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3 January 2014
Denver Man Pleads Guilty for Failure to Pay over Million in Employment TaxesRead the Press Release
DENVER – Lucilious J. Ward, age 63, of Denver, Colorado, pled guilty before U.S. District Court Judge Lewis T. Babcock today to one count of failure to account for and pay over the employment taxes withheld from his employees’ paychecks and one count of making a false claim against the United States, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Ward, who is free on a bond, is scheduled for further sentencing proceedings before Judge Babcock on February 3, 2014. Ward was indicted by a federal grand jury on October 2, 2012. On September 8, 2011, Special Agents with IRS Criminal Investigation executed a search warrant on Ward’s business, Global Access, LLC, dba, Global Transportation (“Global Access”), located at 5455 East 52nd Avenue, Commerce City, Colorado.
According to the facts contained in the Indictment as well as the stipulated facts contained in the plea agreement, since at least 2004, Ward has owned and operated Global Access. Global Access has provided public and private transportation services including hotel and airport shuttles, para transit services, and charter bus tours. Its largest client has been the Regional Transportation District (“RTD”), which contracted with Global Access to provide a portion of RTD’s Access-a-Ride bus services. RTD has paid Global Access more than $35,000,000 during the period 2003 through 2012, and Global Access incurred substantial costs under the RTD contract. During this time, the Internal Revenue Code required Global Access to withhold its employees' shares of Federal Insurance Contribution Act taxes ("FICA" or social security and Medicare taxes) and income taxes (collectively referred to as "employment taxes") from the salaries or wages of its employees, and to account for and pay over the withheld amounts to the IRS.
From January 2005 through the second quarter in 2011, Ward withheld employment taxes from Global Access’s employees’ paychecks. Ward knowingly and willfully failed to file with the IRS Forms 941 (employment tax forms) as required by law and failed to pay to the IRS the employment taxes that Ward had withheld from their paychecks. With the exception of the first quarter of 2008 which was paid in part and filed automatically by a payroll company Ward hired. Ward also failed to pay the required employer’s matching portion of FICA. Rather than paying the IRS the employment taxes owed by Global Access, Ward kept that money in Global Access’s bank account(s) and spent it on a variety of expenses.
At the end of 2008 Global Access’s office manager recommended to Ward that he elect to have a payroll company take care of paying the employment taxes for Global Access; however, defendant Ward declined. Furthermore, a CPA who performed various accounting functions for Global Access and Ward repeatedly told Ward about Global Access’s growing employment tax liability, he needed to pay these taxes, and about the consequences associated with not paying these taxes.
Additionally, in 2010, Ward filed with the IRS an amended personal tax return (Form 1040X) for the tax year 2007 which falsely claimed that $76,479.44 of federal income tax withholdings had been withheld from his paychecks by Global Access and paid to the IRS. At the time Ward filed this Form 1040X, he knew that he and Global Access had not paid to the IRS the $76,479.44. Ward intentionally filed this false return so that he would be assessed a refund of $76,479 to which he was not legitimately entitled.
The government asserts that the employment tax due and owing for restitution purposes is approximately $5,955,866
Failure to account for and pay over employment taxes and filing a false claim against the United States both carry a penalty of not more than 5 years in federal prison, and a fine of up to $250,000, per count.
This case was investigated by IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorneys Pegeen Rhyne and Anna Edgar.
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Defendants David and Dominica Quichocho Sentenced Today in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that DAVID TAIMANGLO QUICHOCHO, JR. was sentenced today in the District Court of Guam to 37 months incarceration, and five years of supervised release. QUICHOCHO, JR’S wife, DOMINICA BATO QUICHOCHO, was also sentenced today to a two-year term of Probation which includes six months of home confinement and community service.
The investigation was conducted by the United States Postal Service Inspectors. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.
Defendants QUICHOCHO, JR. and DOMINICA BATO QUICHOCHO both pled guilty in December 2012, to Conspiracy to Distribute Methamphetamine Hydrochloride, in violation of Title 21 U.S.C. Section 841(a)(1). Defendant QUICHOCHO, JR. ordered over five grams of methamphetamine hydrochloride from a supplier in California. The supplier concealed small amounts of methamphetamine hydrochloride in letters sent via First Class mail to Guam. QUICHOCHO, JR. then instructed his spouse, DOMINICA BATO QUICHOCHO, to pick up the letters containing the drug. Notably, the letters containing approximately 1.88 grams of the drug were detected and intercepted by a United States Postal Inspector.
U.S. Attorney Limtiaco thanks the United States Postal Inspector and the United States Postal Inspection Service for their efforts in our fight against drug trafficking.Columbia Man Indicted on Federal Charges of Receiving Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that a federal grand jury, in Jacksonville, has returned an indictment against Samuel Franklin Crews (31, Lake City), charging him with three counts of receiving child pornography over the Internet. Crews faces a mandatory minimum penalty of not less than 5 years, up to 20 years in federal prison on each count, and a potential life term of supervised release. Crews was arrested on December 31, 2013, in Lake City, and has been ordered detained pending his trial in March 2014.
The indictment alleges that between on or about April 28, 2013 through on or about April 30, 2013, in the Middle District of Florida, Crews knowingly received visual depictions of minors engaged in sexually explicit conduct, over the Internet.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Columbia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Colorado Springs Real Estate Agents Settle Allegations That They Engaged in Real Estate FraudRead the Press Release
DENVER -- Jana DeWitt and Kenneth Westfall, licensed real estate agents operating in Colorado Springs, have paid the United States $93,500 in civil penalties to settle allegations that they engaged in deceptive conduct that violated the Financial Institutions Reform Recovery and Enforcement Act (FIREEA).
According to the United States, Jana DeWitt engaged in fraud in at least seventeen bank-owned properties, by falsely listing her daughters as the buyers, in order to conceal the fact that Ms. DeWitt herself was the real party in interest. Ms. DeWitt’s employing broker, Mr. Westfall, was the listing agent for each of these transactions. He had a responsibility, and in some cases a duty based on the language of the listing contracts used in the transactions, to disclose to the sellers that the real party in interest purchasing the property was affiliated with him and his company. But he did not do so, despite the fact that he knew that Ms. DeWitt, his employee, was the real party in interest purchasing the properties.
To facilitate each of these transactions, Ms. DeWitt wired money from her own accounts to the closing company as the purchase funds for the transaction. She falsified her own bank account statements to make them appear that the account was held in the name of her daughters, thus providing the seller with proof of funds for purchase while concealing that she was the real party in interest. For each of these transactions, Mr. Westfall knowingly failed to notify the seller that Ms. DeWitt was the real party in interest purchasing the property and that Ms. DeWitt was affiliated with him and his company.
The investigation leading to the settlement was conducted in conjunction with the Federal Bureau of Investigation (FBI).
Assistant U.S. Attorney Jamie Mendelson handled this matter on behalf of the government.
The settlement agreement is neither an admission of liability by Ms. DeWitt or Mr. Westfall, nor a concession by the United States that its claims are not well founded.
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Cannonball Man Pleads Guilty to Assaulting Federal OfficerRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Jan. 3, 2014, Christopher Thunder Hawk, 19, Cannonball, N.D., pleaded guilty in U.S. District Court to a charge of assaulting a federal officer.
On Dec. 30, 2012, Thunder Hawk kicked a BIA police officer in the chest.
The charge of assaulting a federal officer carries a statutory maximum penalty of eight years in federal prison and a $250,000 fine.
The case was investigated by Bureau of Indian Affairs – Standing Rock Agency and the Standing Rock Police Department, with the assistance of the Standing Rock Tribal Prosecutor’s Office.
Sentencing for Thunder Hawk has been scheduled for April 14, 2014, in U.S. District Court in Bismarck, N.D., at 11:00 a.m.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
California Man Who Defrauded 'Computers for Schools' Program Pleads Guilty to Wire Fraud, Identity Theft, and Tax CrimeRead the Press Release
A Palmdale, California resident who defrauded a government program designed to provide computers to needy schools and non-profits pleaded guilty today to three felony charges in the U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan. STEVEN ALEXANDER BOLDEN, 50, pleaded guilty to wire fraud, aggravated identity theft, and filing a false income tax return. When sentenced by U.S. District Judge Ricardo S. Martinez on April 3, 2014, BOLDEN faces a mandatory minimum two years in prison on the aggravated identity count in addition to the sentences imposed on the other counts.
According to the facts admitted in the plea agreement, between 2007 and 2013, BOLDEN defrauded a program called “Computers for Learning,” that transfers excess government and related peripheral equipment directly to qualified schools and educational non-profit organizations. BOLDEN posed as 14 different non-profits to obtain the computers for free, and then sold them for his personal profit. Over the course of the scheme, BOLDEN obtained 19,442 items through the system with an original purchase cost of $30.3 million. Using a standard “fair market value” formula, the computer equipment has a value of about $7.2 million. BOLDEN also failed to pay the shipping costs associated with the delivery of the computer equipment – more than $100,000.
The plea agreement details how one transaction occurred. BOLDEN became acquainted with a person operating a legitimate non-profit in Southern California. BOLDEN convinced the head of the non-profit to let him review the paperwork for the organization. Using the non-profit organization’s information, BOLDEN created an account in the Computers for Learning program, and in July of 2010, obtained 41 Dell and HP computers that were made available by the Border Patrol at Blaine, Washington. BOLDEN claimed the computers and later sold them for his own benefit. The conviction for aggravated identity theft is based on BOLDEN’s use of the identities of the non-profit organization and his acquaintance.
Finally, records indicate that BOLDEN failed to report any income from the sale of computers. In fact, records from a computer recycler in Santa Ana, California show it paid BOLDEN more than $64,892 in 2012. BOLDEN failed to report the income on his tax return.
The amount of restitution BOLDEN owes will be determined at sentencing.
The case was investigated by multiple law enforcement partners led by the General Services Administration Office of Inspector General (GSA-OIG), the Internal Revenue Service Criminal Investigation (IRS-CI), the Department of Transportation Office of Inspector General (DOT-OIG), and the FBI. The case is being prosecuted by Assistant United States Attorney David Reese Jennings.Bullhead Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Derek Archambault, a/k/a John Martinez, age 31, was sentenced to 46 months in custody, 3 years of Supervised Release, and a $200 special assessment to the Federal Crime Victims Fund.
Archambault was indicted by a federal grand jury on July 17, 2013. He pled guilty on September 23, 2013.
The conviction stems from an incident occurring on May 20, 2010, when Archambault’s girlfriend called the Standing Rock Police Department and reported that her boyfriend had assaulted her. When a Bureau of Indian Affairs (BIA) officer arrived at her residence, the victim informed him that Archambault had been hitting her in the face. The officer took pictures of her mouth which was swollen and bruised, with cuts on her lips, and also pictures of scratches on her chest and neck.
The victim further reported that her son, who was 11 years old at the time, attempted to stop Archambault from hitting his mother, and Archambault punched her son in the face with a closed fist. The victim’s son demonstrated for the officer how Archambault hit him by using a closed fist and motioned toward his mouth. The victim also told the officer she has been assaulted by the defendant in the past, but he does not stay detained.
In an attempt to locate Archambault, the officer met with the school resource officer and an animal control officer, who advised that Archambault also goes by the name of John Martinez. The victim then arrived at the McLaughlin Police Department to speak with the officer again. She reported she had just met with Archambault and he broke her toe. The officer located Archambault and arrested him for the assault.
At the time this incident occurred, Archambault had two prior domestic abuse convictions in the Standing Rock Tribal Court for assaulting a prior intimate partner. In criminal case 08-22146, Archambault admitted to the BIA officer that he struck his girlfriend in the facial area causing bodily injury. In criminal case 09-20614, Archambault struck and kicked his girlfriend, breaking her ribs.
This case was investigated by the BIA. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Archambault was immediately turned over to the custody of the U.S. Marshals Service.
Attorney Admits Role in Extensive Insurance Fraud ConspiracyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that attorney JOSEPH P. HADDAD, 65, of Orange, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to federal charges related to his participation in an extensive insurance fraud scheme.
This matter stems from “Operation Running Man,” a 14-month undercover fraud investigation headed by the Federal Bureau of Investigation. The investigation included the use of recordings of an undercover special agent meeting with HADDAD, various doctors and chiropractors in relation to auto-accident personal injury litigation.
According to court documents, statements made in court and the admissions of his co-conspirators, HADDAD, a Bridgeport-based personal injury attorney, conspired with chiropractors and others to defraud several insurance companies by exaggerating the auto accident injuries of HADDAD’s clients, and the cost of their medical care, to justify larger monetary settlements with the insurance companies. As part of the scheme, the co-conspirators fabricated medical records, prescribed unnecessary pain medication, performed unnecessary chiropractic treatment, ordered and billed for diagnostic tests of questionable medical value, and overstated injuries or permanent partial disabilities that were allegedly caused by the accidents.
“This extensive scheme was perpetrated by a corrupt attorney and equally corrupt doctors who brazenly chose illegal profits over professional ethics,” stated U.S. Attorney Daly. “Their actions bilked insurance companies of millions of dollars inflating the cost of health insurance for all of us. Prosecuting professionals who breach their duties for personal gain will always be a priority for our Office and the FBI.”
“Attorney Haddad was the centerpiece of a large-scale conspiracy to commit automobile insurance fraud in the Greater Bridgeport area,” stated FBI Special Agent in Charge Ferrick. “As officers of the court, attorneys are held to a higher standard and expected to uphold its laws and ethics. Instead, Mr. Haddad orchestrated an extremely lucrative criminal conspiracy. The FBI and the U.S. Attorney’s Office are fully committed to investigating insurance fraud and those lawyers and doctors who put their own interests above that of their clients and patients.”
Between December 2006 and February 2010, HADDAD conspired in the scheme with Francisco R. Carbone, who had been licensed to practice medicine until his license was revoked by the State of Connecticut in March 2005, and with Dr. Marc Kirshner, who owned and operated two chiropractor offices in Bridgeport and one in Stamford.
As part of the scheme, HADDAD paid “runners” to locate and deliver to him clients for his personal injury practice. Because state law barred attorneys from hiring runners in personal injury cases, HADDAD attempted to hide this practice by paying the runners in cash. Dr. Kirshner regularly met with HADDAD to provide him with thousands of dollars in cash and, in return, HADDAD reimbursed Kirshner with checks written from his business account. HADDAD often included on the checks false memo lines suggesting that the checks were for medical expenses incurred by his clients. During the course of the conspiracy, Kirshner gave HADDAD more than $100,000 in cash. HADDAD also paid runners with checks directly from his client trust account, often disguising these payments as “independent investigative services.”
HADDAD regularly instructed clients to see Carbone for purported medical treatment, even though HADDAD was aware that Carbone had lost his medical license. Carbone provided HADDAD’s clients with prescription pain medication, even if the medication was not needed and, in reports, fabricated the clients’ injuries, medical conditions and permanent partial disability ratings. In multiple instances, Carbone did no medical examination at all. Carbone billed the victim insurance carriers in his name or in the name of another physician for services he allegedly rendered, and provided prescriptions, bills, medical reports and final reports to HADDAD, who submitted the documents to the victim carriers to support requests for settlement.
HADDAD also referred clients to Dr. Kirshner’s Bridgeport chiropractor offices, which operated under the name Health First Medical, P.C. Kirshner often permitted HADDAD to influence the course of patients’ medical treatments by acquiescing to HADDAD’s instructions that a patient receive more treatment and diagnostic tests despite the questionable need for both. Kirshner and other chiropractors at Health First, including Jennifer Netter, established a protocol to treat patients in HADDAD’s cases for six months, regardless of medical need, and would not resolve treatment of patients unless instructed to do so by HADDAD. Netter and others at Health First often falsified medical records by indicating that they had examined the patients when they had not, and by misrepresenting that patients’ pain complaints and other symptoms continued. After the six-month period, each patient would receive a permanent partial disability rating, regardless of the permanence of the medical condition. If a patient had received a permanency rating for a prior accident, the protocol was to give a higher or different disability rating for the present accident.
Kirshner also owned a diagnostic testing company, Midas Medical LLC, and instructed his employees to conduct Nerve Conduction Velocity (NCV) tests whenever a patient’s symptoms could potentially implicate testing, even though he knew the test results would not change the course of treatment. HADDAD and Kirshner arranged for Carbone to order the tests, believing that, if ordered by a doctor, the tests would be given greater weight by the victim insurance companies and increase the likelihood of higher settlement payments. HADDAD summoned at least one chiropractor to his office so that Kirshner could explain that the chiropractor would receive a kickback of several hundred dollars for each referral of HADDAD’s clients for NCV testing. Kirshner’s office would provide to HADDAD a bill of approximately $2,000 for each NCV test, and HADDAD would submit the bills to the victim carriers as part of settlement discussions.
More than 10 insurance carriers lost a total of up to $2.5 million as a result of this fraud scheme.
HADDAD pleaded guilty to one count of conspiracy to commit mail fraud and one count of mail fraud. Judge Underhill scheduled sentencing for March 28, 2014, at which time HADDAD faces a maximum term of imprisonment of 20 years on each count, and a fine of up to approximately $3.5 million. HADDAD also has agreed to pay restitution of $1,758,368.
Carbone, Kirshner, Netter, two other chiropractors and a licensed doctor of osteopathic medicine have pleaded guilty to charges stemming from this scheme. Each awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the National Insurance Crime Bureau, the Metropolitan Property and Casualty Insurance’s Special Investigation Unit and the Travelers Insurance Company.
The case is being prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and David J. Sheldon.
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(203) 821-3722 [email protected]Alleged Sinaloa Drug Cartel Leader ArrestedRead the Press Release
SAN DIEGO –Jose Rodrigo Arechiga-Gamboa, also known as “Chino Antrax” and “Norberto Sicairos-Garcia,” was arrested Monday, December 30, 2013, at the Schiphol Airport in Amsterdam, Netherlands at the request of the United States.
A federal grand jury in San Diego returned a sealed indictment on December 20, 2013, charging Arechiga-Gamboa with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances. That same day, the Clerk of the Court issued a sealed warrant for his arrest. The indictment was unsealed today.
Archiga-Gamboa was taken into custody at the airport under a fraudulent name as he deplaned from KLM Flight 686 from Mexico City, Mexico to Amsterdam. The United States made formal requests for assistance from foreign authorities via a provisional arrest warrant and an Interpol Red Notice.
The United States Attorney is currently seeking his extradition to face charges in the Southern District of California.
DEFENDANT Criminal Case No. 13-CR-4517-DMS Jose Rodrigo Arechiga-Gamboa, aka “Chino Antrax,” aka “Norberto Sicairos-Garcia” SUMMARY OF CHARGESCount 1: Title 21, United States Code, Sections 959, 960 and 963 - Conspiracy to Distribute Controlled
Substances Intended for ImportationCount 2: Title 21, United States Code, Sections 952, 960 and 963 - Conspiracy to Import Controlled
INVESTIGATING AGENCIES
SubstancesDrug Enforcement Administration
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
San Diego Law Enforcement Coordination Center
Homeland Security Investigations
Internal Revenue Service
Interpol
2 January 2014
White Plains Federal Grand Jury Indicts Former Chief Financial Officer on Charges He Embezzled $5.7 Million from His EmployerRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced today that a grand jury sitting in White Plains has returned a two-count Indictment charging GREGG PIERLEONI with mail fraud and wire fraud.
The Indictment alleges that PIERLEONI embezzled more than $5.7 million over a period of more than six years from a Westchester-based moving and storage company where he had served as the Chief Financial Officer from 1987 to April 2013.
Manhattan U.S. Attorney Preet Bharara stated: "As alleged, PIERLEONI abused the trust placed in him by his employer to steal a substantial amount of money so that he could enjoy a lavish lifestyle. He now faces having to pay the real price for that lifestyle."
Assistant FBI Director George Venizelos stated: “As alleged in the Indictment, motivated by personal greed, PIERLEONI stole millions of dollars from his long-time employer. He lived beyond his means while repeatedly betraying his company’s trust. The FBI will continue to investigate and hold accountable individuals who steal and line their pockets with their victim’s hard-earned money.”
According to allegations in the Indictment unsealed earlier today:
PIERLEONI moved funds from the moving company's operating account to other accounts held by the moving company and a related entity. He then wrote checks from those other accounts to pay his personal American Express bills. PIERLEONI used the funds he embezzled to pay for collectible items, sports memorabilia, airline tickets and other travel expenses, artwork, tickets to sporting events and meals in restaurants.
PIERLEONI, 59, of New Fairfield, CT, faces upon conviction maximum sentences of 20 years' imprisonment on the mail fraud count and 20 years' imprisonment on the wire fraud count.
Mr. Bharara praised the investigative work of the FBI.
This prosecution is being handled by the Office's White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Gregg Pierleoni Indictment
Wheat Ridge Doctor Is Sentenced to Federal Prison for the Illegal Distribution of OxycodoneRead the Press Release
DENVER – Dr. Kevin R. Clemmer, age 60, of Evergreen, Colorado, was sentenced today by U.S. District Court Judge Robert E. Blackburn to serve 48 months in federal prison for the illegal distribution of oxycodone and money laundering, federal authorizes announced. Following his prison sentence, Clemmer was ordered to spend 3 years on supervised release. Judge Blackburn also ordered Clemmer to pay restitution. The defendant, who appeared at the sentencing hearing free on bond, was ordered to report to a U.S. Bureau of Prisons facility by noon on the date that it is designated.
Clemmer was indicted by a federal grand jury in Denver on May 16, 2011, and pled guilty on May 23, 2013 to count one (illegal distribution) and count sixty-two (money laundering) of the indictment. According to the stipulated facts contained in the plea agreement, as well as the indictment, the investigation began in April 2009 and continued through September 2010. The investigation established Clemmer knowingly and intentionally distributed and dispensed oxycodone, a schedule II controlled substance, outside the scope of professional practice and not for legitimate medical purposes. Specifically on May 20, 2010, Clemmer met with an undercover officer. The undercover officer described minimal pain management needs and symptoms which did not require, as part of the scope of professional practice, the prescription of oxycodone. However, Clemmer did prescribe 120 doses (pills) of 15 milligram oxycodone to the undercover officer after a very limited medical screen and evaluation. These prescriptions were done outside the scope of professional practice and not for legitimate medical purposes.
Additionally, Clemmer did distribute by prescription, outside the scope of professional practice and not for legitimate medical purposes, oxycodone to Ryan Lujan. Specifically, on September 2, 2010, Clemmer did prescribe oxycodone to Ryan Lujan. On September 3, 2010, Ryan Lujan died. The cause of death is listed as an accidental aspiration of gastric contents associated with oxycodone toxicity. The prescription written by Clemmer (with numerous pills missing) was found at the scene of the death as well as other oxycodone pills which were not prescribed by the defendant. Clemmer’s prescription helped contribute to the death of Ryan Lujan which was not charged as part of this case.
On May 29, 2010, Clemmer purchased a 1999 Lincoln Continental, using cash which was derived from the illegal distribution of a schedule II controlled substance. For purposes of relevant conduct, Clemmer stipulates that the total drug quantity for which he is accountable is 186,340 milligrams of oxycodone.
“Doctors who use their prescription pads as a stack of blank checks to write and cash, instead of as a means to heal and comfort the sick, will be held accountable,” said U.S. Attorney John Walsh. “The powerful prescription drugs that Clemmer trafficked are highly addictive and dangerous, as the tragic and fatal consequences of Clemmer’s conduct demonstrate.”
“The indictment, guilty plea and subsequent sentencing of Dr. Clemmer demonstrates the law enforcement community’s commitment to identifying those medical professionals who divert medications in an unauthorized manner and misuse their position of trust for personal gain,” said DEA Special Agent in Charge Barbra Roach.
“Prescription drug abuse is a serious problem with serious consequences and we will continue to work with our law enforcement partners to insure those individuals who contribute to such abuse are brought to justice,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
This case was investigated by the Drug Enforcement Administration (DEA) Tactical Diversion Squad and the Internal Revenue Service (IRS) – Criminal Investigation.
The case was prosecuted by Assistant U.S. Attorney Zachary Phillips.####
U.S. Attorney's Office Programs Strengthen Local Law Enforcement with Training in 2013Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. –United States Attorney Stephanie A. Finley announced today that the Western District of Louisiana, through its Law Enforcement Coordinator Mike Campbell, had an outstanding year in providing training courses to local law enforcement agencies in 2013.
As the district’s Law Enforcement Coordinator, Campbell acts as a liaison between the U.S. Attorney=s Office and local, state, and federal law enforcement. He assists with grants, coordinates and provides law enforcement training, and assists law enforcement agencies with special and community needs. The mission of the Law Enforcement Coordinating Committee is to develop coordination, communication, and cooperation between local, state, and federal law enforcement agencies throughout the Western District of Louisiana by providing education, training, and technical assistance to all federal, state, and local law enforcement agencies in the district.
In 2013, Campbell worked with federal, state, local, military and tribal offices and spearheaded 28 training courses, which were provided in the district’s 42 parishes. A total of 2,193 federal, state, local, and tribal law enforcement officers participated in various training events provided at no-cost to the attendees. Cities where the training events took place included: Shreveport, Bossier City, Monroe, West Monroe, Natchitoches, Plain Dealing, Many, Alexandria, Lafayette, Lake Charles, and New Iberia. Topics covered included: investigation techniques, personal safety, narcotics, search and seizure, and many others.
Campbell joined the Western District of Louisiana U.S. Attorney's Office in November 2007 after a 33-year career in law enforcement with the Shreveport Police Department. He entered service in 1974 as a patrol officer and retired as Chief of Police in 2007. He is a retired officer from the Louisiana National Guard with 21 years of service. During his military career, he served with the U.S. Air Force Reserve, U.S. Army Reserve, and the Louisiana National Guard. Campbell holds a bachelor’s degree of science from Louisiana Tech. He is a graduate of the FBI National Academy and a member of the Louisiana Association of Chiefs of Police.
“We are proud to be able to continue to join with other organizations to provide these important services to law enforcement agencies within the Western District of Louisiana,” Finley stated. “The training improves the knowledge and strengthens the skills of personnel working in the field. I applaud Mike Campbell, the participating organizations, local law enforcement, and all of the trainers/speakers for their hard work and dedication that make these programs possible. We are grateful to our law enforcement partners who assist us every day to get the job done and look forward to providing training for 2014 as well.”
For more information and a listing of resources that the LECC provides in the Western District of Louisiana visit www.justice.gov/usao/law/lecc.U.S. Attorney Limtiaco Invited as Panel Member at Association of Pacific Island Legislatures Meeting on “Preventing Human Trafficking in the Pacific Region”Read the Press Release
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, along with Sarah Thomas-Nededog, Vice-President, West Care Pacific Islands; Dr. Julie Ulloa-Heath, President, Micronesian Youth Services Network; and Carol Hinkle-Sanchez, Assistant Attorney General, Guam Attorney General’s Office, were invited by the Association of Pacific Island Legislatures (APIL) to speak on the topic of “Preventing Human Trafficking in the Pacific Region.” According to their website, APIL membership is comprised of legislators from the Pacific region, including American Samoa, the Commonwealth of the Northern Mariana Islands, the Federated States of Micronesia (Chuuk, Kosrae, Pohnpei and Yap), Guam, Hawaii, the Republic of Kiribati, the Republic of the Marshall Islands, the Republic of Nauru, and the Republic of Palau. The APIL meet to consider matters in areas where regional cooperation, coordination, exchange and assistance may help governments achieve their goals through collection action.
U.S. Attorney Limtiaco and the panel members shared information on the “Pacific Regional Response to Combat Human Trafficking” initiative, which is a collaborative effort among the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands (NMI), the National District Attorneys Association, the Department of State, the Department of Interior, Guam Human Trafficking Task Force, NMI Human Trafficking Intervention Coalition, and other community partners. The panel also discussed the intersection and relationship between human trafficking, sexual assault, child abuse, and domestic and family violence, and prevention and enforcement efforts in the Pacific region.
The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Photos of the presenters are attached.
U.S. Attorney Alicia Limtiaco addressing the Association of Pacific Island Legislatures.Presenters: United States Attorney Alicia A. G. Limtiaco Dr. Julie Ulloa-Heath, President, MYSN
Carol Hinkle-Sanchez, Assistant Attorney Sarah Thomas-Nededog, Vice-President, General, Guam Attorney General’s Office West Care Pacific IslandsU.S. Attorney Alicia A.G. Limtiaco Guest SpeakerAt 2013 Micronesian Youth Services Network ConferenceRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was the guest speaker at the 2013 Micronesian Youth Services Network (MYSN) Conference held on April 17-19, 2013, at the Fiesta Resort in Saipan. This year’s theme was entitled, “Pursue, Cultivate, and Sustain a Balance.”
U.S. Attorney Limtiaco discussed during her presentation on “Bullying, Cyberbullying and On-line Sexual Predators,” the impact of bullying on those being victimized, the emotional, mental and psychological harm including youth suicide, and safety tips for youth and families. U.S. Attorney Limtiaco also discussed the dangers posed on the internet including on-line solicitation by sex predators, and internet safety tips for youth and families. U.S. Attorney Limtiaco spoke about Project Safe Childhood, a U.S. Department of Justice initiative, committed to the protection of children against child sexual exploitation and child pornography; and Project Safe Neighborhood, a U.S. Department of Justice initiative, focused on public awareness and prevention efforts against youth violence, gangs, and gun violence.
MYSN is a non-profit, non-governmental organization that is committed to showcasing practical, culturally competent ideas, strategies, challenges, and best practice efforts aimed at addressing the unique needs of youth and families in Micronesia to continually improve comprehensive youth services in Micronesia. The MYSN’s mission is to support, collaborate, coordinate, promote and strengthen youth programs and services throughout Micronesia.
Photos taken at the conference, courtesy of Kenny Reklai, are attached.
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U.S. Attorney Alicia Limtiaco addressing the attendees.
Conference attendees enjoying one of the workshops.Three Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
Three Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in U.S. District Court for the Northern District of California in Oakland against Rudolph Silva of Concord, Calif., Thomas Bishop of Pleasant Hill, Calif., and Leslie Gee of Danville, Calif. Including Silva, Bishop and Gee, a total of 43 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Silva, Bishop and Gee conspired with others, for various lengths of time between January 2008 and January 2011, not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa County, Calif. Silva, Bishop and Gee were also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Contra Costa County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Additional charges were filed against Gee for his involvement in similar conduct in Alameda County, Calif., from as early as April 2009 until about November 2009.
"Today’s plea agreements are the latest step in the Antitrust Division’s efforts to hold accountable investors for their fraudulent and collusive activities at real estate foreclosure auctions,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will continue to prosecute individuals who participated in illegal conspiracies and harmed distressed homeowners and lenders.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Alameda and Contra Costa County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.
“The FBI and our partners have an obligation to investigate and pursue those who disrupt a free and fair marketplace,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “We will continue to educate the public on the criminality of bid rigging at real estate foreclosure auctions.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Three Area Men Charged After Armed Robbery of Arlington BankRead the Press Release
Subjects allegedly involved in multiple robberies in Maryland, Virginia and Washington, D.C.
ALEXANDRIA, Va. – James McNeal, 63, of Hyattsville, Md., James Link, 56, of Washington, D.C., and Alphonso Stoddard, 59, of Forest Heights, Md., were charged today by criminal complaint with armed bank robbery.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after the initial appearance of defendants Link and Stoddard before United States Magistrate Judge John F. Anderson.
The defendants each face a maximum penalty of 25 years’ imprisonment if convicted.
According to court documents and court proceedings today, the FBI received information in December 2013 that McNeal, Link and Stoddard had been responsible for the armed robberies of multiple banks in the Washington metropolitan area. After identifying the subjects, the FBI kept the three men under close surveillance, which included observing the defendants as they cased banks in Arlington, Va. for potential robberies.
On December 31, 2013, FBI agents followed the three subjects as they drove from Maryland to a Wells Fargo bank branch in Arlington. At approximately 1:15 p.m., Link and Stoddard entered the bank with their faces covered. Link brandished a gun and pointed it at individuals in the bank, while Stoddard jumped the teller counter and removed approximately $47,000 in cash from teller drawers. The two men exited the bank and returned to their vehicle, where McNeal was waiting.
As the three subjects attempted to flee the scene, FBI and Arlington County Police apprehended them approximately one block away. A handgun and cash were found in the vehicle. A search of McNeal’s house in Hyattsville, Md. led to the discovery of additional firearms, gloves and items of clothing that are believed to be linked to previous bank robberies.
The investigation was conducted by the FBI’s Washington Field Office with the assistance of the FBI’s Baltimore Division and the Fairfax County and Arlington County police departments. The United States Attorney’s Offices for the District of Columbia and the District of Maryland also provided assistance in the investigation. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Shelburne Man Sentenced to 26 Months in Federal Prison for Illegal Possession of FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on January 2, 2014, Justin Bosley, 27, of Shelburne, Vermont was sentenced to 26 months in federal prison after his guilty plea to charges that he possessed firearms while being a heroin user. Chief United States District Judge Christina Reiss, sitting in Rutland, also ordered that Bosley serve two years of supervised release following his prison term.
According to court records, Bosley was connected to a large-scale heroin ring led by New York City man, Videsh Raghoonanan, a.k.a. ABush.@ Raghoonanan sold large quantities of controlled substances, including over one kilogram of heroin, during a drug distribution conspiracy that lasted from at least 2011 until Raghoonanan=s arrest in December of 2012. Raghoonanan obtained primarily heroin, and sometimes cocaine base, in New York City and transported it to Vermont for re-sale at a significant profit. Raghoonanan would obtain handguns from customers in Vermont in exchange for heroin and then transport those firearms back to New York City. Raghoonanan would also carry a handgun while dealing drugs in Vermont.In 2011, Bosley provided a semi-automatic handgun to a South Burlington heroin dealer in exchange for heroin. The South Burlington dealer, who worked for Raghoonanan, subsequently provided the handgun to him. Also in 2011, Bosley provided a second semi-automatic handgun directly to Raghoonanan in exchange for heroin. At the time of these exchanges, Bosley was abusing heroin, which made his possession of the firearms illegal under federal law. The two handguns have not been recovered.
For his crime, Bosley was subject to a maximum term of 10 years in prison and up to a $250,000 fine. In determining the sentence, Judge Reiss balanced, among other factors, the seriousness of Bosley=s offense, his significant heroin addiction, and his lack of a criminal record.
During the course of this investigation, a number of Raghoonanan=s associates and co-conspirators have been convicted of federal offenses. On November 11, 2012, Justin Morrill was sentenced to serve 37 months in prison on a heroin conspiracy charge. On January 15, 2013, Maria Hunton was sentenced to serve 30 months in prison on a heroin conspiracy charge. On January 17, 2013, Ryan Orvis was sentenced to serve 57 months in prison on a cocaine conspiracy charge. On June 3, 2013, Patrick Lepore was sentenced to time-served on a cocaine base conspiracy charge. On October 9, 2013, Eric Jophlin was sentenced to 60 months in prison on a heroin conspiracy charge. On October 17, 2013, Videsh Raghoonanan was sentenced to 145 month in prison for conspiring to distribute heroin and possessing firearms in furtherance of that conspiracy. On December 2, 2013, Marc Wells was sentenced to 24 months in prison for possession with intent to distribute heroin. On December 18, 2013, Barton Gray was sentenced to 59 months in prison on a heroin conspiracy charge. Bosley was the last of the defendants associated with the Raghoonanan ring to be sentenced.
This case was investigated by the Burlington Police Department, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Drug Enforcement Administration. United States Attorney Tristram J. Coffin commended the efforts of these agencies during this lengthy investigation.The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr. Bosley is represented by defense attorney Douglas G. Kallen.
Sentencing for December 27, 2014Read the Press Release
Bryan Lee Gimbel, 32, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 27, 2013, for possession of a stolen firearm. Gimbel was arrested in Casper, Wyoming. He received 92 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Registered Sex Offender Living in Palm Beach County, Florida Arrested for Attempting to Entice A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, (ICE-HSI), and Jeffrey S. Katz, Chief of Police, Boynton Beach Police Department, (BBPD), announce that Paul David Culbreth, 52, of Loxahatchee, Florida, appeared in federal court today for an initial appearance on the charge of attempting to entice a minor to engage in an illegal sexual activity. If convicted, he faces a 10 year mandatory term of imprisonment and a maximum term of life..
According to the criminal complaint, Culbreth sent numerous sexually explicit messages via a web-based social media application to an undercover officer posing as a 15 year old boy. Culbreth then attempted to meet the minor to engage in illegal sexual activity on New Year’s Eve. Culbreth was arrested by Special Agents from ICE-HSI after he drove to a location where he believed he would pick up the 15 year old boy; lubricant and condoms were found in his vehicle on arrest. Culbreth is a registered sex offender in Palm Beach County, Florida.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. 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 exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative and cooperative efforts of ICE-HSI and BBPD. The case is being prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach County State Attorney’s Office.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Plainview, Texas, Man Sentenced to 210 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas—Jose Francisco Madrigal, Jr., 43, of Plainview, Texas, was sentenced last Friday, by U.S. District Judge Sam R. Cummings, to 210 months in federal prison following his guilty plea in August 2013 to one count of production of child pornography. Judge Cummings remanded Madrigal, who had been on bond, into custody. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In October 2012, according to plea documents filed in the case, Madrigal, using a digital camera and aiming the camera through a hole in a bathroom wall, took sexually explicit videos of a female child, while the child was taking a shower.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Plainview Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Operator of Meriden Grocery Store Sentenced to 27 Months in Federal Prison for Food Stamp FraudRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MYRACHID ELQUAFAI, 52, a citizen of Morocco last residing in New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 27 months of imprisonment, followed by three years of supervised release, for defrauding the federal Food Stamp Program while operating a Meriden grocery store.
On April 26, 2013, following a five-day trial, a jury found ELQUAFAI guilty of one count of conspiracy to commit food stamp fraud and one count of food stamp fraud. According to the evidence disclosed during the trial, the federal Food Stamp Program, which is now known as the Supplemental Nutrition and Assistance Program (“SNAP”), is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an EBT card, which is similar to an ATM card. SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
ELQUAFAI operated CJ Express and Groceries, LLC, located at 145 West Main Street in Meriden. From approximately June 2010 to July 2012, ELQUAFAI conspired with Carlos Dominguez, the owner of CJ Express and Groceries, to redeem SNAP benefits at the store at a significantly discounted rate in exchange for cash and cigarettes. The investigation revealed that more than $820,000 in illegal SNAP benefits were redeemed at the store.
ELQUAFAI, who has been detained since his arrest on August 2, 2012, is subject to immigration proceedings after his release from prison.
Dominguez has pleaded guilty and awaits sentencing.
This matter was investigated by the U.S. Department of Agriculture, Office of Inspector General and the Office of the Chief State’s Attorney. The case is being prosecuted by Assistant U.S. Attorneys Neeraj Patel and Anastasia King.
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(203) 821-3722 [email protected]Nebraska U.S. Attorney’s Office Collects $4,588,507.19 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Nebraska - U.S. Attorney Deborah R. Gilg announced today that the District of Nebraska collected $4,588,507.19 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,356,773.53 was collected in criminal actions and $2,231,733.66 was collected in civil actions.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration U.S. Department of Agriculture and Department of Education.
Additionally, the U.S. Attorney’s office in Nebraska, working with partner agencies and divisions, collected $1,168,854 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Manhattan U.S. Attorney Settles Lawsuit Against Westchester Funeral Home and Its President for Unfair Trade PracticesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the settlement of a lawsuit against HARRISON FUNERAL HOME, INC. (“HARRISON”), a funeral home in Westchester County, New York, and its President JOHN BALSAMO (“BALSAMO”) for engaging in unfair and deceptive acts or practices in connection with the provision of funeral services. The settlement, in the form of a consent decree, was based on a Complaint filed in May 2012 in White Plains federal court and approved today by U.S. District Judge Nelson Stephen Román.
Manhattan U.S. Attorney Preet Bharara said: “As part of today’s settlement, Harrison Funeral Home admitted that it violated a federal rule designed to ensure that people receive fair pricing information from funeral providers. As this suit and settlement demonstrate, we will continue to use our statutory powers to act against unscrupulous businesses that take advantage of consumers in their most vulnerable moments.”
According to the Complaint filed in White Plains federal court:
The Federal Trade Commission (“FTC”) promulgated what is known as the Funeral Rule to ensure that people inquiring about funeral arrangements receive full and fair pricing information and are not taken advantage of by funeral providers through inflated prices, overcharges, double charges, or unnecessary services. The law requires that information about prices be disclosed to persons inquiring about funeral arrangements and that they be given written price lists and statements of the funeral goods they selected to purchase.
The Complaint alleges that HARRISON committed violations of the Funeral Rule by failing to provide the required price lists to persons inquiring about funeral services on four separate occasions. Although HARRISON and BALSAMO were advised of their violations of the Funeral Rule and given the option of enrolling in a voluntary program aimed at preventing future violations, HARRISON and BALSAMO failed to enroll their employees in the program’s required trainings and continued to violate the Funeral Rule.
In the consent decree, HARRISON and BALSAMO admit that they violated the Funeral Rule. The consent decree permanently enjoins HARRISON and BALSAMO from violating the Funeral Rule in the future, requires defendants to submit compliance notices to the FTC for the next twenty years, and requires defendants to maintain certain records and to submit to compliance reviews. In addition, HARRISON and BALSAMO will pay a $32,000 civil penalty to the United States.
The case is being handled by the Office’s Civil Division. Assistant U.S. Attorneys Natalie N. Kuehler and Ellen Blain are in charge of the case.
Man Arrested on Bus Charged in Kansas City, Kan., Bank RobberyRead the Press Release
KANSAS CITY, KAN. B A man who was arrested on a bus has been charged with robbing a bank in Kansas City, Kan., U.S. Attorney Barry Grissom said today.
Jamarr R. Dale, 29, Kansas City, Kan., was charged Monday in a criminal complaint filed in U.S. District Court in Kansas City, Kan. An affidavit filed in support of the complaint alleges that on Jan. 2, 2014, Dale robbed Security Bank at 10840 Parallel Parkway in Kanas City, Kan. He walked into the bank and gave a teller a note saying, “I need $3,000 or I will start shooting.” The teller emptied a drawer of cash and gave him the money, which he stuffed in his coat pocket before running out the front door of the bank.
Officers of the Kansas City, Kan., Police Department responded to the call and were advised the robber had boarded a city bus at a bus stop in the Wal-Mart parking lot around the corner from the bank. They found Dale sitting on the bus and arrested him.
If convicted, Dale faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Little Eagle Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Chat Moses Bobtail Bear, Sr., a/k/a Chate Moses Bobtail Bear, Sr., age 35, was sentenced to 28 months in custody, 3 years of Supervised Release, and a $100 special assessment to the Federal Crime Victims Fund.
Bobtail Bear was indicted by a federal grand jury on August 21, 2013. He pled guilty on October 7, 2013.
On August 6, 2013, a Bureau of Indian Affairs officer was dispatched to Little Eagle in reference to an unknown person lying in the road. Upon arrival, the officer observed a female sitting on the ground with a male and two children standing near her. The officer noticed several abrasions and lacerations to the female’s face. The victim informed the officer that she awoke that morning to Bobtail Bear stomping on her face. He continued to assault her by punching and kicking her about the head and face. She ran out of the house and made it as far as the street before Bobtail Bear caught up to her and continued to assault her. As a result of the assault, the victim suffered numerous abrasions and lacerations about her face and head, severely swollen lips, a broken nose and a broken hand.
Bobtail Bear has two prior judgments of conviction for domestic abuse of a spouse or intimate partner.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was immediately turned over to the custody of the U.S. Marshals Service.
Little Eagle Man Sentenced for Abusive Sexual Contact and Attempted Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Abusive Sexual Contact and Attempted Aggravated Sexual Abuse was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Ronnie Fire Cloud, a/k/a Ronald Fire Cloud, age 38, was sentenced to 120 months in custody on both counts to run concurrently, 5 years of Supervised Release, $400 in restitution and a $200 special assessment to the Federal Crime Victims Fund.
Fire Cloud was indicted for the above charges and Aggravated Sexual Abuse by Force by a federal grand jury on December 11, 2012. On October 15, 2013, Fire Cloud appeared before the Honorable Charles B. Kornmann for a jury trial. On October 16, 2013, a jury found him not guilty on the charge of Aggravated Sexual Abuse by Force; however they found him guilty on the other two charges.
The conviction stems from an incident occurring on November 2, 2012. Fire Cloud allowed the victim, who was a house guest, to use his shower. While she was showering, Fire Cloud entered the bathroom, fondled her, and attempted to rape her. The victim was able to escape the bathroom, flee the residence and contact the authorities.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency, National Park Service, and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Fire Cloud was immediately turned over to the custody of the U.S. Marshals Service.
KC Man Charged with Robbing Brookside BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been charged in federal court with robbing Bank Midwest.
Casey M. Widman, 58, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, Dec. 31, 2013, with stealing $838 from Bank Midwest.
According to an affidavit filed in support of the federal criminal complaint, Widman entered Bank Midwest, 6249 Brookside, Kansas City, at about 1:45 p.m. on Monday, Dec. 30, 2013. Widman allegedly approached one of the tellers, presented a black pistol and said he wanted to make a withdrawal in “all fifties and hundreds.” The teller gave Widman the cash, the affidavit says, and he fled from the bank on foot.
A witness told police officers that he saw a blue Ford Taurus, with a driver and two passengers, parked near the bank for about 15 minutes. The vehicle left the bank immediately after the robbery occurred. An officer saw a vehicle that matched that description and followed it. When the driver stopped at a gas station, all three occupants – including Widman, who was sitting in the back seat – were taken into custody.
When federal agents searched the vehicle, they found a pellet pistol. When agents searched Widman, they found $389 under his right boot sole. The other occupants of the vehicle have not been charged.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Requires Heraeus Electro-Nite LLC to Divest Assets Acquired <br /> from Midwest Instrument Company Inc. to Keystone Sensors LLCRead the Press Release
The Department of Justice today announced that it will require Heraeus Electro-Nite LLC to divest certain assets that it acquired from Midwest Instrument Company Inc. (Minco) to Keystone Sensors LLC in order to resolve the department’s competitive concerns. The department said that, without the divestiture, Heraeus’ acquisition of Minco’s assets substantially lessens competition in the market for the development, production, sale and service of single-use sensors and instruments used to measure and monitor the temperature and chemical composition of molten steel in the steel manufacturing process.
The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia challenging the consummated acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
Heraeus acquired Minco in September 2012. The department learned of the transaction, which was not required to be reported under the premerger notification law, shortly after it was completed. According to the complaint, prior to the acquisition, Heraeus and Minco competed head-to-head on price, service and innovation in supplying sensors and instruments to steel manufacturers, for whom the reliability and precise performance of these products is of critical importance.“The proposed settlement will benefit consumers in the single-use sensors and instruments market by facilitating the entry of a new competitor into this market,” said Deputy Assistant Attorney General Renata B. Hesse of the Department of Justice’s Antitrust Division. “Today’s enforcement action shows that the department is committed to redressing anticompetitive mergers, including consummated mergers for which reporting is not required under the premerger notification law.”
The department required the divestiture of a package of assets to an identified purchaser, Keystone, that had been evaluated and approved by the department. The department said the proposed settlement will ensure that the assets Keystone requires in order to enter the U.S. market and compete more effectively with Heraeus are readily available to it. In this way, the divestiture to Keystone will promote competition in the sensors and instruments market, which was reduced when Heraeus acquired Minco. Keystone was formed in May 2013 for the purpose of entering the U.S. market for sensors and instruments and to offer customers an additional alternative to Heraeus.
The proposed settlement also requires Heraeus to waive noncompete provisions it had imposed on some former employees. The waiver of these provisions will enable Keystone to hire experienced individuals with expertise in this specialized business. By making experienced individuals available to be hired immediately, Heraeus’ agreement to waive these noncompete provisions will also enhance competition in the single-use sensors and instruments market by facilitating the entry or expansion of other new competitors into the market. Heraeus also is required to provide the department with advance notice of any future acquisition in the market for sensors and instruments in the United States that is not subject to the reporting requirements of the premerger notification law.
Heraeus Electro-Nite Co. LLC is a Delaware corporation with its headquarters in Langhorne, Pa.
The acquirer, Keystone Sensors LLC, is a Delaware corporation headquartered in Cranberry Township, Pa. Its principal place of business will be located in Johnson City, Tenn.
The proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the proposed settlement upon finding that it is in the public interest.Former Bank Director Charged with Securities and Wire Fraud Captured Following ManhuntRead the Press Release
BROOKLYN, NY – Earlier today, Aubrey Lee Price was presented at the federal courthouse in Brunswick, Georgia, near where he was arrested. The defendant, who sent acquaintances a suicide note stating that he planned to kill himself by throwing himself off a high speed ferry boat in Florida, has been wanted since June 27, 2012, when the Honorable Viktor V. Pohorelsky, United States Magistrate Judge for the Eastern District of New York, issued a warrant for Price’s arrest based on a complaint filed by the United States Attorney for the Eastern District of New York. At the time, Price was charged with wire fraud in connection with his use of brokerage accounts in New York to misappropriate millions of dollars belonging to a bank in southern Georgia where Price was a director. A grand jury in Brooklyn later expanded the charges against Price to include securities fraud in connection with Price’s theft of funds from both the bank and other investors in investment funds controlled by Price. The defendant also faces a charge in the Southern District of Georgia.
The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the indictment, Price managed investment funds PFG LLC (“PFG”) and the Montgomery Growth Fund (“Montgomery Growth”). Starting in or about June 2009, PFG raised approximately $40 million from approximately 115 investors from across the nation. Price unsuccessfully invested PFG funds in various equity securities, options, and real estate, including farms in South America. To cover up his losses, Price allegedly lied to his investors by posting fake account statements on a secure PFG web site that fraudulently reflected fictitious assets and fabricated investment returns.
The indictment further states that, starting in or about January 2011, Price became a director of Montgomery Bank & Trust (“MB&T”), a financial institution in Ailey, Georgia. After telling MB&T that he would invest the bank’s capital in U.S. Treasury securities, Price instead lost much of the bank’s money by investing in risky equity securities and options. Price also embezzled MB&T money to pay redemptions to some PFG investors. The indictment charges that Price covered up his embezzlement and losses of MB&T’s funds by giving the bank’s management fabricated documents falsely indicating that approximately $17 million was on deposit in the bank’s name at a large financial services firm in New York.
“Aubrey Lee price created a life and death out of whole cloth, telling hundreds of investors and a Georgia bank that their money was safe when he was flying high, and telling the world he was dead when his lies crashed down around him,” stated United States Attorney Lynch. “But Price proved as unsuccessful at faking his own death as he was at faking his victims’ investments. Every person who seeks to harm our financial markets through fraud should be on notice. With the help of our law enforcements partners, both federal and local, we will find you, and we will hold you accountable for your behavior in a court of law.” Ms. Lynch expressed her grateful appreciation to the Securities and Exchange Commission, Atlanta Regional Office, and the Lowndes County Georgia Sheriff’s Department for their cooperation and assistance in the investigation. She also thanked the Glynn County Georgia Sheriff’s Department, who arrested the defendant following a traffic stop.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys David C. Woll, Jr. and Brian Morris.
This prosecution was the result of efforts by President Barack 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. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
AUBREY LEE PRICE
Age: 47
Valdosta, Georgia
E.D.N.Y. Docket No. 13-CR-058
Essex County, N.J., Man Admits Role in “Double-Dipping” SchemeRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man today admitted his role in defrauding Home Depot Inc. out of more than $470,000 through an elaborate “double-dipping” scheme that he committed at various Home Depot locations, including in New Jersey, U.S. Attorney Paul J. Fishman announced.
Daniel Chalet, 28, of Bloomfield, N.J., pleaded guilty before U.S. Magistrate Judge James B. Clark III to an information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From March 2009 through June 2012, Chalet and his conspirators routinely purchased various items from Home Depot locations in New Jersey, New York, Massachusetts, Delaware, Maryland, Connecticut and Pennsylvania. The conspirators would assemble two shopping carts containing identical items. They then purchased the items in one cart (Cart 1) and stashed the other cart in the store (Cart 2). They would typically purchase the items in Cart 1 using cash, fraudulently obtained Home Depot store credit, or some combination thereof. Chalet and his conspirators would then leave the store with the items in Cart 1, as well as the receipt for the purchase, leaving Cart 2 inside the store.
The conspirators would return to the store almost immediately with a receipt corresponding to the items in Cart 1 and retrieve Cart 2, which contained the identical set of items. Under the guise that they had forgotten to purchase an item, usually an inexpensive one, Chalet and his conspirators would return to the register with Cart 2, and purchase only the additional small item. They would present the receipt for the items from Cart 1 and deceive the cashier into believing that the items in Cart 2 had already been purchased.
Chalet and his conspirators would later go back to the same Home Depot store or travel to different Home Depot store locations to return the items. In some instances, they presented a receipt for the return, and in other instances, the defendants obtained a refund for store credit without presenting a receipt.
Chalet and his conspirators carried out the scheme hundreds of times at various Home Depot locations, fraudulently obtaining Home Depot store credit and refunds totaling at least $470,511.66.
The conspiracy count to which Chalet pleaded guilty is punishable by 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 the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-001
Defense counsel: Richard Roberts Esq., Newark
Chalet, Daniel Information
Defendants Plead Guilty in Large ATM Skimming OperationRead the Press Release
ATLANTA - Stoyno Filtshev, Plamen Atanasov, Nedyalko Palazov, and WB Wohrman have pleaded guilty in a case involving a scheme to steal the bank debit card numbers and passwords of over 4,700 individuals through the use of a skimming device the defendants connected to ATMs in the metro Atlanta area.
“Victims in this case were devastated to learn that merely by using an ATM, they had unwittingly handed over their debit card information to criminals who in turn used the information to drain their bank accounts,” said United States Attorney Sally Quillian Yates said. “The victims continue to suffer, from having to worry about what else may be done with their personal information to spending valuable time trying to clear their good names and credit. Identity theft takes many forms but always creates havoc in the lives of good people.”
“Technology has forever changed the way we do business. Unfortunately, some endeavor to use those changes to their benefit and others’ detriment,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The Secret Service, in conjunction with our law enforcement partners, will continue to actively investigate and arrest those that commit crimes that prey on unsuspecting victims.”
According to United States Attorney Yates, the charges and other information presented in court: From about August 2011 through January 2013, Filtshev, Wohrman, Atanasov, and Palazov, working with co-defendant Tsvetil Iliev, used illegal skimming devices to steal over $380,000 from bank customers by installing the devices at Bank of America, JP Morgan Chase, and Wells Fargo automated teller machines (ATMs) in the metro Atlanta area. When a customer used the ATM with a skimming device installed, the device would electronically record the customer’s debit card number and a small camera in the device would video record the ATM keyboard as the customer entered his or her password.
The defendants then downloaded the information from the device to a computer. Using a magnetic stripe card reader/writer, they re-encoded gift cards with the stolen account information. They then used the altered gift cards at ATMs to withdraw money from the victims’ bank accounts.
Filtshev, 53, of Atlanta, Ga., and Atanasov, 30, of Sandy Springs, Ga., were arrested in Kennesaw, Ga., in June 2012 using re-encoded gift cards to take money from customers’ accounts at a Bank of America ATM. On them and in their car, which was registered to Filtshev, they had 279 re-encoded cards. Each re-encoded card had the customer’s ATM password written on the front.
On September 27, 2012, Wohrman, 36, of Tennessee, was arrested by the Gwinnett County Police Department pursuant to a federal arrest warrant for violating the terms of his federal supervised release. A search of Wohrman’s vehicle at that time revealed, among other items, a skimming device and several financial transaction cards.
On December 28, 2012, Bulgarian Customs officials notified the Secret Service in Atlanta that they had identified a DHL parcel being shipped to the United States as containing illegal skimming devices. The Secret Service obtained a federal search warrant for the package, found three skimming devices, and then disabled them before returning them to the mail stream. The package went to a UPS Store in Atlanta, Ga. Wohrman and other co-conspirators were listed as authorized recipients of mail to the UPS box. On January 8, 2013, Palazov, 28, of Atlanta, Ga., came to the UPS Store and retrieved the package.
Filtshev, Wohrman, Atanasov, Iliev, and Palazov were indicted by a federal grand jury on January 22, 2013, for conspiracy, access device fraud, and aggravated identity theft. Palazov and Iliev fled Atlanta before they were arrested. Palazov was arrested during a stopover in Munich, Germany after he boarded a plane in Mexico headed for Bulgaria. Palazov was extradited from Germany and is now in custody in Lovejoy, Ga. Iliev, 34, of Atlanta, Ga., remains a fugitive.
The investigation has identified over 4,700 bank customers whose account information was stolen by the five defendants. The defendants withdrew over $380,000 from these customers’ accounts.
On December 18, 2013, Wohrman pleaded guilty to one count each of conspiracy, access device fraud, and aggravated identity theft. On December 27, 2013, Filtshev and Atanasov pleaded guilty to one count each of conspiracy, access device fraud, and aggravated identity theft. Palazov pleaded guilty on January 2, 2013, to one count of conspiracy, access device fraud, and aggravated identity theft. The conspiracy charge carries a maximum sentence of five years in prison, the access device fraud count carries a maximum sentence of 15 years in prison, and the aggravated identity theft charge carries a mandatory two-year sentence. The two-year sentence for aggravated identity theft must run consecutively to any other sentence imposed. Each count also carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
In a related case, on November 19, 2013, a federal grand jury returned an indictment against Zira M. Bailey, 26, of Picayune, Miss., Michael J. Ellis, 35, of Atlanta, Ga., and Bryan S. Kees, 36, of Savannah, Ga., for participating in an ATM skimming operation and targeting SunTrust ATMs in metro Atlanta, Savannah, Ga., and Florida. Bailey and Ellis received mail at the UPS Store box where the skimming equipment arrived from Bulgaria. The investigation also determined that these three defendants assisted Palazov and Iliev in fleeing the United States after their indictment. An additional 500 victims are linked to Bailey, Ellis, and Kees from the SunTrust ATMs.
Sentencing for Filtshev, Atanasov, Palazov, and Wohrman is scheduled for March 26, 2014, at 2 p.m. before United States District Judge Orinda D. Evans.
This case is being investigated by Special Agents of the United States Secret Service.Assistant United States Attorneys Stephen H. McClain and Christopher C. Bly are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Clinton Drug Dealer Exiled to over 29 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Shaun Orlando Grier, age 46, of Clinton, Maryland, today to 350 months in prison followed by eight years of supervised release for possession with intent to distribute phencyclidine, commonly referred to as PCP; possession with intent to distribute cocaine base, commonly referred to as crack; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking offense. Judge Williams enhanced Grier’s sentence upon finding that he is an armed career criminal based on five previous drug, gun and violent crime offenses.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Chief Mark A. Magaw of the Prince George's County Police Department; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Prince George's County State’s Attorney Angela D. Alsobrooks.
According to evidence presented at his six day trial, on February 27, 2013, after a K-9 dog alerted to a package Grier sent and a search warrant was obtained, U.S. Postal Inspection Service opened the package and found $30,000. A search warrant was obtained for Grier’s residence and agents seized 21.6 grams of PCP; 54.6 grams of crack; numerous Ziploc bags containing a total of .78 grams of cocaine hydrochloride, 0.76 grams of heroin, 0.43 grams of crack, 1.44 grams of heroin and marijuana; drug paraphernalia; a loaded pistol; and a box of bullets. From Grier’s car, agents also seized a back pack containing a bottle which contained 24.2 grams of PCP, a plastic bag containing approximately 164.2 grams of marijuana, a scale, a revolver and a loaded pistol.
United States Attorney Rod J. Rosenstein commended the DEA, U.S. Postal Inspection Service - Washington Division, the Prince George's County Police Department, IRS- Criminal Investigation and Prince George's County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted the case.
Child Sex Trafficker Sentenced to over 21 Years in PrisonRead the Press Release
Prostituted a 13 Year Old Girl and Gave Her Alcohol and Drugs
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Daniel Burton, a/k/a Snoop, age 30, of Capitol Heights, Maryland today to 262 months in prison followed by lifetime supervised release. Judge Chasanow ordered that upon his release from prison, Burton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“This is an egregious case because the ‘prostitute’ was a 13- year old child,” said U.S. Attorney Rod J. Rosenstein. “The lengthy sentence should send a powerful message that sex trafficking of children will not be tolerated in Maryland.”
According to his plea agreement, in March 2008, Burton asked a 13 year old girl walking near her home for her phone number, which she provided. Burton began calling the girl and eventually recruited her to work as a prostitute. Burton drove her to hotels, photographed her in lingerie, and advertised her on Craigslist for sexual services. The girl had sex with many clients that responded to the ads and Burton kept all the money she earned. Burton provided the girl with alcohol, marijuana and ecstasy.
On April 1, 2008, police responded to a complaint at a hotel where they found Burton and the girl in a room. Burton claimed the girl was a relative and police arranged for the girl to return home. Burton subsequently picked the girl up at her home and continued prostituting her.
On April 8, 2008, law enforcement saw a Craigslist ad for the girl’s sexual services and arranged a “date.” Law enforcement arrived at the hotel and arrested Burton who was sitting outside.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Kristi N. O’Malley who prosecuted the case.
Beckley Man Enters Federal Guilty Plea in Connection with Arson SchemeRead the Press Release
Defendant Antonio Wade set fire to apartment stairway; the residence was occupied by his acquaintance and a child
CHARLESTON, W.Va. – A 29-year-old man who in August 2013 deliberately set fire to clothing located beneath the entrance of a Charleston apartment where his acquaintance and a child resided at the time pleaded guilty to a federal arson charge, U.S. Attorney Booth Goodwin announced today. Antonio LeJune Wade, of Beckley, pleaded guilty today in front of United States District Court Judge John T. Copenhaver, Jr. in Charleston. Wade was charged in a one-count indictment in October.
On August 25, 2013, Wade intentionally set fire to clothing that he placed beneath a wooden staircase, causing the steps connected to a 6th Avenue apartment in Charleston to catch fire. The staircase served as the sole entrance and exit to the residence. Wade told police that he knew the apartment was occupied by his acquaintance and a toddler at the time he set the blaze.
Members from the Charleston Police Department and the Charleston Fire Department responded to the scene and contained the fire. The individuals who were inside of the apartment at the time were uninjured.
Wade faces a mandatory minimum of five years in prison when he is sentenced on April 2, 2014.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department conducted the investigation. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
Atlanta Man Charged in Nationwide Identity Theft SchemeRead the Press Release
Shabazz Deceived Prisoners into Applying for “Prisoner Benefits” and Used Their Information to Seek Over $12 Million in False Tax Refunds
ATLANTA - Qadir Shabazz had his initial appearance today on federal charges of conspiracy to defraud the Internal Revenue Service, wire fraud, aggravated identity theft, and theft of government funds.
United States Attorney Sally Quillian Yates said, “This defendant is charged with concocting a scheme that used the identities of inmates in prisons across the country to file fraudulent tax returns that in total sought millions of dollars in tax refunds. With the tax filing season rapidly approaching, identity thieves like him should be aware that there are severe consequences for those who seek to steal government funds using stolen identities.”
“Individuals who commit refund fraud and identity theft of this magnitude will be prosecuted to the fullest extent of the law,” stated Veronica F. Hyman-Pillot, IRS Special Agent in Charge of the Atlanta Field Office. “We, along with our law enforcement partners and the United States Attorney’s Office, will continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen.”
“The U.S. Postal Inspection Service is committed to bringing to justice those who use the U.S. mail to commit identity theft and defraud the government of money that rightfully belongs to taxpayers,” said George Frazier, Assistant Postal Inspector in Charge of the Atlanta Field Office.
According to United States Attorney Yates, the charges, and other information presented in court: From November 2009 through May 2012, Shabazz orchestrated a nationwide scheme to file thousands of false and fraudulent federal income tax returns that claimed millions of dollars in fraudulent refunds. Shabazz, and others conspiring with him, operated a business named “Indigent Inmate” in the state of Georgia. Working through Indigent Inmate, Shabazz distributed literature and applications to prisoners located in incarceration facilities throughout the United States. Prisoners were told that if they submitted their names, social security numbers, and dates of birth to Indigent Inmate they would be eligible for prisoner benefits. As a result, prisoners submitted over 13,000 applications to Indigent Inmate seeking these benefits.
Shabazz, and others working with him, used the prisoners’ personal information to file over 2,000 false federal income tax returns that claimed over $12,000,000 in fraudulent refunds. These tax returns listed addresses in Georgia, Pennsylvania, and Tennessee that were under the control of Shabazz and others working with him.
Shabazz, 38, of Atlanta, Georgia, was indicted by a federal grand jury on November 5, 2013. The indictment charges one count of conspiracy to defraud the IRS, 15 counts of wire fraud, 15 counts of aggravated identity theft, and two counts of theft of government funds. Each wire fraud count carries a maximum sentence of 20 years in prison, each theft of government funds count carries a maximum sentence of 10 years in prison, and the conspiracy count carries a maximum sentence of 5 years of incarceration. The aggravated identity theft charges carry at least one mandatory two-year consecutive sentence to any other sentence imposed. Each count also carries a fine of up to $250,000. The United States is also seeking the forfeiture of all funds derived from or involved in this scheme.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation, United States Postal Inspection Service, and Georgia Department of Revenue, Office of Special Investigations. The Office of the Attorney General for the Commonwealth of Pennsylvania and the Office of Pennsylvania Department of Revenue, Bureau of Criminal Tax Investigations uncovered this scheme and launched a separate state investigation.
Assistant United States Attorneys Thomas J. Krepp and Mary L. Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
2013 WAY Inauguration at John F. Kennedy High SchoolRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, was the guest speaker on October 12, 2013 at the Inauguration and Swearing-in Ceremony of the “We Are You” (WAY) Officers of John F. Kennedy High School.
U.S. Attorney Limtiaco congratulated the newly admitted officers and acknowledged their families and friends who continue to support them as they pursue their educational, professional and personal aspirations and, as they embark on their journey as WAY officers to represent and serve their fellow students, and collaborate with the administration, faculty and Parent Teacher School Association of John F. Kennedy High School.
U.S. Attorney Limtiaco encouraged the students to realize that “there is a larger value to learn about the world we live in – that it is a world full of different cultures, customs, economies, political and legal systems. And, most of all, a world of different, unique people all trying to carve out their own independent lives in their own unique societies. How people interact and relate to each other matters.”
She shared, “Each one of you is embarking on your next journey as a leader and representative of your fellow students – to serve and engage your fellow students in the dialogue of issues that affect and have an impact – on each one of you as students, on your school, on your community, on humanity and on the world.” She quoted President John F. Kennedy, “Leadership and learning are indispensable to each other.” “Change is the law of life and those who look only to the past or the present are certain to miss the future.”
U.S. Attorney Limtiaco encouraged the WAY officers to “represent, serve and lead their follow students with integrity, dignity, and respect. Stay grounded – listen and learn from those you represent – your fellow students; and from each other. Ask yourselves what you and WAY can do to make a positive impact – to make a positive change – in the lives of your fellow students, our community and the world; that will be your legacy and make a difference for future generations of students at John F. Kennedy High School and our island.”
Photo of U.S. Attorney Alicia Limtiaco, together with one of the newly admitted officers, Pim Limtiaco is attached.
1 January 2014
Tax Preparers Indicted for Stolen Identity Refund FraudRead the Press Release
January 1, 2014Montgomery, Alabama - Two women from Phenix City, Alabama, were indicted yesterday for their involvement in a stolen identity refund fraud scheme (SIRF), U.S. Attorney George L. Beck Jr. for the Middle District of Alabama, and Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division announced today following the unsealing of the indictment.
Teresa Ann Floyd (52) and her daughter, Lasondra Miles Davis (37), were charged with conspiracy to submit false claims, wire fraud, and aggravated identity theft. Floyd was also charged with theft of public money.
According to the superseding indictment, Floyd and Davis operated several tax preparation businesses in the Phenix City area, including T & L Tax Service and T & C Used Cars & Tax Service. Floyd and Davis obtained stolen identities and used those identities to file more than 900 federal income tax returns that claimed more than $2.5 million in tax refunds. To obtain the money from the scheme, the defendants applied for bank products from various financial institutions, which provided to the defendants blank check stock. The bank products allow a tax preparer to deduct their fees directly from a tax refund and then print out the remainder of the refund as a check. Floyd and Davis created fictitious identification documents and bills to provide to the financial institutions in an attempt to verify that the returns were filed in the names of legitimate customers. The defendants then had those fraudulent checks cashed at several businesses in Alabama and Georgia. Floyd also deposited fraudulent income tax refund checks into her bank account.
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, the defendants face a statutory maximum sentence of 10 years in prison for the conspiracy to file false claims count, a statutory maximum sentence of 20 years in prison for each wire fraud count, a statutory maximum sentence of 10 years in prison for each theft of public money count, and a mandatory sentence of two years in prison for the aggravated identity theft counts. The defendants are also subject to fines, forfeiture and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorney Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Odebolt Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Text of the pA man who conspired to distribute methamphetamine was sentenced on December 19, 2013, to more than twelve years in federal prison.
Kevin Schimerowski, 46, from Odebolt, Iowa, received the prison term after an August 28, 2013, guilty plea to conspiring to distribute methamphetamine.
At the plea hearing, Schimerowski admitted his involvement in a conspiracy from about 2012 through April 2013 that distributed more than five grams of actual (pure) methamphetamine. On three occasions in February 2013, Schimerowski distributed over five grams actual (pure) methamphetamine to individuals cooperating with law enforcement.
Schimerowski was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Schimerowski was sentenced to 144 months’ imprisonment. A special assessment of $100 was imposed. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Schimerowski must also serve an additional 6 months’ imprisonment for revocation proceedings on a prior federal conviction of conspiracy to distribute at least 50 grams of methamphetamine.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Shelby County Sheriff’s Office, Denison Police Department, Harrison County Sheriff’s Office, Sac County Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4038.
Man Pleads Guilty for Involvement in Identity Theft SchemeRead the Press Release
January 1, 2014Montgomery, Alabama - Robert Bernard Walker (33), of Columbus, Georgia, pleaded guilty yesterday to one count of conspiracy to file false claims and one count of aggravated identity theft for his involvement in a stolen identity tax refund fraud (SIRF) scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama, and Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division.
According to the court documents, between January 2011 and December 2013, Walker and his co-conspirators filed false tax returns using stolen identities. One co-conspirator obtained stolen identities from various sources, including the identities of employees from a Columbus, Georgia, company. In order to file the false tax returns, Walker and his co-conspirators obtained Electronic Filing Identification Numbers (EFIN) in the names of several sham tax businesses. The co-conspirators applied for bank products from various financial institutions, which mailed blank check stock and prepaid debit cards. The anticipated tax refunds were directed to financial institutions, which in turn issued the refunds using checks or prepaid debit cards. Walker and his co-conspirators cashed the fraudulent checks at several businesses located in Alabama. Walker also deposited fraudulent refund checks into a bank account he controlled.
Walker’s sentencing is scheduled for Feb. 5, 2015 where he will face a maximum sentence of 10 years in prison for the conspiracy to file false claims count, and a mandatory sentence of two years in prison for the aggravated identity theft counts. Walker is also subject to fines, forfeiture, and restitution.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Michael Boteler, Charles M. Edgar Jr. and Gregory Bailey of the Tax Division are prosecuting the case with the assistance from Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Woodruff Arts Center Employee Sentenced for EmbezzlementRead the Press Release
ATLANTA - Ralph Clark has been sentenced for embezzling more than $1.1 million from the Woodruff Arts Center while serving as the Center’s Director of Facilities.
“When the defendant embezzled over $1 million from the Woodruff Arts Center, he not only stole from the Arts Center, but the entire community served by the Center,” said United States Attorney Sally Quillian Yates. “His greed and betrayal has fairly landed him in prison.”Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing brings to close an unfortunate tale of betrayal and greed. This case, in addition, illustrates the FBI’s responsiveness to assist those non-profit organizations, such as the Woodruff Arts Center, when needed.”
According to United States Attorney Sally Quillian Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark, 42, of Ellenwood, Ga., embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business - Lowe’s Services - which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received an invoice, it generated checks from Woodruff’s checking account. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark was sentenced by United States District Judge Julie E. Carnes to two years, six months in prison to be followed by three years of supervised release, and was ordered to pay approximately $1 million in restitution. Clark was convicted of these charges on April 23, 2013, upon his plea of guilty.This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy 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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Arizona Systems Administrator Pleads Guilty to Sabotaging Ex-Employer’s Cloud-Computing ServerRead the Press Release
ALEXANDRIA, Va. – Jonathan Hartwell Wolberg, 31, of Tucson, Az., pleaded guilty today to intentionally causing damage to a protected computer.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Wolberg was indicted on August 22, 2013 by a federal grand jury on charges related to computer hacking. Wolberg faces a maximum penalty of 10 years’ imprisonment when he is sentenced on April 11, 2013.
According to the indictment and a statement of facts filed with the plea agreement, Wolberg formerly worked as a systems administrator for a company identified as “Company A,” a cloud-computing services provider headquartered in the Eastern District of Virginia. After resigning, Wolberg continued to enter the networks of Company A for the purpose of damaging its servers, its reputation, and its business. From about March 16, 2012 through about August 1, 2012, Wolberg encouraged Company A’s customers to leave and secretly logged into Company A’s server to issue a shutdown command to a key data server. As a result, he shut down Company A’s customer networks, making key information – including that of hospitals responsible for surgery and other urgent patient care – unavailable for at least several hours. Wolberg caused hundreds of thousands of dollars of damage as a result.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Alexander T.H. Nguyen and Trial Attorney Richard D. Green, on detail from the Justice Department’s Computer Crime and Intellectual Property Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Alabama Woman Convicted of Stolen Identity Refund FraudRead the Press Release
January 1, 2014Montgomery, Alabama - A jury found a Dothan, Alabama woman guilty of conspiring to defraud the government through the filing of false tax returns, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today.
Nina Macena, 32, was also found guilty of three counts of wire fraud and three counts of aggravated identity theft.
According to evidence from the trial, Macena provided stolen identities to Ivory Bolen, also of Dothan, who used the identities to file false tax returns that fraudulently requested refunds from the government. Bolen would attempt to have the refunds deposited onto prepaid debit cards, which would be mailed to addresses controlled by Bolen and Macena. Macena obtained the identities from Roderick Neal, a former bail bondsman in Dothan, who had access to the personal information of individuals who had been detained at the Dothan City Jail. Both Bolen and Neal previously pleaded guilty to their involvement in the scheme.
The evidence from the trial also showed that Bolen, acting at the direction of law enforcement, made several phone calls to Macena asking her to obtain more identities. Macena agreed to do so and said she would attempt to get more identities from a “friend” at “the bonding company.” Macena also stated in the calls that she had stolen identities in a storage unit. The next day federal agents executed a search warrant at Macena’s storage unit and seized stolen identities and prepaid debit cards in the names of victims of the scheme. Altogether, Bolen filed tax returns claiming more than $300,000 in refunds using the stolen identities provided by Macena. The Internal Revenue Service (IRS), however, successfully stopped a number of the fraudulent returns.
Macena testified in her own defense at trial and admitted that she had obtained information from Neal for Bolen, but claimed that she was unaware of the nature of the information. She also testified that she stored items for Bolen in her storage unit, but that she was unaware of what she was storing.
Macena was ultimately convicted by the jury on all counts in the indictment. At sentencing Oct. 23, she faces a statutory maximum sentence of 10 years in prison for the conspiracy count, a statutory maximum sentence of 20 years in prison for the three wire fraud convictions and a mandatory sentence of two years in prison for the aggravated identity theft convictions. Her actual sentence, however, will be decided by a federal judge after considering the federal sentencing guidelines and statutory sentencing factors.
This case was investigated by special agents of the IRS - Criminal Investigation. Trial Attorneys Jason Poole and Charles Edgar of the Tax Division prosecuted the case with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
31 December 2013
White County Man Arrested on Child Exploitation ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on December 28, 2013, Gary Richard Walters, 39, of Norris City, Illinois, was charged by the United States Attorney in a two-count Criminal Complaint, filed in United States District Court, with child exploitation.
Count 1 of the Complaint charged Walters with Production of Child Pornography. Count 1 charged that on or about July 6, 2013, in White County, Walters did knowingly employ, use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct, and the visual depiction was transported or transmitted using any means and facility of interstate.
Count 2 of the Complaint charged Walters with Distribution of Child Pornography. Count 2 charged that on or about July 6, 2013, in White County, Walters did knowingly distribute child pornography that has been shipped or transported in or affecting interstate commerce by any means, including by computer, to-wit: a video file of an adult male performing oral sex on a prepubescent male's penis.
Walters had an initial appearance in United States District Court in Benton, Illinois, on December 30, 2013. The Magistrate Judge ordered that Walters be held in custody pending further proceedings in this matter.
A Criminal Complaint is simply a charge filed against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
If convicted of Count 1, Walters faces from 15 to 30 years in prison, up to a $250,000 fine, and up to lifetime supervised release. If convicted of Count 2, Walters faces from 5to 20 years in prison, up to a $250,000 fine, and up to lifetime supervised release.
The investigation in this case was conducted by the Federal Bureau of Investigation. This case is part of Project Safe Childhood, in which the United States Attorney=s Office, in conjunction with federal and state law enforcement authorities, is actively investigating and prosecuting individuals who are involved in the exploitation of children. The case is being prosecuted by Assistant United States Attorney George A. Norwood.
Pierre Man Indicted on Controlled Substance ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance Near a School and Distribution of a Controlled Substance Near a School.
Juan Howell, age 29, was indicted on December 10, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 20, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $500,000 fine, 4 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in 2012, Howell conspired to and did distribute marijuana, a Schedule I controlled substance, within 1,000 feet of an elementary school.
The charges are merely an accusation and Howell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Howell was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
North Dakota Man Sentenced for Possession of A Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a North Dakota man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Virgil Running Bear, Jr., age 40, was sentenced to 57 months of imprisonment, 3 years of Supervised Release, and a $100 special assessment to the Federal Crime Victims Fund.
Running Bear was indicted by a federal grand jury on May 15, 2013. He pled guilty on September 23, 2013.
The conviction stems from a December 10, 2012, incident wherein the Edmunds County Sheriff’s Office was called to investigate a report of a vehicle in a ditch near Ipswich, South Dakota. When a deputy sheriff reviewed Running Bear’s driver’s license and registration, he learned that Running Bear had a revoked license and was on federal probation. After receiving permission, the deputy searched Running Bear’s vehicle and found three firearms and assorted ammunition, which he was prohibited from possessing. The weapons had been transported through interstate commerce and functioned properly.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Edmunds County Sheriff’s Office. Assistant U.S. Attorney Kathryn Rich and First Assistant U.S. Attorney Randolph Seiler prosecuted the case.
Running Bear was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Eugene Featherman, age 25, was indicted by a federal grand jury on September 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 24, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a term of supervised release of at least 5 years up to life, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on or about between June 13, 2013, and September 17, 2013, Featherman, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Featherman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Featherman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Missing Georgia Bank Director, Accused of Embezzling More Than $20 Million, Arrested in BrunswickRead the Press Release
SAVANNAH, GA: AUBREY LEE PRICE, 47, originally from Lyons, Georgia, who was indicted in July 2012 by a federal grand jury sitting in the Southern District of Georgia on a charge that he defrauded the Montgomery Bank & Trust, Ailey, Georgia, of over $21 million, was arrested today by members of the Glynn County Sheriff’s Department conducting a random vehicle and traffic stop.
According to the allegations in the Indictment against PRICE, in 2010, an investment group controlled by PRICE invested approximately $10 million in the failing Montgomery Bank & Trust (“MB&T”). PRICE was then made a director of MB&T and put in charge of investing the bank’s capital. Over the next eighteen months, PRICE stole, misappropriated and embezzled over $21 million from MB&T. To cover up his fraud, PRICE provided MB&T officials with bogus account statements which falsely indicated the bank’s capital was safely held in an account at a financial services firm.
Before today’s arrest, PRICE was last seen in June 2012, boarding a ferry terminal in Key West, Florida, bound for Fort Myers, Florida. PRICE disappeared after writing a letter to acquaintances and regulators that he had lost a large amount of money, and that he planned to take his own life.
The FBI has been actively searching for PRICE since the date of his disappearance. PRICE was arrested by deputies from the Glynn County Sheriff’s Department on Interstate 95 in Brunswick, Georgia, for a vehicle and traffic violation. When deputies learned of PRICE’s true identity, he was taken into custody.
PRICE will make his initial appearance on the federal arrest warrants on January 2, 2013, at 10:00 a.m., at the federal courthouse in Brunswick, Georgia.
In the Southern District of Georgia, PRICE is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison and a fine of up to $1,000,000. PRICE faces additional charges in New York. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.The indictment of PRICE arises out of an ongoing and joint investigation by FDIC-OIG Special Agent John Crawford; Federal Reserve Board OIG Special Agent Amy Whitcomb; and, FBI Special Agent Ed Sutcliff. First Assistant United States Attorney James Durham and Assistant United States Attorney Brian Rafferty are prosecuting the case for the United States.
Marion Man Sentenced in Methamphetamine Conspiracy CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Marion, South Dakota, man convicted of conspiracy to distribute 500 grams or more of methamphetamine was sentenced on December 30, 2013, by U.S. District Court Judge Karen E. Schreier.
Larry Wayne Alver, age 37, was sentenced to 120 months in custody to be followed by 5 years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Alver was indicted by a federal grand jury on May 8, 2013, of Conspiracy to Distribute a Controlled Substance. He pled guilty on September 9, 2013.
During his involvement in the conspiracy, Alver purchased methamphetamine from a co-conspirator and distributed it. He also facilitated the distribution of methamphetamine by introducing his source of supply to another dealer.
This case was investigated by the Sioux Falls Police Department, the South Dakota Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak prosecuted the case.
Alver was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Man Sentenced for Possession of A Controlled Substance AnalogueRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Possession of a Controlled Substance Analogue was sentenced on December 23, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Joshua Brouse, age 30, was sentenced to 4 months in custody, 1 year of Supervised Release, a $1,000 fine, and a $25 special assessment to the Federal Crime Victims Fund.
Brouse was indicted by a federal grand jury on May 15, 2013. He pled guilty on November 26, 2013.
On February 22, 2013, a package addressed to Brouse was delivered by FedEx to the Lower Brule Tribal Building. Brouse attempted to retrieve the package from law enforcement by personally coming to the tribal building and by sending others to retrieve the package. After obtaining a search warrant, law enforcement discovered the package contained 24 sealed plastic bottles containing approximately 4 grams each of XLR-11. XLR-11 is a Schedule I controlled substance analogue. Brouse knowingly purchased and attempted to possess the XLR-11 substance.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Brouse is to self-report to the custody of the U.S. Marshals Service by noon on December 30, 2013.
Irene Man Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Irene, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 23, 2013, by U.S. District Judge Karen E. Schreier.
Zurcher was immediately turned over to the custody of the U.S. Marshals Service.
Jeremy Eric Zurcher, age 24, was sentenced to 168 months in custody to be followed by 5 years of supervised release.
Zurcher was indicted by a federal grand jury on July 9, 2013, for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine. He pled guilty on October 4, 2013.
As his part in the conspiracy, Zurcher purchased over 500 grams of methamphetamine and distributed it to customers in Sioux Falls.
This case was investigated by the Sioux Falls Police Department, the Nebraska State Patrol, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak prosecuted the case.