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7 January 2014
Holly Man Sentenced to 25 Years in PrisonFor Production of Child PornographyRead the Press Release
Chad Alan Cole, 45, of Holly, Michigan, was sentenced today to 25 years in federal prison after having pleaded guilty to production of child pornography, U.S. Attorney Barbara L. McQuade announced today. Judge Arthur J. Tarnow imposed the sentence.
Joining McQuade in the announcement was Special Agent in Charge Paul M. Abbate of the Federal Bureau of Investigation (FBI).
Evidence established that Cole, who had previously been convicted of distributing obscene material to children, met a 12 year-old girl from Idaho online. Over the course of several months, Cole befriended the child before eventually convincing her to create sexually explicit pictures and videos of herself. Cole also sent images and videos of himself masturbating to the child, and convinced the child to engage in sexually explicit conduct over Skype. After his arrest, Cole admitted to engaging in similar behavior with 10-20 other minors.
Cole previously worked as a firefighter for the Village of Holly and a 911 dispatcher for the City of Auburn Hills before being terminated as a result of his prior sex offense.
This case was first investigated by and subsequently brought to the attention of the FBI by local authorities in Lewiston, Idaho. It was prosecuted by Assistant United States Attorney Kevin M. Mulcahy of the General Crimes Unit.
Former President of Tatitlek Native Village Sentenced to 18 Months for Misapplication of Tribal FundsRead the Press Release
Lori “Sue” Clum (formerly Johnson), 46, of Anchorage, Alaska, was sentenced today by United States District Court Judge Sharon L. Gleason, to 18 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, Clum was elected as President of the Native Village of Tatitlek, a federally recognized tribe, in October 2007. Clum was voted out of office in April 2008 but refused to accept the results of this election and maintained control of the tribal bank accounts for another year, during which time she misapplied $112,000 of tribal funds for her personal benefit. Clum used the money to gamble, pay personal debts, and purchase a four wheeler among other things. Clum finally relinquished control of the tribal bank accounts after she was arrested for illegal drug possession in March 2009.
In a separate but related matter, Clum confessed judgment in a civil case brought by the Native Village of Tatitlek for a total of $150,000 that she misapplied, which amount included disputed payroll for Clum. Clum was arrested on January 13, 2013, on state charges that she was selling drugs and alcohol in Tatitlek. These charges are still pending.
At sentencing, Judge Gleason noted the importance of deterring this type of conduct in remote communities with fragile economies where fraud like this has an enormous impact, as well as the emotional impact on a small community.
Clum’s brother, James Kramer of Valdez, Alaska, is scheduled for sentencing on January 22, 2014, for his role in accepting $20,000 from Clum. Kramer accepted the money knowing he was not entitled to it, and he failed to file a tax return to include this money as well as other income he had received in 2009.
Ms. Loeffler commends the FBI, IRS Criminal Investigations, and EPA Office of Inspector General, with assistance from the Valdez Police Department, for the investigation of this case.
Former Mining Supply Businessman Sentenced to Federal Prison ForRead the Press Release
ILLEGAL CASH STRUCTURING SCHEME
BLUEFIELD, W.Va. – A former mining supply businessman was sentenced to federal prison after pleading guilty earlier this year to structuring thousands of dollars in bank transactions, announced U.S. Attorney Booth Goodwin. Michael J. Prasatek, Sr., 67, of Bluefield, was sentenced yesterday to 16 months in prison. The sentence was handed down by Senior United States District Court Judge David A. Faber. Prasatek, a former businessman who managed several supply companies in and around southern West Virginia since 1978, knowingly provided a coal mine operator with bogus invoices in a scheme known as “selling cash.”
During the scheme, in exchange for fake supply invoices, Prasatek received a check in the amount of the fictitious invoice and later deposited the money into his personal bank account. Prasatek then returned the cash to his associate for a fee. Prasatek knew that the false invoice could be used for unlawful purposes such as filing a false tax deduction.
To further his scheme, Prasatek opened up checking accounts at two McDowell County banks using the names “Michael Prasatek DBA Prestige Paving & Sealing” and “Michael Prasatek DBA Quality Services” and routinely structured cash withdrawals. “Structuring” involves the breaking down of cash transactions in amounts of $10,000 or less for the purpose of avoiding a financial institution’s reporting requirements to the IRS.
Prasatek admitted that beginning in May 2010 until December 20111, he structured several cash transactions totaling approximately $55,000, to intentionally avoid the mandatory financial reporting requirements.
The Court also sentenced Prasatek to three years’ supervised release and ordered him to pay a $3,000 fine.
The investigation was conducted by the IRS. Assistant United States Attorney Thomas Ryan handled the prosecution.
Former Head Teller at Lynrocten Credit Union Pleads GuiltyRead the Press Release
LYNCHBURG, VIRGINIA – The former head teller of the Lynrocten Credit Union in Lynchburg pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to federal embezzlement charges.
Teresa Wieringo Humphries, 58, of Madison Heights, Va., waived her right to be indicted and pled guilty today to a one-count Information charging her with embezzlement from a Federal Credit Union.
“Ms. Humphries participated in a massive fraud scheme in which she stole over a million dollars from her employer by falsifying loan documents,” United States Attorney Timothy J. Heaphy said today. “Her brazen and persistent acts of fraud violated the trust placed in her by the Lynrocten Credit Union and its customers. This office will continue to vigorously investigate and prosecute instances of financial fraud and do our best to provide restitution to the victims of these crimes.”
According to evidence presented at today’s hearing by Assistant United States Attorney Daniel Bubar, Humphries had been the head teller at the Lynrocten Credit Union since the mid-1980s. Beginning in 2000, and continuing until the credit union’s liquidation, Humphries, and the manager of the credit union, carried out several schemes to embezzle and steal funds from the credit union’s deposits through the unauthorized and fraudulent origination of loans in the names of credit union members. She and the manager also used a check kiting scheme to obtain additional monies of the credit union and conceal and facilitate the fraudulent loan scheme.
The funds created through both the loan and check writing schemes were eventually funneled to the Lynrocten Credit Union accounts of Humphries and the manager and their family members. Between 2007 and the liquidation of the Lynrocten Federal Credit Union in 2013, Humphries personally stole approximately $3,000-$4,000 per month that she deposited into the accounts belonging to her family members. In total, Humphries stole in excess of $1 million from the Lynrocten Federal Credit Union. The overall loss to the credit union, however, was in excess of $7 million, and contributed to the ultimate collapse of that financial institution.
At sentencing, Humphries faces a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1 million.
The investigation of the case was conducted by the Federal Bureau of Investigation, the United States Secret Service and the Lynchburg Police Department. Assistant United States Attorneys Anthony Giorno and Daniel Bubar are prosecuting the case for the United States.
Former Casino Employee and Wife Sentenced to Probation for Scheme to Embezzle Money from CasinoRead the Press Release
ALBUQUERQUE – John Hoffman, 43, of Rio Rancho, N.M., was sentenced this morning to two years of probation for his felony conviction for embezzling money belonging to an Indian gaming establishment. His wife and accomplice, Michelle Fischer, 43, also received a two-year probationary sentence for her misdemeanor conviction for stealing from an Indian gaming establishment. The Hoffmans jointly were ordered to pay $74,830.43 in restitution to the Santa Ana Star Casino, the victim of their criminal conduct.
Hoffman pled guilty in March 2013 to a felony information charging him with embezzling money belonging to the Santa Ana Star Casino, which is operated by Santa Ana Pueblo. At the time, Hoffman was employed in the Marketing Department of the Santa Ana Star Casino. Hoffman admitted that, from Dec. 2010 to Aug. 2011, he abused his position at the Santa Ana Star Casino by gaining access to active and inactive “Player’s Club” cards and adding money and credits to the cards without proper basis or authority. Hoffman also admitted giving the cards to Fischer knowing that she intended to distribute the cards to others who would use the cards to gamble and who would give Hoffman and Fischer a percentage of their winnings.
Also in March 2013, Fischer pled guilty to a misdemeanor information charging her with theft of money belonging to the Santa Ana Star Casino. In entering her guilty plea, Fischer admitted obtaining “Player’s Club” cards to which she was not entitled from a casino employee, and giving the cards to others who used the cards to gamble with the understanding that she would receive a percentage of the winnings. Fischer also admitted that she also used some of the cards to gamble knowing that she was not entitled to do so and for the purpose of obtaining a financial benefit.
This case was investigated by the Santa Ana Tribal Police Department and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.Former Caregiver SentencedRead the Press Release
ABINGDON, VIRGINIA – A local woman who previously pleaded guilty to food stamp fraud and bank fraud, was sentenced last week in the United States District Court for the Western District of Virginia in Abingdon.
April Darlene Avery, 41, of Glade Spring, Va., previously waived her right to be indicted and pled guilty to one count of food stamp fraud and one count of bank fraud. On January 3, 2014 in U.S. District Court in Abingdon, she was sentenced to 30 months of Federal incarceration. She was also ordered to pay $153,759 in restitution to the victim of her bank fraud and $3,936 in restitution for overpayment of public assistance benefits.
“This defendant repeatedly stole from her elderly client,” United States Attorney Timothy J. Heaphy said today. “Rather than perform her important duty as a caregiver, Ms. Avery took advantage of a senior citizen by taking money from her accounts. For that despicable conduct, she has justly been held accountable.”
According to evidence presented in court by Assistant United States Attorney Jennifer Bockhorst, Avery was employed full-time as a caregiver for an elderly woman. While employed as a caregiver, Avery forged the signature of the elderly woman in her care and negotiated checks, as a means of obtaining funds from accounts of the victim to which she was not entitled. In total, Avery stole more than $153,000 from the victim.
In addition, between April 2012 and March 2013, while being employed, Avery knowing used and acquired food stamp coupons worth approximately $3,936 to which she was not entitled.
The investigation of the case was conducted by the United States Secret Service, the Washington County Sheriff’s Office and the Virginia Department of Social Service. Assistant United States Attorney Jennifer Bockhorst will prosecute the case for the United States.
Former CEO Sentenced for Shipping Commercial Industrial Machines to IranRead the Press Release
ROME, Ga. - Mark Mason Alexander, a/k/a Musa Mahmood Ahmed, has been sentenced to 18 months in prison for conspiring to send water-jet cutting machines to Iran in violation of the United States trade embargo.
"Today's sentence demonstrates that the United States will continue to vigorously pursue and bring to justice those who evade our economic sanctions," said United States Attorney Sally Quillian Yates. “The trade embargo against the Islamic Republic of Iran is not limited to those who specifically seek to supply the country with military items or with items for use in its nuclear weapon proliferation program. Rather, businesses and individuals who engage in commercial transactions with businesses and individuals in the Islamic Republic of Iran are cautioned that they are still subject to prosecution under existing sanctions.”
"This is the latest example of the commitment of the U.S. Department of Commerce's Office of Export Enforcement to protect our national security through effective enforcement of U.S. export control laws" said Robert Luzzi, Special Agent-in-Charge of the Office of Export Enforcement's Miami Field Office. "We will continue to work aggressively with our law enforcement partners including Homeland Security Investigations, Atlanta Field Office, to investigate arrest and convict those individuals who illegally export U.S technology to state sponsors of terrorism."
"The magnitude and scope of the threats facing the United States is complex and wide-ranging, and that's why HSI investigates individuals who try to export sensitive technologies to hostile nations," said Brock D. Nicholson, special agent in charge of HSI Atlanta. "Homeland Security Investigations, along with our partners like the Department of Commerce, take pride in protecting our country, and today's sentencing is just the latest example of our effective investigative efforts."
According to United States Attorney Yates, the charges and other information presented in court: Between October 2006 and June 2008, Alexander conspired with two Iranian businessmen to sell Hydrajet water-jet cutting systems to customers located in Iran. Hydrajet Technology, located in Dalton, Ga., manufactured the water-jet cutting systems which were used for the precision cutting of materials such as aluminum, glass, granite and steel. These machines were distributed to customers in the Middle East through Hydrajet Mena, another company that Alexander partly owned which was located in the United Arab Emirates and for which Alexander worked as the CEO.
In 2007, as part of the conspiracy, Alexander negotiated the sale of two water-jet cutting systems to companies located in the Islamic Republic of Iran: the Parand Machine Company and the Negin Sanat Sadr. Company.
In July 2007, after Alexander negotiated the terms of these sales and before the machines were shipped to the Islamic Republic of Iran, the Department of Commerce had conducted a community outreach meeting with Alexander, as the CEO of Hydrajet Technology. This outreach program was designed to make exporters, like Alexander, aware of the various export restrictions, including the trade embargo against Iran, and to educate exporters about the process for legally exporting items from the United States.
The evidence further established that the machines that Alexander conspired to sell were in fact manufactured in Dalton, Ga. He concealed the true destination of these machines by causing them to be trans-shipped to the Islamic Republic of Iran via Alexander’s company in the United Arab Emirates. Alexander additionally instructed Hydrajet Mena employees to travel to Islamic Republic of Iran to install the machines and to conduct software training for the Iranians who would operate them.Alexander, 53, of Roswell, Ga., was sentenced on Monday January 6, 2013, by United States District Judge Harold L. Murphy to 18 months in prison to be followed by three years of supervised release. Alexander was found guilty by a jury on September 26, 2013, of Conspiracy to violate the International Emergency Economic Powers Act.
This case was investigated by the U.S. Department of Commerce and the Department of Homeland Security.
Assistant United States Attorney Tracia King prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Former Bank Employee Pleads Guilty in Fraud SchemeRead the Press Release
Baltimore, Maryland –Jill Dail, age 59, of Cambridge, Maryland, pleaded guilty today to bank fraud in connection with a scheme in which she and her brother, Jeffrey Dail, fraudulently obtained mortgage loans in the names of family members, using the proceeds for their own benefit.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, Jill Dail was a loan settlement processor in the mortgage department at a Salisbury, Maryland, bank until she was terminated in June 2007, as part of a reduction in the bank’s workforce. Shortly thereafter, Dail was privately hired by the manager of the bank’s mortgage department to continue to do the same loan processing work she had performed as an employee of the bank. The bank manager paid Dail out of his own funds and gave her full access to the bank premises, computer system and loan files. Dail continued to represent herself as a bank employee in her dealings with title companies and other businesses.
Jill Dail admits that beginning before January 2006 through at least August 2009, she and her brother, Jeffrey Dail, applied for mortgage loans in the names of family members and used the proceeds of the loans for their personal benefit. The Dails forged the signature of family members and bank officials on the loan applications, causing the bank to approve the applications and authorize the distribution of the loan proceeds at settlement. In each instance, the family members whose identities were used on the loan applications, and whose properties were used as collateral for the loans, had no knowledge of the applications or the loans.
Based on the assurances of Jill Dail, with whom the title company had a well-established business relationship, title company employees notarized the signatures of the family members on the settlement documents and disbursed the loan funds at settlement, as directed by Jill Dail, to Jill Dail herself, to Jeffrey Dail, and to their creditors. The balance of loan funds still unpaid is approximately $357,150.
Jill Dail faces a maximum sentence of 30 years in prison and a $250,000 fine. U.S. District Judge J. Frederick Motz scheduled her sentencing for April 3, 2014 at 9:30 a.m.
Jeffrey Scott Dail, age 49, of Cambridge, Maryland, pleaded guilty on December 5, 2013 to his participation in the scheme and faces a maximum sentence of 30 years in prison and a $250,000 fine. Jeffrey Dail is scheduled to be sentenced on February 21, 2014 at 12:00 p.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.
Forfeits Nearly $2 Million in Cash, as Well as A Residence and VehicleRead the Press Release
ROOFING COMPANY OWNER PLEADS GUILTY TO CONSPIRING TO SMUGGLE ILLEGAL ALIENS AND INSURANCE FRAUD
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Gregory J. Oldiges, 55, the owner of Williams Brothers Roofing and Siding, pleaded guilty in U.S. District Court to conspiring to bring illegal aliens to work for his roofing company, and to conspiring to commit wire fraud by sending fraudulent invoices to insurance companies for work by his company.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, Homeland Security Investigations, and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office announced the pleas entered today before U.S. District Judge Walter H. Rice.
According to court documents, between 2004 and 2013, Oldiges’ company entered into at least 39 purported subcontracts with illegal aliens to perform roofing services in the Dayton area. Oldigesand/or other Williams Brothers’ employees knew that many of these illegal aliens used aliases or other false names when entering into these subcontracts. In several instances, Williams Brothers’ employees -- with Oldiges’knowledge -- provided the illegal aliens with the false names/aliases to use for the subcontracts (as well as other fraudulent documentation prepared by the company, including false IRS 1099 forms bearing fake names and Social Security numbers). Oldiges also knew and/or directed employees to prepare the necessary fraudulent documentation (including the subcontracting agreements and IRS Forms) in order for the company to be able to write off the illegal aliens’ labor costs on the company’s corporate tax returns.
Between 2009 and 2012, Williams Brothers invoiced its customers approximately $11.75 million for roofing work performed by its illegal workforce, for which Williams Brothers paid the illegal workers approximately $1.7 million.
Oldiges also financed the smuggling of some of the illegal workers into the United States. For instance, Oldigesdirected a company employee on at least two occasions to go to Texas to give thousands of dollars in cash to an illegal alien subcontractor and to drive the workers back to Dayton, knowing that the money would ultimately be paid to human smugglers or “coyotes” to bring the illegal alien subcontractor and his crew across the border from Mexico into Texas. Oldigesrecouped the cost of the smuggling fees by withholding a portion of the amount Williams Brothers paid the illegal alien subcontractor for work performed on roofing contracts.
Oldiges also pleaded guilty for his involvement in a scheme to defraud insurance providers on roofing jobs by faxing or emailing “dummy” or “duplicate” invoices to insurance companies that reflected inflated invoice amounts over and above the amount the company actually charged its customers. Between approximately November 2010 and December 2012, Oldiges knowingly submitted or caused to be submitted at least 80 fraudulent invoices totaling approximately $1.369 million to various insurance companies when the actual amount that Williams Brothers charged its customers for this work was approximately $1.24 million.
“The schemes perpetuated by this defendant were pervasive, touching nearly every aspect of the business. These unscrupulous tactics clearly gave his company an unfair advantage over competitors,” said Marlon Miller, special agent in charge for HSI Detroit, which covers Michigan and Ohio “When companies engage in these types of schemes, workers are often exploited and businesses that play by the rules simply cannot compete.”
“This case shows that the appearance of success can be a mask for a tangled financial web of lies,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money.”
The plea agreement includes a sentencing range of at least 24 months and up to 57 months imprisonment, restitution in an amount to be determined by the court, and forfeiture of real estate, deposit and investment accounts containing nearly $2 million and a vehicle.
Judge Rice scheduled a sentencing hearing for Oldiges for April 8. A Williams Roofing employee, Jim Honius, pleaded guilty on December 19, 2013 to one count of wire fraud for his role in the insurance fraud scheme. He is scheduled for sentencing on April 8.
U.S. Attorney Stewart commended the cooperative investigation by HSI and IRS special agents, as well as Assistant U.S. Attorneys Vipal Patel, Alex Sistla and Pam Stanek, who are prosecuting the case.
Federal Jury Finds Convicted Felon Guilty of Possessing A FirearmRead the Press Release
Orlando, FL - Acting U.S. Attorney A. Lee Bentley, III announces that a federal jury today found Brian K. Hatten (33, Orlando) guilty of possession of a firearm by a convicted felon. Based on his prior felony convictions, Hatten faces a mandatory minimum penalty of 15 years, up to life in federal prison. His sentencing hearing is scheduled for March 28, 2014, before U.S. District Court Judge John Antoon, II.
Hatten was indicted on October 23, 2013.According to testimony and evidence presented at trial, Orlando Police Department officers arrested Hatten, after he fled from them, at an intersection west of downtown Orlando. During his flight from officers, Hatten became entangled on a fence and officers found packages of marijuana, a semi-automatic pistol loaded with four rounds of ammunition, and a cell phone in Hatten’s possession. An investigation revealed that Hatten had at least six previous felony convictions, including various drug offenses, robbery, battery on a law enforcement officer, and aggravated assault with a firearm. As such, he was not permitted to possess a firearm or ammunition under federal law.
This case was investigated by the Orlando Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
This case is also a part of ATF’s Frontline strategy - an effective method in reducing violent crime and improving the quality of life in communities where law enforcement efforts are focused.
Fairfield Man Accused of Possessing Weapons on Unh Campus Charged with Federal Firearms OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that WILLIAM DONG, 23, of Fairfield, has been charged by federal criminal complaint with the unlawful transport into Connecticut of an assault weapon purchased in Pennsylvania. The complaint was unsealed today during DONG’s appearance in New Haven federal court.
As alleged in the criminal complaint, in approximately September 2013, DONG traveled to Pennsylvania, purchased a Bushmaster model XM-15-E2S, .223 caliber semi-automatic rifle and transported the rifle back to Connecticut. This firearm is considered a prohibited assault weapon under Connecticut state law.
On December 3, 2013, West Haven Police arrested DONG in the vicinity of the University of New Haven after he was found in possession of two handguns on his person, and the Bushmaster rifle, which was seized from his nearby car. The complaint alleges that DONG told police that he had purchased the rifle from a seller in Pennsylvania in September 2013 through an advertisement placed on www.armslist.com.
Although it is not unlawful under federal law for an individual, who is not a prohibited person, to possess this Bushmaster firearm, it is a federal violation for an individual to purchase this firearm outside of Connecticut and travel into the state with it, since it is a prohibited firearm under Connecticut state law.
The charge carries a maximum penalty of five years of imprisonment and a $250,000 fine.
DONG, who has been detained in state custody since his arrest on December 3, appeared today before U.S. Magistrate Judge Joan G. Margolis in New Haven. He agreed to the entry of a federal order of detention and waived his right to a speedy indictment and a probable cause hearing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, working together with the West Haven Police Department. This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
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(203) 821-3722 [email protected]Executive Director of Local Charity Pleads Guilty to FraudRead the Press Release
TAMPA, FL – Acting United States Attorney A. Lee Bentley, III announces that Lyndon Jones (45, Sarasota) today pleaded guilty to theft of government funds. Jones faces a maximum penalty of 10 years in federal prison.
According to the plea agreement, Jones served as executive director of ManUp of Greater Sarasota, which ran a summer youth program to assist Sarasota community youth in the development of good leadership and professional skills. From at least as early as June 19, 2009, and continuing through on or about September 29, 2011, Jones stole at least $76,707.12 in federal funds from a Community Development Block Grant, which he used for his own benefit. He stole the funds by fraudulently submitting duplicate billing for the hours worked by the students. One set of billing was submitted to the grant administrator, and a second set was submitted to the students’ employers (e.g., the Sarasota Manatee Airport and Sarasota Memorial Hospital). Both paid Jones, for him to make payment to the students. However, Jones kept the second set of payments for himself. In addition, the airport paid the students at a rate of $14.00 per hour. But Jones actually remitted an amount equal to $8.00 an hour to the students, keeping the difference for himself.
This case was investigated by U.S. Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG). It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Defendant Sentenced for Possession of A Firearm by A Convicted FelonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that John Edward Baker, 42, of Lizella, Georgia was sentenced on Tuesday, January 7, 2014, to serve thirty (30) months imprisonment in a case of possession of a firearm by a convicted felon. The sentence was handed down by the Honorable Marc T. Treadwell, United States District Court Judge, in Macon, Georgia.
Ms. Baker entered a plea of guilty to the charges on September 4, 2013. In his plea agreement, the defendant admitted that on May 23, 2011, while serving a warrant on another individual who was hiding at Mr. Baker’s residence, the U.S. Marshals Service found a .357 caliber revolver and pictures of Mr. Baker holding the above-mentioned weapon. Mr. Baker had previously been convicted of two felony drug offenses in Superior Court in Putnam County in February and June of 2004.The case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, U.S. Marshals Service and the Bibb County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Verda M. Colvin.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Defendant Sentenced for Conspiracy to File False Federal Tax Returns and Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Edna Yvonne Orr Goff, 37, of Thomaston, Georgia, was sentenced on January 7, 2014 to serve thirty six (36) months imprisonment for conspiracy to file false federal tax returns and aggravated identity theft by the Honorable Marc T. Treadwell, United States District Judge.Ms. Goff and Michelle Blankenship were indicted on February 15, 2013 and charged with conspiracy to submit false tax returns and identity theft. In essence, the charges involved the use of stolen tax payer identity information by Ms. Goff and Ms. Blankenship to file fraudulent tax returns with the Internal Revenue Service. The scheme resulted in a total loss of over $200,000.00 to the government.
Ms. Blankenship appeared in court on June 4, 2013 and entered a plea of guilty. She was sentenced on November 14, 2013 to serve eight (8) years in prison. In addition, she was ordered to pay restitution to the IRS in the amount of $224,136.00. Goff was ordered to pay restitution in the amount of $15,000.00.
“Filing false tax returns and identity theft causes a rippling effect of loss to all law abiding citizens. hose committing these and other crimes will remain a focus of the Department of Justice,” said United States Attorney Michael Moore.
“These unscrupulous defendants thought they had figured out a clever scheme for obtaining money from the government,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “As the defendants in this case have learned, stealing from the American people will not be tolerated and you will be held accountable.”
The case was investigated by the Internal Revenue Service, Criminal Investigations. The case was prosecuted by Assistant United States Attorney Charles L. Calhoun.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Daniel Cruz Stone and Daniel Manglona Cruz Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant Daniel Cruz Stone, age 34, and Daniel Manglona Cruz, age 57, were sentenced today in the District Court of Guam. Cruz is Stone’s uncle. Each pled to an Information charging Conspiracy to Distribute more than 50 grams of methamphetamine.
Credit for the investigation is given to the Drug Enforcement Administration (DEA), U.S. Postal Service Inspectors, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Task Force Agents from the Superior Court of Guam’s Probation Office assigned to the DEA, and the Guam Police Department. The case was handled by Assistant U.S. Attorney Clyde Lemons.
Cruz was sentenced to 87 months in prison and five years supervised release. Stone received 70 months in prison, five years supervised release and a fine in the amount of $12,500. He was also ordered to participate in a substance abuse program. Both defendants are awaiting a designation from the Bureau of Prisons.
On August 9, 2011, a postal inspector seized a package addressed to Cruz containing 212 grams of ice. Cruz was detained and admitted the package was his. He then agreed to call his co-defendant/nephew (STONE) who sold ice for him. His nephew showed up at the Agana Shopping Mall and was arrested.Colorado Man Pleads Guilty to Transporting Women to Work as ProstitutesRead the Press Release
NEWARK, N.J. – A Colorado man today admitted his role in a conspiracy to transport women across state lines for prostitution in New Jersey and other states, U.S. Attorney Paul J. Fishman announced.
James Roy Smith, 36, a/k/a “Mister Smith,” of Lakewood, Colo., pleaded guilty before U.S. District Judge Stanley R. Chesler to a superseding information charging him with conspiracy to transport women across state lines to work as prostitutes, and transportation of a victim across state lines with the intent that the victim work as a prostitute.
According to documents filed in this case and statements made in court:
From February 2009 through June 27, 2010, Smith conspired to operate a prostitution business in numerous locations around the United States, including New Jersey, New Mexico, Nebraska, and Pennsylvania. The women would be transported between states by air as well as in a Cadillac Escalade registered to Smith’s uncle. In order to attract and locate local customers, the conspirators would place advertisements for escort services on Craigslist as well as Backpage. com.
Smith admitted that in late June 2010, he conspired to transport six women from New Jersey to Philadelphia, Pa., to work as prostitutes. During that time, while checked in at the Econolodge in Elizabeth, N.J., he also caused a victim to be transported between these two states with the intent that the victim work as a prostitute.
The count of interstate transportation for the purpose of engaging in prostitution is punishable by a maximum potential penalty of 10 years in prison and the count of conspiracy to engage in that same offense is punishable by a maximum potential penalty of five years in prison. Both counts are also punishable by a fine of $250,000. Sentencing is scheduled for April 29, 2014.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked FBI offices in Omaha, Neb., and Salt Lake City, Utah; the Union County, N.J., Prosecutor’s Office; the Elizabeth, N.J., Police Department; and the Clay County, Neb., Sheriff’s Office for their roles.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Brooke M. Barnett Esq., Newark
Smith, James Roy Superseding Information
Canyon County Man Admits to Aggravated Identity Theft and Possessing Several False ID DocumentsRead the Press Release
BOISE – Jordan Schoo, 34, of both Nampa and Grangeville, Idaho, pleaded guilty today in United States District Court to identity theft by possession of five or more false identification documents and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Schoo was charged in an 11-count indictment filed in federal court in Boise on August 14, 2013.
According to the plea agreement, Schoo admitted that on March 20, 2013, he knowingly possessed nine false and fraudulent Idaho driver’s licenses, each with his own photograph but with the identifying information of actual people, such as names, dates of birth, and driver’s license numbers. Schoo possessed a tenth false identification with a different person’s photograph. According to the plea agreement, Schoo used, and intended to use, the documents to purchase goods on credit from various businesses participating in interstate commerce, such as Best Buy.
Schoo obtained the means of identification of people he impersonated from a number of sources, including that of a former roommate from Colorado. Schoo also used the means of identification taken from his mother’s business. He used the various false identities that he possessed to purchase goods from both local and on-line retailers, including a 60” television and a car audio and security system. Schoo also obtained credit cards in the names of various victims. As part of the scheme, he opened and maintained a mailbox under a false name at a commercial mailbox store.
The charge of identity theft by possession carries a maximum prison term of five years; the charge of aggravated identity theft carries a mandatory two year prison sentence, which must run consecutively to the prison term on the identity theft by possession charge.
Sentencing is set for April 1, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
United States Attorney Wendy Olson stated that, “The United States Attorney’s Office is committed to protecting the financial security of the citizens of Idaho and will pursue identity theft offenders and holds them accountable for the extensive damage that they cause to victims.”
The case was investigated by the United States Postal Inspection Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Grangeville Police Department.
Business Owner Indicted for $493,000 Employment Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., business owner was indicted by a federal grand jury today for a scheme to defraud the government by failing to pay over to the Internal Revenue Service more than $260,000 that he collected from his employees in employment taxes. Along with more than $232,000 that he allegedly failed to pay as his employer portion of the taxes, the total loss to the government was more than $493,000.
Joseph Patrick Balano, 52, of Kansas City, Mo., was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
According to the indictment, Balano was the owner of Global Employment Group, Inc., doing business as Staffing Connections (Global Employment) in Grandview, Mo., and Kansas City, Mo. Two earlier businesses – Labor Connections and Labor Connections II – were dissolved in 2006, the indictment says, ostensibly because of employment tax issues. In their place, Balano formed Global Employment in December 2006. Employees who had been working for Labor Connections and Labor Connections II began working for Global Employment. Business operations stayed in the same location.
Today’s indictment alleges that Balano withheld employment taxes from his employees; however, instead of paying over those taxes to the government, Balano allegedly kept most of those taxes for his own personal use. The total allegedly withheld from employees but not paid to the IRS from April 2008 to April 2009 was $260,770. In addition, Balano allegedly failed to pay the employer portion of the taxes to the IRS as well, in the amount of $232,672. The total amount of loss to the government was $493,443.
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 Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Anthony, N.M., Man Pleads Guilty to Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Victor Manuel Carreon, 23, of Anthony, N.M., pleaded guilty this afternoon in Las Cruces federal court to being a felon in possession of a firearm and ammunition. Carreon entered his guilty plea without the benefit of a plea agreement.
Carreon and his brother Javier Orozco, 29, also of Anthony, were arrested on Sept. 5, 2013, based on a criminal complaint charging them with being felons in possession of firearms and ammunition. The two were subsequently indicted on these charges on Dec. 11, 2013. The indictment alleges that Carreon and Orozco unlawfully possessed firearms and ammunition in Doña Ana County, N.M., on June 19, 2013. At the time, the brothers were prohibited from possessing firearms or ammunition because they were convicted felons. Carreon previously had been convicted for possession of a controlled substance and aggravated fleeing from a law enforcement officer, and Orozco had been convicted for shooting at a motor vehicle and aggravated assault.
According to the criminal complaint, on June 19, 2013, Carreon and Orozco were arrested on state charges by Doña Ana County Sheriff’s deputies who were seeking to arrest Carreon on state warrants. The deputies detained Orozco in the vicinity of a truck parked outside a residence in Anthony, and arrested Carreon inside the residence. At the time of his arrest, Carreon was near a trash can that contained a loaded handgun; he admitted ownership of the handgun during a post-arrest interview. The deputies arrested Orozco after they allegedly found a large amount of cash and a plastic bag containing methamphetamine in Orozco’s pockets. During a search of the truck, which allegedly was driven primarily by Orozco, officers allegedly found additional currency and a loaded handgun.
During today’s proceedings, Carreon pled guilty to Count 2 of the indictment charging him with being a felon in possession of a firearm and ammunition, and admitted that he unlawfully possessed a firearm and ammunition on June 19, 2013. Carreon has been in federal custody since his arrest in Sept. 2013, and remains detained pending his sentencing hearing, which has yet to be scheduled. Carreon faces a maximum penalty of ten years in prison when he is sentenced.
Orozco also has been in federal custody since his arrest in this case. Orozco has pleaded not guilty to the indictment, which is merely an accusation. Orozco is presumed innocent unless he is found guilty in a court of law.
This case was investigated by the Las Cruces office of the FBI and the Doña Ana County Sheriff’s Office, with assistance from the 3th Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Albuquerque Man Sentenced to Ten Years in Federal Prison for Child Enticement ConvictionRead the Press Release
ALBUQUERQUE – Raymond Berger, 32, of Albuquerque, N.M., was sentenced this morning to ten years in federal prison followed by 25 years of supervised release for his child enticement conviction. Berger will be required to register as a sex offender when he completes his prison sentence.
The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, Chief Allen Banks of the Albuquerque Police Department (APD), and Bernalillo County Sheriff Dan Houston.
Berger was arrested on May 26, 2013 by HSI agents on an indictment charging him with enticing a minor to engage in sexual activity. The indictment alleged that between May 2, 2013 and May 6, 2013, Berger used the Internet and a cellular telephone to coerce and entice an individual whom he believed to be a minor to engage in sexual activity. Berger was arrested on state charges of solicitation of a child with an electronic communications devise on May 6, 2013. The state charges were dismissed after Berger was federally charged.
On Sept. 25, 2013, Berger pled guilty to the indictment and admitted that he engaged in a text messaging relationship with a person whom he believed to be a 12-year-old girl and that he made multiple solicitations for a sexual relationship with the “girl.” Berger further admitted that he made arrangements to meet with the “girl” in a parking lot on May 6, 2013 and was arrested by APD officers when he arrived at the parking lot.
Court filings reflect that Berger initiated the text messaging with the “girl” on May 2, 2013, when he responded to an Internet ad that included a photograph of an undercover officer who appeared to be a minor. The ad was placed by an APD officer who represented to Berger that he was a 12-year-old girl.
This case was investigated by the Albuquerque office of HSI, APD and the Bernalillo County Sheriff’s Office, with assistance from the 2nd Judicial District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
6 January 2014
Winterville Man Sentenced for Making False Statements While Purchasing FirearmsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced BRANDON JAMAL GREEN, 24,of Winterville, North Carolina, to 12 months in prison and 3 years of supervised released for making false statement to a federally licensed firearms dealer during the purchase of firearms. GREEN previously pled guilty to this charge on September 15, 2013.
The investigation revealed that between June 6 and June 27, 2011, GREEN purchased 3 firearms that he later provided to his co-defendant, Joel Devon WILLIAMS, a convicted felon. During the purchases, GREEN signed paperwork under oath swearing that the firearms were for his use. After GREEN gave the firearms to WILLIAMS, GREEN filed reports with the Greenville Police Department and Winterville Police Department alleging that the firearms were stolen. On January 27, 2012, one of the firearms purchased and reported stolen by GREEN was seized during a drug investigation in Washington, D.C. WILLIAMS pled guilty to charges arising from the investigation but WILLIAMS has yet to be sentenced. The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department.
Willimantic Man Who Escaped from Halfway House Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SAMUEL VASQUEZ, 26, of Willimantic, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately five months of imprisonment, time already served, and three years of supervised release, for escaping from the custody of the Attorney General. VASQUEZ was ordered to spend the first six months of his supervised release in a halfway house.
According to court documents and statements made in court, in June 2011, VASQUEZ was sentenced to 24 months of imprisonment for illegally selling a stolen shotgun and two handguns. On May 7, 2013, the Bureau of Prisons transferred VASQUEZ to Watkinson House Residential Reentry Center in Hartford, an offender re-entry facility for individuals transitioning out of prison and into society. On July 12, 2013, less than three weeks before his release date, VASQUEZ walked away from Watkinson House and did not return. On July 25, 2013, he was arrested in Willimantic by the U.S. Marshals Service and the Willimantic Police Department.
VASQUEZ has been detained since his arrest. On September 17, 2013, he pleaded guilty to the escape charge.
VASQUEZ is also currently serving a state term of special parole based on an unrelated state court conviction.
This matter was investigated by the U.S. Marshals Service, with the assistance of the Willimantic Police Department, and was prosecuted by Assistant U.S. Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Westfield Resident Charged with Social Security Benefits FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges have been filed against Rose M. Hager of Westfield, Pennsylvania.
According to United States Attorney Peter J. Smith, Hager, age 63, is charged in a one-count Information with conversion of government funds by receiving Supplemental Security Income (SSI) benefits from the Social Security Administration in March 2011 to which she was not entitled.
The investigation was conducted by the Social Security Administration Office of Inspector General, Office of Investigations. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 1 year imprisonment, a term of supervised release following imprisonment, and a fine of over $300,000 as well as significant tax penalties. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Twice Convicted Child Sex Offender Sentenced to over 23 Years for Online Distribution of Child PornographyRead the Press Release
WILMINGTON, Del. – Sean Lawrence, a 40-year-old, twice-convicted child sex offender from Kansas City, Missouri, was sentenced today to over 23 years in prison for transportation of child pornography, in violation of federal law. Lawrence also was sentenced to a life term of supervised release following his prison sentence. He also will be required to continue to register as a sex offender in any jurisdiction in which he lives, works, or attends school.
Lawrence was previously convicted in Missouri in 1995 and 2005 of sodomizing two young boys. He was sentenced to five years in prison for each offense and was required to register as a sex offender upon his release. He also was required to participate in sex offender therapy, from which he was twice discharged as non-compliant.
As a result of his prior convictions for child sex offenses, Lawrence faced an enhanced federal sentencing penalty that required imposition of a mandatory minimum sentence of 15 years, to a maximum sentence of 40 years, in prison.
According to statements made and documents filed in court, Lawrence came to the attention of a Wilmington-based Homeland Security Investigations special agent in February 2013, during an online undercover investigation into non-public, peer-to-peer networks being used to distribute child pornography. Lawrence provided the undercover agent, who was posing as a man interested in trading images of child pornography, with access to his non-public, peer-to-peer network. The undercover agent then downloaded 11 video files of child pornography from Lawrence’s computer.
During the investigation, law enforcement agents determined that Lawrence was distributing child pornography from various locations via a wireless mobile device. On February 14, 2013, Special Agents of the Wilmington, Delaware and Philadelphia HSI offices partnered with Kansas City-based agents to apprehend Lawrence while he was actually transmitting and receiving images of child pornography via the Internet. The local agents conducted simultaneous online sessions with Lawrence in an effort to geo-locate him. Data associated with those online sessions indicated that Lawrence was then accessing the Internet from the second floor of Metropolitan Community College Library, in Kansas City, Missouri. The local agents quickly relayed this information to the Kansas City-based HSI Special Agents, who then found Lawrence in the back corner of the campus library. Lawrence had an open laptop in front of him and was downloading a video of child pornography set to music when he was apprehended.
A subsequent forensic examination of computer equipment seized from Lawrence in the library and at his residence resulted in the discovery of over 10,000 still images and 200 videos of child pornography that Lawrence had downloaded to those devices. The depictions of child pornography featured mostly prepubescent boys engaged in sexual acts with adult males or other boys. A number of the files depict violence, sadistic or masochistic abuse or bondage. In addition, forensic evidence established that Lawrence distributed child pornography to over 850 other individuals.
During an interview with law enforcement agents, Lawrence stated that he had traded hundreds of child pornography images and videos via file sharing programs and email each day since 1999, except during his time in prison. Lawrence estimated that he has traded 100-1,000 images of child pornography a day since 1998-1999. He further estimated that he traded child pornography files with an average of about 1-3 people per day via email. Lawrence also told the agents that he went to the Metropolitan Community College campus approximately 3-4 days a week to use the wireless Internet to receive and distribute child pornography. Lawrence said that he also utilized the wireless networks at the public library, and in McDonalds and Burger King locations to distribute and receive child pornography.
After today’s sentencing hearing before United States District Judge Sue L. Robinson, United States Attorney Charles M. Oberly, III stated, “This two-time offender will now have over 23 years in a federal prison to think about his crimes and children throughout this country will have one less predator stealing their youthful innocence. Again, I strongly urge parents to closely monitor their children’s use of computers. The rapid expansion of social media and the ease at which predators can contact children has never been easier. The best defense is to monitor as closely as possible what your children are doing on their computers and iPads and iPhones.”
"This case is a clear reminder of HSI’s determination to pursue predators who sexually exploit children, wherever they may be," said John Kelleghan, special agent in charge for the HSI Philadelphia. "The defendant expected the shield of anonymity to protect him in cyberspace, he was wrong. HSI and our law enforcement partners will unremittingly investigate these crimes and bring perpetrators to justice."
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Edward J. McAndrew.Total Care Services to Pay $187,500 to Resolve False Claims AllegationsCompany, A D.C. Medicaid Provider, Was Accused of Billing for Services Without Proper DocumentationRead the Press Release
WASHINGTON – Total Care Services and its owner have agreed to pay $187,500 to resolve allegations that they violated the False Claims Act by knowingly billing Medicaid for patient services for which they had no, insufficient, or inaccurate documentation.
The settlement, signed Jan. 2, 2014, was announced by U.S. Attorney Ronald C. Machen Jr., Irvin B. Nathan, Attorney General for the District of Columbia, and Charles J. Willoughby, Inspector General for the District of Columbia. The agreement calls for $131,250 to be paid to the United States and for $56,250 to be paid to the District of Columbia.
Total Care Services, a non-profit company based in Northeast Washington, is a Medicaid provider under the District of Columbia’s Medicaid program. Drucella Wheeler Ndoye is the company’s owner, chief executive officer, and president.
Under the Medicaid program, the company provides services to individuals with cognitive and developmental disabilities. Such services include adult companion services, respite care, nutrition services, and speech, hearing and language services.
Total Care Services has a provider agreement with the District of Columbia. The agreement requires the company to maintain all relevant records for a period of six years or until audits are completed, whichever is longer. Such records include all documents originated or prepared pursuant to performance under the provider agreement. These include, for example, financial records, medical records, charts and other documents pertaining to costs, payments received and made, and services provided to Medicaid recipients.
The settlement agreement resolves allegations that Total Care Services and Ndoye billed the District of Columbia Medicaid program for patient services over a significant period knowing that they did not have adequate documentation for doing so. The agreement is neither an admission of liability by the company or Ndoye nor a concession by the United States that the claims are not well-founded. The parties agreed to resolve the matters without litigation.
In announcing the agreement, U.S. Attorney Machen, Attorney General Nathan, and Inspector General Willoughby commended the efforts of those who worked on the case, including Criminal Investigator Sandra Adams, of the District of Columbia’s Office of the Inspector General, Medicaid Fraud Control Unit; Civil Enforcement Investigator Karen Caudill, of the U.S. Attorney’s Office, and Accountant Charles Ross, also of the U.S. Attorney’s Office. They also expressed appreciation for the assistance provided by the FBI’s Washington Field Office. Finally, they acknowledged the efforts of Assistant U.S. Attorney Beverly M. Russell, of the U.S. Attorney’s Office, Attorney Stuart Silverman, of the District of Columbia’s Office of Inspector General, Medicaid Fraud Control Unit, and the Public Advocacy Section of the
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District of Columbia's Office of the Attorney General.Total Care Services to Pay $187,500 to Resolve False Claims AllegationsCompany, A D.C. Medicaid Provider, Was Accused of Billing for Services Without Proper DocumentationRead the Press Release
WASHINGTON – Total Care Services and its owner have agreed to pay $187,500 to resolve allegations that they violated the False Claims Act by knowingly billing Medicaid for patient services for which they had no, insufficient, or inaccurate documentation.
The settlement, signed Jan. 2, 2014, was announced by U.S. Attorney Ronald C. Machen Jr., Irvin B. Nathan, Attorney General for the District of Columbia, and Charles J. Willoughby, Inspector General for the District of Columbia. The agreement calls for $131,250 to be paid to the United States and for $56,250 to be paid to the District of Columbia.
Total Care Services, a non-profit company based in Northeast Washington, is a Medicaid provider under the District of Columbia’s Medicaid program. Drucella Wheeler Ndoye is the company’s owner, chief executive officer, and president.
Under the Medicaid program, the company provides services to individuals with cognitive and developmental disabilities. Such services include adult companion services, respite care, nutrition services, and speech, hearing and language services.
Total Care Services has a provider agreement with the District of Columbia. The agreement requires the company to maintain all relevant records for a period of six years or until audits are completed, whichever is longer. Such records include all documents originated or prepared pursuant to performance under the provider agreement. These include, for example, financial records, medical records, charts and other documents pertaining to costs, payments received and made, and services provided to Medicaid recipients.
The settlement agreement resolves allegations that Total Care Services and Ndoye billed the District of Columbia Medicaid program for patient services over a significant period knowing that they did not have adequate documentation for doing so. The agreement is neither an admission of liability by the company or Ndoye nor a concession by the United States that the claims are not well-founded. The parties agreed to resolve the matters without litigation.
In announcing the agreement, U.S. Attorney Machen, Attorney General Nathan, and Inspector General Willoughby commended the efforts of those who worked on the case, including Criminal Investigator Sandra Adams, of the District of Columbia’s Office of the Inspector General, Medicaid Fraud Control Unit; Civil Enforcement Investigator Karen Caudill, of the U.S. Attorney’s Office, and Accountant Charles Ross, also of the U.S. Attorney’s Office. They also expressed appreciation for the assistance provided by the FBI’s Washington Field Office. Finally, they acknowledged the efforts of Assistant U.S. Attorney Beverly M. Russell, of the U.S. Attorney’s Office, Attorney Stuart Silverman, of the District of Columbia’s Office of Inspector General, Medicaid Fraud Control Unit, and the Public Advocacy Section of the
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District of Columbia's Office of the Attorney General.Tampa Man Sentenced to 23 Years in Prison on Drugs and Weapons ChargesRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Charlie Vernon, Jr. (Tampa, 54) to 23 years in federal prison for possessing with the intent to distribute more than an ounce of crack cocaine and being a felon in possession of firearms and ammunition. He was also ordered to forfeit various firearms and ammunition, which are traceable to the offenses.
Charlie Vernon, Jr. was found guilty by a jury on October 10, 2013.
According to court documents, the Tampa Police Department (TPD) executed a search warrant at Vernon’s residence on February 1, 2013, and recovered two ounces of crack cocaine, various quantities of powder cocaine, marijuana, and paraphernalia used to package and distribute those drugs, including scales, baggies, crack pipes, and cutting instruments. In addition to locating those items in Vernon’s bedroom, TPD also found four firearms and over 800 rounds of ammunition fitting those firearms. Prior to February 1, 2013, Vernon had previously been convicted of three felonies for drug trafficking offenses. As such, he was prohibited from possessing any firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Matthew Jackson and Natalie Adams.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
This case is also a part of ATF’s Frontline strategy - an effective method in reducing violent crime and improving the quality of life in communities where law enforcement efforts are focused.
Springfield Man Agrees to Plead Guilty to Trafficking in Counterfeit GoodsRead the Press Release
BOSTON - A Springfield man was charged today in U.S. District Court in Springfield with selling counterfeit merchandise.
Josue Rivera, 38, was charged with trafficking in counterfeit goods. In a plea agreement also filed today, Rivera agreed to restitution of approximately $29,000 and forfeiture of two bank accounts worth approximately $79,000.
Rivera operated a retail merchandise business called Main Source, which was located in Springfield. In the course of this business, around April 11 until June 25, 2012, Rivera stocked and sold counterfeit merchandise, including clothing, footwear, and accessories that bore a variety of brand names and trademarks, including Gucci, Nike, Coach, Chanel, and Oakely. Rivera also stocked and sold unauthorized reproductions of digital video discs of movies and compact discs of music.
United States Attorney Carmen M. Ortiz, Bruce Foucart, Special Agent in Charge of the U.S. Department of Homeland Security, Homeland Security Investigations, New England Division, and Springfield Police Commissioner William Fitchett, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
South Jersey Man Admits Distributing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – A Gloucester County, N.J., man admitted today that he distributed images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Gerrett Conover, 48, of Woolwich Township, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden to Count Three of the indictment against him, distribution of child pornography. Conover has been in custody since his arrest.
According to documents filed in this case and statements made in court: On Sept. 16, 2012, Conover was intercepted at the United States border on his way from Canada into New York and was found in possession of a laptop containing images of sexually exploited children. Agents obtained a search warrant for Conover’s home in Woolwich Township and seized various computers and other media containing additional images of child sexual abuse. The search also uncovered materials allegedly establishing Conover’s involvement in the Boy Scouts between 1990 and 2000.
At his guilty plea proceeding, Conover admitted that he knowingly distributed images of children engaged in sexually explicit conduct.
The distribution charge to which Conover pleaded guilty is punishable by a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for April 15, 2014.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, with the investigation. He also thanked HSI Offices in Boston; Messina, N.Y.; Los Angeles; and San Bernardino, Calif.; as well as Customs and Border Protection in Ogdensburg, N.Y., for their roles.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Jerome Brown Esq., PhiladelphiaConover Indictment
Service Representative Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Theft of Hundreds of Clients’ Personal Identifying InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Tobin Lamar Lyon, II, a/k/a/ Tobe Kasa, 27, of Charlotte, North Carolina, was sentenced today to 72 months in prison, followed by three years of supervised release. Lyon was also ordered to pay $118,602.52 in restitution.
Lyon and co-defendant Jeffrey Alexander Martin, 27, of Broward County, previously pled guilty to one count of wire fraud conspiracy, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title l8, United States Code, Section 1028A(a)(1). Martin is scheduled to be sentenced on February 3, 2014 at 9:00 a.m. before U.S. District Judge Robin S. Rosenbaum in Fort Lauderdale, Florida.
According to court documents, Lyon worked as a service representative for Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), a financial services company specializing in providing retirement services to those in the academic, research, medical and cultural fields. As an employee of TIAA-CREF, Lyon had access to the names, addresses, social security numbers, and dates of birth of TIAA-CREF's clients.
Court documents state that Lyon, in anticipation of a share of the proceeds, provided Martin with personal identifying information (PII) belonging to individual clients of TIAA-CREF for the purpose of filing fraudulent tax returns claiming tax refunds in those clients' names. Lyon sent over 500 different identities to Martin. For the tax years 2011 and 2012, the total amount of fraudulent refunds claimed by Martin as a result of the stolen PII he received from Lyon is approximately $304,611. From those fraudulent returns, Martin received approximately $5,776 in fraudulent refunds. Lyon knowingly possessed and transferred the victims' means of identification without authority and permitted Martin to use the stolen PII to file these fraudulent returns. During the time that Lyon was providing stolen PII of TIAA-CREF clients to Martin, he was also providing stolen PII to others in New York for the purpose of raiding the TIAA-CREF clients' bank accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI, and thanked the Sunrise Police Department for its assistance in this case. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Service Member at U.S. Naval Air Station in Lemoore Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
FRESNO, Calif. —Charles Ray Benavidez, 33, an Aviation Ordnanceman Second Class, serving at the Naval Air Station Lemoore, pleaded guilty today to one count of sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, in April 2013, Benavidez knowingly recruited a 17-year-old female to engage in commercial sex acts in Kings and Tulare Counties. Benavidez was indicted in May 16, 2013, and has been in federal custody since May 23, 2013.
“This office is committed to doing all we can to protect our children from the plague of prostitution,” said U.S. Attorney Wagner. “We will identify, prosecute and punish the criminals who treat young girls as if they were commodities in the sex trade.”
“This defendant was sworn to defend this country, yet his callous and calculating actions put a trusting teenager directly in harm’s way,” said Mike Prado, resident agent in charge for HSI Fresno. “HSI will continue to work closely with its federal and local partners to target sexual predators, like this individual, who ruthlessly exploit vulnerable young people for their own gratification and greed.”
Benavidez is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on March 17, 2014. He faces a minimum statutory sentence of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Central California Internet Crimes Against Children task force, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Naval Criminal Investigative Service (NCIS), and the Porterville, Tulare, and Lemoore police departments. Assistant United States Attorney Brian W. Enos is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet Safety.
Plea Agreement
RBS Securities Japan Ltd Sentenced for Manipulation of Yen LiborRead the Press Release
RBS Securities Japan Limited, a wholly owned subsidiary of The Royal Bank of Scotland plc (RBS) that engages in investment banking operations with its principal place of business in Tokyo, Japan, was sentenced today for its role in manipulating the Japanese Yen London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
RBS Securities Japan was sentenced by U.S. District Judge Michael P. Shea in the District of Connecticut. RBS Securities Japan pleaded guilty on April 12, 2013, to one count of wire fraud for its role in manipulating Yen LIBOR benchmark interest rates. RBS Securities Japan signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $50 million fine, which the court accepted in imposing sentence. In addition, RBS plc, the Edinburgh, Scotland-based parent company of RBS Securities Japan, entered into a deferred prosecution agreement (DPA) with the government requiring RBS plc to pay an additional $100 million penalty, to admit and accept responsibility for its misconduct as set forth in an extensive statement of facts and to continue cooperating with the Justice Department in its ongoing investigation. The DPA reflects RBS plc’s cooperation in disclosing LIBOR misconduct within the financial institution and recognizes the significant remedial measures undertaken by new management to enhance internal controls.
Together with approximately $462 million in regulatory penalties and disgorgement – $325 million as a result of a Commodity Futures Trading Commission (CFTC) action and approximately $137 million as a result of a U.K. Financial Conduct Authority (FCA) action – the Justice Department’s criminal penalties bring the total amount of the resolution with RBS and RBS Securities Japan to approximately $612 million.
“Today’s sentencing of RBS is an important reminder of the significant consequences facing banks that deliberately manipulate financial benchmark rates, and it represents one of the numerous enforcement actions taken by the Justice Department in our ongoing LIBOR investigation” said Acting Assistant Attorney General Raman. “As a result of the department’s investigation, we have charged five individuals and secured admissions of criminal wrongdoing by four major financial institutions. Our enforcement actions have had a lasting impact on the global banking system, and we intend to continue to vigorously investigate and prosecute the manipulation of this cornerstone benchmark rate.”
“By colluding to manipulate the Yen LIBOR benchmark interest rate, RBS Securities Japan reaped higher profits for itself at the expense of unknowing counterparties, and in the process undermined the integrity of a major benchmark rate used in financial transactions throughout the world,” said Deputy Assistant Attorney General Snyder. “Today’s sentence, in conjunction with the department’s agreement with parent company RBS, demonstrates the Antitrust Division’s commitment to prosecuting these types of far-reaching and sophisticated conspiracies.”
“The manipulation of LIBOR impacts financial products the world over, and erodes the integrity of the financial markets,” said Assistant Director in Charge Parlave. “Without a level playing field in our financial marketplace, banks and investors do not have a threshold to which they can measure their hard work. I commend the Special Agents, forensic accountants and analysts, as well as the prosecutors, for the significant time and resources they committed to investigating this case.”
According to court documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally, and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London. At the time relevant to the conduct in the criminal information, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The LIBOR for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA.
According to the plea agreement, at various times from at least 2006 through 2010, certain RBS Securities Japan Yen derivatives traders engaged in efforts to move LIBOR in a direction favorable to their trading positions, defrauding RBS counterparties who were unaware of the manipulation affecting financial products referencing Yen LIBOR. The scheme included efforts to manipulate more than one hundred Yen LIBOR submissions in a manner favorable to RBS Securities Japan’s trading positions. Certain RBS Securities Japan Yen derivatives traders, including a manager, engaged in this conduct in order to benefit their trading positions and thereby increase their profits and decrease their losses.
The prosecution of RBS Securities Japan is being handled by Deputy Chief Patrick Stokes and Trial Attorney Gary Winters of the Criminal Division’s Fraud Section, and New York Office Assistant Chief Elizabeth Prewitt and Trial Attorneys Eric Schleef and Richard Powers of the Antitrust Division. Deputy Chiefs Daniel Braun and William Stellmach and Trial Attorney Alex Berlin of the Criminal Division’s Fraud Section, Trial Attorneys Daniel Tracer and Kristina Srica of the Antitrust Division, Jeremy Verlinda of the Antitrust Division’s Economic Analysis Group, Assistant U.S. Attorneys Eric Glover and Liam Brennan of the U.S. Attorney’s Office for the District of Connecticut, and the Criminal Division’s Office of International Affairs have also provided valuable assistance in this matter. The investigation is being conducted by special agents, forensic accountants and intelligence analysts of the FBI’s Washington Field Office.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. In particular, the Securities and Exchange Commission has played a significant role in the LIBOR investigation, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.Pittsburgh Man Sentenced to 8 Years in Prison for Selling Kilo Quantities of CocaineRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton announced today that a Pittsburgh resident, Darnell Edge, 38, was sentenced today in connection with his role in a conspiracy to distribute more than five kilograms of cocaine.
According to the evidence presented to the court at the time Edge entered a guilty plea on Sept. 10, 2012, Edge was responsible for receiving multi-kilo loads of cocaine on a monthly basis, which he in turn sold to a regular group of customers in whole kilogram amounts. He acknowledged his responsibility for conspiring to distribute up to 150 kilograms of cocaine.
Judge Maurice B. Cohill sentenced Edge to 96 months in federal prison followed by 10 years of supervised release. Judge Cohill also ordered the forfeiture of more than $400,000 in cash, two handguns, a 2008 Infiniti M45 and a 2010 GMC Yukon.
Darnell Edge was one of 14 defendants charged in connection with a cocaine distribution group that was operating out of the eastern suburbs of Allegheny County. All 14 defendants have pleaded guilty.
The Drug Enforcement Administration, assisted by state and local law enforcement agencies, conducted the investigation which led to the indictment in this case.
Pittsburgh Man Sentenced to 4 Years in Prison for Selling Cocaine Purchased from His CousinRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton announced today that a Pittsburgh resident, Marcus Edge, 26, was sentenced today in connection with his role in a conspiracy to distribute more than five kilograms of cocaine.
According to the evidence presented to the court at the time Edge entered a guilty plea on Aug. 19, 2013, Edge was responsible for receiving and distributing cocaine which he purchased from his cousin, Darnell Edge, in whole kilogram amounts on a monthly basis. As a part of his plea he acknowledged his responsibility for conspiring to distribute up to five kilograms of cocaine.
Judge Maurice B. Cohill sentenced Marcus Edge to 48 months in federal prison followed by four years of supervised release.
Marcus Edge was one of 14 defendants charged in connection with a cocaine distribution group that was operating out of the eastern suburbs of Allegheny County. All 14 defendants have pled guilty.
The Drug Enforcement Administration, assisted by state and local law enforcement agencies, conducted the investigation which led to the indictment in this case.
Owner of Queen City Script Care Pleads Guilty to Fraud Involving Prescription Drug ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Thomas Fenske, 35, of Cincinnati pleaded guilty in U.S. District Court today to wire fraud for operating a scheme promising to help people obtain free prescription drugs through his company, Queen City Script Care.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Division announced the plea entered today before Chief U.S. District Judge Susan Dlott.
The plea is the result of a joint investigation by the FBI, DART, University of Cincinnati Police Department, Indiana State Police, Ohio Board of Pharmacy, Ohio Attorney General Mike DeWine’s Office, the Blue Ash Police Department and Hamilton County Sheriff Jim Neil’s Office.
According to court documents, Fenske marketed Queen City Script Care as a business that could help individuals obtain free prescription drugs through pharmaceutical manufacturers patient assistance programs. Fenske and others at his direction recruited hundreds of customers for Queen City Script Care, often at senior health fairs and retirement communities. Many of Fenske’s customers were senior citizens on a fixed income who either could not afford their prescription medication or who had high prescription drug costs.
Fenskecharged customers an initial fee and monthly fee for his services. The monthly fee depended upon the number of prescription drugs a customer received and generally ranged from $30 to $50 per month. Fenskerequired all of his monthly customers to submit to automatic withdrawals from their bank accounts. Fenskefalsely represented that customers could cancel their membership at any time and could receive a refund if they did not qualify for assistance through a PAP or did not receive their medication.
Unbeknownst to customers, Fenske debited some customers’ bank accounts multiple times a month without the customers’ approval. The unauthorized debits of customer accounts totaled between $30,000 and $70.000 and involved more than 50 victims, but less than 250 victims.
Wire fraud is punishable by up to 20 years in prison. Judge Dlott will determine the sentence following a pre-sentence investigation by the court. Judge Dlott could also order Fenske to pay restitution to the victims.
U.S. Attorney Stewart commended the cooperative investigation by the federal, state and local agencies, and Assistant U.S. Attorney Emily Glatfelter, who represented the United States in the case.
Orange County, Texas Man Sentenced to Life in Prison for Racketeering MurderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 34-year-old Vidor, Texas man was sentenced today for his role in a March 2011 murder committed in as part of the SWS criminal enterprise in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman” pleaded guilty on July 15, 2013, to murder in aid of racketeering and was sentenced to life in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, Bourque ordered Kenny Don Stanley, 32, to shoot and kill James Lee Sedtal, a/k/a “Lil Bit,” on Mar. 14, 2011. Bourque, Kristopher Leigh Guidry, a/k/a “Hollywood”, 29, and Vicki Stark-Fitts, 49, assisted in the murder, which took place in Liberty County, Texas, at Stark-Fitts’s residence. Bourque, Guidry, Stanley, and Sedtal were members of the SWS. The defendants murdered Sedtal on behalf of SWS, after Sedtal assaulted an Aryan Brotherhood of Texas (ABT) associate. ABT was poised to retaliate against SWS, and Bourque, Guidry, and Stanley sought to maintain and increase their position within SWS by murdering Sedtal.
According to court documents, the SWS is a race-based organization operating inside and outside of jails and prisons in Texas and elsewhere. SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS is also known as “Solid Wood Soldiers” and “Separate White State.” Although the founders established SWS for protection of white inmates and advancement of white supremacy and white separatism, SWS expanded its objectives to include illegal activities for profit, including trafficking methamphetamine and firearms. SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder.
From September 2010 to January 2011, SWS members manufactured “shake and bake” methamphetamine for distribution in the Orange County area of Texas. In February 2011, Bourque, Guidry and other SWS members became closely associated with Stark-Fitts, who supplied them with crystal methamphetamine and firearms. Crystal methamphetamine is a purer form of methamphetamine. According to information presented in court, the defendants murdered Sedtal in connection with the methamphetamine conspiracy.
Stanley, Guidry and Stark-Fitts pleaded guilty this summer for their respective roles in the murder, and Judge Crone sentenced Stanley and Guidry to life in prison in October 2013. Stark-Fitts is awaiting sentencing and faces from 360 months to life in prison.
This case is being prosecuted as part of the Project Safe Neighborhood’s Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case is being investigated by the ATF, FBI, U.S. Marshals Service, U.S. Secret Service, U.S. Bureau of Prisons, DEA, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, and Beaumont Police Department, and is being prosecuted by Assistant U.S. Attorney John B. Ross.
#######Operation Mercury CasesRead the Press Release
FRESNO, Calif. — Today, one marijuana cultivator entered a guilty plea and one was sentenced for their involvement in separate cases resulting from Operation Mercury, a six-county eradication and enforcement effort that focused on large-scale marijuana cultivation operations on agricultural land in the Central Valley, U.S. Attorney Benjamin B. Wagner announced.
4,011 Marijuana Plants Seized in Alpaugh (1:12-cr-234 LJO)
Bonifacio Cano Gutierrez, 20, of Colima, Mexico, was sentenced today to two years and six months in prison following his guilty plea last October to a marijuana cultivation conspiracy. He is subject to deportation to Mexico upon completion of his prison sentence. Cano was the seventh of eight defendants to plead guilty to conspiring to cultivate, distribute and possess with intent to distribute marijuana on 20-acres of agricultural land in Alpaugh owned by Saul Antonio Morales, 49. Cano was responsible for the cultivation of 899 marijuana plants in one of 14 plywood fenced plots on Morales’ property, which contained a total of 4,011 marijuana plants.Cano had an expired medical marijuana recommendation from a doctor he had never seen. (The doctor has been indicted in a separate federal case with the unlawful distribution of oxycodone and hydrocodone, as well as various financial crimes.) Court documents indicate that Cano would get a cut of the profits from the interstate sale of marijuana from Morales’ son, Gerardo Morales, 20, who was sentenced in November to three years and one month in prison for this drug conspiracy.
In October, a federal jury convicted Saul Morales, the property owner, of four narcotics offenses relating to the marijuana cultivation operation. He faces a mandatory minimum prison term of 10 years in prison, a maximum prison term of life, and a fine of up to $4 million. His sentencing is currently set for January 27, 2014. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, and Firearms and explosives, and Tulare County Sheriff’s Office.
2,932 Marijuana Plants Seized in Fresno (1:12-cr- 341 LJO)Phonepaseuth Phaphilom, 27, of Fresno, pleaded guilty today to conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm. Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound. Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million. In addition, court records indicate that some of the marijuana was destined for Las Vegas.
Phaphilom is scheduled for sentencing on March 17, 2014. He faces a maximum prison sentence of 20 years and a fine of up to $1 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by the DEA and Fresno County Sheriff’s Office. Operation Mercury has so far resulted in the seizure of nearly half a million marijuana plants and the prosecution of 84 defendants in federal court in Fresno.
Assistant U.S. Attorney Karen A. Escobar is handling the above marijuana prosecutions.
Oklahoma Man Sentenced to One Year in Prison for Stealing $2.8 Million in TextbooksRead the Press Release
NEWARK, N.J. – An Oklahoma man previously employed as a textbook salesman for a New Jersey-based publisher was sentenced today to one year and one day in prison for stealing more than $2.8 million dollars in textbooks from his former employer through an elaborate scheme that involved diverting free educational samples intended for professors, U.S. Attorney Paul J. Fishman announced.
Christopher J. Brock, 45, of Yukon, Okla., previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to wire fraud. Judge Cavanaugh imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Brock executed a scheme to defraud his former employer, John Wiley & Sons (Wiley), out of more than $2.8 million worth of textbooks, which he then resold for approximately $450,000. Wiley is based in Hoboken, N.J., and is one of the largest publishers of technical writing in the world, with an estimated market value of approximately $3 billion. A portion of Wiley’s publications are collegiate textbooks, which are distributed to schools and universities.
Brock lived in Oklahoma and was employed by Wiley, first as a higher education publishing representative, and most recently as a district sales supervisor based in Oklahoma. Brock accessed the corporate systems of Wiley — including computers located in New Jersey — and diverted to himself more than 16,000 textbooks and other items he fraudulently designated as free educational samples.
To avoid detection in a review of his employee records within the internal order system, Brock designated both actual and fabricated professors as the purported recipients of the items, and then Brock listed his own home address and other addresses that he controlled as alternate shipping addresses for those professors and directed that the books be shipped to those alternate addresses. This made it appear in the records of Wiley that the free education samples were legitimately going to professors when, in reality, they were being sent to Brock.
Once Brock received the diverted textbooks he sold them to resellers and received payment through PayPal accounts that he controlled. PayPal, in turn, would deposit the funds into bank accounts that Brock controlled.
In total, Brock made approximately $450,000 reselling the textbooks that he stole from Wiley. These textbooks had a retail value of over $2.8 million. The money that Brock earned as a result of the scheme was largely used for personal expenditures, including, among other things, high-end home furnishings and scuba diving equipment.
In addition to the prison term, Judge Cavanaugh sentenced Brock to two years of community service. Restitution will be determined at a later date.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation. U.S. Attorney Fishman also thanked John Wiley & Sons for its cooperation and assistance with the investigation.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-002
Defense counsel: Robert L. Johnston Esq. Oklahoma City, Okla.
Oklahoma Man Sentenced to Life in Prison for Sexually Exploiting A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Jonathan Daniel Adleta (26, Glenpool, Oklahoma) to life in federal prison for conspiring to transport and transporting a minor in interstate commerce, with intent to engage in sexual activity.
Jonathan Adleta was found guilty by a federal jury on September 12, 2013.
According to the evidence presented at trial, Jonathan Adleta conspired with his ex-wife, Sarah Adleta, to transport a three year-old child, with the intent of sexually abusing the child. On December 23, 2012, Sarah Adleta flew with the child from Orlando, Florida to Oklahoma, where Jonathan Adleta lived. Jonathan Adleta sexually abused the child during the child’s week-long stay at his home. Both before and after the trip, Sarah Adleta also sexually abused the child and sent pictures of the abuse to Jonathan Adleta and others.
Sarah Adleta (29, Oviedo, Florida) pleaded guilty to producing child pornography, and on October 28, 2013, Judge Dalton sentenced her to 54 years in federal prison, followed by a life term of supervised release.
“The sexual exploitation of children will not be tolerated at any level. We will continue to aggressively investigate those who choose to victimize innocence,” said FBI Special Agent in Charge Paul Wysopal.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Modesto Man Pleads Guilty to Possession of Child PornographyRead the Press Release
FRESNO, Calif. —Alberto Morales, 31, of Modesto, pleaded guilty today to possessing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, on February 1, 2013, Morales possessed between 300 and 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.
Morales is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on March 17, 2014. In light of a prior conviction, Morales faces a minimum statutory sentence of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Central California Internet Crimes Against Children Task force, including the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos is prosecuting the case.
“Tragically, this case is not an anomaly — it’s all too common for child sexual predators to reoffend,” said Mike Prado, resident agent in charge for Homeland Security Investigations (HSI) in Fresno. “That’s why HSI and its law enforcement partners must remain unceasingly vigilant. It’s the only way to protect our youth and ensure that individuals, like this defendant, are held accountable for their crimes.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet Safety.
Plea Agreement
Missouri Man Sentenced to over Eight Years for Interstate StalkingRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The United States Attorney’s Office announced that Benjamin Lee, 52, of Springfield, Missouri, was sentenced in U.S. District Court by Judge D. Brock Hornby to
100 months in prison for interstate stalking. Lee was found guilty of the charges on September
17, 2013, following a jury trial.According to testimony presented at the five-day trial, Lee traveled across state lines from Missouri to Maine with the intention of killing, injuring, harassing and surveilling his then- estranged wife and her new boyfriend, placing them both in reasonable fear of death or serious bodily injury.
The evidence showed that between April and May 2012 Lee sent several threatening e- mails; and later communicated verbal threats to kill the couple in Maine when speaking to his friends and family between July and September 2012. On September 6, 2012, the couple received a call from Lee’s sister who had not heard from him and believed he may be traveling to Maine to cause the couple harm. Lee arrived outside the couple’s Limerick, Maine home at dusk on September 7, 2012 resulting in a series of 911 calls reporting that Lee was presently driving past their house in a white Cadillac and may have a gun.
A short time later, Maine State Police troopers conducted a search of the white Cadillac
Lee was operating about four miles from the couple’s home and located, among other items, five firearms, three of which were loaded, over 200 rounds of ammunition, a machete, duct tape, rope, a roll of plastic sheeting, trash bags, an empty 10 gallon cooler and handcuffs.The investigation was conducted by the Federal Bureau of Investigation, the Maine State
Police and the York County Sheriff’s Office.Meridian Man Pleads Guilty to Money Laundering in Treasure Valley “Spice” CaseRead the Press Release
BOISE – Mark A. Ciccarello, 36, of Meridian, Idaho, pleaded guilty today in United States District Court to count four of the indictment charging him with money laundering, U.S. Attorney Wendy J. Olson announced. Ciccarello and four co-defendants were indicted by a federal grand jury in May 2013 on charges of conspiracy to distribute a controlled substance analogue; conspiracy to smuggle goods into the United States; conspiracy to sell and transport drug paraphernalia; and conspiracy to launder money. Ciccarello is scheduled to be sentenced on March 25, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to court proceedings, Ciccarello admitted to being a leader and organizer in a conspiracy to launder money between March 2011 and May 2013. The money laundering was related to his operation of a business called Zombie Matter. Ciccarello pleaded guilty to engaging in bank and other financial transactions through criminally derived property associated with the “spice” business. During this period, through a series of monetary transactions in amounts over $10,000, Ciccarello removed over $4.5 million in currency from three Zombie Matter accounts.
Co-defendant Robert A. Eoff, 31, and William Burr Mabry, 46, both of Boise, pleaded guilty to Conspiracy to Launder Money on December 17 and August 13, 2013, respectively. Eoff is set for sentencing on March 11, 2014; Mabry on March 25.
Two co-defendants, Troy L. Palmer, 43, of Boise, and Holly F. Ciccarello, 39, of Meridian, are set for trial on February 25.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Mercer Co. Man Sentenced to Nearly 2 Years in Prison for Federal Mine Safety ViolationRead the Press Release
BLUEFIELD, W.Va. – A Mercer County man who falsified mandatory mine safety reports while employed at several West Virginia mining operations was sentenced to 21 months in federal prison, U.S. Attorney Booth Goodwin announced today. Craig Belcher, 37, of Bluefield, W.Va., previously pleaded guilty in July to providing a false statement, representation and certification in a Mine Safety and Health Administration (MSHA) document. Belcher’s sentence was handed down today by Senior United States District Court Judge David A. Faber in Bluefield.
In January 2009, Belcher was hired to work as an underground mine foreman at Spartan Mining Company’s Road Fork No. 51 mine located in Wyoming County. Also in February 2009, Belcher was hired to perform mine foreman duties at Frasure Creek’s Mine No. 15 located in Fayette County. Belcher also performed similar foreman duties in May 2009 at Pay Car’s Mine No. 58 in McDowell County, and, in July 2010 at Double Bonus’s Mine No. 65 in Wyoming County.
Between January 27, 2009 and July 13, 2010, Belcher signed pre-shift and on-shift reports which indicated that he had properly examined particular sections at each mine. Belcher was not certified as a foreman when he completed the mine reports. Belcher also falsified information on pre-shift and on-shift reports by using foreman’s numbers that did not belong to him.
The investigation was conducted by MSHA. Assistant United States Attorney Blaire Malkin handled the prosecution.
Medical Center Agrees to $2 Million Settlement of Voluntary DisclosureRead the Press Release
The United States announces that it has settled claims under the False Claims Act with St. Mary Medical Center (SMMC) for improperly administering certain physician income guarantee agreements. SMMC voluntarily disclosed the allegations and has agreed to pay $2,339,224.70 to resolve the matter.
According to the self-disclosure and the investigation that followed, between January 2005 and August 2010, SMMC had 15 physician income guarantee agreements for recruited physicians and failed to properly administer the terms of certain recruitment contracts. This resulted in net overpayments to certain recruited physicians. Because those physicians and their practices referred patients to SMMC for medical treatment that was billed to federally funded programs, the United States alleges that false claims were submitted to the government. After it discovered the problem, SMMC took corrective action to resolve the improper payments, and disclosed the matter to the United States Attorney’s Office.
This matter was handled by Department Health and Human Services Office of the Inspector General, including Attorney Sandra Sands and AATS Audit Manager Bernard Siegel with the Office of Audit Services, and Assistant United States Attorney Susan Dein Bricklin.
Settlement Agreement, Part 1.pdf | Settlement Agreement, Part 2.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Madera and Merced County Men Sentenced for Methamphetamine Trafficking OffensesRead the Press Release
FRESNO, Calif. — Rafael Velasco, 36, of Madera, was sentenced today by United States District Judge Lawrence J. O’Neill to 14 years in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
Velasco was the last of seven defendants charged in related cases. The other defendants sentenced are:
- Gonzalo Esquivel, aka “Gunner,” 34, of Los Banos, sentenced to 15 years and five months in prison on November 4, 2013;
- Efren Steve Jiminez, aka “Grande,” 33, of Los Banos, was sentenced to 10 years in prison on November 4, 2013;
- Kenneth Hernandez, aka “Kenny,” 30, of Dos Palos, was sentenced to 12 years and four months in prison on December 2, 2013;
- Gustavo Moreno, aka “Gus Gus,” 33, of Madera, was sentenced to 12 years and four months in prison on September 23, 2013;
- David Torres, 33, of Madera, was sentenced to 10 years in prison on September 23, 2013; and
- Juan Herrera, aka “Joker,” of Madera, was sentenced to 16 years in prison on November 1, 2013.
According to court documents, the defendants were members or associates of the Norteño criminal street gang, which is under the control of the Nuestra Familia prison gang (NF). The NF utilizes the Norteños to engage in narcotics sales.
“The collaboration of federal, state, and local law enforcement agencies in this case was outstanding,” said U.S. Attorney Wagner. “Together, we have removed seven dangerous criminals from our neighborhoods for many years to come. The sentencing of Rafael Velasco concludes this case, but our collective efforts to root out and prosecute violent gang members who traffic in narcotics in the Central Valley continue to be vigorous.”
According to court documents, Velasco provided Juan Herrera with 1/8 of an ounce of methamphetamine to be included in a “package” to be delivered to individuals incarcerated at the Madera County Jail. On June 7, 2011, Velasco carried a Glock 9 mm Model 19 pistol in a lunch bag that also contained approximately one ounce of methamphetamine to his car. He was arrested within minutes of doing so, and the gun and methamphetamine was seized by law enforcement agents.
This case was the product of an investigation by the California Department of Justice Bureau of Investigation in coordination with the Drug Enforcement Administration, the Madera Narcotic Enforcement Team, the Merced Multi-Agency Narcotic Task Force, the Merced Multi-Agency Gang Task Force, the Los Banos Police Department, the Merced Police Department, the Madera Police Department, the Madera County Sheriff’s Office, and the Livingston Police Department. Assistant United States Attorney Kimberly A. Sanchez prosecuted the case.These cases were brought as part of the Project Safe Neighborhoods (PSN) initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Lockport Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Damian Ard, 33, of Lockport, N.Y., who was convicted of conspiracy to possess with intent to distribute, and to distribute, cocaine base, was sentenced to six years in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that the defendant was arrested as a result of a long-term investigation into narcotics trafficking in Niagara County and the City of Buffalo conducted by the Drug Enforcement Administration and Niagara County Drug Taskforce. The investigation involved several court-authorized wiretaps, including two cellular telephones used by Ard to conduct his drug-trafficking. The defendant distributed cocaine base, cocaine, heroin, prescription medications, and marijuana in the Lockport area from early 2009 through August 2010, some of which was supplied to him by co-defendant Eric Williams.
During the execution of a federal search warrant at Ard’s residence on August 17, 2010, law enforcement officers seized a Remington Model 597 rifle, two .22 caliber rifle magazines and a .22 caliber high capacity magazine; a RML 7.62 x 39 caliber semi-automatic rifle, two magazines and ammunition; a New England Firearms Pardner Model SBI 20 gauge shotgun, and ammunition.
In total, investigators charged 24 defendants in connection with this investigation, 23 of whom have been convicted. The leader of the narcotics trafficking operation, Will Johnson, was sentenced to 10 years in prison on September 13, 2013.
The sentencing is the culmination of an investigation by Task Force Officers and Special Agents of the United States Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, and the Niagara County Sheriff’s Drug Task Force, under the direction of Sheriff James Votour.Lakewood Man Charged with Embezzling $1.8 Million from Credit UnionRead the Press Release
A Lakewood man was charged with embezzling more than $1.8 million from a Euclid credit union and using the money to pay approximately 15 personal credit card accounts, 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.
A two-count criminal information was filed charging William J. Memmer, 63, with one count of embezzlement and one count of making false entries in credit union records and reports.
“When those who hold trusted positions in financial institutions and those they work with betray the trust of the depositors, as is alleged in this matter, federal law enforcement will take all appropriate action to hold them accountable,” Dettelbach said.
“Memmer took advantage of his high-level position of trust by falsifying records and funneling money that was not his to himself,” Anthony said. “The FBI will continue efforts to see that fraudsters like Memmer are brought to justice.”
Memmer was employed as Assistant Manager/Treasurer of the GIC Federal Credit Union (GIC), which maintained an office at 26255 Euclid Avenue, in Euclid, Ohio.
From as early as 2006, Memmer maintained approximately 15 credit card accounts. He took blank GIC checks and drafted them payable to the credit card companies in payment of his personal obligation, then concealed the taking of the checks and embezzlement of the GIC funds. These actions caused a loss to the credit union of at least $1,843,007, according to the information.
As early as 2003, Memmer falsified quarterly financial reports to hide operating losses. He is also alleged to have falsified confirmations of GIC assets by as much as $5.7 million, according to the information.
Upon discovery of the fraud, the National Credit Union Administration closed GIC, and began the liquidation process in December 2012. The liquidation is ongoing.
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. Attorney James V. Moroney, following investigation by agents of the Federal Bureau of Investigation’s Cleveland Office.
Kansas City, Kan., Man Pleads GuiltyTo Robbing Credit UnionRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man pleaded guilty today to robbing a credit union, U.S. Attorney Barry Grissom said.
John Noon, 65, Kansas City, Kan., pleaded guilty to one count of armed bank robbery. In his plea, he admitted that on May 4, 2013, he robbed the Community America Credit Union at 10824 Parallel Parkway in Kansas City, Kan. At today’s hearing, prosecutors told the judge Noon gave a teller a note demanding money and stating he had a gun he would use. He brandished a firearm before fleeing the bank. After investigators released video surveillance photos from the robbery, they received tips leading to Noon.
Sentencing will be set for a later date. He faces a maximum penalty of 25 years in federal prison and a fine up to $250,000. Grissom commended the FBI, the Kansas City, Kan., Police Department, law enforcement officers in St. Joseph, Mo., and Assistant U.S. Attorney Scott Rask for their work on the case.Insurance Broker, Former Toms River, N.J., Mayor, Sentenced in Separate Schemes Involving Toms River OfficialsRead the Press Release
TRENTON, N.J. — A New Jersey insurance broker and the former mayor of Toms River, N.J., were each sentenced today for offenses arising from separate schemes involving officials of Toms River and the former insurance broker for the Toms River Regional School District Francis X. Gartland, U.S. Attorney Paul J. Fishman announced.
Frank Cotroneo, 63, of Chester, N.J., an insurance broker with an office in Morristown, N.J., was sentenced to 37 months in prison and ordered to pay more than $12.4 million in restitution to the Toms River School District and in forfeiture to the United States. Cotroneo previously pleaded guilty before former Chief U.S. District Judge Garrett E. Brown Jr., to one count each of bribery and tax evasion arising from his participation in a scheme to pay hundreds of thousands of dollars in bribes to Michael J. Ritacco, 67, of Seaside Park, N.J., the former superintendent for the Toms River Regional School District, in exchange for his official assistance.
Carmine C. Inteso Jr., 47, of Toms River, was sentenced today to six months in prison and six months of house arrest for evading his income tax obligations. Inteso, who was arrested in July 2012 after returning from Afghanistan where he had been working as a contractor, pleaded guilty in December 2012 before U.S. District Judge Joel A. Pisano to one count of tax evasion.
From 2002 through 2007, Inteso held the positions of Township Committee member, mayor, deputy mayor, and councilman for the Township of Toms River, formerly known as Dover Township.
Inteso allegedly took a job in Afghanistan after learning he was the target of the tax investigation and, after returning to the United States, was taken into custody at New York’s John F. Kennedy International airport.
Judge Pisano imposed the sentences today in Trenton federal court.
According to documents filed and statements made in court:Cotroneo admitted that from 2002 to April 2009, he and co-conspirators Gartland and Frank D’Alonzo, a former administrator at the Toms River Regional School District, paid bribes and other benefits to Michael J. Ritacco, who was then the superintendent of the district. The payments were made to allow Cotroneo and Gartland, 72, of Baltimore, Md., – insurance co-brokers for the school district – to obtain and keep the lucrative insurance brokerage contracts with the district. To facilitate the scheme, Ritacco, Gartland and Cotroneo agreed to have Ritacco approve a workers’ compensation insurance contract between Gartland and the school district, which yielded between $500,000 and $600,000 annually in excess fees. Those proceeds were to be used to make hundreds of thousands of dollars in bribes to Ritacco.
Cotroneo also admitted that for tax years 2005 to 2007, he evaded the assessment of hundreds of thousands of dollars of federal income taxes by concealing the illegal proceeds he received from Gartland and others during the course of the bribery scheme.
Ritacco and Gartland were ordered previously to pay $4,336, 987.91 in restitution to the school district. Judge Pisano today ordered Cotroneo to pay $3,275,677.65 in restitution, which represented the loss to the school district while he was an active participant in the scheme. In addition to ordering restitution, the court ordered that Cotroneo forfeit to the United States a sum of $9,126,200.16, which represented the proceeds derived from the scheme. D’Alonzo was ordered to pay $1,625,952.79 in restitution, and also ordered to forfeit a sum of approximately $4.3 million. Gartland was previously ordered to forfeit $11 million, which represented the total proceeds derived from the fraudulent scheme. Prior to his sentencing on Sept. 14, 2012, Ritacco forfeited to the United States $1 million, a 2010 Mercedes Benz, and $8,950 in cash.
In addition to the prison term and payments, Judge Pisano sentenced Cotroneo to serve three years of supervised release.
In a separate and unrelated scheme beginning in 2005 and continuing through 2008, Inteso accepted hundreds of thousands of dollars in payments from Gartland, an insurance broker whose companies provided insurance brokerage services for New Jersey municipal entities including the Brick Township Board of Education and the Township of Toms River. Inteso directed Gartland to make the payments to a company Inteso controlled and that had ceased operating by 2007. Gartland pleaded guilty to charges of mail fraud, conspiracy to defraud the IRS and perjury and was sentenced to 135 months in prison.
Inteso used the funds to pay for his personal expenses and withdrew significant amounts of cash. Despite receiving approximately $291,000 in income from the insurance broker during calendar years 2006, 2007 and 2008, Inteso failed to file personal income taxes for those years.
In addition to the prison term, Judge Pisano sentenced Inteso to serve two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen. The Office of International Affairs in the Justice Department’s Criminal Division and the Diplomatic Security Service’s Regional Security Office in Kabul, Afghanistan provided invaluable assistance in the Inteso case.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., of the U.S. Attorney’s Office Special Prosecutions Division in Newark.14-006
Defense counsel:
Carmine Inteso: Scott A. Krasny Esq., West Trenton, N.J.
Frank Cotroneo: Howard Brownstein Esq., Union City, N.J.Husband and Wife Sentenced for Tax Defiance SchemeRead the Press Release
ATLANTA – Timothy Thomas, 51, and Mary Beth Thomas, 47, of Jackson County, Ga., have been sentenced for their respective roles in a criminal tax scheme.
“For over a decade, these two failed to file their federal tax returns and sent in a blizzard of obstructive correspondence to the IRS,@ said United States Attorney Sally Quillian Yates. “Individuals who seek to obstruct the tax system and cheat hardworking taxpayers will be exposed and prosecuted.”
“The term voluntary compliance means that each of us is responsible for filing a tax return when required and for paying the correct amount of tax,” stated Special Agent in Charge, IRS Criminal Investigation, Veronica Hyman-Pillot. “That responsibility should not be taken lightly. The defendants chose to take extreme measures in order not to file and pay taxes and they are now convicted with a prison term to serve.”
According to United States Attorney Yates, the charges and other information presented in court: In the 1990s, Timothy and Mary Beth Thomas, who were married and jointly owned and operated a deck and patio construction business in Maysville, Ga., stopped filing federal income tax returns. They then hired American Rights Litigators (ARL), an organization that sold and promoted tax defiance schemes, to send obstructive and harassing materials to the IRS on their behalf. The IRS repeatedly sent notices to the couple notifying them that they had to pay their federal income taxes and that they had to comply with the tax laws.
After the IRS shut down ARL as a result of fraudulent anti-tax actions, Timothy and Mary Beth Thomas continued to send a variety of obstructive, frivolous and harassing documents to IRS and Department of Treasury officials instead of paying their taxes. These documents included statements that they were not United States citizens but instead were AAmerican citizens@; that they were not subject to the federal income tax laws; and that paying income tax was voluntary. At one point, Timothy Thomas sent a letter to the personal residence of an IRS revenue agent that stated he was “a non-tax payer” and then mailed the IRS a letter stating that a commercial lien had been filed against two IRS employees.
Finally, after a decade of not filing tax returns, the couple submitted four false tax returns claiming over $1,000,000 in fraudulent refunds from the IRS. That same year, they also submitted fictitious financial instruments to the federal government, to include a document purporting to be a $100 billion private registered bond, and instructed the government to use this bogus bond to pay any of their debts to the government.Timothy Thomas, 51 of Jackson County, Ga., was sentenced to serve two years in federal prison. Mary Beth Thomas, 47, also of Jackson County, Ga., was sentenced to ten months in federal prison by United States District Judge Thomas W. Thrash, Jr. On May 10, 2013, Timothy Thomas pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service and Mary Beth Thomas pleaded guilty to one count of wilfully failing to file an income tax return.
Despite earning substantial money from their business, Timothy Thomas and Mary Beth Thomas failed to pay over $350,000 in federal income taxes from 2003 to 2012. At sentencing, the couple was ordered to pay $506,350.57 in back taxes, interest, and penalties to the IRS.
In a separate case, Timothy Thomas’s brother, Stephen Paul Thomas, 47, and Patricia Denese Anderson, 52, both of Lawrenceville, Ga., were convicted for a similar tax defiance scheme and they were both sentenced January 3, 2013, here in the Northern District of Georgia. Stephen Paul Thomas was sentenced to five years in prison and Patricia Denese Anderson was sentenced to four years, three months in federal prison.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Sally B. Molloy and Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.