serving a sentence of life imprisonment.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Tampa Police Department, the Hillsborough County Sheriff's Office, and the Hillsborough County State Attorney's Office. The case was prosecuted in the district court by A. Lee Bentley, Acting United States Attorney, and former Assistant United States Attorney Laurel Moore Lee. The appeal was handled by Assistant United States Attorneys Linda Julin McNamara and David P. Rhodes.
Detroit Man Who Mailed More Than $38k Worth of Heroin to Dealers in Huntington Enters Federal Guilty PleaRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who mailed more than $38,000 worth of heroin to associates located in Huntington pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Zachery Jose Merritt, 30, pleaded guilty to conspiracy to distribute 100 grams or more of heroin before Chief United States District Judge Robert C. Chambers in Huntington.
Between September 2012 and June 2013, Merritt, also known as “Zane,” mailed quantities of heroin to associates located in Huntington. The heroin was later sold in Huntington for $125 per gram. Drug proceeds totaling $38,250 were deposited in Merritt’s bank account. Police said that the bank deposits were made to the defendant’s account in Huntington, though withdrawals, from the same account, were completed by Merritt in Detroit.During the conspiracy, Merritt also provided heroin to co-conspirator and Huntington resident, Lindsey Alyn Thacker. Thacker, also known as “Lindsey Webb,” 29, made approximately seven trips to Detroit between the summer of 2012 through June 20, 2013 to obtain heroin and crack cocaine from Merritt.
Also during the conspiracy, Thacker and her associate, Keith Eric Wood, 28, made their Huntington residence available to acquaintances for the purpose of storing and distributing heroin. Law enforcement officers conducted a search of the residence on June 20, 2013 and found approximately .3 grams of heroin and more than $1000 in cash.Thacker and Wood each pleaded guilty on Nov. 5 to maintaining a residence for the purpose of distributing heroin. Both defendants face up to 20 years in federal prison when they are sentenced on Feb. 18, 2014.
Merritt faces up to 40 years in prison when he is sentenced on Feb. 18, 2014.
The Huntington Violent Crimes and Drug Task Force conducted the investigations. Assistant United States Attorney Gregory McVey is in charge of the prosecutions.
Defendant Pleads Guilty in Manhattan Federal Court to Being an Organizer and Leader of an Illegal Sports Gambling BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HILLEL NAHMAD, a/k/a “Helly,” pled guilty today in Manhattan federal court in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. NAHMAD was charged in April 2013 in a 34-defendant indictment charging members and associates of two Russian-American organized crime enterprises with various crimes including racketeering, money laundering, extortion, and gambling offenses. He pled guilty before U.S. District Court Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Helly Nahmad headed an illegal sports gambling business with ties to a Russian-American organized crime ring. Nahmad bet that he would never get caught and he lost. His guilty plea today has dealt a substantial blow to this international enterprise.”
According to the Indictment, other documents filed in this case and statements made at various conferences in this case, including today’s guilty plea:
NAHMAD is the son of a billionaire art dealer from Europe, and he operates the Helly Nahmad Gallery out of the Carlyle Hotel in New York, New York. NAHMAD and defendant Illya Trincher ran a high-stakes illegal gambling business that catered primarily to millionaire and billionaire clients. Their business utilized several online gambling websites that operated illegally in the United States to generate tens of millions of dollars of sports bets each year. The gambling operation was financed through a host of American and international bank accounts, including accounts associated with NAHMAD, defendants John Hanson and Noah Siegel, a/k/a “The Oracle,” and a plumbing company in the Bronx that was acquired in repayment of a $2 million gambling debt. As part of his guilty plea, NAHMAD acknowledged that he was a leader and organizer of the illegal sports gambling business, that he was the primary source of financing for that business, and that he was entitled to a substantial share of its profits.
NAHMAD, 35, of New York, New York, faces a maximum sentence of five years in prison and three years of supervised release. As part of his plea agreement, NAHMAD agreed to forfeit $6,427,000.00 and all right, title and interest of the defendant in the painting Carnaval à Nice, 1937 by Raoul Dufy to the United States. NAHMAD is scheduled to be sentenced by Judge Furman on March 19, 2014 at 3:00 p.m.
NAHMAD is the 14th defendant in this case to plead guilty. The following defendants previously pled guilty and await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013; and
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office=s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office=s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Criminal Complaints Charge Matthew Schweitzer and Derek Wurth with Pair of Bank RobberiesRead the Press Release
Memphis, TNMatthew Schweitzer, 26, of Memphis and Derek Wurth, 25, were each charged in separate criminal complaints with one count of bank robbery, announced U.S. Attorney Edward L. Stanton III.
According to the facts alleged in the criminal complaints, on November 4, 2013, at approximately 1:43 p.m., a lone male entered the Kroger Store located at 676 N. Germantown Parkway in Cordova. He approached one of the bank tellers at Suntrust Bank located within Kroger, demanded money, and fled with the money.
On November 5, 2013, a Crime Stopper tip identified Schweitzer as the individual responsible for the bank robbery. That same day, members of the Federal Bureau of Investigation’s Safe Streets Task Force arrested Schweitzer without incident.
While in custody, Schweitzer confessed to the robbery of the Suntrust Bank and further confessed to being present during the October 11, 2013 robbery of the First Tennessee Bank located inside the Kroger Store at 9025 U.S. Highway 64. He identified Wurth as the individual responsible for the robbery of the First Tennessee Bank. Wurth was arrested on November 6, 2013 in Oxford, MS.
This case was investigated by the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Lorraine Craig is representing the government.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Court Authorizes Irs to Issue Summonses for Records Relating to U.S Taxpayers with Offshore Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, the Assistant Attorney General for the Justice Department’s Tax Division, and Danny Werfel, the Acting Commissioner of the Internal Revenue Service (“IRS”), announced today that U.S. District Judge Kimba M. Wood entered an order on November 7, 2013, authorizing the IRS to issue summonses requiring Bank of New York Mellon (“Mellon”) and Citibank, NA (“Citibank”), to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by holding interests in undisclosed accounts at Zurcher Kantonalbank and its affiliates (collectively, “ZKB”) in Switzerland; and U.S. District Judge Richard M. Berman entered an order today authorizing the IRS to issue summonses requiring Mellon, Citibank, JPMorgan Chase Bank, NA (“JPMorgan”), HSBC Bank USA, NA (“HSBC”), and Bank of America, NA (“Bank of America”), to produce similar information in connection with undisclosed accounts at The Bank of N.T. Butterfield & Son Limited and its affiliates (collectively, “Butterfield”) in the Bahamas, Barbados, Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland, and the United Kingdom.
In these actions, the Court granted the IRS permission to serve what are known as “John Doe” summonses on Mellon, Citibank, JPMorgan, HSBC, and Bank of America. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses direct these five banks to produce records identifying U.S. taxpayers with accounts at ZKB, Butterfield, and their affiliates, including other foreign banks that used ZKB and Butterfield’s U.S. correspondent accounts at Mellon, Citibank, JPMorgan, HSBC, and Bank of America to service U.S. clients.
Manhattan U.S. Attorney Preet Bharara said: “These actions show that the use of foreign banks for tax evasion remains a high investigative priority of this Office and U.S. citizens should understand that loud and clear. By issuing these John Doe summonses, we continue our joint efforts with the IRS to identify and hold accountable those who try to evade their legal responsibility to pay taxes.”
Assistant Attorney General Kathryn Keneally said: “These cases once again demonstrate the Department’s resolve to uncover and identify taxpayers who tried to hide money overseas as a way to avoid federal taxes. These John Doe Summonses will provide information about individuals using financial institutions from Switzerland to the Cayman Islands to Hong Kong to avoid their U.S. tax obligations. U.S. taxpayers still holding accounts who have not come clean should come forward and do the right thing before it’s too late.”
IRS Acting Commissioner Danny Werfel said: “International issues remain a major focus for the IRS, and we are continuing our efforts to fight tax evaders who use offshore accounts to skirt the law. These John Doe summonses for correspondent account records show our determination to pursue evaders using offshore accounts even if the person hiding money overseas chooses a bank that has no offices on U.S. soil.”
IRS Offshore Voluntary Disclosure programs and initiatives enable U.S. taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution by voluntarily disclosing previously undisclosed foreign accounts and income. To date, U.S. taxpayers have identified 371 previously undisclosed accounts at ZKB and 81 such accounts at Butterfield. In addition, a number of U.S. taxpayers with beneficial ownership and control over funds held in accounts at ZKB and Butterfield have admitted failure to report income earned from their offshore accounts on their federal tax returns. The IRS has reason to believe that other U.S. taxpayers who held or presently hold similar accounts at ZKB, Butterfield, and their affiliates have done the same, in violation of federal tax law. In December 2012, three employees of ZKB were indicted for conspiring with U.S. taxpayers and others to hide at least $423 million from the IRS in secret Swiss bank accounts.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
These cases are being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Tomoko Onozawa is in charge of the Butterfield case and Assistant U.S. Attorney Christopher B. Harwood is in charge of the ZKB case.
Court Authorizes IRS to Issue Summonses for Records Relating to U.S. Taxpayers with Offshore Bank AccountsRead the Press Release
Five Banks Directed to Produce Records for Accounts at Zurcher Kantonalbank, The Bank of N.T. Butterfield & Son Limited and Affiliates
U.S. District Judge Kimba M. Wood of the Southern District of New York entered an order on Nov. 7, 2013, authorizing the IRS to issue summonses requiring Bank of New York Mellon (Mellon) and Citibank NA (Citibank) to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by holding interests in undisclosed accounts at Zurcher Kantonalbank and its affiliates (collectively, ZKB) in Switzerland; and U.S. District Judge Richard M. Berman of the Southern District of New York entered an order today authorizing the IRS to issue summonses requiring Mellon, Citibank, JPMorgan Chase Bank NA (JPMorgan), HSBC Bank USA NA (HSBC), and Bank of America NA (Bank of America) to produce similar information in connection with undisclosed accounts at The Bank of N.T. Butterfield & Son Limited and its affiliates (collectively, Butterfield) in the Bahamas, Barbados, Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland, and the United Kingdom. U.S. Attorney for the Southern District of New York Preet Bharara, Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, and Acting Commissioner of the Internal Revenue Service (IRS) Danny Werfel made the announcement today.
In these actions, the Court granted the IRS permission to serve what are known as “John Doe” summonses on Mellon, Citibank, JPMorgan, HSBC, and Bank of America. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses approved today direct these five banks to produce records identifying U.S. taxpayers with accounts at ZKB, Butterfield and their affiliates, including other foreign banks that used ZKB and Butterfield’s U.S. correspondent accounts at Mellon, Citibank, JPMorgan, HSBC, and Bank of America to service U.S. clients.
“These cases once again demonstrate the department’s resolve to uncover and identify taxpayers who tried to hide money overseas as a way to avoid federal taxes,” said Assistant Attorney General Keneally. “These John Doe summonses will provide information about individuals using financial institutions from Switzerland to the Cayman Islands to Hong Kong to avoid their U.S. tax obligations. U.S. taxpayers still holding accounts who have not come clean should come forward and do the right thing before it’s too late.”
“Today’s action show that the use of foreign banks for tax evasion remains a high investigative priority of this office and U.S. citizens should understand that loud and clear,” said U.S. Attorney Bharara. “By issuing these John Doe summonses, we continue our joint efforts with the IRS to identify and hold accountable those who try to evade their legal responsibility to pay taxes.”
“International issues remain a major focus for the IRS, and we are continuing our efforts to fight tax evaders who use offshore accounts to skirt the law,” said IRS Acting Commissioner Werfel. “These John Doe summonses for correspondent account records show our determination to pursue evaders using offshore accounts, even if the person hiding money overseas chooses a bank that has no offices on U.S. soil.”
IRS Offshore Voluntary Disclosure programs and initiatives enable U.S. taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution by voluntarily disclosing previously undisclosed foreign accounts and income. To date, U.S. taxpayers have identified 371 previously undisclosed accounts at ZKB and 81 such accounts at Butterfield. In addition, a number of U.S. taxpayers with beneficial ownership and control over funds held in accounts at ZKB and Butterfield have admitted failing to report income earned from their offshore accounts on their federal tax returns. The IRS has reason to believe that other U.S. taxpayers who held or presently hold similar accounts at ZKB, Butterfield, and their affiliates have done the same in violation of federal tax law. In December 2012, three employees of ZKB were indicted for conspiring with U.S. taxpayers and others to hide at least $423 million from the IRS in secret Swiss bank accounts.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
These cases are being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Tomoko Onozawa is in charge of the Butterfield case and Assistant U.S. Attorney Christopher B. Harwood is in charge of the ZKB case.
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Court Authorizes IRS to Issue Summonses for Records Relating to U.S Taxpayers with Offshore Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, the Assistant Attorney General for the Justice Department’s Tax Division, and Danny Werfel, the Acting Commissioner of the Internal Revenue Service (“IRS”), announced today that U.S. District Judge Kimba M. Wood entered an order on November 7, 2013, authorizing the IRS to issue summonses requiring Bank of New York Mellon (“Mellon”) and Citibank, NA (“Citibank”), to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by holding interests in undisclosed accounts at Zurcher Kantonalbank and its affiliates (collectively, “ZKB”) in Switzerland; and U.S. District Judge Richard M. Berman entered an order today authorizing the IRS to issue summonses requiring Mellon, Citibank, JPMorgan Chase Bank, NA (“JPMorgan”), HSBC Bank USA, NA (“HSBC”), and Bank of America, NA (“Bank of America”), to produce similar information in connection with undisclosed accounts at The Bank of N.T. Butterfield & Son Limited and its affiliates (collectively, “Butterfield”) in the Bahamas, Barbados, Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland, and the United Kingdom.
In these actions, the Court granted the IRS permission to serve what are known as “John Doe” summonses on Mellon, Citibank, JPMorgan, HSBC, and Bank of America. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses direct these five banks to produce records identifying U.S. taxpayers with accounts at ZKB, Butterfield, and their affiliates, including other foreign banks that used ZKB and Butterfield’s U.S. correspondent accounts at Mellon, Citibank, JPMorgan, HSBC, and Bank of America to service U.S. clients.
Manhattan U.S. Attorney Preet Bharara said: “These actions show that the use of foreign banks for tax evasion remains a high investigative priority of this Office and U.S. citizens should understand that loud and clear. By issuing these John Doe summonses, we continue our joint efforts with the IRS to identify and hold accountable those who try to evade their legal responsibility to pay taxes.”
Assistant Attorney General Kathryn Keneally said: “These cases once again demonstrate the Department’s resolve to uncover and identify taxpayers who tried to hide money overseas as a way to avoid federal taxes. These John Doe Summonses will provide information about individuals using financial institutions from Switzerland to the Cayman Islands to Hong Kong to avoid their U.S. tax obligations. U.S. taxpayers still holding accounts who have not come clean should come forward and do the right thing before it’s too late.”
IRS Acting Commissioner Danny Werfel said: “International issues remain a major focus for the IRS, and we are continuing our efforts to fight tax evaders who use offshore accounts to skirt the law. These John Doe summonses for correspondent account records show our determination to pursue evaders using offshore accounts even if the person hiding money overseas chooses a bank that has no offices on U.S. soil.”
IRS Offshore Voluntary Disclosure programs and initiatives enable U.S. taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution by voluntarily disclosing previously undisclosed foreign accounts and income. To date, U.S. taxpayers have identified 371 previously undisclosed accounts at ZKB and 81 such accounts at Butterfield. In addition, a number of U.S. taxpayers with beneficial ownership and control over funds held in accounts at ZKB and Butterfield have admitted failure to report income earned from their offshore accounts on their federal tax returns. The IRS has reason to believe that other U.S. taxpayers who held or presently hold similar accounts at ZKB, Butterfield, and their affiliates have done the same, in violation of federal tax law. In December 2012, three employees of ZKB were indicted for conspiring with U.S. taxpayers and others to hide at least $423 million from the IRS in secret Swiss bank accounts.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
These cases are being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Tomoko Onozawa is in charge of the Butterfield case and Assistant U.S. Attorney Christopher B. Harwood is in charge of the ZKB case.
ZKB Order
Butterfield Order