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9 January 2014
Permian Basin Men Sentenced to Federal Prison in Multi-Million Bank Fraud SchemeRead the Press Release
In Midland this afternoon, 36-year-old Raymond Holguin, Jr., of Odessa and 37–year-old Gustavo Pizarro of Midland were sentenced to 41 months and 18 months, respectively, in federal prison for defrauding My Community Federal Credit Union of millions of dollars announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Holguin pay $3,934,627 restitution and be placed under supervised release for a period of five years after completing his prison term. Judge Junell ordered that Pizarro pay $3,914,680 restitution and be placed under supervised release for a period of five years after completing his prison term. Judge Junell also ordered both defendants to surrender to federal authorities on or before February 18, 2014, to begin serving their prison terms.
Last year, Holguin, Pizarro and 40-year-old Michael Franco of Midland all pleaded guilty to one count of conspiracy to commit bank fraud in connection with this investigation. According to court records, beginning in April 2007, the defendants engaged in an 18-month-long scheme that defrauded the FDIC-insured financial institution through the issuance of fraudulent car loans. Holguin, operator of Motor City, an auto dealership in Odessa, TX; Pizarro, General Sales Manager at Motor City; and, Franco, a loan officer at My Community Federal Credit Union, all devised a plan to approve car loans for customers who did not meet the credit union’s lending standards. Holguin and Pizarro presented auto loan applications to Franco that included false information such as inflated income. Holguin and Pizarro would also add amenities to the cars that did not exist in an effort to increase the value of the car and receive a larger loan amount. Franco never verified any of the information contained in the loan documents before processing the loans and, in return, was paid a kickback by Holguin for every car loan that was approved. The scheme resulted in Franco approving more than 300 fraudulent car loans on behalf of Holguin and Pizarro which led to a loss at My Community Federal Credit Union in excess of $4 million.
On November 25, 2013, Franco was sentenced to 18 months in federal prison followed by five years of supervised release and ordered to pay $4,122,532.19 restitution to the bank. All restitution amounts ordered by the Court in this case are to be paid joint and several by the defendants.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney V. LaTawn Warsaw.
One Tax Preparer Pleads Guilty and Another Sentenced to Five Years in Prison in Separate Federal Income Tax Fraud CasesRead the Press Release
CHICAGO — A former Chicago tax preparer pleaded guilty to filing nearly 3,200 false federal income tax returns for clients, while in a separate case in Federal Court yesterday, a suburban tax preparer was sentenced to 63 months in prison for fraudulently claiming more than $8 million in tax refunds from the Internal Revenue Service. The unrelated federal prosecutions serve as a reminder to tax preparers and taxpayers alike to comply with the law as the 2013 tax season gets underway.
“With tax season upon us, I want to assure taxpayers that the IRS Criminal Investigation Division is focused on protecting revenue by identifying and investigating abusive tax return preparers. While most return preparers are honest and provide excellent service, a few unscrupulous tax preparers file false returns to defraud their clients and the United States government,” said James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
“Today, we remind dishonest tax preparers: we are watching your activities. These cases should send a loud message to any dishonest return preparers who might be thinking of engaging in criminal activity, and taxpayers should choose carefully when hiring a tax preparer,” Mr. Lee added.
The guilty plea and sentencing were announced by Mr. Lee, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in- Charge of the Chicago Office of the Federal Bureau of Investigation.
In one case, VERLEAN HOLLINS, who owned Taxes, Etc., Inc., a tax preparation business located in the 2300 block of East 71st Street, between at least 2010 and 2012, pleaded guilty to two counts of aiding and assisting in the preparation of false federal income tax returns. Hollins, 43, of South Holland, who was charged on Dec. 19, faces a maximum sentence of six years in prison and a fine of nearly $800,000 when she is sentenced on April 22 by U.S. District Judge Samuel Der-Yeghiayan.
Hollins admitted that for calendar years 2009 through 2011, she filed a total of 3,193 individual income tax returns for clients, each of which falsely claimed higher education tax credits. As a result, she falsely claimed refunds totaling more than $3.372 million for her clients, the majority of whom paid her approximately $125 to prepare their returns, although her fee ranged between $25 and $400. The vast majority of Hollins’ clients never indicated that they or a dependent were eligible for a college tuition credit, and among the small number of her clients who were eligible for the tax credit, none provided any documents to support eligibility.
Hollins’ plea agreement anticipates an advisory federal sentencing guidelines range of 46 to 57 months in prison, and she agreed to a fine of $798,250. Each count of assisting in the preparation of a false federal income tax return carries a maximum sentence of three years in prison and a $250,000 fine, or an alternate fine of twice the gain or twice the loss, whichever is greater. In addition, defendants convicted of tax offenses must pay the costs of prosecution and remain liable for any taxes and interest, as well as a civil penalty up to 75 percent of the taxes owed. The Court must impose a reasonable sentence under federal statutes the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Kaarina Salovaara.
In a separate case, SHARON ANZALDI, 67, of Elmwood Park, was sentenced to 63 months in federal prison and ordered to pay $851,142 in restitution to the IRS for filing 13 false federal income tax returns for herself, friends, and family that fraudulently claimed refunds totaling more than $8 million and caused the IRS to actually pay more than $1 million in bogus refunds.
Anzaldi, who represented herself and was convicted at trial last summer, is associated with the sovereign citizen movement. She was ordered to begin serving her sentence on Feb. 25 by U.S. District Judge Harry Leinenweber. Evidence at trial showed that in one instance, Anzaldi charged a couple $31,000 for her “services” for filing a fraudulent tax return that they simply went along with and did not really understand. The couple returned the bulk of their fraudulent refund but continue to accrue penalties and interest on the amount they spent before returning the money.
Convicted at trial with Anzaldi were her son, PHILLIP DeSALVO, 42, of Bartlett, who was sentenced to 30 months in prison, and STEVEN LATIN, 51, of Crystal Lake, who was sentenced to 18 months in prison.
The government was represented by Assistant U.S. Attorneys Rachel Cannon and Dylan Smith.
Ohio Man Admits Defrauding Charter Flight Company and Other Luxury Brands of More Than $100k in Private Flights, Watches, and Hotel StaysRead the Press Release
NEWARK, N.J. – A resident of Ohio admitted today to defrauding a charter flight company and other luxury brands of more than $100,000 worth luxury goods and services, U.S. Attorney Paul J. Fishman announced.
Christopher L. Henderson, 32, of Akron, Ohio, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
From May through June of 2013, Henderson and others conspired to fraudulently obtain at least three private charter flights from Jet Aviation, an international business aviation services company, with U.S. headquarters in Teterboro, N.J., which provides charter flight services. Henderson and others also conspired to obtain tens of thousands of dollars in other luxury goods and services, all via sham lines of credit issued to a well-known financial institution, for the defendants’ and others’ use by misrepresenting that they were employees at the financial institution.
On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation’s offices in Chicago, Ill. and Van Nuys, Calif., to inquire about its private charter flight services. That individual identified himself as being employed as a senior vice president at a well-known financial institution and provided an email address purporting to be affiliated with the financial institution. A Jet Aviation employee sent a draft Charter Services Agreement to the provided email address. The agreement was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013, falsely listing “Josh Stevens” as a senior vice president and Henderson as a vice president of international affairs at the well-known financial institution. The aviation company established an account and a line of credit for $350,000, which the defendants and others used to take four private charter flights.
As a result of their misrepresentations to Jet Aviation, Henderson and others fraudulently obtained private high-end charter flights and limousine car services, with a total approximate value of $175,790, for which Jet Aviation never received payment.Henderson and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers and obtained approximately $20,000 in luxury watches, sunglasses, and sterling silver and leather business cardholders, and incurred approximately $25,500 in hotel stays at a luxury hotel in Miami.
As a result of the scheme, Henderson fraudulently obtained more than $135,000 in luxury goods and services.The wire fraud charge to which Henderson pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for April 15, 2014.
Dante G. Dixon, a co-defendant in this case, pleaded guilty on Dec. 17, 2013, to an information charging him with conspiracy to commit wire fraud. Dixon’s sentencing is scheduled for April 23, 2013.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-010
Defense counsel: Joshua P. Cohn Esq., Saddle Brook, N.J.
Henderson, Christopher Information
Northern District of Mississippi U.S. Attorney’s Office Collects $1,936,411.56 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
(OXFORD) - U.S. Attorney Felicia C. Adams announced today that the Northern District of Mississippi collected $1,936,411.56 in criminal and civil actions in Fiscal Year 2013. Of this amount, $1,736,873.89 was collected in criminal actions and $199,537.67 was collected in civil actions
Additionally, the Northern District of Mississippi worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $184,251,500.00 in cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“During this time of economic recovery, these collections are more important than ever,” said U.S. Attorney Felicia C. Adams. “The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from their illegal activities.”
This past November, the Northern District of Mississippi recovered $525,500.00 as part of a plea agreement in a multi-state tobacco tax evasion criminal case.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Northern District of Mississippi working with partner agencies and divisions, collected$1,865,649.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Northern District of Texas U.S. Attorney’s Office Collects More Than $31 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
DALLAS — U.S. Attorney Sarah R. Saldaña announced today that the Northern District of Texas collected $31,201,427.29 in criminal and civil actions in Fiscal Year 2013. Of this amount, $12,400,303.78 was collected in criminal actions and $18,801,123.51 was collected in civil actions.
Additionally, Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,323,331.29 in cases pursued jointly with these offices. Of this amount, $19,567.77 was collected in criminal actions and $1,303,763.52 was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and victims of federal crimes,” said U.S. Attorney Saldaña. “For example, in one month alone, the district recovered $6.6 million in one civil health care fraud case. This kind of recovery not only returns funds to the defrauded federal program, but it serves to deter others from engaging in fraud.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Northern District of California U.S. Attorney’S Office Collects over 394 Million Dollars in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
San Francisco – United States Attorney Melinda Haag announced today that the Northern District of California collected $394,282,021.52 in criminal and civil actions in Fiscal Year 2013 – the second highest amount of money collected by a U.S. Attorney’s Office in the country. Of this amount, $382,346,662.83 was collected in criminal actions and $11,935,358.69 was collected in civil actions.
Additionally, the Northern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $185,079,434.25 in cases pursued jointly with these offices. Of this amount, $3,851.92 was collected in criminal actions and $185,075,582.33 was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013.
The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Long after defendants are sentenced, this office’s financial litigation team works exhaustively to ensure debts are paid to the government and victims,” said United States Attorney Melinda Haag. “The extraordinary results of this hard work are evident in the hundreds of millions of dollars collected by this office last year alone.”
This past May, the District of Northern California recovered $40,000,375 in criminal fines in the Wal-Mart Stores Inc. case, CR-0333-001 JCS, in addition to $20 million for environmental projects, with $4.5 million to be spent in the Bay Area. This case related to Wal-Mart violation of the Clean Water Act by illegally handling and disposing of hazardous materials at its retail stores across the United States. The Bentonville, Ark.-based company also pleaded guilty in Kansas City, Mo., to violating the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) by failing to properly handle pesticides that had been returned by customers at its stores across the country. As a result of the three criminal cases brought by the Justice Department, as well as a related civil case filed by the U.S. Environmental Protection Agency (EPA), Wal-Mart paid approximately $81.6 million for its unlawful conduct. Coupled with previous actions brought by the states of California and Missouri for the same conduct, Wal-Mart ultimately paid a combined total of more than $110 million to resolve cases alleging violations of federal and state environmental laws.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Non-Indian Resident of Pojoaque Pueblo Sentenced to Five Years in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Johncarlos Ortiz, 40, a non-native resident of Pojoaque Pueblo, N.M., was sentenced this morning to five years in prison followed by 15 years of supervised release for his child pornography conviction. Ortiz will be required to register as a sex offender when he completes his prison sentence. Ortiz also was ordered to pay $500 in restitution to the identified victim in the crime of conviction.
Ortiz was arrested in Sept. 2012, on a criminal complaint alleging that he possessed and distributed child pornography at his residence in Pojoaque Pueblo. The investigation of this case was initiated in July 2012, after the National Center for Missing and Exploited Children (NCMEC) received information that images consistent with child pornography had been posted on a social networking site and sent the tip to the New Mexico Attorney General’s Office (NMAGO). In early Aug. 2012, after determining that the images were posted using an email account subscribed to Ortiz, the NMAGO and the New Mexico Internet Crimes Against Children (ICAC) Task Force contacted the FBI. On Sept. 11, 2012, the FBI executed a federal search warrant at Ortiz’s residence and seized a computer and a computer flash drive that contained images consistent with child pornography.
On Aug. 1, 2013, Ortiz pled guilty to a felony information charging him with receipt of a visual depiction of a minor engaged in sexually explicit conduct. In his plea agreement, Ortiz admitted receiving a visual depiction of a minor involved in sexual explicit conduct on Sept. 11, 2012. Ortiz also admitted downloading images consistent with child pornography from various websites. Court records reflect that Ortiz’s unlawful conduct occurred in a residence on the Pojoaque Pueblo.
This case was investigated by the Santa Fe office of the FBI, the NMAGO, the New Mexico Regional Computer Forensic Laboratory and the New Mexico ICAC Task Force. Assistant U.S. Attorney Jacob Wishard prosecuted the case 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 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 NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
New Orleans Area Merchant, Long T. Trinh, Pleads Guilty to over $2 Million in Food Stamp FraudRead the Press Release
LONG T. TRINH, age 44, a resident of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Judge Mary Ann Vial Lemmon to receiving approximately $2,296,379 from the United State Department of Agriculture based upon food stamp benefits through his store Seafood Heaven, located in Gretna, Louisiana, that were not authorized, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to court documents, grocery retailers who participate in the Supplemental Nutrition Assistance Program (“SNAP”), a federal government program formerly known as the Food Stamp Program, may only accept and redeem food stamp benefits in exchange for the sale of eligible food items. Retailers may not exchange food stamp benefits for cash or any other ineligible items of value such as tobacco products or alcoholic beverages. Store owner LONG T. TRINH knowingly presenting for payment and redemption SNAP benefits which had been purchased in exchange for cash money and ineligible items through his store.TRINH faces five (5) years imprisonment and/or a maximum fine of $250,000.00, and three (3) years of supervised release following any term of imprisonment. Sentencing is set for April 3, 2014.
This case was investigated by the United State Department of Agriculture, Office of Inspector General, and the Louisiana Department of Children and Family Services. The case is being prosecuted by Assistant United States Attorney Loan “Mimi” Nguyen.
(Download Factual Basis )
New Mexico U.S. Attorney’s Office Collects More Than $14 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
ALBUQUERQUE – Acting U.S. Attorney Steven C. Yarbrough announced today that the U.S. Attorney’s Office for the District of New Mexico collected $1,150,777.56 in criminal and civil actions in Fiscal Year 2013. Of this amount, $915,306.03 was collected in criminal actions and $235,471.53 was collected in civil actions
Additionally, the U.S. Attorney’s Office for the District of New Mexico worked with other components of the Department of Justice to collect an additional $11,801,237.00 in cases pursued jointly with these offices. Of this amount, $3,840.00 was collected in criminal actions and $11,797,397.00 was collected in civil actions.
The U.S. Attorney’s Office for the District of New Mexico working with partner agencies and divisions, also collected $1,292,980.00 in asset forfeiture actions and $420,544.68 in collateral forfeitures in misdemeanor prosecutions in FY 2013, bringing the Office’s total collections to $14,665,539.24. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime,” said Acting U.S. Attorney Steven C. Yarbrough. “We will continue to hold accountable those who seek to profit from their illegal activities.”
Acting U.S. Attorney Yarbrough commended Assistant U.S. Attorneys Howard R. Thomas, Stephen R. Kotz, Cynthia L. Weisman, Sarah M. Davenport, Brock Taylor, William J. Pflugrath, Anna R. Wright, Paul Mysliwiec and Charles L. Barth and staff members Julie Ford, Lois Agnes, Feather Astor, Lois Golden, Sandra Campbell, Robbie Mahan, Doreen Dowling and Elizabeth Buckley for their combined efforts in recovering funds on behalf of the United States. He also commended U.S. Marshal Conrad E. Candelaria and the U.S. Marshals Service for facilitating the collection of funds from the criminal and civil forfeiture actions.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Nevada U. S. Attorney’s Office Collects $18 Million in 2013Read the Press Release
LAS VEGAS, Nev. – U.S. Attorney Daniel G. Bogden announced today that the Nevada U.S. Attorney’s Office collected $18 million in Fiscal Year (FY) 2013 related to criminal, civil and asset forfeiture actions. Of this amount, $10.5 million was collected in criminal actions, $1.6 million was collected in civil actions, and $5.9 million was collected in criminal and civil forfeitures.
Additionally, the District of Nevada worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1.9 million in cases pursued jointly with these offices. This additional shared amount was collected in civil actions.“The collection of monetary penalties in federal litigation is a critical aspect of our work that frequently gets overlooked,” said U.S. Attorney Bogden. “These collections are used to help crime victims and for a variety of other law enforcement purposes. Our FY 2013 collections exceeded our total appropriated budget for our office by almost three times.”
Attorney General Eric Holder announced today that nationally the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
An example of a recent case in which the U.S. Attorney’s Office for the District of Nevada collected a significant amount of money is United States v. Richard Young. Young, of Lewistown, Montana, was convicted following a jury trial in March 2011 of various fraud offenses including conspiracy to commit wire fraud, wire fraud, money laundering, and securities fraud. Young deceived more than 1,400 persons into investing more than $16 million in a fraudulent securities trading business which was nothing more than an elaborate Ponzi scheme. Young was sentenced in December 2011 to 25 years in prison and ordered to pay $13.3 million to the victims. Young’s sentence also included a forfeiture order by which multiple items of real and personal property were forfeited to the United States, including tractor-trailers, several homes and business properties in Lewistown, bank accounts holding over $500,000, and multiple cars, tools, furnishings, and business equipment. The forfeited properties were liquidated and yielded approximately $1.12 million. Pending approval from the Department of Justice Asset Forfeiture and Money Laundering Section, those monies will be used to pay the victims of Mr. Young’s crimes in partial satisfaction of the restitution order.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.Nashua Man Sentenced to Ten Years in Federal Prison for Selling "Crack" CocaineRead the Press Release
CONCORD, NEW HAMPSHIRE –Sean Brown, 40, of Nashua, New Hampshire was sentenced in United States District Court for the District of New Hampshire to ten years in prison after a jury found him guilty of three counts of unlawful distribution of cocaine base (“crack”), announced United States Attorney John P. Kacavas.
During February, 2010, Brown made three sales of cocaine base (“crack”) to an individual assisting the Nashua, New Hampshire Police Department in their investigation into the illegal sale of drugs within the city. The three sales took place in the vicinity of 73 Elm Street, which was Brown’s residence at the time. Brown was arrested outside of the residence on February 24, 2010 as police executed a search warrant on his residence.
In sentencing Brown to a ten year sentence, Judge McAuliffe noted that while Brown dealt small quantities of drugs, he was a “persistent” drug dealer, having been previously convicted in federal court in 1997 with unlawful possession with the intent to distribute cocaine base (“crack”), heroin and methamphetamine, for which he received a 46 month term of imprisonment in federal prison, and again in Hillsborough County Superior Court in 2005 for four counts of unlawful sale of heroin, for which he received a 3 ½ to 7 year sentence in the New Hampshire State Prison.
The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis and Seth Aframe.NYC Man Pleads Guilty for his Role in Scheme Against Local Mortgage CompanyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Sean Ola-Ojo, 33, from Queens, N.Y., pleaded guilty to a felony charge for his role in a mortgage fraud scheme, before U.S. District Judge David H. Larimer. The defendant faces up to 41 months in prison when sentenced.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Ola-Ojo was indicted along with co-defendants Angelo Louissaint and Jennifer Johnson. The defendants organized a scheme to obtain large mortgage loans from Flaherty Funding. The defendants recruited straw-buyers to purchase five properties in the New York City area at substantially inflated prices. These buyers did not qualify for the financing sought, and had no intention of repaying the mortgages or of occupying the properties. To make the straw-buyers appear wealthier than they actually were, the defendants submitted falsified income, asset and down payment information to Flaherty Funding. Virtually every supporting document submitted by the defendants on behalf of the straw-buyers was forged or altered, including the Form W-2s, earnings statements, bank account statements, and down-payment checks. As a result of their scheme, Flaherty Funding approved approximately $1,700,000 in loans.
Charges are still pending against co-defendants Angelo Louissaint and Jennifer Johnson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
This plea is the culmination of efforts by the United States Postal Inspection Service, Boston Division, under the direction of Inspector in Charge Kevin Niland, the United States Postal Inspection Service, New York Division, under the direction of Inspector in Charge Ronald Verrochio, and the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge.Mobile Man Sentenced to Thirty Months Imprisonment for Firearms OffenseRead the Press Release
MOBILE, AL-- The United States Attorney, Kenyen R. Brown, announces thatFrederick Bernard Collins wassentenced today by United States District Court Judge William H. Steele to thirty months imprisonment after pleading guilty in September to being a felon in possession of a firearm in violation of Title 18 USC '922(g)(1). Collins was also ordered to serve three years of supervised release with the United States Probation Office after he completes his term of imprisonment at the Federal Bureau of Prisons. Collins was also ordered to pay a $100 special assessment which goes into a fund for victims of crime. The prior felony offense that Collins was charged with having was Robbery 1st Degree.
The case was jointly investigated by the Bureau of Alcohol Tobacco and Firearms and the Mobile County Sheriff=s Office, Narcotics Division. Brown commended the efforts of the investigative agencies. Brown added that his office would continue to aggressively prosecute offenders who illegal possess weapons and endanger the community.
Minnesota U.S. Attorney’s Office Collected More Than $16.7 Million in Civil and Criminal Actions; Forfeited More Than $22 Million in Assets in Fiscal Year 2013Read the Press Release
MINNEAPOLIS—Acting United States Attorney John R. Marti announced today that the U.S. Attorney’s Office for the District of Minnesota collected $16,782,266.24 in criminal and civil actions in Fiscal Year 2013. Of this amount, $8,237,258.34 was collected in criminal actions and $8,545,007.90 was collected in civil actions.
Additionally, the U.S. Attorney’s Office for the District of Minnesota, working with partner agencies and divisions, collected $22,127,398 in asset forfeiture actions in Fiscal Year 2013. Forfeited assets are deposited into the Department of Justice and Treasury Assets Forfeiture Funds, and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Additionally, Minnesota’s U.S. Attorney’s Office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $458,000 in civil cases pursued jointly with these offices. Nationwide, the U.S. Attorney’s Offices collected $8.1 billion in criminal and civil actions during Fiscal Year 2013. A portion of this amount, $5.9 billion, was collected in shared cases in which one or more U.S. Attorney’s Offices or department litigating divisions were also involved. The $8.1 billion represents nearly three times the approximately $2.76 billion of the department’s direct appropriations that pay for the 94 U.S. Attorneys’ offices and its main litigating divisions., and it is the second-largest collection year in the department’s history, trailing only Fiscal Year 2012 when $13.1 billion was collected.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Eric Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
In making today’s announcement, Marti said, “The public dialogue is often focused on the cost of government. But one fact often ignored is that attorneys and staff of this office and the Department of Justice regularly recoup funds owed to the government and crime victims in amounts that far exceed our annual budgets. These recoveries come from many sources and are essential and valuable in these challenging economic times.”
One of the largest civil recoveries obtained by Minnesota’s U.S. Attorney’s Office during Fiscal Year 2013 came from MTS Systems Corporation. In 2008, MTS pled guilty to two misdemeanor counts of knowingly submitting false or misleading export control filings to the U.S. Department of Commerce. Notwithstanding its plea agreement, MTS certified several times during the next three years that it had not been convicted of various criminal violations, including “falsification of records” and “making false statements,” within the preceding three years. MTS allegedly used those false certifications to win millions of dollars in government contracts. The Minnesota U.S. Attorney’s Office commenced suit against MTS under the False Claims Act, and to resolve the civil case, MTS paid $7.75 million.
A second civil recovery in Minnesota stemmed from a case against Bioscrip, a national specialty pharmacy services provider with a large mail-order component. The lawsuit commenced by the U.S. Attorney’s Office contended that Bioscrip failed to refund credit balances, failed to maintain prescriptions on file, and billed for products not provided. Bioscrip paid $5.06 million to settle the civil case.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the U.S. recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.Middle District of North Carolina United States Attorney’s Office Collects $2,643,276.87 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that the Middle District of North Carolina collected $2,643,276.87 in criminal and civil actions during Fiscal Year 2013. Of this amount, $1,381,953.47 was collected in criminal actions and $1,261,323.40 was collected in civil actions
Additionally, Middle District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,062.00 in criminal actions pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Our employees work very hard every day to collect money owed to crime victims and to the government,” said U.S. Attorney Rand. “These are tough economic times for everyone, and we will continue to focus on collections efforts to seek justice for crime victims and hold accountable those who seek to profit from illegal activity.”
The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in Middle District of North Carolina, working with partner agencies and divisions, collected $2,621,465.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Michigan Companies to Pay $3.8 Million to Resolve Allegations of <br /> Falsely Claiming Disadvantaged Business CreditsRead the Press Release
The Justice Department announced today that two related entities, Michigan-based Cadillac Asphalt LLC (Cadillac) and Michigan Paving and Materials Co. (MPM), have agreed to pay $3.8 million to resolve allegations that they falsely claimed Disadvantaged Business Enterprise (DBE) credits on a number of federally funded transportation projects. Both Cadillac and MPM are subsidiaries of Oldcastle Materials Inc., a construction material and services provider based in Atlanta.
“The Disadvantaged Business Enterprise program helps businesses owned by minorities and women to work on federally funded projects,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Those who falsely claim credits under the program to obtain federal funds victimize both the taxpayers and the businesses that the program is designed to assist.”
“The U.S. Attorney’s Office works with the Civil Division in Washington to use civil enforcement to recover funds for taxpayers,” said U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade. “In this case, civil attorneys were able to recover more than $3 million that was obtained through false claims.”The settlement announced today resolves allegations that Cadillac and MPM knowingly and falsely claimed DBE credit for asphalt purportedly supplied by a DBE known as BN&M Trucking Inc. As a condition of federal funding, contractors, such as Cadillac and MPM, working on a federally funded project must make a good-faith attempt to meet DBE participation goals. For the contractors to meet their DBE participation goal, a DBE employed by the contractors must be independently responsible for performing a portion of the work with its own employees and equipment. Allegedly, BN&M Trucking was merely a pass-through company that did not supply any asphalt or perform any other commercially useful function.
“We remain steadfast in our commitment to maintaining the integrity of the U.S. Department of Transportation’s (USDOT) Disadvantaged Business Enterprise program,” said regional Special Agent-in-Charge of USDOT’s Office of Inspector General Michelle T. McVicker. “Working with the Secretary of Transportation, other DOT leaders and our law enforcement colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
The allegations resolved by the settlement involved numerous federally funded transportation projects in Michigan between 2006 and 2010, including a project to construct a new runway at Detroit Metropolitan Wayne County Airport in 2008 and 2009. In November 2010, two other entities, John Carlo Inc. and Angelo Iafrate Construction Co. Inc., paid more than $1 million to resolve similar allegations related to the airport runway project.
This case was handled by the Justice Department’s Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Transportation Office of Inspector General. The claims settled in this case are allegations only; there has been no determination of liability.
Members of Western Addition “CDP” Gang Charged with Racketeering Conspiracy, Murder, Attempted Murder, Assault with A Dangerous Weapon, Pimping, and Related ChargesRead the Press Release
SAN FRANCISCO – A seventeen-count federal superseding indictment charging nine members of the “Central Divis Playas,” a/k/a “CDP” gang, and one associate, was returned by the Grand Jury on January 9, 2014, in federal court, announced United States Attorney Melinda Haag. The ten defendants, all of San Francisco, listed below, are already in state or federal custody:
- ALFONZO WILLIAMS, a/k/a “Fonz,” a/k/a “Relly,”
- ANTONIO GILTON, JR., a/k/a “TG,”
- BARRY GILTON, a/k/a “Prell,”
- LUPE MERCADO,
- ADRIAN GORDON, a/k/a “Tit,”
- REGINALD ELMORE, a/k/a “Fat Reg,”
- CHARLES HEARD, a/k/a “Cheese,”
- ESAU FERDINAND, a/k/a “Sauce,”
- PAUL ROBESON, a/k/a “P World,” and
- MONZELL HARDING. JR.
According to the Superseding Indictment, CDP is a violent street gang based in the Western Addition neighborhood of San Francisco. Nine defendants, all except Mercado, are charged with a racketeering conspiracy, related to the conduct of the affairs of CDP through the crimes of murder, attempted murder, robbery, narcotics trafficking, pimping, pimping of minors, and extortion. Williams, Antonio Gilton, Barry Gilton, and Mercado are charged with the June 4, 2012, murder of Calvin Sneed in San Francisco, in aid of racketeering and associated firearms charges. Mercado is charged with accessory after the fact to murder. Defendants Elmore and Heard are charged with the August 14, 2008, double murder in aid of racketeering of Andre Helton and Isaiah Turner in San Francisco and related firearms offenses. Adrian Gordon is charged with attempted murder in aid of racketeering and assault with a dangerous weapon in aid of racketeering and discharge of a firearm in furtherance of those offenses. Esau Ferdinand is charged with attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, maiming in aid of racketeering, and discharge of a firearm in furtherance of those crimes of violence. Each defendant faces a maximum term of imprisonment of life, and Elmore and Heard could face a death sentence, following consideration of the case by the U.S. Attorney General.
The prosecution is the result of joint investigation by the Federal Bureau of Investigation; San Francisco Police Department’s Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, and the Northern, Park, and Bayview Stations; San Francisco District Attorney’s Office; and the San Pablo Police Department.
Please note, an indictment contains only allegations against a person and, as with all defendants, these defendants must be presumed innocent unless and until proven guilty.
(Williams et al superseding indictment)
Maryland U. S. Attorney’s Office Collects over $143 Million in Civil and Criminal Actions for U.S. Taxpayers in FY2013Read the Press Release
Also Collected Over $26 Million in Asset Forfeitures
Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2013 in the District of Maryland reached $143,297,520.31. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.
Attorney General Eric Holder announced today that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013,which represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”
According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2013 collected $137,587,803.66 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments. The statistics also show that $5,709,716.65 was collected in civil actions handled exclusively by the U.S. Attorney’s Office for the District of Maryland, including judgments in civil cases.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $348,391,707.91 in cases pursued jointly with these offices, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services and the Environment Protection Agency. These cases include the successful resolutions of United States ex rel. Thakur v. Ranbaxy Laboratories Limited, United States ex rel. Heiden v. Boehringer Ingelheim Pharmaceuticals, Inc., United States ex rel. Momeyer v. Hospice of Arizona, L.L.C., United States ex rel. Ryan v. Trans1, Inc. and an investigation of U.S. Renal Care. Of this amount, $6,200 was collected in criminal actions and $348,385,507.91 was collected in civil actions.
The $143 million collected by the U.S. Attorney’s Office for the District of Maryland in FY 2013 represents approximately eight times the office’s appropriated $17.9 million budget in that same period.
The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The statistics show that the $5,709,716.65 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Department of Education, Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.In the criminal area, of the total $137,587,803.66 collected, $6,155,018.82 was for restitution for federal agencies and for victims other than the federal governments; and $131,432,784.84 was for criminal fines and other criminal collections.
In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $26,853,350 in asset forfeiture actions in FY 2012. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.
Mansfield Man Sentenced to Nearly Four Years in Prison for $1 Million FraudRead the Press Release
A Mansfield man was sentenced to nearly four years in prison for fraud and insurance embezzlement, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Willard C. Lee, 52, previously pleaded guilty to 12 counts of wire fraud and one count of insurance embezzlement.
Lee, who was employed by the Allstate Insurance Company between 1996 and 2011, admitted that he embezzled approximately approximately $1 million from Allstate customer annuity accounts between July 2007 and December 2011.
Lee forged customer signatures on withdrawal requests to Allstate and Lincoln Benefit Life, a company wholly owned by Allstate which sells annuities. Once fraudulent paperwork was submitted, Lee had the proceeds wire-transferred into bank accounts he controlled in Mansfield, according to court documents.
U.S. Districy Judge Sara Lioi sentenced Lee to 46 months in prison and ordered him to pay restitution in the amount of $1,052,559.80 to Allstate, along with a special assessment amount of $1,300.00.
This case was prosecuted by Assistant U.S. Attorney James V. Moroney, following an investigation by the Mansfield and Canton offices of the Federal Bureau of Investigation, and the Investigative Services Unit of Allstate Insurance Company.
Mansfield Man Sentenced to More Than 11 Years in Prison for Mortgage FraudRead the Press Release
A Mansfield man sentenced to more than 11 years in prison and ordered to pay $767,462 in restitution for his role a mortgage fraud scheme which caused approximately $1.3 million in losses to five lending institutions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
David R. Sharrock, age 71, pleaded was sentenced to 135 months in prison by U.S. District Judge Donald Nugent.
Sharrock was previously found guilty of 26 counts, including conspiracy, bank fraud, wire fraud, bankruptcy fraud and making false statements for his actions, which caused losses to Geauga Savings Bank, J.P. Morgan Chase Bank, Washington Mutual Bank, Interbaby Funding, LLC, and Suntrust Mortgage, Inc.
His daughter, Rhonda J. McElroy, 51, of Bellville, Ohio,was sentenced to six months incarceration followed by six months of home confinement and ordered to pay $65,415 in restitution.
Ronald L Kightlinger, 51, of Crestline, Ohio, and Richard W. Balliett, 45, of Bucyrus, Ohio, were previously sentenced after pleading guilty to crimes related to their roles in the conspiracy.
Balliet was sentenced two years and one month in prison and ordered to pay $169,627 in restitution while Kightlinger was sentenced to six months confinement and ordered to pay $278,000 in restitution.
Sharrock, Balliett, and McElroy sold homes in the cities of Mansfield, Marion, Galion, Plymouth, Shelby, and Bucyrus, Ohio. The sellers made fraudulent misrepresentations to the mortgage lenders by providing undisclosed down payment assistance to the buyers and by submitting fictitious purchase agreements and verifications of deposits. As a result, the sellers signed false settlement statements at closing, according to court documents.
Kightlinger acted as a straw buyer in purchasing a commercial building from David R. Sharrock in Mansfield, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and M. Kendra Klump, following an investigation by the Federal Bureau of Investigation.
Los Angeles Gang Member, Quenshey Mitchell, Convicted of Heroin Conspiracy and Obstruction of Justice Involving Murder of A Federal WitnessRead the Press Release
QUENSHEY MITCHELL, a/k/a “Ripper” “Baby Ripper”, “Q”, age 36, from Los Angeles, California, was convicted today of all six counts of a superseding indictment which included charges of conspiracy to distribute in excess of a kilogram of heroin, multiple conspiracies to obstruct justice, including conspiracies to obstruct justice through murder and two counts of obstruction of justice through murder in federal court following a four day trial, announced U.S. Attorney Kenneth Allen Polite, Jr.
The trial evidence showed Mitchell to be the Los Angeles source of supply of multiple kilograms of heroin being transported to New Orleans by female couriers. Cristina S. Williams, who had previously been charged in this District for her role in transporting heroin, was murdered in Los Angeles on July 29, 2010, as the Drug Enforcement Administration’s (DEA) investigation progressed to identify the leaders of the heroin conspiracy. After Ms. Williams’s murder, Mitchell, a member of the Rollin Sixty Crip gang in Los Angeles was indicted in New Orleans for his role in the heroin conspiracy and following an investigation by the Los Angeles Police Department and DEA’s investigation of Ms. Williams’s murder, Mitchell was indicted in the six count superseding indictment.
MITCHELL faces the following terms of imprisonment:
- Counts 1 (heroin conspiracy) – life imprisonment as a result of Mitchell’s two prior felony drug convictions;
- Counts 2 and 4 (conspiracy to obstruct justice through murder) – life imprisonment for each count;
- Counts 3 and 5 (obstruction of justice through murder) – life imprisonment for each count; and
- Count 6 (conspiracy to obstruct justice) – maximum term of 20 years imprisonment.
Sentencing is scheduled for April 10, 2014, before U.S. District Judge Eldon E. Fallon.
The case was investigated by Special Agents of the Drug Enforcement Administration and Detectives with the Los Angeles Police Department. The case was prosecuted by Assistant U. S. Attorneys William J. Quinlan, Jr. and Harry W. McSherry.
Lincoln Man Sentenced for Possession of a Firearm by a Drug UserRead the Press Release
On January 9, 2014, Allen E. Peithman, Jr., age 35 of Lincoln, was sentenced to 18 months in prison for being a drug user or addict in possession of a firearm. Following the prison term, Peithman will serve three years on supervised release.
On December 11, 2012, Peithman was a passenger in a car which was stopped by a Lincoln Police Department officer for a traffic violation. Officers learned there was marijuana in the car, and both the driver and Peithman were asked to get out of the car. Peithman told an LPD officer that he had a gun in the left sleeve of his coat. An officer found a loaded .45 caliber pistol in the sleeve of Peithman’s coat. During a search of Peithman's person, officers found a plastic bag containing a small amount of methamphetamine in a pants pocket. Peithman was arrested and taken to the Lancaster County Jail where a corrections officer found a marijuana cigarette in Peithman's coat pocket and an additional plastic bag containing a small amount of methamphetamine in a pants pocket. Peithman told officers he had the gun with him because he carried it at his business. Peithman said the methamphetamine belonged to him and admitted to being a user of methamphetamine.
This case was investigated by the Lincoln Police Department.
Largo Woman Sentenced to 4 Years in Prison for Tax and Student Loan FraudRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Covington today sentenced Katherine Rumph-Smith (44, Largo) to four years in federal prison for defrauding student financial aid and filing false claims with the Internal Revenue Service (IRS). The Court also ordered Rumph-Smith to make restitution to the IRS, in the amount of $110,971, and to the Federal Stafford Loan Program, in the amount of $22,350.
Rumph-Smith pleaded guilty on October 10, 2013.
According to court documents, Rumph-Smith had previously procured several student loans with outstanding balances, then had the balances discharged due to a disability. In order to obtain further student loans, she submitted physician forms, with the physician’s signature forged by her, saying that her condition had improved, and agreeing to repay her prior loan balances. Rumph-Smith then applied for additional student loans to attend Walden University, which she did not attend, and obtained over $27,000 in loans, from which a total of $22,350 was disbursed to her.
In connection with the IRS, Rumph-Smith created four fictitious Florida corporations and then filed corporate tax returns claiming over $500,000 in refundable tax credits on behalf of the corporations. Also, she opened bank accounts in the names of the corporations, where refunds from the fraudulent corporate tax returns were directly deposited. She used these funds for personal expenses and admitted that these corporations were created solely for the purpose of filing false corporate tax returns and were not operational in any manner whatsoever.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Department of Education – Office of Inspector General. It was being prosecuted by Assistant United States Attorneys Kelley C. Howard-Allen and Sara Sweeney.
Kyle Man Sentenced for Assaulting an OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man convicted of Assaulting, Resisting, or Impeding a Federal Officer was sentenced on January 7, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Richard D. Red Owl, age 46, was sentenced to time served, 1 year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Red Owl pled guilty to the charge on November 22, 2013. The conviction relates to an incident where Red Owl swung a large tree branch at an officer and then pulled a knife blade on him on June 7, 2013, near Kyle.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Kansas Federal Gun Prosecutions Ranked Third in Nation in FY 2013Read the Press Release
KANSAS CITY, KAN. – Kansas ranked third in the nation in fiscal year 2013 in the number of federal firearms cases prosecuted, U.S. Attorney Barry Grissom said today.
Justice Department statistics show that among the 94 judicial districts nationwide only the District of Puerto Rico and the Western District of Missouri filed more federal firearms cases is FY 2013.
“Fighting gun violence and protecting the safety of our law enforcement officers are two of our top priorities,” Grissom said.
In FY 2013, Grissom’s office filed a total of 298 firearms cases, compared to 291 cases in FY 2012, when the District of Kansas also ranked third in the nation. In FY 2011, the District of Kansas ranked first in the nation with a total of 279 firearms cases filed.
Justice Department statistics show that in FY 2013 the District of Puerto Rico filed 349 firearms cases and the Western District of Missouri filed 299 firearms cases.
The totals include charges filed under federal statutes 18 U.S.C. 922 and 924, which prohibit convicted felons from possessing firearms and make it a federal crime to possess firearms in furtherance of drug trafficking or crimes of violence.
Justice Department Collects More Than $8 Billion in Civil and Criminal Cases in Fiscal Year 2013Read the Press Release
Attorney General Eric Holder today announced that the Justice Department collected at least $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013.
“The department’s enforcement actions not only help to ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The statistics indicate that in FY 2013, approximately $5.9 billion was collected by the department’s litigating divisions and the U.S. Attorneys’ offices in individually and jointly handled civil actions. The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct and collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. This number includes approximately $3.2 billion related to health care fraud and more than $430 million related to environmental cases. In addition, civil debts were collected on behalf of several federal agencies, including the Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
The Justice Department’s litigating divisions and U.S. Attorneys’ offices are also responsible for enforcing and collecting criminal debts owed to the U.S. and criminal debts owed to federal crime victims. In FY 2013, the total amount collected in criminal actions totaled approximately $2.2 billion in restitution, criminal fines and felony assessments. This total included more than $450 million in criminal fines associated with health care fraud, more than $600 million in antitrust violation fines, more than 390 million in fines for environmental violations and more than $42 million in fines for tax fraud violations.
The approximately $8.1 billion taken in by the department as a whole in FY 2013 represents nearly three times the approximately $2.76 billion of the department’s direct appropriations that pay for the 94 U.S. Attorneys’ offices and its main litigating divisions.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $5.48 billion in payments made directly to the Justice Department, and $2.61 billion in indirect payments made to other federal agencies, states and other designated recipients.
In measuring collections recovered in FY 2013, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2013.FY 2013 Collections Highlights
Health Care Fraud - Abbott, Amgen (Civil Division; U.S. Attorneys Offices)
As in previous years, the largest collections related to health care fraud. For example, the Justice Department collected more than $800 million of its total $1.5 billion settlement with Abbott Laboratories resolving criminal and civil allegations that Abbott illegally promoted the drug Depakote to treat agitation and aggression in elderly dementia patients and schizophrenia when neither of these uses was approved as safe and effective by the FDA. Of the total, Abbott paid a $500 criminal fine in FY 2012 following its guilty plea (the total $1.5 billion settlement also includes nearly $200 million in forfeited assets). In another major pharmaceutical case, the U.S. collected more than $748 million from its total $762 million settlement (including $14 million in forfeited assets) with biotech giant Amgen Inc. to settle allegations including Amgen’s illegal promotion of Aranesp, a drug used to treat anemia, in doses not approved by the FDA and for off-label use to treat non-anemia-related conditions. For details, see Abbott , Abbott sentencing , and Amgen .
Deepwater Horizon (Criminal Division; Environment and Natural Resources Division; Civil Division; U.S. Attorneys Offices)
Among other major collections in FY 2013 were penalties and fines collected from BP Exploration and Production Inc., and Transocean Deepwater Inc., stemming from their roles in the disastrous April 2010 Deepwater Horizon rig explosion in the Gulf of Mexico that cost 11 men their lives and resulted in the largest oil spill in U.S. history.
Out of the $4 billion total criminal settlement with BP, the U.S. collected $256 million in criminal fines in FY 2013 following January 2013 convictions for manslaughter, obstruction of justice and environmental crimes. The U.S. will recover an additional $1 billion in criminal fines from the resolution over the next four years under the court schedule. An additional $2.39 billion in non-fine criminal penalties is dedicated to environmental and wildlife conservation efforts in the Gulf, as well as $350 million in spill prevention and response efforts. During FY 2013, BP made initial payments of $105 million towards these additional obligations, and will pay the rest over the next four years, under the court’s schedule.
In FY 2013, the department collected $100 million in criminal fines owed by Transocean for its role in the oil spill. Transocean also paid $60 million towards an additional $300 million in non-fine criminal penalties slated for Gulf conservation, spill prevention and response efforts, and it paid $404 million of $1 billion in civil penalties imposed under the Clean Water Act.
The efforts to hold accountable those responsible for the disaster continue. For details, see BP and Transocean settlements.Price Fixing and Bid Rigging – AU Optronics (Antitrust Division)
Some of the department’s largest collections related to the Antitrust Division’s criminal prosecutions of international conspiracies to fix prices, rig bids and allocate markets. For example, in FY 2013, the Justice Department collected more than $326 million from its total of $1.39 billion in criminal fines resulting from its investigation into price fixing of thin-film transistor liquid crystal display (LCD) panels. For instance, $250 million was collected in FY 2013 from LCD manufacturer AU Optronics’ $ 500 million total fine for its conviction after an eight-week trial . For details, see LCD . In addition, the United States collected more than $124 million in criminal fines in FY 2013 related to the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry, out of a total of more than $1.6 billion in fines obtained in the investigation through FY 2013. For details, see Auto Parts .Tax Conspiracy – Wegelin & Co. (Tax Division)
The U.S. collected more than $42 million in restitution and fines in a single tax case involving Wegelin & Co., a Swiss private bank that pleaded guilty to conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret Swiss bank accounts and the income generated in these accounts from the Internal Revenue Service (IRS). As part of its guilty plea, Wegelin agreed to pay approximately $20 million in restitution to the IRS and to pay a $22.05 million fine. In addition, Wegelin agreed to the civil forfeiture of an additional $15.8 million, representing the gross fees earned by the bank on the undeclared accounts of U.S. taxpayers.Jefferson City Man, Woman Plead Guilty to $100,000 Student Loan FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man and woman pleaded guilty in federal court today to engaging in a bank fraud scheme in which they unlawfully received more than $100,000 in student loans under their child’s name.
Lisa Kay Baker, 53, and David Waymon Baker, 56, both of Jefferson City, each pleaded guilty in separate appearances before U.S. Magistrate Judge Matt J. Whitworth to two counts of bank fraud. Lisa and David Baker (who at the time of the criminal conduct was employed by the Missouri Commission on Human Rights) were married during the criminal scheme but divorced in 2009.
By pleading guilty today, Lisa and David Baker each admitted that they received 11 student loans, totaling $102,088, in the name of their child (identified in the indictment as “RLB”) without his/her knowledge or consent from July 2005 to September 2007. Each application that was submitted was filled out by at least one or both of the defendants, and then one or the other (or a third person at their direction) forged the signature of RLB.
RLB attended William Woods University from 2003 through 2007, then graduated from the University of Missouri with a master’s degree in 2009. RLB obtained student loans from Sallie Mae to pay for tuition, room and board, and books for both his/her undergraduate and master’s degrees. Sallie Mae submitted the proceeds from RLB’s student loans directly to the schools RLB was attending; her parents did not help RLB pay for any college expenses.
At the end of 2011, RLB began receiving telephone calls from a collection agency, claiming that payments were not being made on RLB’s student loans. In January 2012, RLB examined his/her credit report and found that there were multiple student loans on RLB’s credit history that had not been obtained by RLB.
The Bakers admitted that they made no payments on the student loans. Lisa Baker’s mother, who was listed as a co-borrower on some of the fraudulent loans, made some payments on the loans. Sallie Mae charged off all 11 student loans obtained by the Bakers, with an aggregate principal balance of $95,752.
Under federal statutes, each of the Bakers is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $2 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Cole County, Mo., Prosecuting Attorney’s Office and the Jefferson City, Mo., Police Department.Illinois Man Operated Website for the Illegal Distribution of Peptides, HGHRead the Press Release
PITTSBURGH – An Illinois resident pleaded guilty in federal court to charges of mail fraud, distribution of human growth hormone and money laundering, United States Attorney David J. Hickton announced today.
Ronald J. DeFranco, 54, pleaded guilty to 3 counts before United States District Judge Donetta Ambrose.
In connection with the guilty plea, DeFranco maintained a web-site for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body builders for muscle enhancement. DeFranco deceived the Internet service provider and the FDA by falsely representing on the web-site that he was selling these substances "for research purposes only . . . not for human consumption." In addition to sales of peptides, DeFranco also sold human growth hormone (HGH) without the required physician's prescriptions. During the period from May 2010, until January 2011, DeFranco paid $94,777.40 in Western Union and bank wire transfers to acquire these substances from suppliers in the People’s Republic of China.
Judge Ambrose scheduled sentencing for 10 a.m. on May 13, 2014. The law provides for a maximum total sentence of 20 years in prison and a fine of $250,000 on the mail fraud count; 5 years in prison and a $250,000 fine on the HGH distribution count; and 20 years in prison and a fine of $500,000 on the money laundering count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court modified defendant’s bond to include home detention with electronic monitoring.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The prosecution arose from the combined efforts of agents with the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA.
INDICTMENT, EXHIBITS & RELATED LETTER: U.S. V. Devyani KhobragadeRead the Press Release
U.S. v. Devyani Khobragade Indictment Exhibits
U.S. v. Devyani Khobragade Indictment
U.S. v. Devyani Khobragade Govts 1.9.2014 Letter to Judge ScheindlinHartford Man Sentenced to Eight Months in Prison for Escaping from Halfway HouseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ENRIQUE LUCIANO, also known as “Pucho,” 26, of Hartford, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to eight months imprisonment for escaping from a halfway house in Hartford.
According to court documents and statements made in court, on May 27, 2010, LUCIANO was sentenced in Hartford federal court to 60 months of imprisonment for possession of a firearm by a convicted felon. On February 20, 2013, he was transferred to Watkinson House Residential Reentry Center, a halfway house in Hartford. On July 11, 2013, after being denied a job search pass by Watkinson staff, LUCIANO was seen leaving the facility with most of his belongings. He did not return.
On July 19, 2013, LUCIANO was arrested by the U.S. Marshals Service. At the time of his escape, LUCIANO had a projected release date of August 18, 2013.
LUCIANO has been detained since his arrest. On September 19, 2013, he pleaded guilty to one count of escape from the custody of the Attorney General.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Jonathan S. Freimann.
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(203) 821-3722 [email protected]Hansel Bailey Sentenced to Five Years in Prison for Tax Fraud ConspiracyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Hansel Bailey, 36, of Orange County, California, to five years in prison for conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands, announced United States Attorney Ronald W. Sharpe and Internal Revenue Service Special Agent in Charge Jose A. Gonzalez. The Court also sentenced Bailey to three years of supervised release, and ordered him to pay restitution to the Virgin Islands Bureau of Internal Revenue in the amount of $821,094, and to the Internal Revenue Service in the amount of $1,104,741. Bailey was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing.
According to the evidence presented during the jury trial of Bailey and co-conspirator, David Haddow, in 2004, Bailey incorporated a business in St. Thomas called Compass Diversified, and in 2005, that company was granted Economic Development Commission tax benefits. Bailey and another co-conspirator marketed a tax-savings scheme that would allow clients of Compass Diversified to claim bogus business deductions on their income tax returns by making payments to Compass, allegedly for management or consulting services. The clients would then recoup a substantial portion of the payment made to Compass in the form of a tax-free gift from a Virgin Islands-born resident. The scheme consisted of nothing more than a three-step circuitous money flow.
According to the evidence, in the first step, Compass clients made payments to Compass or wired money directly into Compass’ bank account. In step two, co-conspirator Haddow, at the direction of Bailey, transferred by check a substantial portion of that money into the personal bank account of a Compass employee. The last step consisted of a substantial portion of the original payment being returned by check or wire transfer to the Compass clients who made the payments to Compass on the front end of the transaction. As part of their scheme, Bailey and Haddow convinced a Virgin Islands-born resident to open a personal bank account for the sole purpose of sending tax-free gifts back to Compass clients. Compass Diversified never offered consulting or management services to any of their clients even though the clients were encouraged to claim deductions on their tax returns.
The jury also convicted co-conspirator Haddow of conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands. Haddow’s sentencing has been continued without a date. A second co-conspirator, Dwight Padilla, pleaded guilty in June 2013 to conspiracy to defraud the United States and was sentenced to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $1,296,941 to the Internal Revenue Service.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by Assistant U.S. Attorneys Bryan E. Foreman and Kim L. Chisholm.
Georgia Husband and Wife Tax Return Preparers Plead Guilty to Tax CrimesRead the Press Release
Detrick and Natashia Tucker, a husband and wife who owned and operated a tax preparation business named T&T Express Tax located in Pine Mountain, Ga., pleaded guilty today to crimes relating to the preparation of false tax returns, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Specifically, Detrick Tucker pleaded guilty to aiding and assisting in the preparation of false tax returns, and Natashia Tucker pleaded guilty to conspiring to defraud the United States in the assessment and collection of federal income taxes.
According to court documents, Natashia Tucker admitted that she conspired with Detrick Tucker to fraudulently inflate refunds on their clients’ tax returns in order to increase the popularity of T&T Express Tax and secure more business. Detrick Tucker contributed to the conspiracy by registering T&T Express Tax with the Internal Revenue Service (IRS) so that the false returns could be electronically filed and by performing managerial duties. He also applied for an Electronic Filing and Identification Number and a Preparer Tax Identification Number rather than Natashia Tucker because she is a convicted felon. Detrick Tucker then knowingly allowed Natashia Tucker to use these IRS registration numbers to file tax returns for clients as well as for her own 2010 and 2011 false tax returns. Natashia Tucker was the main tax return preparer at T&T Express Tax, and she prepared the majority of the false tax returns at the business primarily by abusing the Earned Income Tax Credit and by creating false business information for her clients. During its three years of operation, T&T Express Tax filed over 2,200 federal tax returns that claimed over $1,000,000 in false refunds.
Detrick Tucker faces a statutory maximum potential sentence of three years in prison for his conviction for aiding and assisting in the preparation of false tax returns. Natashia Tucker faces a statutory maximum potential sentence of five years in prison for her conspiracy conviction. They are both also subject to fines and mandatory restitution. U.S. District Judge Clay Land scheduled the Tuckers’ sentencing for Mar. 25, 2014.
The case was investigated by special agents of the IRS-Criminal Investigation and the Georgia Department of Revenue. Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Former Union President Sentenced for Failture to Maintain RecordsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mark Valerio, 57, of Macedon, N.Y., who was convicted of violating the Labor Management Reporting and Disclosure Act , was sentenced to one year probation, 500 hours of community service, and was ordered to repay more than $39,000 in restitution to the International Brotherhood of Electrical Workers. The defendant was also barred from holding a leadership role in a labor organization for a period of 13 years.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that between 2003 and 2012, the defendant was President of the International Brotherhood of Electrical Workers (IBEW) Union, Local 249, in Geneva, N.Y. As Local 249 President, Valerio also held a position as an officer on the executive board of IBEW System Council U-7, a labor organization affiliated with four IBEW locals in matters of collective bargaining and contract negotiations. During this time, the defendant prepared and submitted false claims for reimbursement of travel expenses to both Local 249 and IBEW System Council U-7. Valerio also claimed reimbursement from the unions for instances when he was already being compensated by his employer. The defendant knew that he had an obligation to submit true and accurate documentation regarding his expense records and that he recklessly disregarded that obligation.
As a result, Valerio obtained reimbursements from the IBEW in the amount of $39,049 to which he was not entitled. The defendant resigned as the President of Local 249 in 2012 as a result of the federal investigation.
“Today’s sentencing – besides bringing closure to this successful prosecution - means that union members who work so hard for their wages will now be made whole,” said U.S. Attorney Hochul. “Similar to public officials, union officers have a fiduciary duty to their organization and members, and this Official will certainly not tolerate any breach of that duty.”
The sentencing is the culmination of an investigation on the part of Investigators with the United States Department of Labor, Office of Labor Management Standards, under the direction of District Director Mark Neylon.Former Tennessee Mayor and Associate Sentenced <br /> for Running Illegal Gambling BusinessRead the Press Release
A former mayor of South Pittsburg, Tenn., and an associate were sentenced today in Chattanooga, Tenn., for managing an illegal gambling business, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Kenneth L. Moore of the FBI’s Knoxville Division.
Former South Pittsburg Mayor James Michael Killian, 56, was sentenced by U.S. District Judge Curtis L. Collier in the Eastern District of Tennessee to serve six months in prison, followed by 12 months of home confinement. In addition to his prison term, Killian was sentenced to serve two years of supervised release and ordered to pay a fine of $30,000. His associate in the gambling operation, Robert Barry Cole, 53, of South Pittsburg, was sentenced to serve three months in prison, followed by six months of home confinement. He will serve two years of supervised release and was ordered to pay a $3,000 fine.
Killian was mayor of South Pittsburg from 2005 until 2012. During that time, he conducted a gambling operation that involved video gambling machines located at a convenience store he owned in South Pittsburg. Killian also managed an illegal lottery, in which bettors placed illegal bets on legal state lotteries. In addition, Killian ran an illegal sports betting ring in partnership with Cole. Cole received sports bets, collected wagers and paid successful bettors their winnings, and Killian and Cole split the proceeds of the operation.
This case was investigated by the FBI and prosecuted by Trial Attorney Mark Angehr of the Criminal Division’s Public Integrity Section.Former Sacramento Area Loan Officer Pleads Guilty to Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Alexander A. Romaniolis, 48, of Irvine, pleaded guilty today to mortgage fraud, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the three-count indictment on March 21, 2013, charging Romaniolis with mail fraud.
According to court documents, Romaniolis recruited five straw buyers to purchase eight California residential properties in Rocklin, Roseville and San Clemente. Romaniolis assisted the straw buyers in providing false information to lenders about their employment, income, assets, and intent to occupy properties as primary residences. In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. He was responsible for the origination of more than $5 million in residential mortgage loans in the scheme. All of the properties were foreclosed on, resulting in a total loss of more than $2 million.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Attorney General’s Mortgage Fraud Task Force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
Romaniolis is scheduled to be sentenced on March 27, 2014. He faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Pooler Police Officer Indicted on Chargers Related to Drug ConspiracyRead the Press Release
Savannah, GA – John William Stanley, 46, of Pooler, Georgia, was indicted this week by a federal grand jury sitting in Savannah on charges related to a conspiracy involved in the illegal possession and distribution of numerous controlled substances. Stanley was charged with aiding and abetting that conspiracy, with assisting the conspirators in order to prevent their apprehension, and with concealing the conspirators’ crimes instead of reporting those crimes to the appropriate authorities. At the time of the charged crimes, Stanley was an officer with the City of Pooler Police Department.
United States Attorney Edward Tarver stated, “Those charged with enforcing the law are not above it. This office remains committed, with our law enforcement partners, to prosecuting public corruption, so that the citizens of this district can be confident in the true loyalties of those sworn to protect and defend them.”
No initial appearance in court has been scheduled. The most serious of the charges against Stanley carries a 20-year maximum prison sentence. Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Chatham Savannah Counter Narcotics Team, with assistance from the U. S. Drug Enforcement Agency. The City of Pooler Police Department cooperated fully with the investigation. FBI Special Agent Christopher B. Blair is the lead case agent. First Assistant United States Attorney James D. Durham and Assistant United States Attorney R. Brian Tanner are prosecuting the case on behalf of the United States.
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption cases, by their very nature, are serious breaches of the public’s trust that require and receive priority investigative handling by the FBI. Those investigations involving police officers engaged in criminal conduct take on an even greater sense of urgency. The FBI will continue to make such cases a priority and asks that anyone with information regarding such activity to contact their nearest FBI field office.”
Pooler Police Chief Mark Revenew stated: “The City of Pooler Police Department fully cooperated with the investigation and is committed to eradicating corruption from the law enforcement profession. We want to ensure the public that allegations such as the ones here will not be tolerated.”
For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Ottawa County Sheriff Charged with Using Law Enforcement Money for Personal ItemsRead the Press Release
The former Ottawa County sheriff was charged with improperly spending about $5,000 that was to be used for law enforcement purposes to instead pay for for personal items including Cedar Point tickets, clothing and prescription medicine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Robert Bratton, 60, of Genoa, Ohio, was charged in a criminal information with one count of theft concerning programs receiving federal funds.
“Money that was supposed to help the men and women in law enforcement was instead diverted and spent on personal items, including tickets to an amusement park,” Dettelbach said. “That is hardly amusing to the rest of us. Those who are trusted to enforce the law, above all, cannot place themselves above it.”
Anthony said: “A sheriff who chooses to ignore his sworn oath to uphold the law and engage in criminal behavior is totally unacceptable. The FBI will investigate those who violate the public’s trust, no matter what position that individual holds.”
Bratton served as Ottawa County sheriff from 2004 until his resignation in September 2011. In 2010, the sheriff’s office received approximately $27,290 from the Furtherance of Justice Fund (FOJ Fund), which provided law enforcement entities to pay for expenses relating to official law enforcement duties and in the furtherance of justice, according to the information.
The Ohio Auditor provided guidance to county sheriffs in 2007 under the heading “Permissable Expenditures of F.O.J. Funds.” It read, in part, that an “expenditure must be both in the performance of the officer’s official duties and in furtherance of justice to be allowable.” The bulletin also stated, “There is always the additional requirement that the expenditure must be for a proper public purpose,” according to the information.
Bratton, as the county sheriff, was a fiduciary over F.O.J. Fund money provided to his office.
In 2010, Bratton used approximately $2,865 in F.O.J. Fund cash and also used a credit card linked to the F.O.J. Fund to purchase various personal items, including Cedar Point tickets, prescription medicine and clothing, all of which were non-permitted expenses under F.O.J. Fund rules and regulations, according to the information.
As of Dec. 31, 2010, Bratton reimbursed the F.O.J. Fund for some of the money he used for personal items, but failed to replace all the F.O.J. Fund money by that date, according to the information.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Antoinette T. Bacon and following investigation by the Federal Bureau of Investigation.
Former Local Resident Pleads Guilty to Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Trent Ashley Willis, 37, has pleaded guilty to distributing child pornography, announced United States Attorney Kenneth Magidson. The plea was entered yesterday in federal court in Corpus Christi before Senior U.S. District Judge Janis Graham Jack.
Willis came to the attention of law enforcement after multiple pornographic images of children were posted to several websites. The investigation led to the identity of Willis who had been posting and exchanging child pornography in Corpus Christi between May and October of 2012 via legitimate websites with other users who were similarly interested. Willis resided in Corpus Christi during parts of 2012, but left the area sometime during late 2012. He was eventually discovered and arrested without incident in Petersberg, Va., in October 2013.
The ongoing investigation has linked Willis to numerous occurrence of Internet-based child pornography related activities in multiple states.
Judge Jack has set sentencing for March 19, 2014, at which time he faces a minimum of five and up to 20 years in federal prison. Upon completion of any prison term imposed, Willis also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children. He will also have to register as a sex offender. Willis has been in custody since his arrest where he will remain pending that hearing.
The FBI investigated with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Hialeah Police Officer and Wife Sentenced for Dealing in Firearms Without A LicenseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Scott J. Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Rafael Oscar Valdes and Tammy Lynn Valdes, of Miami, Florida, were sentenced today in connection with the unlawful sale of hundreds of firearms without a federal firearms license. Rafael Oscar Valdes was sentenced to 60 months in prison, to be followed by three years of supervised release. Tammy Lynn Valdes was sentenced to 42 months in prison, to be followed by three years of supervised release. Both defendants were ordered to pay restitution in the amount of $6,613.51.
After a two week trial and over 300 items of admitted evidence, a jury convicted Rafael Valdes with dealing in firearms without a license (18 U.S.C. § 922(a)(1)(A)), making a false statement to a federal firearms dealer (18 U.S.C. § 922(a)(6)), interstate transportation of stolen property (18 U.S.C. § 2314), and filing false tax returns for years 2008 – 2011 (26 U.S.C. § 7206(1)). The jury also convicted Tammy Valdes with dealing in firearms without a license and filing false tax returns for years 2008 – 2011.
According to the court record and evidence presented at trial, Rafael Valdes was employed as a police officer with the City of Hialeah, Florida since 2004. Tammy Valdes was also once employed as a police officer with the City of West Miami, Florida, from 2004 until 2008 and the Town of Golden Beach, Florida, from 2008 through 2009. Neither defendant ever possessed a federal firearms license.
The Valdeses were initially indicted on December 13, 2012, for dealing in firearms without a license. Starting as early as July 2005, and continuing through June 2012, the defendants sold hundreds of firearms. In November 2008, the defendants began buying and selling firearms under the fictitious name of Custom Weapons Systems. The defendants advertised and sold over 100 firearms via the Internet to persons across the nation. The defendants also attended over 100 gun shows in the Southern and Middle Districts of Florida, during which they purchased over 400 firearms and sold over 500 firearms. At times, their purchase and subsequent sale of firearms took place on the same day. Additionally, the defendants sold nine firearms to undercover agents, solicited the purchase of firearms from undercover agents, and offered to acquire firearms for undercover agents on a repetitive basis.
As part of the initial indictment, Rafael Valdes was charged with making a false statement to a licensed firearms dealer in December 2008 when he purchased three AR-15 serialized lower receivers. Evidence admitted during trial proved that Rafael Valdes purchased those receivers for the sole purpose of building and selling completed rifles to three other officers after taking deposits. Rafael Valdes then falsely stated on an ATF Form 4473 that all three receivers were his, when in fact he was acquiring those receivers for other persons.
On July 31, 2013, a superseding indictment added tax charges against both defendants for filing false tax returns from 2008 – 2011, in that they failed to report their total income which included money derived from firearm sales. During trial, evidence was presented that the Valdeses failed to report over $350,000.00 in gross receipts during 2008 - 2011.
The superseding indictment also charged Rafael Valdes with transporting stolen firearm parts from the Hialeah Police Department where he was employed in the training section. During trial, the evidence showed that Rafael Valdes took apart firearms that were in evidence at the Hialeah Police Department and deemed to be destroyed. Rafael Valdes then advertised those parts for sale on the internet and later transported those parts to buyers located across the United States, including; New York, California, Utah, and Missouri. Rafael Valdes then deposited the proceeds into his personal bank account. In addition to selling parts of firearms that were once in evidence, Rafael Valdes also sold machine gun parts taken from six different Heckler and Koch, MP-5 machine guns which had been utilized by the Hialeah Police Department SWAT team.
Mr. Ferrer commended the investigative and cooperative efforts of ATF, IRS-CI, BSO, PBSO, Miami-Dade Police Department, Miami Beach Police Department, City of Miami Police Department, Virginia Gardens Police Department, Hialeah Police Department, FDLE, FBI and HSI. The case was prosecuted by Assistant U.S. Attorneys Adam McMichael and John McMillan.
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.
Former Employee Pleads Guilty to StealingRead the Press Release
More Than $26,000 from Naval Research Laboratory
-Defendant Sold Stolen Equipment to Pawn Shops-WASHINGTON – Joyce Dawn Ferrell, 42, a former secretary at the Naval Research Laboratory, pled guilty today to stealing more than $26,000 in equipment from her employer and then selling the items to pawn shops, U.S. Attorney Ronald C. Machen Jr. announced.
Ferrell, of Indian Head, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of theft of government property. The Honorable Rudolph Contreras scheduled sentencing for April 7, 2014. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that the likely range is a sentence of up to six months of incarceration and a fine of up to $10,000. As part of the plea agreement, Ferrell has agreed to pay $26,029 in restitution to the Naval Research Laboratory. She also has agreed to a forfeiture money judgment, also of $26,029.
According to the government’s evidence, Ferrell was a secretary in the Optical Sciences Division of the Naval Research Laboratory in the District of Columbia. In July 2012, she took responsibility for making authorized purchases with her government-wide commercial purchase card. Starting that month, and continuing until about May 2013, she made a number of unauthorized purchases with the card at the Naval Research Laboratory’s commissary. Among other things, she bought computer equipment, drills, and thermal imagers. She then sold these items to pawn shops in Virginia and Maryland. In an effort to cover up her activities, Ferrell submitted falsified order forms to her supervisors at the Naval Research Laboratory.
In announcing the plea, U.S. Attorney Machen commended the work of the Naval Criminal Investigative Service, which investigated the case. He also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD), and he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Intelligence Specialist Sharon Johnson and Paralegal Specialists Donna Galindo and Shanna Hays. Finally, he thanked Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues, and Assistant U.S. Attorney Phil Selden, who is prosecuting the case.
14-4Former Desoto County, Fla., Sheriff’s Deputies Indicted for Civil Rights and Obstruction Violations Regarding the Assault of an InmateRead the Press Release
A federal grand jury in Fort Myers, Fla., indicted former Desoto County Sheriff’s Office deputies Steven Rizza and Jonathan Mause today for charges related to the violation of the civil rights of an inmate who was assaulted by Rizza at the Desoto County Jail and the ensuing obstruction of the investigation into that offense.
The six-count indictment charges Rizza with one count of violating the civil rights of another, and charges both Rizza and Mause with one count of falsifying records in a federal investigation, one count of obstruction of justice and one count of perjury to a grand jury. Additionally, the indictment charges Mause with one count of making a false statement to a federal investigator.
The indictment alleges that on May 25, 2013, Rizza assaulted an inmate at the Desoto County Jail. Further, according to the indictment, on May 26 and 27, Rizza and Mause falsified an incident about the assault by changing the incident report to conceal Rizza’s conduct. The indictment also alleges that Rizza subsequently made false statements about the May 25 incident to a Desoto County Sheriff’s Office investigator and to a federal grand jury. According to the indictment, Mause made false statements about the May 25 incident to a federal grand jury and a federal investigator.
If convicted, Rizza could face a statutory maximum sentence of 10 years on the civil rights violation count. Both Rizza and Mause could each face a statutory maximum of 20 years for the obstruction of justice and falsification of records counts and a maximum of five years for the perjury count. Further, Mause could face a maximum of five years for the count of making a false statement to a federal investigator.
The Federal Bureau of Investigation and the Florida Department of Law Enforcement are investigating this case with the assistance of the Desoto County Sheriff’s Office. Chief Assistant U.S. Attorney Jesus M. Casas of the Middle District of Florida and Trial Attorney Douglas Kern of the Civil Rights Division are prosecuting this case.
An indictment is merely an accusation, and all defendants are presumed innocent unless and until proven guilty.
Former Desoto County, FLA., Sheriff's Deputies Indicted for Civil Rights and Obstruction Violations Regarding the Assault of an InmateRead the Press Release
WASHINGTON – A federal grand jury in Fort Myers, Fla., indicted former Desoto County Sheriff’s Office deputies Steven Rizza and Jonathan Mause today for charges related to the violation of the civil rights of an inmate who was assaulted by Rizza at the Desoto County Jail and the ensuing obstruction of the investigation into that offense.
The six-count indictment charges Rizza with one count of violating the civil rights of another, and charges both Rizza and Mause with one count of falsifying records in a federal investigation, one count of obstruction of justice and one count of perjury to a grand jury. Additionally, the indictment charges Mause with one count of making a false statement to a federal investigator.
The indictment alleges that on May 25, 2013, Rizza assaulted an inmate at the Desoto County Jail. Further, according to the indictment, on May 26 and 27, Rizza and Mause falsified an incident about the assault by changing the incident report to conceal Rizza’s conduct. The indictment also alleges that Rizza subsequently made false statements about the May 25 incident to a Desoto County Sheriff’s Office investigator and to a federal grand jury. According to the indictment, Mause made false statements about the May 25 incident to a federal grand jury and a federal investigator.
If convicted, Rizza could face a statutory maximum sentence of 10 years on the civil rights violation count. Both Rizza and Mause could each face a statutory maximum of 20 years for the obstruction of justice and falsification of records counts and a maximum of five years for the perjury count. Further, Mause could face a maximum of five years for the count of making a false statement to a federal investigator.
The Federal Bureau of Investigation and the Florida Department of Law Enforcement are investigating this case with the assistance of the Desoto County Sheriff’s Office. Chief Assistant U.S. Attorney Jesus M. Casas of the Middle District of Florida and Trial Attorney Douglas Kern of the Civil Rights Division are prosecuting this case.
An indictment is merely an accusation, and all defendants are presumed innocent unless and until proven guilty.
Foley Chiropractor Pleads Guilty to Healthcare FraudRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that defendant Richard Rizzuto has pled guilty to engaging in a healthcare fraud scheme. Rizzuto is a chiropractor who serviced patients at his chiropractic clinic, Chiro Partners, Inc. (formerly Back on Track Chiropractic), located in Foley, Alabama.
In his plea agreement, Rizzuto admitted that from April 2009 through September 2013, he knowingly and intentionally billed Blue Cross/Blue Shield of Alabama for certain exercise procedures that were not actually performed on patients at his clinic. During the relevant time period, Rizzuto received nearly $400,000 in reimbursements for the exercise treatments he billed to BC/BS. At sentencing, the Court will determine how much of that total amount is attributable to Rizzuto’s fraud scheme.
This case was investigated by FBI—Mobile and is being prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Florida Residents Sentenced for Defrauding and Threatening Spanish-Speaking ConsumersRead the Press Release
Two individuals charged with running a telemarketing operation that defrauded Spanish-speaking consumers were sentenced today in Miami federal district court, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced. Daniel Carrasco, 54, was sentenced to serve 121 months in federal prison, and Federico Martin Gioja, 45, was sentenced to serve 108 months in federal prison, for their operation of telemarketing companies in Argentina whose representatives consistently lied to consumers about products they would receive and threatened consumers with consequences of failure to pay for their shipments. In addition to their sentences of imprisonment, Carrasco and Gioja were ordered to forfeit a variety of assets, including approximately 20 pieces of real property, an automobile, motorcycles, a boat, a jet ski and firearms.
“The Department of Justice is committed to protecting all consumers from fraud, regardless of the language they speak,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
Carrasco’s and Gioja’s telemarketers promoted products such as vitamins, lotions and English-language training products. They also promised buyers would receive valuable gifts such as expensive watches and perfumes, gift cards and medical assistance and insurance. However, the companies frequently did not deliver products ordered by consumers. Since the companies did not have many of the products they promised to send to consumers, they sent other products instead. Then, after consumers refused delivery of the companies’ shipments, the Argentinian phone room telemarketers called and falsely threatened consumers with arrest, deportation or fines on their gas and electric bills.“Fraud is unacceptable,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Fraud by threat and intimidation is particularly troublesome because it targets the perceived, but oftentimes real, vulnerabilities of those preyed upon. In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation or fines when the consumers refused delivery for products they had not ordered. Such tactics are intolerable. My office is committed and stands united with the department’s Civil Division, Consumer Protection Branch to stem such fraud.”
As part of their guilty pleas, Carrasco and Gioja admitted they routinely changed the names of the companies under which they did business to evade consumer complaints, regulators and law enforcement. A variety of state agencies contacted the businesses regarding their illicit practices. Those working with Carrasco and Gioja referred to these companies tainted by complaints as “burnt.” Rather than changing the “burnt” companies’ practices, Carrasco and Gioja incorporated new companies and started the same illegal practices again.
Also in pleading guilty, Carrasco and Gioja admitted their telemarketers falsely represented to consumers that they were affiliated with Spanish-language television networks. This fraud first came to light when the Spanish language network Univision informed the USPIS they believed a company was involved in a fraud scheme in which it misrepresented its affiliation with the network. Subsequently, USPIS investigated the case, submitted the affidavit in support of the criminal complaint and arrested the defendants.
“Sadly, these types of crimes create a distrust in people and leave victims feeling ashamed for falling for a scam,” said Inspector In Charge Ronald Verrochio for the U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service remains committed to pursuing crimes that are furthered via the U.S. mail and building trust with consumers. Postal Inspectors will investigate and bring the criminals to justice.”
Carrasco and Gioja were originally charged by criminal complaint and arrested on June 26, 2013. Both defendants were later indicted on July 25, 2013, and pleaded guilty on September 24, 2013. Carrasco and Gioja, and a third individual, Romino Tasso, also were named in a civil suit filed by the Justice Department. In the civil case, the Justice Department requested and obtained from the court a preliminary injunction barring further lies to consumers and freezing the assets of Carrasco, Gioja, Tasso and companies under their control.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the civil case. The criminal case was prosecuted by Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
Five Columbia Residents Among 10 Defendants Indicted for Conspiracy to Distribute a Ton of MarijuanaRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than 2,200 pounds of marijuana in Boone County, Mo.
Richard Marieo Hunter, 47, Maneka Rochon Germany, 37, Brian Christopher Young, 31, Marlin Deandrea Allen, 41, and Sharod Oneal Clark, 36, all of Columbia, Mo., Gene Edward Rodgers, Jr., 40, of Kansas City, Mo., Jesus Guzman-Vazquez, 33, of Kansas City, Kan., Wendell Eugene Woodson, 36, of St. Louis, Mo., Jorge Alberto Cabada-Lopez, 49, of San Luis, Ariz., and Jennifer Wall, 42, address unknown, were charged in a 14-count indictment that was returned under seal on Oct. 3, 2013, by a federal grand jury in Jefferson City, Mo. The indictment was unsealed and made public today upon the arrests and initial court appearances of Hunter, Germany and Woodson in Jefferson City and of Guzman-Vazquez in Kansas City, Mo.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute 1,000 kilograms or more of marijuana in Boone County from February 2010 to March 2013.
In addition to the conspiracy, Hunter, Cabada-Lopez, Guzman-Vazquez and Germany were charged together in one count of possessing 100 kilograms or more of marijuana with the intent to distribute on Jan. 24, 2013.
Hunter is also charged in 12 counts of using a telephone to facilitate the drug-trafficking conspiracy. Allen, Young, Wall, Cabada-Lopez, Germany and Woodson are each charged along with Hunter in two of those counts.
The federal indictment also contains a forfeiture allegation, which would require Hunter to forfeit to the government any property derived from the proceeds of the alleged drug-trafficking conspiracy, or used to facilitate the commission of the alleged drug-trafficking conspiracy, including his residence.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.Federal Judge Sentences Keshena Man to 11 Years ImprisonmentRead the Press Release
United States Attorney James L. Santelle announced today that Federal District Court Judge William C. Griesbach sentenced Keshena resident Jacob J. Zhuckkahosee, age 20, to 135 months of imprisonment, followed by a term of life on supervised release. The sentence was the result of a guilty plea by Zhuckkahosee on October 15, 2013, to a federal indictment charging him with the sexual abuse of a person under the age of 16 years.
The investigation revealed that on a date between June 15, 2013, and July 17, 2013, Jacob Zhuckkahosee, an enrolled member of the Menominee Indian Tribe of Wisconsin, sexually abused a four-year-old female child at a residence on the Menominee Indian Reservation. Law enforcement interviewed Zhuckkahosee and he admitted that he was alone in the residence when the unattended victim arrived. Zhuckkahosee stated that he unclothed the child and penetrated her anal opening with his right index finger. According to Zhuckkahosee, he stopped the assault when the child started to cry. Zhuckkahosee stated that he was sorry for his actions and was interested in getting treatment for his problem.
The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Benjamin L. Whittemore.
Eastern District of Oklahoma U.S. Attorney's Office Collects $1,174,439 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Muskogee, Oklahoma - U.S. Attorney Mark Green announced today that the Eastern District of Oklahoma collected $1,174,439 in criminal and civil actions in Fiscal Year 2013. Of this amount, $380,400 was collected in criminal actions and $794,039 was collected in civil actions.
Additionally, the Eastern District of Oklahoma worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $184,251,500 in cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Collection of monies due the United States of America in both criminal and civil matters is a responsibility of this U.S. Attorney’s office as well as those across our nation. We here in the Eastern District of Oklahoma are committed to fulfilling that responsibility,” said U.S. Attorney Mark Green.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of Oklahoma, working with partner agencies and divisions, collected $576,950 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
District of Maine U.S. Attorney’s Office Collects over $2.5 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that the District of Maine collected $2,534,846.68 in criminal and civil actions in Fiscal
Year 2013. Of this amount, $1,360,891.94 was collected in criminal actions and $1,173,954.74 was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept.
30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime
Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.The largest civil collections were from affirmative civil enforcement cases, in which the
United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.Additionally, the U.S. Attorney’s office in the District of Maine, working with partner agencies and divisions, collected $462,493 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
District of Delaware U.S. Attorney’s Office Collects $1,725,357.29 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
WILMINGTON, Del. – U.S. Attorney Charles M. Oberly, III announced today that the District of Delaware collected $1,725,357.29 in criminal and civil actions in Fiscal Year 2013. Of this amount, $448,253.63 was collected in criminal actions and $1,277,103.66 was collected in civil actions.
Additionally, the District of Delaware worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $304,172.89 in cases pursued jointly with these offices. Of this amount, $304,172.89 was collected in civil actions.
Moreover, the District of Delaware, working with partner agencies and divisions, collected $3,587,857.00 in asset forfeiture actions in FY 2013. Specifically, in the case of United States v. Bruce E. Costa, the district recovered almost $2.5 million. Costa, a former pharmacist and former owner of Renaissance Family Pharmacy in Claymont, Delaware, was found guilty of unlawfully distributing approximately 45,000 oxycodone pills. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“During this time of economic recovery, these collections are more important than ever,” said U.S. Attorney Oberly. “The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from their illegal activities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Criminal Immigration Charges Brought Against Seven Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced today that charges have been brought this week against the following:
Erik Samuel Coyoc, age 22, a native and citizen of Guatemala, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Coyoc, an alien previously arrested and deported, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.
If convicted, Coyoc, faces a maximum sentence of up to 2 years imprisonment and a $250,000 fine.
Alberto Bautista-Sanchez, age 30, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Bautista-Sanchez, an alien with previous criminal convictions in California, and who had been previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Franklin County, Pennsylvania.
If convicted, Bautista-Sanchez faces a maximum sentence of up to 20 years of imprisonment and a $250,000 fine.
Victor Bautista-Marquez, age 25, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Bautista-Marquez, an alien with prior criminal convictions, and previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Adams County, Pennsylvania.
If convicted, Bautista-Marquez faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
Rigoberto Osornio-Gomez, age 29, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg yesterday. The indictment alleges that Osornio-Gomez, an alien who had been previously arrested and deported, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in New Oxford, Adams County, Pennsylvania.
If convicted, Osornio-Gomez faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
Maria Gutierrez-Contreras, age 34, a native and citizen of Mexico, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Gutierrez-Contreras, an illegal alien, was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Gutierrez-Contreras faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Norberto Castillo-Lopez, age 24, a native and citizen of Mexico, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Castillo-Lopez, an illegal alien, was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Castillo-Lopez faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Juan Antonio Perez-Agion, age 35, a native and citizen of El Salvador, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Perez-Agion, an illegal alien, was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Perez-Agion faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.