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Thursday 31 October 2013
Wyoming Men Plead Guilty to Involuntary Manslaughter and Aiding and AbettingRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on October 29, 2013, Alan Brown, 61, and his brother Vernon Lee Brown, 54, both Northern Arapaho Tribal Members, pled guilty in federal court to an Information charging them with one count of Involuntary Manslaughter and Aiding and Abetting (Alan Brown) and Involuntary Manslaughter (Vernon Brown), in violation of 18 U.S.C. §§ 1112, 1153 and 2. The charges against Alan and Vernon Lee Brown stem from an incident that occurred on or about May 6, 2006, which resulted in the death of Tad Paul Barnson, 47, who was originally from Idaho Falls, Idaho, but resided in and around Riverton, Wyoming at the time of his death. Alan and Vernon Lee Brown are Wind River Indian Reservation inhabitants, but are not believed to have any permanent residence. This crime is alleged to have occurred on the Wind River Indian Reservation. Alan and Vernon Lee Brown are each facing a maximum sentence of eight (8) years imprisonment, and could be ordered to pay restitution, a fine and special assessment. This case was investigated by the Federal Bureau of Investigation.
Winchester Man Convicted of Distributing Heroin Resulting in DeathRead the Press Release
Defendant will receive a minimum of 20 years in prison
LEXINGTON, KY - A federal jury convicted a Winchester, KY., man today of distributing heroin that resulted in an overdose death.
The jury convicted 53 year-old Harold Wayne Salyers on Wednesday evening for distribution of heroin resulting in death, conspiracy to distribute heroin, possession with intent to distribute heroin and distribution of heroin. The jury returned the verdict after approximately three hours of deliberation following two days of trial.
According to testimony, in August of 2012, Salyers distributed heroin to an individual in Clark County who used the heroin, overdosed and died. Evidence at trial established that three individuals witnessed the victim ingest the heroin and that the day after the victim died, Salyers admitted to one of the witnesses, in a recorded conversation, that he distributed the heroin to the victim.
Experts from the Medical Examiner’s Office and the toxicologist testified that the victim’s death was caused by the toxic effects of heroin in the victim’s body.
Evidence further established that Salyers conspired with others to distribute heroin in Clark County from approximately August 2012 until June 2013.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration; and Kevin Palmer, Chief, Winchester Police Department, jointly made the announcement today.
The investigation was conducted by the DEA and the Winchester Police Department. The U.S. attorney’s office is represented by Assistant U.S. Attorney Todd Bradbury.
Salyers’ sentence is scheduled for January. The distribution of heroin resulting in death offense carries a minimum of 20 years in prison and maximum of life. He faces a maximum of 20 years on the other heroin charges. However, any sentence following a conviction would be imposed after the Court considers the U.S. Sentencing Guidelines and the federal statutes.
Wethersfield Woman Who Assisted in Fraud Scheme Sentenced to 30 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that SUNITA D. BUDDHU, 43, of Wethersfield, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by five years of supervised release, for helping her father, Deowraj “Deo” Buddhu , operate a fraudulent debt elimination scheme that victimized more than 125 people in Connecticut, New York, Wisconsin, Florida and Georgia.
According to court documents and statements made in court, between 2009 and June 2012, Deo Buddhu sold a debt elimination “program” to vulnerable individuals through various businesses, including Paradise Consulting Service, Hema, Inc., and Secured Redemption. In exchange for substantial fees, Deo Buddhu told victims about a little-known government fund that could be used to pay off their mortgages and other debts. In fact, no such fund exists. Buddhu instructed his victims to stop making payments on their mortgages, credit cards and other debts, and to stop paying their property taxes. He also provided his victims with fictitious promissory notes, which he called “bonds,” as well as other frivolous documentation, and advised his victims to use them to pay their debts.
Using her Connecticut Notary Public license, SUNITA BUDDHU assisted her father in the business by preparing, notarizing and mailing the fraudulent documents used in the scheme, including the fictitious bonds.
By ceasing their mortgage payments and other obligations, many of the victims have lost or are in the process of losing their homes to foreclosure.
SUNITA BUDDHU has been detained since her arrest on June 13, 2012. On October 10, 2012, she pleaded guilty to one count of passing and presenting a fictitious financial instrument.
On June 25, 2013, a jury found Deo Buddhu guilty of six counts of mail fraud and seven counts of passing and presenting fictitious financial instruments. He is scheduled to be sentenced on November 4, 2013.
Deo Buddhu has been detained since his arrest on June 11, 2012.Judge Thompson will issue a restitution order after further court proceedings.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General, with assistance from the Wethersfield Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Lisa Perkins and Liam Brennan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Wanblee Man Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man convicted of Distribution of a Controlled Substance was sentenced on October 24, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Steven James Bull Bear, age 48, was sentenced to time served, 2 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
On November 5, 2012, Bull Bear sold 26.6 grams of marijuana near Kyle, South Dakota, to an individual cooperating with law enforcement officers. Bull Bear pled guilty to the charge Distribution of a Controlled Substance on July 16, 2013.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.United States Attorney RichardS. Hartunian, Troy Mayor Lou Rosamilia and Troy Police Commissioner Anthony D. Magnetto will be holding a press conferenceRead the Press Release
ALBANY, NEW YORK- United States Attorney RichardS. Hartunian announces he will hold a press conference with Troy Mayor Lou Rosamilia and Troy Police Commissioner Anthony D. Magnetto on Friday, November 1st at 10 AM at the Troy Middle School, 1976 Burdett Avenue, Troy, NY 12180.
Press releases and additional information will be available at the press conference.
PRESS CONFERENCE
FRIDAY, NOVEMBER 1sT
10:00 am
TROY MIDDLE SCHOOL
Troy Room
1976 Burdett Avenue, Troy, NY 12180United States Attorney Remarks Regarding Kendrick Johnson InvestigationRead the Press Release
Good afternoon. I’m Michael Moore, the United States Attorney for the Middle District of Georgia. This afternoon I want to make a few remarks concerning the investigation into the death of
Kendrick Johnson. Let me take a minute to thank you for the interest you have shown in this matter, and for coming today.As you know, the body of Kendrick Johnson was found by students on January 11, 2013, in the gym of the Lowndes County High School.
The Lowndes County Sheriff’s Department conducted an investigation into the circumstances surrounding Mr. Johnson’s death. As is customary, a GBI pathologist conducted an autopsy of the body. The investigators concluded that Kendrick Johnson’s cause of death was positional asphyxia, as a result of becoming accidentally lodged in the mat.
Shortly after the results of the autopsy were released, and the investigation closed by the Lowndes County Sheriff’s Department, my office was contacted by the family’s attorney who requested a review of the local investigation.
At that time, I requested and received a copy of the complete investigative file from the Lowndes County Sheriff’s Department. The investigative file included reports, photographs, videos, statements, and a number of other records.
In late August, I received a copy of the second autopsy report, which reached a different conclusion as to the cause of Kendrick Johnson’s death.
For several months now, my office has been continuously engaged in obtaining and reviewing all of the evidence, case reports, and other investigative findings that are available pertaining to the death of Kendrick Johnson. Those efforts are ongoing.
As part of that process, there are several questions that must be answered or confirmed. First, what was the cause of Mr. Johnson’s death? Second, was Mr. Johnson’s death the result of a crima? Third, if Mr.
Johnson’s death was the result of a crime, who committed that crime? Fourth, if a crime was committed, who has the jurisdiction to investigate and prosecute those responsible?
Federal jurisdiction is limited, and there may be circumstances where even if it is determined that Kendrick Johnson died as a result of a criminal act, it may not be a crime which could be prosecuted in federal court.
My office has received and reviewed the official documents and conclusions resulting from the initial investigation. I have personally reviewed these documents and have spoken to individuals involved in this investigation.
I have offered, through their attorney, to meet with the Johnson family. I have met with the family’s investigator and reviewed a number of documents that he has provided. I asked the attorney representing the family to provide me with the full report from his investigator and any other evidence or information which he has developed. I received this information two weeks ago.
We have also asked the public to come forward with any additional information they may have. We are reviewing hundreds of telephone calls we have received about the case to determine if any relevant information exists. If anyone has factual and specific information relating to Mr. Johnson’s death, please contact my office at (478) 621-2701.
Many people have already called to express their concerns, fears and opinions about Mr. Johnson’s death and the subsequent investigation. We appreciate the depth of the concern these callers have expressed, but at this time what we need are people with actual facts and knowledge of the circumstances surrounding Mr. Johnson’s death to present those to us. Facts, not feelings and opinions, no matter how sincere, are the basis of a legal investigation.
At this time, I am of the opinion that a sufficient basis exists for my office to conduct a formal review of the facts and investigation surrounding the death of Kendrick Johnson. I do this with an open mind, neither accepting nor rejecting the opinions of anyone who has previously investigated the circumstances of Mr. Johnson’s death.
At my request, the FBI is cooperating with us in our efforts. Should sufficient information be developed to warrant a criminal civil rights investigation, I will ask the FBI to open a civil rights, or any other appropriate, investigation.
As the United States Attorney, and within the confines of appropriate federal jurisdiction, I am committed to following the facts wherever they may lead. My objective is to discover the truth, and I believe that can only be done by gathering all of the relevant information surrounding Mr. Johnson’s death. I am committed to doing everything in my power to answer the questions that exist in this case, or as many of them that we can.
As those of you who have covered my office or the Department of Justice in general know, we do
not typically comment on pending investigations. Because this is now an ongoing investigation, I am not going to take any questions at this time. Going forward, I will not be making any public comments about this matter until my investigative review is complete.I want to assure each of you, Mr. Johnson’s family, the law enforcement agencies, the local community and all of those who are interested in or have been affected by these tragic circumstances that my goal is to follow the facts, apply the law, and protect the independence and objectivity of the investigative process.
Thank you all very much.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
US Government Intervenes in False Claims Lawsuit Against United States Investigations Services for Failing to Perform Required Quality Reviews of Background InvestigationsRead the Press Release
Washington - The government has intervened in a lawsuit filed under the False Claims Act against United States Investigations Services LLC (USIS) in the U.S. District Court for the Middle District of Alabama, the Department of Justice announced today. The lawsuit alleges that USIS, located in Falls Church, Va., failed to perform quality control reviews in connection with its background investigations for the U.S. Office of Personnel Management (OPM).
The lawsuit was filed by a former employee of USIS, Blake Percival, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties, known as relators, to sue on behalf of the government when they believe false claims for government funds have been submitted. The private party is entitled to receive a share of any funds recovered through the lawsuit. The False Claims Act also permits the government to investigate the allegations made in the relator’s complaint and to decide whether to intervene in the lawsuit, and to recover three times its damages plus civil penalties. The government is intervening now based on the results of its investigation of the relator’s allegations and has requested that the court give it until Jan. 22, 2014, to file its own complaint.
“We will not tolerate shortcuts taken by companies that we have entrusted with vetting individuals to be given access to our country’s sensitive and secret information,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Justice Department will take action against those who charge the taxpayers for services they failed to provide, especially when their non-performance could place our country’s security at risk.”
Since 1996, USIS has contracted with OPM to perform background investigations on individuals seeking employment with various federal agencies. Executed in 2006, the contract at issue in the lawsuit required USIS to conduct the investigatory fieldwork on each prospective applicant. It also required that a trained USIS Reviewer perform a full review of each background investigation to ensure it conformed to OPM standards before sending the file back to OPM for processing.
According to the relator’s complaint, starting in 2008, USIS engaged in a practice known at USIS as “dumping.” Specifically, USIS used a proprietary computer software program to automatically release to OPM background investigations that had not gone through the full review process and thus were not complete. USIS allegedly would dump cases to meet revenue targets and maximize its profits. The lawsuit alleges that USIS concealed this practice from OPM and improperly billed OPM for background investigations it knew were not performed in accordance with the contract.
“Thorough, appropriate and accurate background checks are essential in the employment of government personnel,” said George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. “The increase in foreign and domestic terrorism places an increased responsibility on our government to ensure that unsuitable individuals are prohibited from government employment.”
“This is a clarion call for accountability,” said Patrick E. McFarland, Inspector General of OPM. “As recent events have shown, it is vital for the safety and security of Americans to have these background investigations performed in a thorough and accurate manner. We can accept no less. Those responsible for any malfeasance that compromises the integrity of the background investigations process must be held accountable.”
“OPM does not tolerate fraud or falsification,” said Elaine Kaplan, Acting Director of OPM. “We work hard to prevent and detect both through a variety of means including a robust integrity assurance program, multiple levels of review and workforce education and training. We also work hand in hand with our Inspector General and the Department of Justice when we discover fraud so that bad actors are held accountable to the fullest extent of the law.”
This matter was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Middle District of Alabama in conjunction with OPM’s Office of Inspector General and Federal Investigative Service.
The claims asserted against USIS are allegations only, and there has been no determination of liability.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617U.S. Secret Service’s National Threat Assessment Center Provides Training to Law Enforcement, School Personnel and Campus Officials in WorcesterRead the Press Release
U.S. Secret Service’s National Threat Assessment Center Provides Training to Law Enforcement, School Personnel and Campus Officials in Worcester
BOSTON – The United States Attorney’s Office, Worcester County District Attorney’s Office, Worcester County Sheriff’s Office and U.S. Secret Service’s Boston office today hosted researchers from the National Threat Assessment Center (NTAC) to provide law enforcement, school personnel and university officials with information on Managing Threatening Situations and Creating Safe School Climates. Over 200 attended the conference which was held at Worcester Technical High School.During the conference, participants were provided information on the foundations of threat assessment which is a behavior-based approach used by law enforcement and others to identify and assess those individuals who pose a risk of engaging in targeted violence. NTAC also highlighted its research related to school safety and the adaption of the threat assessment approach in both K-12 and higher education settings. They also discussed how privacy laws such as HIPAA and FERPA can impact the ability to identify students of concern, and provided participants with information on types of information that can be shared to assist with a threat assessment investigation.
“We are very grateful to the U.S. Secret Service’s NTAC for sharing their expertise on how to develop a comprehensive plan to prevent targeted violence,” said United States Attorney Carmen M. Ortiz. “It is our hope that the information provided today will provide law enforcement, schools and universities with additional tools on how to establish a culture that promotes and implements effective violence prevention and intervention strategies.”
“Having the most innovative programs and best teachers doesn’t matter if we can’t put our children in a safe environment every day,” said Worcester County District Attorney Joseph D. Early Jr. “The experts from the Secret Service gave us a lot of great information today that will help keep our children safe.”"It's an honor for the Sheriff's Office to partner with District Attorney Early, U.S. Attorney Carmen Ortiz and the U.S. Secret Service for the Annual Safe School Summit,” said Worcester County Sheriff Lewis G. Evangelidis. “Today's forum provides us with a great opportunity to share critical public safety information on topics such as violence prevention and emergency response to facilitate a safe school climate. Addressing these important safety issues underscores our commitment to making sure our students and teachers always feel safe and secure in their school environment."
For more information on the National Threat Assessment Center and its research, please visit http://www.secretservice.gov/ntac.shtml
For information on the Department of Justice’s Defending Childhood Initiative, please visit http://www.justice.gov/defendingchildhood/ and
http://www.futureswithoutviolence.org/section/our_work/child_wellbeing/defending_childhood_initiativeU.S. Attorney's Office Reminds New Jersey Voters to Use Election Day Hotline for Complaints of Voting Irregularities or AbusesRead the Press Release
NEWARK, N.J. – Tuesday, Nov. 5, 2013, is New Jersey’s general election, and U.S. Attorney Paul J. Fishman is reminding voters to use the Election Day Hotline if they suspect voter fraud. The U.S. Attorney’s Office will receive and respond to reports of election irregularities, voter intimidation or any other activities that would interfere with a citizen’s right to vote. The Election Day Hotline – (855) 291-6791 – will be active from Nov. 3, 2013, through Nov. 7, 2013, and staffed live on Election Day.
The Department of Justice and federal law enforcement partners will work with county boards of election and the New Jersey Attorney General’s Office to respond to complaints and direct them to the appropriate authority.
The Justice Department seeks to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without discrimination, intimidation or fraud.
Established in 2010, this yearly initiative is intended to foster public confidence in the integrity of the election process by providing local points of contact within the Justice Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
The Justice Department and federal investigative agencies, led by the FBI, work cooperatively with the state Attorney General’s Office, under the direction of Acting Attorney General John Jay Hoffman, to enforce voters’ rights at the polls.13-424
Two Plead Guilty in Wire Fraud SchemeRead the Press Release
LYNCHBURG, VIRGINIA – A pair of men who were returning stolen or clearance items to local home improvement stores for profit pled guilty yesterday in the United States District Court for the Western District of Virginia in Lynchburg to wire fraud charges.
Desirique Darnell Rorie, 38, and Alphonzo Jermaine Christian, 35, both of Charlotte, North Carolina, each pled guilty yesterday to one count of conspiracy to commit wire fraud.
“These two individuals devised a scheme that defrauded a major home improvement store out of more than $400,000.” United States Attorney Timothy J. Heaphy said today. “Through the hard work of law enforcement professionals in multiple jurisdictions, they have been held accountable for their actions.”
Rorie and Christian admitted yesterday to conspiring to defraud Lowe’s Home Improvement stores in Virginia, North Carolina, South Carolina and Georgia. It was part of the scheme for merchandise to either be stolen or purchased on clearance from Lowe’s stores and later returned, at full price, in exchange for Lowe’s gift cards. The gift cards were later sold on the street for cash.
Rorie and Christian also admitted to using several co-conspirators, or “Boosters,” to steal or purchase products on clearance, from Lowe’s stores. They also hired “returners” to return items. These “boosters” and “returners” were paid cash for their services. Often times the “boosters” and “returners” were recruited from homeless shelters, soup kitchens, people off the street or family and friends.
At sentencing, both Rorie and Christian face a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000.
The investigation of the case was conducted by the United States Secret Service, the Roanoke County Police Department and the Roanoke County Commonwealth Attorney’s Office. Assistant United States Attorney Charlene R. Day will prosecute the case for the United States.
Two Jackson Men Plead Guilty in Molotov Cocktail CaseRead the Press Release
Jackson, Miss. -- Joshua Martin, 22, and Lemarkcus Kelly, 22 of Jackson, pled guilty in U.S. District Court today to possession of illegal explosives, specifically Molotov cocktails, announced U.S. Attorney Gregory K. Davis and ATF Special Agent in Charge Phillip Durham.
Martin and Kelly were apprehended on January 23, 2013 by officers from the Jackson Police Department just moments after a shooting occurred in South Jackson. Martin and Kelly were two of the four passengers in the vehicle witnesses reported were outside a South Jackson home into which shots had been fired. When the JPD officers stopped the vehicle, Martin, Kelly, and the two other occupants of the vehicle had in their possession several firearms and glass bottles, which contained gasoline and which were stuffed with shredded clothing material to be used as wicks.
ATF Special Agent in Charge Phillip Durham said: “This joint investigation between ATF, the Jackson Police Department and the Jackson Fire Department illustrates the impact on reducing violent crime when agencies combine and coordinate their skills and resources. This investigation is an example of excellent investigative work, a job well done by the investigators.”
Both defendants will be sentenced by U.S. District Judge Carlton W. Reeves on January 17, 2014, at 9:00 a.m. They each face a maximum sentence of 10 years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Jackson Police Department with the assistance of the Jackson Fire Department. The case was prosecuted by Assistant U.S. Attorneys Mary Helen Wall and Scott Gilbert.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Two Dozen Charged After Dea Task Force Takes Down Coast to Coast Narcotics Distribution RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration in New England, New Britain Police Chief James Wardwell and Wethersfield Police Chief James Cetran today announced that 24 individuals have been charged in a 14-count superseding indictment with narcotics distribution and related offenses stemming from a long-term investigation into a coast to coast drug trafficking ring.
As alleged in court documents and statements made in court, in January 2013, the DEA’s Hartford Task Force began an investigation into the narcotics distribution activities of LUIS FERNANDEZ of East Hartford. The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, revealed that FERNANDEZ’s family members and associates in southern California shipped heroin, cocaine and marijuana to FERNANDEZ at various addresses in the Hartford area. FERNANDEZ also was supplied with narcotics from individuals in New York. FERNANDEZ then sold the drugs to customers in Connecticut.
“Thanks to the diligent efforts of DEA’s Hartford Task Force, a drug pipeline from California to Connecticut has been shut down,” stated acting U.S. Attorney Daly. “All of the police departments who participate on the task force, notably the New Britain and Wethersfield Police Departments whose officers spearheaded this investigation, have devoted significant time and resources to rid our community of narcotics and their negative effects. I also want to thank our many federal and state law enforcement partners who contributed to this successful investigation.”
“Heroin destroys individuals, families and communities,” stated DEA Special Agent in Charge Arvanitis. “DEA and our partners are committed to dismantling criminal organizations that attempt to flood our neighborhoods with heroin and other drugs. These enforcement successes are a direct result of the combined efforts of DEA, along with our state and local partners.”
“The results of the collaborative efforts of the DEA and the local departments continue to bring amazing results,” stated New Britain Police Chief Wardwell. “New Britain’s Detective Frank Bellizzi, who is assigned to the DEA’s task force, represents the New Britain Police Department very well through his professionalism and dedication. I am very proud of Detective Bellizzi’s outstanding work investigating high level drug trafficking, particularly his work in this investigation. The work being done here makes a dramatic impact in all our communities by helping to rid this poison from our streets and reduce violent crimes. The New Britain Police Department remains committed to its partnership with law enforcement agencies on the local, state, and federal level to continue to address these issues as they arise.”
“We made a commitment to the DEA Task Force several years back to help rid our community of the scourge of illegal drugs,” stated Wethersfield Police Chief Cetran. “Arresting local drug users did seem to be making a difference but we could see there had to be more; a two-prong attack. Drugs are a local, regional, and nationwide problem that affects all of our citizens either through direct association with drug users or the crimes related to drug use that include property crimes and crimes against persons. The officer we assigned to the task force, Officer Jeff Poulin, has done an excellent job as part of the team of local, state, and federal investigators overall, and as part of this investigation. We can see the results of the task force’s efforts on daily basis by the number of arrests and convictions in high level trafficking of drugs cases. The results of these arrests and convictions trickle down to the streets of our communities by lessening the availability of illegal drugs to drug users who commit the local crimes. We plan to continue to make this sacrifice and commitment as it is worthwhile and delivers results.”
Charged in the indictment are:
LUIS FERNANDEZ, 30, of East Hartford
FERNANDO FERNANDEZ-GARZA, a.k.a. “Juan Carlos Garza” and “Don Fernando,
49, of Artesia, Calif.
LAWRENCE CHAMBERS, 34, of East Hartford
ERIC COLON, 27, of Hartford
CHAZ DASILVA, 20, of Newington
JESUS FERNANDEZ, a.k.a. “Guerro” and “Guate,” 28, of East Hartford
RICARDO FERNANDEZ, a.k.a. “Pepe,” 19, of East Hartford
SANDI FERNANDEZ, 27, of Artesia, Calif.
JULIO CESAR DE LA ROSA, a.k.a. “Negro,” 25, of Hartford
RAMON GALVEZ, a.k.a. “Tanky,” 38, of New York, N.Y.
EVANGELINA GARZA, 47, of Artesia, Calif.
MICHAEL HAYNES, 27, of East Hartford
ALBERTO HERNANDEZ, 32, of New Britain
CHARLES KELLEY, 39, of Hartford
CARLOS MERCADO, a.k.a. “Los,” 27, of Hartford
BOLIVAR NERIS-RECIO, a.k.a. “Pablo” and “Tigre,” 32, of New York, N.Y.
KAREN ORTEGA, 27, of Lynwood, Calif.
JOSE RIVERA-BARON, a.k.a. “Mexico” and “Chyks, 30,” of East Hartford
JOSE DEJESUS RIVERA, a.k.a. “Chuy,” 24, of Pomona, Calif.
ARMANDO RUELAS-RANGEL, 38, of Harwinton
JOSHUA SAEZ, 24, of Hartford
THOMAS SANCHEZ, 25, of New BritainThe indictment was returned by a grand jury in Hartford on October 1, 2013. The investigation culminated on October 9 when a majority of the defendants were arrested. To date, 22 of the defendants have been arrested and two are currently being sought by law enforcement.
During the course of the investigation, law enforcement has seized approximately four kilograms of heroin, approximately 100 pounds of marijuana and more than $150,000 in cash.
The indictment alleges that all of the defendants, with the exception of HERNANDEZ, SAEZ and SANCHEZ, conspired to possess with intent to distribute various quantities of heroin and/or cocaine. In addition, LUIS FERNANDEZ, CHAMBERS, DASILVA, JESUS FERNANDEZ, DEJESUS RIVERA and RUELAS-RANGEL are charged in one or more counts with possession with intent to distribute heroin.
The indictment also charges COLON with SAEZ with interference with commerce by robbery, and SAEZ with possession of a firearm by a convicted felon, use of a firearm during and in relation to a crime of violence, and possession with intent to distribute heroin. These charges stem from an incident on August 16 when it is alleged that COLON and SAEZ robbed RIVERA-BARON of heroin.
Finally, the indictment charges HERNANDEZ and SANCHEZ with attempted possession with intent to distribute heroin on July 24. On that date, law enforcement officers seized $3,495 from HERNANDEZ and SANCHEZ in Wethersfield.
During the course of the investigation, on August 7, 2013, Hartford Police attempted to stop a vehicle after receiving information from the DEA Task Force that one of the vehicle’s three occupants had allegedly purchased narcotics from a member of the conspiracy. The vehicle drove from police at a high rate of speed and crashed into a tree, and the occupants fled. Officers apprehended two of the three individuals, one of whom was subsequently identified as Carlos Ramos, 23, of Hartford. Ramos has four outstanding arrest warrants from Puerto Rico, including a warrant for murder and another for shooting at a police officer. He is currently in state custody.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case has been assigned to U.S. District Judge Stefan R. Underhill in Bridgeport.
This investigation is being led by the Drug Enforcement Administration’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments, with the valuable assistance of DEA Los Angeles Field Division HIDTA Group 42. Agencies assisting the investigation include the DEA in New Haven, Bridgeport, Los Angeles and Panama, Federal Bureau of Investigation, U.S. Marshals Service, U.S. Department of Homeland Security, U.S. Postal Inspection Service, Connecticut State Police, State of Connecticut Office of Adult Probation, and the Hartford, East Hartford and New Britain Police Departments.
The case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti and Special Assistant U.S. Attorney Natasha M. Dye
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Tabor City Farmer Sentenced for His Part in Tobacco Insurance Fraud ScamRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever, III, has sentenced PATRICK REX LOVETT, 48, of Tabor City, North Carolinato 5 years probations with 9 months of house arrest. The Court also imposed a fine of $10,000 and ordered forfeiture in the amount of $160,696.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
On February 19, 2013, LOVETT pled to structuring transactions to evade reporting requirements, in violation of Title 31, United States Code, Sections, 5324(a)(3) and (d)(2).
According to the Criminal Information filed on November 26, 2012, and information presented in open court, LOVETT structured 22 currency transactions totaling $160,696.00 with one or more domestic financial institutions for the purpose of evading the legal obligation to report currency transactions in excess of $10,000. Six of the structured transactions, totaling $49,118, related to the sale of hidden tobacco. Those sales were not reported to the United States Department of Agriculture and LOVETT did not report the income on his tax returns until he amended the tax returns pursuant to his plea agreement.
This case is part of the ongoing investigation of the multi-million dollar crop insurance fraud in Columbus County.Settlement Reached with Warren County, N.C., Board of Education to Resolve Employment Rights Claim of Army Reserve SoldierRead the Press Release
The Justice Department announced a settlement today with the Warren County, N.C. Board of Education that resolves a lawsuit the department filed on behalf of Army Reserve soldier Dwayne Coffer under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
The settlement, which was filed as a consent agreement in the U.S. District Court for the Eastern District of North Carolina, resolves allegations that the Warren County Board of Education willfully violated USERRA by not renewing Coffer’s employment contract in 2008 because of his military service obligations. Coffer, a Sergeant First Class in the U.S. Army Reserve, worked at Warren County High School as an assistant principal. During his employment with the county, Coffer took periodic leave from work to fulfill his military obligations, including service in Kuwait and Afghanistan from February 2004 to February 2005. According to the department’s complaint, the board did not renew Coffer’s contract as an assistant principal in 2008 because staff members expressed frustration at accommodating his military service during the school year.
USERRA prohibits employers from discriminating against servicemembers with respect to employment opportunities based on their past, current or future uniformed service obligations. USERRA also requires employers to promptly reemploy service members following their return from military leave. Under the terms of the consent agreement, the Warren County Board of Education will, among other stipulations, reemploy Coffer under a two-year contract as a Lead Teacher/Site Supervisor at the salary he would have received had he remained continuously employed by the county, pay back-pay to Coffer in the amount of $10,000 and contribute lost retirement payments to Coffer’s retirement account in the amount of $13,702.63.
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “It is important that veterans have the opportunity to serve their country free from worry about termination without cause.”
“I am pleased we were able to resolve this matter,” said U.S. Attorney Thomas G. Walker. “Improper job terminations over military service cannot be tolerated.”
The department initiated the lawsuit after Coffer filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated the matter and determined that the complaint had merit. This case was handled by the Employment Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of North Carolina.
Additional information about USERRA can be found on the Justice Department websites www.usdoj.gov/crt/emp and www.servicemembers.gov , as well as the Labor Department website www.dol.gov/vets/programs/userra/main.htm .
Sentences for October 28 – 29, 2013Read the Press Release
Julia Carlene Deshaw, 45, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 29, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 200 grams but less than 350 grams of methamphetamine. Deshaw was arrested in Casper, Wyoming. She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Michael Ainsworth, 51, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 29, 2013, for being a felon in possession of a firearm. Ainsworth was arrested in Casper, Wyoming. He received three months imprisonment, to be followed by one year of unsupervised probation, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Harold and Amy Busskohl, husband and wife, of Lyman, Wyoming, were sentenced by Federal District Court Judge Alan B. Johnson on October 28, 2013, for health care fraud. The Busskohls appeared pursuant to a summons. Both received a three-year term of supervised release and each was ordered to pay a $100.00 special assessment. In addition, the Court ordered that they pay restitution, joint and several, in the amount of $35,285.67. This case was investigated by the Wyoming Medicaid Fraud Control Unit.
Brian L. Messick, 43, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 28, 2013, for conspiracy to possess with intent to distribute, and to distributing 1,372 grams of methamphetamine. Messick was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Dale R. Turano, 54, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 28, 2013, for conspiracy to possess with intent to distribute, and to distributing 198 grams of methamphetamine. Turano was arrested in Cheyenne, Wyoming. He received 151 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
James P. Graham, 53, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 28, 2013, for conspiracy to possess with intent to distribute, and to distributing 200-300 grams of methamphetamine. Graham was arrested in Cheyenne, Wyoming. He received 100 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
San Antonio Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Pelly Lee Mason, age 51, faces not less than thirty years and up to life in federal prison after pleading guilty to transporting a minor across state lines with intent to engage in criminal sexual activity.
Mason came to the attention of law enforcement after a victim’s parent reported that Mason had performed sexual acts on her minor child. The sexual acts had occurred on several occasions during a trip from Flagstaff, Arizona, to Orlando, Florida. Some of the acts occurred while they were in San Antonio, Texas. Mason admitted to having performed sexual acts on the minor child during this trip. Mason has previously been convicted of engaging in lewd and lascivious conduct with a minor for which he served five years in prison. As a result of that conviction, Mason was required to register as a sex offender but failed to register upon his release from prison. Seven other victims have been identified since his arrest early this year.
This case is being investigated by the Federal Bureau of Investigation (FBI). Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
Robeson County Farmer Sentenced in Million Dollar Crop Insurance Fraud, Aggravated Identity Theft, Firearm Offense, and Threat to Law EnforcementRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced HARRY DEAN CANADY, 63, of Lumberton, North Carolinato a total of 72 months imprisonment followed by 5 years supervised release. The Court also ordered CANADY to pay restitution in the amount of $1,036,516.
On December 19, 2012, CANADY pled guilty to the following offenses: conspiracy to make false statements, to make material false statements, and to commit mail and wire fraud; false statements to the Federal Crop Insurance Corporation; aggravated identity theft; felon in unlawful possession of a firearm; and retaliation against a federal official in violation of Title 18, United States Code, Section 115.
U.S. Attorney Walker stated, “This investigation exemplifies how our nation’s law enforcement officers place their lives at risk in the investigations of crimes, even white collar offenses. Such intimidation tactics will not be tolerated in the pursuit of justice for the American people and the protection of public funds.”
“USDA-OIG-Investigations remains committed to working with the U.S. Attorney’s Office and our law enforcement partners to bring those to justice who willfully violate the law, threaten our agents, and facilitate fraud against USDA programs. Threatening federal agents is a serious offense. USDA-OIG will always take action to protect its law enforcement agents from such threats”, said Karen Citizen-Wilcox, Special Agent-in-Charge.
"It is very rewarding to see these people sentenced after such a complex and exhausting investigation by our special agents and our law enforcement partners," said Special Agent in Charge, Jeannine A. Hammett, IRS Criminal Investigation.
According to the Indictment returned by a federal grand jury on June 13, 2012, court filings, and information presented in open court, CANADY owned and rented farmland in Robeson County, North Carolina, and produced, among other crops, tobacco, corn, wheat, and soybeans. From August 2006 through December 2009, CANADY conspired with others to commit fraud upon the federal crop insurance program. It was the purpose of the conspiracy to profit through the filing of false, fictitious, and fraudulent federal crop insurance claims, the sale of unreported tobacco and other grains, and to hide the criminal proceeds through payments and sales in nominee names.
Specifically, CANADY worked with a co-conspiring insurance agent, warehousemen, brokers, and adjusters to make false crop insurance claims, and to hide some or all of his crop production by selling it in nominee names or the names of family members, or for cash to co-conspiring warehousemen.
The investigation revealed that CANADY profited under the scheme because he was paid twice for each pound or bushel of his crop: once through the false crop insurance claim, and also through the sale of the “hidden” tobacco or “hidden” grain. CANADY and other co-conspirators misrepresented the truth of farm operations in a variety of documents, including applications, reports of actual production history, acreage reports, and claim forms made and submitted in support of crop insurance coverage and claims that failed to truthfully show who had an insurable interest and who really suffered a loss and the extent of that loss which were submitted to the Risk Management Agency, an agency of the United States Department of Agriculture, and private entities.
For example, law enforcement determined that CANADY, without authorization, used the name of his grandchildren, to hide some of his soybean production. Specifically, on January 21, 2008, CANADY declared that he only produced, harvested, and sold 7,192 bushels of soybeans, when in fact, he sold an additional 2,261 bushels of soybeans in the name of his grandchildren. By failing to disclose the sales in his grandchildren’s name, CANADY was paid $99,537 on a false claim.
The investigation further revealed that CANADY took the criminal proceeds obtained through other acts of aggravated identity theft and federal crop insurance fraud, and engaged in various financial transactions with those funds, including causing his daughter to deposit an $84,655.97 check into a financial institution and to transfer the funds to an account controlled by him. These funds were derived from the unreported sale of 23,730 bushels of corn in the name of a grandchild.
In an effort to increase the amount of money he could defraud from the federal crop insurance program, CANADY created and used a new corporation, MC FARMS CO., INC. CANADY caused another person to submit false documents to the Farm Service Agency, and the federal crop insurance program under that corporation name.
During the course of the investigation, law enforcement received information that CANADY unlawfully possessed firearms. During the execution of a November 22, 2010, search warrant, officers recovered 6 firearms and over 180 rounds of ammunition. CANADY had been previously convicted of involuntary manslaughter, a crime punishable by a term of imprisonment exceeding one year.
CANADY, who was aware of the federal investigation since at least 2008, made several threats against law enforcement. Most recently, on January 23, 2012, CANADY threatened to assault and murder a USDA-OIG Special Agent with the intent to retaliate against such law enforcement officer.
As a result of the offense conduct, CANADY fraudulently obtained a total of $1,036,516 worth of federal crop insurance indemnity payments.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General - Investigations; United States Department of Agriculture - Risk Management Agency – Special Investigations Branch; and the United States Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Banumathi Rangarajan handled the prosecution on behalf of the Eastern District of North Carolina.Retired Iowa State Professor Sentenced for Possession of Child PornographyRead the Press Release
DES MOINES, IA - On Thursday, October 31, 2013, Walter Thomas Meyer, age 69, a retired professor of physics and astronomy at Iowa State University, was sentenced for possession of child pornography, announced U.S. Attorney Nicholas A. Klinefeldt. Mr. Meyer pled guilty to the charge of possession of child pornography on July 24, 2013.
Chief Judge James E. Gritzner sentenced Mr. Meyer to time served, twelve months of home confinement, and five years of supervised release. The sentence of time served was imposed, in part, because the images and movies of prepubescent boys did not depict sexual assault. As a consequence of his conviction, Mr. Meyer will be required to register as a sex offender.
This case was investigated by the United States Postal Inspection Service, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Rapid City Man Pleads Guilty to Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that Eric Murphy, age 28, of Rapid City, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on October 21, 2013, and pled guilty to a charge of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor.
The charge carries a maximum penalty upon conviction of 20 years and a $250,000 fine. Murphy will be required to register as a sex offender.
On August 3, 2013, as part of a sex-trafficking undercover operation during the Sturgis Motorcycle Rally, Murphy was arrested for attempting to obtain sex with a 12-year old girl. Murphy responded to a law enforcement-generated internet advertisement which advertised sex with a fictitious 12 or 13 year-old girl and negotiated the terms of the sexual encounter. Murphy then met with an undercover agent posing as someone who could provide a young girl, and was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s office, and the Meade County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.Rapid City Man Indicted on Conspiracy to Distribute Controlled SubstancesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Controlled Substances.
Gallegos was remanded to the custody of the U.S. Marshals Service. A trial date has yet been set December 17, 2013.
Robert Gallegos, age 35, was indicted on September 24, 2013. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 5 years and not more than 40 years’ imprisonment and/or a $5,000,000 fine. The charge is merely an accusation and Gallegos is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotic Enforcement Team, the Drug Enforcement Administration, the Division of Criminal Investigation, and the Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.Rapid City Man Indicted for Conspiracy to Distribute A Controlled Substance and Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Felon in Possession of Firearm.
High Wolf was remanded to the custody of the U.S. Marshals Service. A trial date has been set December 17, 2013.
Clayton Charles High Wolf, age 29, was indicted on October 22, 2013. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years’ imprisonment and/or a $5,000,000 fine. The charges are merely an accusation and High Wolf is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Division of Criminal Investigation, and the Rapid City Police Department. Special Assistant U.S. Attorney Laura A. Shattuck is prosecuting the case.Pittston ManRead the Press Release
Sentenced For Involvement In Cocaine Distribution Conspiracy
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge Edwin M. Kosik has sentenced Frank Louis Suriano, age 45, of Pittston, Pennsylvania, to 30 months’ imprisonment for his involvement in a conspiracy to distribute more than 500 grams of cocaine between 2002 and April 2012.
According to United States Attorney Peter J. Smith, Suriano’s role in the conspiracy included driving to New York City on numerous occasions to obtain cocaine for distribution in the Pittston area. A co-conspirator of Suriano, John Estock, was sentenced by Judge Kosik to 24 months’ imprisonment on October 8, 2013. In addition to the 30-month term of imprisonment, Judge Kosik also ordered that Suriano be placed on supervised release for a period of four years following the service of his sentence, and that he pay a $600 fine.The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case
Pine Ridge Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on October 25, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Derek Black Elk, age 25, was sentenced to 36 months of imprisonment, 5 years of supervised release, and was ordered to pay $100 to the Federal Crime Victims Fund.
The conviction stems from an incident in March 2009 at a home in Pine Ridge when Black Elk engaged in a sexual act with a girl under the age of 16. Black Elk was indicted in September 2012 and pled guilty to the charge on March 20, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Black Elk was immediately turned over to the custody of the U.S. Marshals Service.Pine Ridge Man Sentenced for Abusive Sexual Contact and Assaulting A Tribal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of two separate crimes was sentenced for both on October 25, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Kaleb Mills, age 19, convicted of Abusive Sexual Contact, was sentenced to 12 months of imprisonment, 1 year of supervised release, and ordered to pay $25 to the Federal Crime Victims Fund. Mills was also convicted of Assault on a Federal Officer, and sentenced to 36 months of imprisonment, 5 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund. The two prison sentences are to run concurrently.
The sexual abuse conviction stems from an April 2012 incident at Pine Ridge, when Mills engaged in sexual contact with a woman who was unwilling and repeatedly voiced her objection. She was in fear of being physically harmed by Mills. The assault conviction is the result of a May 2012 incident, when Mills bumped into an Oglala Sioux Tribe Police Officer with his vehicle after the officer stopped him for speeding and was attempting to give Mills a breathalyzer.
Both cases were investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah Collins prosecuted both cases.
Mills was immediately turned over to the custody of the U.S. Marshals Service.
Pine Ridge Man Guilty of Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Patrick Left Hand Bull, age 40, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on October 24, 2013, and pled guilty to a charge of Abusive Sexual Contact.
The charge carries a maximum penalty upon conviction of 6 years and a $250,000 fine.
On July 23, 2013, Left Hand Bull engaged in sexual contact with a woman who was unable to decline participation.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.Pierre Woman Sentenced for Theft of Government FundsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, woman convicted of Theft of Government Funds was sentenced on October 28, 2013, by U.S. District Judge Roberto A. Lange.
Brandis Rose Rose, age 38, was sentenced to 1 month in custody, 5 months of home confinement, 3 years of supervised release, $8,418.08 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from incidents that occurred when Rose embezzled, stole, purloined or knowingly converted to her own use over $8,000 in Old Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) program funds to which she was not entitled.
South Dakota CARES (SD CARES) is a Social Security Administration (SSA) approved fee-for-service organizational payee that serves Social Security and SSI beneficiaries in South Dakota. Rose was an employee of SD CARES from July 6 through November 16, 2009. During that time, Rose handled the accounts for 14 beneficiaries that were under her care and control.
SD CARES became concerned about the possibility of misappropriated funds in February 2010 and reported it to the SSA District Office in Huron. The SSA Office of Inspector General conducted an audit and interviewed the 14 beneficiaries under Rose’s care and control. They determined that Rose misappropriated $8,718.08 and converted it to her own use.
The investigation was conducted by the SSA Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Rose will immediately begin home confinement. She will self-report to the U.S. Marshals Office on January 6, 2014, to begin serving her one month of custody.
Philadelphia Businessman Sentenced in Manhattan Federal Court in Connection with Multiple Investment Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TYRONE L. GILLIAMS, JR., a Philadelphia businessman, was sentenced today in Manhattan federal court to 10 years in prison after having been found guilty at trial in February 2013 of engaging in securities and wire fraud in connection with two separate schemes. In the larger of the two schemes, GILLIAMS and co-defendant Everette L. Scott, Jr., solicited and misappropriated $5 million in investments in a bogus United States Treasury Strips investment program. In the other scheme, the defendants solicited and misappropriated a $450,000 investment in a Utah coal mine. In addition to buying luxury cars, jewelry, and other items, GILLIAMS spent hundreds of thousands of dollars of investor money organizing and promoting a multi-day festival in Philadelphia that headlined Sean “Diddy” Combs. GILLIAMS was sentenced today by U.S. District Judge Deborah A. Batts.
Manhattan U.S. Attorney Preet Bharara stated, “With the lengthy sentence imposed today, Tyrone Gilliams has been dealt a penalty appropriate to his unlawful scheme, which took advantage of well-meaning investors and used their money to satisfy his own appetite. Our office is committed to pursuing and prosecuting those who commit similar offenses that victimize innocent investors.”
According to the Indictment and the evidence presented at trial:
In 2009 and 2010, GILLIAMS was the owner of TL Gilliams, LLC, which purported to engage in transactions in commodities like oil and gold. Scott was an attorney at a small law firm in New Jersey and acted as TL Gilliams, LLC’s general counsel.
In the summer of 2010, GILLIAMS solicited $5 million from two investors for purposes of trading in U.S. Treasury Strips, which are a derivative of U.S. Treasury Bonds. GILLIAMS and Scott arranged for the investors to make their investments by wiring them into an attorney trust account maintained by Scott’s law firm. Upon receiving the money, Scott – at GILLIAMS’s direction – misappropriated more than $700,000 to satisfy expenses stemming from an unrelated and failed venture to buy a coal mine in Utah. Scott also claimed $50,000 of the investment money for himself as purported fees. At GILLIAMS’ direction, Scott transferred most of the remainder to bank and brokerage accounts that GILLIAMS controlled.
At most, GILLIAMS purchased $250,000 worth of Treasury Strips with the more than $4 million in investment money transferred by Scott. Over a span of less than six months, GILLIAMS spent more than $1.6 million on an unrelated gold investment; more than $200,000 to purchase a commercial warehouse in Denver; at least $100,000 to buy or lease luxury cars; at least $50,000 for construction work on his home; at least $100,000 on luxury hotel and travel expenses; and more than $500,000 promoting two events. The first event was a festival called “Joy to the World,” which involved an album release party with Jamie Foxx at the Vault nightclub in Philadelphia, and a red carpet, black tie gala at the Philadelphia Ritz-Carlton, headlined for a $120,000 fee by Sean “Diddy” Combs. The second event was a December 2010 comedy performance in Nassau, Bahamas, called the “Gatta Be Jokin’ Comedy Jam.”
GILLIAMS did not engage in any trading of Treasury Strips and, as a result, did not derive any profits. Nonetheless, during the period when he was spending investor money, GILLIAMS provided them with false reports of trades and profits, and made occasional, nominal payments that he falsely claimed represented profits from Treasury Strips trading. Other than these purported profit payments, which totaled approximately $100,000, neither investor received any of their combined $5 million investment back.
In a separate scheme, GILLIAMS and Scott arranged in late 2009 for an investor to transfer $450,000 to Scott’s attorney trust account, to be held in escrow until used in connection with a venture to purchase the assets of a bankrupt Utah coal mine. Once the money was in Scott’s account, he secretly misappropriated approximately $112,000 by claiming it as purported fees, and transferred the rest to GILLIAMS or other individuals and entities at GILLIAMS’ direction. Until August 2010, GILLIAMS and Scott falsely assured the victim that his $450,000 remained safely in escrow, long after Scott’s escrow account had been emptied. Although the victim repeatedly demanded the return of his funds, GILLIAMS and Scott pacified him by producing forged bank documents and a false attorney attestation letter written by Scott purporting to show that GILLIAMS was in possession of the millions of dollars necessary to purchase and operate the Utah coal mine. In August 2010, after an attorney for the victim threatened Scott with professional discipline for his failure to return the escrowed funds, GILLIAMS and Scott paid the victim $450,000 using funds they raised for investment in Treasury Strips.
In addition to the prison term, Judge Batts sentenced GILLIAMS, 46, of Philadelphia, Pennsylvania, to three years of supervised release. GILLIAMS was also ordered to make restitution in the amount of $5 million, to forfeit $5 million, and to pay a $300 special assessment fee.
In September 2013, Scott, 51, of Sewell, New Jersey, was sentenced to a 30 months in prison, to be followed by three years of supervised release.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office and the Federal Bureau of Investigation, which jointly investigated this case. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive,
coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20
federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition
of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases
against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For
more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Michael A. Levy and David B. Massey are in charge of the prosecution.
Pennsylvania Youth Football Coach, School Cook and Summer Camp Counselor Pleads Guilty to Attempted Online Enticement of A MinorRead the Press Release
WILMINGTON, Del. – Michael J. Barndt, a/k/a “mikecoach73,” age 39, of Sellersville, Pennsylvania, pled guilty today to Attempted Coercion and Enticement of a Minor, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware, where Barndt will be sentenced by United States District Judge Leonard P. Stark on February 25, 2014.
Barndt faces a mandatory minimum sentence of ten years, and a maximum sentence of life, in prison. He also faces a fine of up to $250,000 and a term of supervised release following his prison sentence of at least five years to life. Barndt also will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school.
Prior to his arrest, Barndt was employed as a cook at the Lakeside School in Horsham Township, Pennsylvania. Barndt also served for a number of years as a youth football coach for the Springfield School District, in Montgomery County, Pennsylvania. He last coached in 2012 – the last football season prior to his arrest. During the summer months, Barndt was employed as a camp counselor at “Blue Bell Camp,” in Blue Bell, Pennsylvania, where his duties including coaching football and driving children home from camp.
According to the indictment and court documents, Barndt was arrested on June 19, 2013, after he traveled from his Pennsylvania home to the Concord Mall, in Wilmington, Delaware, to meet a person he believed to be a 14-year-old girl for sexual activity. Barndt identified this supposed 14-year-old girl, who was actually an undercover federal agent, after he posted an on-line personals ad on www.craigslist.com. In the ad, which he entitled, “Real Teen Fantasy,” Barndt expressed interest in a sexual liaison with a teenage girl and engaged in a series of online chats with the undercover agent, which involved Barndt transmitting naked pictures of himself.
Barndt drove to the mall, where he was met by a team of federal agents shortly after purchasing items at Victoria’s Secret. Federal agents seized a smartphone from Barndt, which was later found to contain approximately 15,000 images of teenage females who are either suggestively dressed or partially or completely nude. Most of these images appear to have been self-produced by the teenagers with smartphones.
Following the plea hearing, U.S. Attorney Oberly stated: “While Mr. Barndt will be appropriately punished for his crimes, young people must be especially cautious as to the types of images they produce of themselves on their smartphones. Inappropriate pictures, once in cyberspace, live on forever and can have damaging consequences even years later.”
"Homeland Security Investigations is committed to stopping predators in their tracks. This defendant will no longer be a threat to our children" said John P. Kelleghan, special agent in charge of HSI in Philadelphia. "This case is yet another example of the extraordinary collaborative efforts among law enforcement in Delaware, to protect the most vulnerable among us."
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Edward J. McAndrew.
Pastor Pleads Guilty to Wire Fraud as Part of A $5 Million Ponzi SchemeRead the Press Release
DENVER – Pastor Charles Lawrence Kennedy, Jr., age 71, of Tampa, Florida pled guilty before U.S. District Court Judge Christine M. Arguello yesterday to one count of wire fraud federal law enforcement authorities announced. Kennedy, who is free on a bond, is scheduled to be sentenced by Judge Arguello on January 22, 2014. Kennedy was indicted by a federal grand jury in Denver on March 22, 2012, along with co-defendants Stanley Wayne Anderson of Arvada, Colorado and Edwin Alexander Smith of Denver, Colorado. Smith pled guilty to one count of wire fraud on August 27, 2013. Anderson’s trial is scheduled for January 13, 2014.
According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, beginning in October of 2005 and continuing through December 2008, Anderson, Smith and Kennedy together with each other, and aiding and abetting other persons known and unknown to the Grand Jury, devised a scheme to defraud investors.
Anderson and Smith resided in Colorado and conducted business through “CFO-5, LLC” and “Trinity International Enterprises, Inc”, two companies they controlled. Trinity had no business operations apart from soliciting investment funds related to an investment program. Anderson was the chairman and chief executive officer of CFO-5 and Trinity. Smith was the secretary of CFO-5 and president of Trinity. Kennedy resided in Florida where he worked as a pastor and conducted business through a company identified as “Keys to Life Corporation". Kennedy through a formal partnership with Trinity assisted Anderson and Smith in soliciting investment funds.
They solicited investors' funds for use in an investment program where significant profits would supposedly be generated through the trading of European medium term notes ("MTN program"). When in fact, the MTN program did not exist. Furthermore, they represented that their MTN program would pay nearly immediate returns in amounts ranging from 200 to 1000 percent.
They raised approximately $5 million dollars from approximately 100 investors nationwide over the course of the scheme. The investors' funds were not used to trade in financial instruments, but were instead misappropriated by Anderson, Smith and Kennedy for unauthorized uses. Investors, with the exception of those who received Ponzi scheme-like payments, that is, money taken from one investor to compensate another, lost their total investments. Anderson and Smith generally commingled and deposited investors' funds into bank accounts controlled by Anderson and Smith.
Kennedy began soliciting investments in December of 2005 from fellow pastors and members of their congregations through his company Keys to Life Corporation and falsely promised that for every $1,000 invested, the minimum return would be $1,000,000 which would be paid within 90 days. From December 2005 through April 2006, Kennedy collected $460,000 from nine investors and forwarded only $145,000 to Trinity for use in the investment pool, and as a result has agreed to pay $315,000 in restitution. Kennedy in fact took a portion of investor funds for his own personal benefit.
“The defendant used his position as a Pastor to solicit funds from investors with promises of substantial returns,” said U.S. Attorney John Walsh. “Instead of investing the funds, he and others used the money for unauthorized purposes. The defendant’s abuse of his position of trust led to 100 people losing their hard earned money, for which the defendant will now face the consequences.”
“Investors should always be wary and cautioned of investment proposals that promise high returns on their investment. ‘If it seems too good to be true’, it is probably an investment scheme,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
“The FBI has made protecting innocent investors a priority,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “Therefore, we will vigorously investigate those who engage in schemes to defraud members of our communities.”
“Fraud schemes victimize honest hard working individuals,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “Our inspectors will take every action possible to ensure that people who use the mails for criminal gain are caught and brought to justice.”
Wire fraud carries a penalty of not more than 20 years imprisonment, and up to a $250,000 fine, per count.This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Timothy Neff.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty.
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Owner of Texas-based Ambulance Service Convicted of Health Care FraudRead the Press Release
A federal jury in Houston has convicted Gwendolyn Climmons-Johnson, 53, of multiple counts of health care fraud for submitting false and fraudulent claims to Medicare for ambulance services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
After a three-day trial, the jury convicted Climmons-Johnson on Oct. 30, 2013, of one count of conspiracy to commit health care fraud and four counts of health care fraud. She faces a maximum penalty of 10 years in prison for each count when she is sentenced on Feb. 7, 2014.
According to evidence presented at trial, Climmons-Johnson was the owner and operator of Urgent Response EMS (Urgent Response), a Texas-based entity that purportedly provided non-emergency ambulance services to Medicare beneficiaries in the Houston area. The evidence showed that from January 2010 through December 2011, Climmons-Johnson and others conspired to unlawfully enrich themselves by submitting false and fraudulent claims to Medicare for ambulance services that were medically unnecessary and/or not provided. Climmons-Johnson, who controlled the day-to-day operations of Urgent Response, submitted, and caused to be submitted, approximately $2.4 million in fraudulent ambulance service claims to Medicare.
At trial, the evidence showed that patient records had been falsified and the Medicare beneficiaries for whom Climmons-Johnson had billed ambulance services did not need ambulance services and were not in the condition stated in the records.
The case was investigated by the FBI, the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), and the Texas Attorney General Medicaid Fraud Control Unit. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.
The case was tried by Assistant Chief Laura M.K. Cordova and Trial Attorney Christopher Cestaro of the Criminal Division’s Fraud Section, with assistance from former Special Assistant U.S. Attorney James S. Seaman.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Norris Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, woman convicted of Second Degree Burglary was sentenced on October 28, 2013, by U.S. District Judge Roberto A. Lange.
Monique Flood, age 19, was sentenced to 43 days in custody with credit for time served, 20 months of supervised release, and $100 to the Federal Crime Victims Fund. She was also ordered to pay restitution in the amount of $3,341.99 to 3 separate burglary victims.
Flood was indicted by a federal grand jury in February of 2013 and pled guilty to Second Degree Burglary on July 11, 2013.
The conviction stems from incidents that took place on January 16, 2013, when Flood and two others burglarized three homes on the Rosebud Reservation and took property that did not belong to them. Two other co-defendants have also been convicted and sentenced on burglary charges regarding these events.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher. Flood was released from custody.
Motivational Speaker Pleads Guilty to Failing to File Tax ReturnsRead the Press Release
OAKLAND – William H. Paris, Jr., aka Bubba Paris, pleaded guilty yesterday to one count of failing to file a federal income tax return with the IRS, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
Paris, 53, of Discovery Bay, Calif., started Paris Enterprises in 1985, a business where he earned income as a motivational speaker and by selling autographed memorabilia. He was the Chief Executive Officer since its inception until present. Paris also controlled all of the bookkeeping and finances of the business since the year 2006.
According to the plea agreement, Paris admitted that between 2006 and 2008, he willfully failed to file a U.S. Individual Income Tax Return despite earning income. Specifically, Paris earned at least $57,187 in 2006, $83,856 in 2007, and $41,700 in 2008, but failed to report that income to the IRS. Paris also agreed to pay restitution to the IRS in the amount of $126,530.
Paris was charged on February 11, 2013, with three counts of failing to file tax returns. He pleaded guilty to one count. Sentencing is scheduled for February 21, 2014 in front of The Honorable Kandis A. Westmore, U.S. Magistrate Court Judge.
The maximum statutory penalty for each count of failure to file a federal tax return, in violation of Title 26, U.S.C. § 7203, is one year in prison and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Assistant United States Attorney Charles Parker and Assistant United States Attorney Thomas Newman are prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Paris information )
Mission Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating and Wounding and Simple Assault was sentenced on October 30, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Desersa was remanded to the custody of the U.S. Marshals Service.
Hubert Desersa, age 23, was sentenced to 18 months in custody and $35 to the Federal Crime Victims Fund.
Desersa was indicted by a federal grand jury on July 17, 2013, and pled guilty to the charge on October 23, 2013.
The conviction stems from an incident that took place on May 31, 2013, when Desersa slapped and hit the victim, knocking her to the floor and tearing her clothes off during the assault. Desersa then followed the victim into another room, where the two struggled over a knife, resulting in the victim being cut on the web of her hand.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Mission Man Sentenced for Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Aggravated Sexual Abuse was sentenced on October 29, 2013, by U.S. District Judge Roberto A. Lange.
Poorman was remanded to the custody of the U.S. Marshals Service.
Zachary Poorman, age 26, was sentenced to 150 months in custody, 5 years of supervised release, was ordered to pay $100 to the Federal Crime Victims Fund, and must register as a sex offender.
Poorman was indicted by a federal grand jury on March 13, 2013, and pled guilty to on June 13, 2013.
The conviction stems from an incident that took place on October 29, 2012, when Poorman, the victim and others were drinking alcohol together at a residence in Mission. At some point during the night, Poorman took the victim to a nearby shed where he forcibly sexually abused the victim. The victim was struck and held down during the assault. The victim suffered injuries as a result of the assault.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Mexican National Pleads Guilty to $9 Million Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national pleaded guilty in federal court today to his role in a $9 million drug-trafficking conspiracy that distributed hundreds of kilograms of methamphetamine in the Kansas City area.
Porfirio Almeida-Perez, also known as “Cadena,” “Flan,” “Guarache” and “Pilo,” 35, a citizen of Mexico residing in Kansas City, Mo., pleaded guilty before U.S. District Judge Brian C. Wimes to the charge contained in a March 13, 2012, federal indictment.
Almeida-Perez admitted that he participated in a conspiracy to distribute methamphetamine from Jan. 1, 2007, to March 13, 2012. Under the terms of today’s plea agreement, Almeida-Perez is jointly and severally liable with 31 co-defendants to pay a money judgment of $9 million. That amount represents the proceeds from the distribution of 272 kilograms of methamphetamine during the conspiracy, based on a conservative street price of $16,000 per pound.
According to today’s plea agreement, on Oct. 28, 2011, a co-conspirator was delivering a shipment of methamphetamine from California to Almeida-Perez, who was heavily involved with distributing methamphetamine in the Kansas City area. The co-conspirator was arrested by Missouri State Highway Patrol troopers, who stopped the co-conspirator on I-29 and searched his vehicle. Upon searching the vehicle’s engine compartment the trooper discovered a false radiator and recovered eight packages of methamphetamine, weighing approximately nine pounds.
Under federal statutes, Almeida-Perez is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10 million. A sentencing hearing is scheduled on Feb. 28, 2014.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Jackson County Drug Task Force, the Kansas City, Mo., Police Department, the Missouri State Highway Patrol, the Kansas State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Marion Man Pleads Guilty to Multiple Fraud, Money Laundering, and Tax Evasion CountsRead the Press Release
A former investment broker who made false statements to banks, defrauded investors, and evaded taxes pled guilty today to eight felony offenses in federal court in Cedar Rapids.
Randy Beltramea, age 49, from Marion, Iowa, was convicted of two counts of wire fraud, two counts of making false statements to financial institutions, two counts of money laundering, one count of aggravated identity theft, and one count of tax evasion.
In a plea agreement, Beltramea admitted that in 2009 and 2010, he devised a scheme to defraud former investors by soliciting money from them under false pretenses. In particular, Beltramea admitted telling former investors that their money was to be invested in Subway sandwich shop restaurants, when he actually intended to, and did, use their money in his own real estate investment and for his own personal expenses. In connection with soliciting money from one of the investors, Belramea provided the investor with a promissory note on which he forged the signature of another person who was involved in buying a Subway restaurant. In fact, that other person did not give Beltramea permission to use or sign his name to the promissory note. Beltramea also admitted that he moved some of the proceeds from the fraud into a bank account under his mother’s name for the purpose of trying to hide the source of the money and in an effort to evade taxes. The IRS had previously imposed a tax lien in excess of $320,000 against Beltramea because he had not filed tax returns or paid taxes since 2001. Finally, Belramea admitted that he obtained loans and loan extensions from two banks by providing them with false financial statements and with tax returns he falsely represented had been filed with the IRS.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Beltramea remains free on bond previously set pending sentencing.
Beltramea faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of 137 years’ imprisonment, a $3,750,000 fine, $800 in special assessments, and 28 years of supervised release following any imprisonment.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-20-LRR.
Luzerne County Man Pleads Guilty to Jewelry Store Robberies, Bank Robbery, and FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Kirk Robinson, age 45, of Wilkes-Barre, Pennsylvania, has pleaded guilty to being involved in two Luzerne County jewelry store robberies, a bank robbery, as well as an insurance fraud scheme.
According to United States Attorney Peter J. Smith, Robinson pleaded guilty in federal court on October 24, 2013, before Senior United States District Judge James M. Munley. Robinson pleaded guilty to conspiring with others to carry firearms in relation to the robbery of Steve Hydock Diamonds Jewelry store, Kingston, Pennsylvania, on May 5, 2008 and Dunay Jewelry store, Wilkes-Barre, Pennsylvania, on May 14, 2008. He also pleaded guilty to the armed bank robbery of the M&T Bank, Hanover Township, occurring on October 30, 2010. At his guilty plea, Robinson admitted that he planned and acted as a getaway driver in those three robberies. Additionally, Robinson pleaded guilty to using the mail in a scheme to defraud an insurance company of $43,000. Robinson admitted that the scheme involved staging a robbery with a confederate, and filing a police report wherein he falsely claimed an armed robber stole jewelry from him.
The case was investigated by the Federal Bureau of Investigation; the Kingston Police Department; the Hanover Township Police; and the Wilkes-Barre Police Department. Prosecution has been assigned to Assistant United States Attorney John C. Gurganus.The sentence following this guilty plea will be imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 85 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lexington Attorney Pleads Guilty to Mail Fraud, Wire Fraud, Distribution of Controlled Substances, Obstruction of Justice and Tax FraudRead the Press Release
LEXINGTON, KY -
A Lexington attorney admitted his involvement in a drug ring and several fraud schemes, where he illegally diverted in excess of a million dollars.
On Wednesday, Seth Johnston, 34, pleaded guilty to two counts of mail fraud and one count each of wire fraud, conspiracy to obstruct of justice, conspiracy to distribute a controlled substance analogue (synthetic marijuana) and tax fraud.
Johnston admitted he was responsible for collecting money for plaintiffs in a civil lawsuit, as part of a settlement regarding the diet drug Fen-Phen. However, Johnston diverted $14,963.15 of the collected money for his own personal use. Angela Ford, the Lexington attorney representing the plaintiffs in the lawsuit, had hired the law firm where Johnston worked to garnish assets of the defendants in that lawsuit, William Gallion, Shirley Cunningham and Melbourne Mills, Jr. This fraud scheme started in 2008 and continued through 2010.
Court records state that Ford had hired Johnston to establish multiple corporate bank accounts to hold $3.5 million of Ford’s money. Johnston acknowledged that he diverted a significant amount of Ford’s money for his own personal gain, some of which he used to purchase property for other clients. To cover up this scheme, Johnston provided Ford with fraudulent documentation regarding the status of her money.
Johnston also admitted that in 2010 he perpetrated a scheme to defraud the residual heirs of an estate for which he provided representation. According to court records, he hid assets and diverted money for his own personal use.
In addition, Johnston admitted that, as part of a drug conspiracy, he provided approximately $100,000 to others, to purchase synthetic marijuana to be distributed in Lexington.
Johnston acknowledged that in 2013, he instructed witnesses, who had been subpoenaed to testify at the grand jury regarding the fraud case, to destroy documents so that certain evidence would not be available. Johnston further admitted that, in 2011, he under reported his taxable income to the IRS. Specifically, Johnston reported an income of $26,372 when, in fact, his income was $208,950.
The U.S. attorney’s office for the Eastern District of Kentucky; Robert L. Corso, Special Agent in Charge, DEA; Perrye Turner, Special Agent in Charge, FBI; and Christopher Henry, Special Agent in Charge, IRS, jointly announced the plea today.
The investigation was conducted by the DEA, FBI and IRS. Assistant U.S. Attorneys Erin Roth, Robert Duncan Jr. and Elisabeth Sigler prosecuted the case on behalf of the U.S. attorney’s office.
Johnston is scheduled to be sentenced on March 3, 2014. The tax fraud charge carries a maximum of five years in prison. The remaining offenses each carry a maximum penalty of 20 years imprisonment. However, any sentence imposed by the Court would come after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Leland Tax Return Preparer Guilty of False ClaimsRead the Press Release
Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Gabriel “Gabe” Grchan, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, New Orleans Field Office, announce that:
Felicia R. Fults, 31, of Leland, Mississippi, pled guilty on October 24 to filing false claims with the federal government. Fults will be sentenced in approximately 90 days. Fults faces up to nine years imprisonment, up to a $250,000 fine and up to one year supervised release.
The investigation by Internal Revenue Service Criminal Investigations revealed that Fults submitted tax returns to the IRS fraudulently claiming inflated or fabricated Schedule C income for her clients and by claiming her clients were Statutory Employees, resulting in self-employment taxes not being calculated, thus enabling her clients to maximize their tax refund. The false returns resulted in claimed refunds of approximately $2,567,988.
Return Preparer fraud is a priority for IRS Criminal Investigation, and we have committed many resources to investigating and prosecuting cases just like this one,” said Gabriel Grchan, Special Agent in Charge, IRS-CI, New Orleans Field Office. “It is my hope that the guilty plea entered today by Felicia Fults further assures the taxpaying citizens of our country that IRS – CI is serious about protecting the United States Treasury.”
This case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigations, and was prosecuted by the Office of the United States Attorney for the Northern District of Mississippi.
Leader of "Revolution Muslim" Websites Pleads Guilty to Using Internet to Threaten Jewish OrganizationsRead the Press Release
ALEXANDRIA, Va. – Yousef Mohamid Al-Khattab (a.k.a. Joseph Cohen), 45, of Atlantic City, New Jersey, pleaded guilty yesterday to using his position as a leader of the “Revolution Muslim” websites to use the Internet to place others in fear of serious bodily injury.
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 Raymond W. Kelly, New York City Police Commissioner, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Al-Khattab faces a maximum penalty of five years in prison when he is sentenced on February 7, 2014.
According to a statement of facts filed with his plea agreement, Al-Khattab and his colleague, Jesse Curtis Morton (a.k.a. Younus Abdullah Muhammad), founded the Revolution Muslim organization in December 2007 to operate Internet platforms and websites to encourage Muslims to support Usama bin Laden, Anwar Al Awlaki, al Qaida, the Taliban, and others engaged in or espousing violent jihad.
On January 8, 2009, Al-Khattab posted to the Revolution Muslim website a video encouraging viewers upset about the conflict in Gaza to seek out the leaders of Jewish Federation chapters in the U.S. and “deal with them directly at their homes.” Al-Khattab gave the names and addresses of synagogues in New York and another Jewish organization in Brooklyn.
On January 20, 2009, Al-Khattab posted a video and photo of the headquarters of the Jewish organization in Brooklyn, with a map and directions to specific facilities. Al-Khattab also posted a link to “The Anarchist Cookbook,” which is a manual for (among other things) constructing and using explosive devices.
On January 23, 2009, Al-Khattab posted to the Revolution Muslim website a video accusing the Jewish organization of funding terrorism, and urging viewers to find the leaders of Jewish organizations and “hold them responsible.”
As acknowledged in the statement of facts, Al-Khattab knew that some viewers of the Revolution Muslim websites were inclined to violence, and by making the posts involving Jewish organizations in 2009, Al-Khattab was trying to frighten Jews and Jewish organizations.
On June 22, 2012, Revolution Muslim founder Jesse Morton was sentenced to 138 months in prison. On February 24, 2011, Revolution Muslim administrator Zachary Chesser was sentenced to 25 years in prison.
This investigation is being conducted by the FBI’s Washington Field Office and the New York City Police Department's Intelligence Bureau. Assistant United States Attorneys Gordon D. Kromberg and Special Assistant United States Attorney Allison Ickovic of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney John T. Gibbs of the Counterterrorism Section in the National Security Division 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.Las Cruces Man Pleads Guilty to Robbing First Light Federal Credit Union in Las Cruces in July 2013Read the Press Release
ALBUQUERQUE – Dominic Tyrel Holland, 27, of Las Cruces, N.M., pleaded guilty this morning to a bank robbery charge and admitted robbing the First Light Federal Credit Union in Las Cruces N.M., on July 31, 2013. Holland entered his guilty plea without the benefit of a plea agreement.
Holland was arrested on July 31, 2013, based on a criminal complaint charging him with robbing the First Light Federal Credit Union in Las Cruces on that day. He subsequently was indicted on that same charge. According to the criminal complaint, Holland approached a bank teller and presented a note demanding money. After obtaining money from the bank teller, Holland left the bank on foot. After witnesses at the bank identified Holland as the bank robber, officers of the Las Cruces Police Department located Holland at an apartment complex and placed him under arrest.
Holland has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Holland faces a maximum penalty of 20 years in prison and a term of supervised release to be determined by the court.
The case is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office and was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department.
Kinston Farmer Sentenced for Fraud on Commodity Credit CorporationRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever, III, has sentenced WILLIAM L. WHALEY, JR., 50, of Kinston, North Carolinato 12 months and 1 day of imprisonment followed by 3 years supervised release. The Court did not impose a fine in recognition of the $50,000 monetary penalty previously paid by the defendant.
On February 27, 2013, a Criminal Information was filed charging WHALEY with making false statements in connection with a commodity credit corporation loan, in violation of Title, 15, United States Code, Section 714m. On April 9, 2013, he pled guilty to the charge.
According to the investigation, WHALEY, the controlling partner of Whaley Partners, a large farming operation, entered into a commodity loan agreement with the United States Department of Agriculture for $272,986.56 using bushels of soybeans as collateral. During the loan process, an agency employee went to WHALEY’s farm to verify the quantity and quality of the beans. In preparation for the visit, WHALEY had a farm hand suspend a bucket of soybeans just below the opening at the top of the grain bin to give the illusion that the grain bin was in fact filled with 54,000 plus bushels of soybeans. In reality, the bin was empty and the collateral never existed. WHALEY then submitted false lien waivers in connection with his loan application. The Farm Service Agency discovered the fraud in May 2009.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations. The Farm Service Agency provided valuable assistance in the investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.Kimball Man Pleads Guilty to Assaulting, Resisting and Impeding A Federal Officer and Lacey Act ViolationRead the Press Release
United States Attorney Brendan V. Johnson announced that James Steckley, age 44, of Kimball, South Dakota, appeared before U.S. District Judge Karen E. Schreier on October 29, 2013, and pled guilty to Count IV of the Indictment that charged him with a Lacey Act violation and an Information that charged him with Assaulting, Resisting and Impeding a Federal Officer.
The maximum penalty upon conviction on both counts is 1 year of imprisonment and/or a $100,000 fine, 1 year of supervised release, an additional year of supervised release upon revocation, and a $50 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The assault charge stems from an incident wherein Steckley, on September 6, 2012, interfered with a Special Agent with the U.S. Fish and Wildlife Service while that agent was investigating the Lacey Act violations. The investigation ultimately revealed that between November 27, 2011, and December 5, 2011, in Brule County, South Dakota, Steckley, then part owner of Steckley’s Wild Dakota Outfitters, a commercial hunting operation, hosted paying clients to hunt deer without appropriate licenses.
The investigation was conducted by the U.S. Fish and Wildlife Service and the South Dakota Department of Game, Fish and Parks. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Steckley was released on bond pending sentencing which has been set for January 17, 2014.
Justice Department Seeks to Shut Down South Texas Tax PreparerRead the Press Release
McAllen Area Man Allegedly Prepares Tax Returns Claiming False Deductions and Credits
The United States has filed a lawsuit asking a federal district court in McAllen, Texas, to permanently bar Hector Rangel Jr. from preparing federal tax returns for others, the Justice Department announced today.
According to the complaint, Rangel, who resides near and does business in McAllen, has been preparing federal tax returns for customers since 2003 that contain false, improper, or inflated itemized deductions or business-expense deductions. The complaint also alleges that Rangel prepares returns that claim improper tax credits such as the earned income tax credit (EITC), fails to create or retain accurate “due diligence” documentation for EITC claims, and does not sign and provide his identification number on all returns he prepares. Most of Rangel’s customers allegedly reside in southern Texas.
In one instance described in the complaint, Rangel allegedly claimed farming-expense deductions on three tax returns for a married couple who did not own a farming business and never provided any farm-expense documentation to Rangel. The lawsuit also alleges that Rangel claimed improper tax credits on his own income tax returns for 2008 through 2010 and that the Internal Revenue Service (IRS) assessed accuracy-related penalties against him with respect to those returns.
The complaint further alleges that 96 percent of the returns examined by the IRS, which Rangel had prepared from the 2003 through 2012 tax-filing seasons, were found to have understated the tax liabilities of Rangel’s customers. According to the complaint, the IRS estimates that the total tax harm from Rangel’s unlawful tax-preparation activities during that period could be over $15 million.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2013 which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . The Internal Revenue Service has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm.
Related Materials:
United States v. Hector Rangel Jr., etc.
Complaint for Permanent InjunctionJury Convicts Brevard County Man on Child Pornography ChargesRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Randolph St. Gourdin (38, Palm Bay) guilty of receiving child pornography. St. Gourdin faces a minimum penalty of five years, up to a maximum of twenty years in federal prison. His sentencing hearing is scheduled for January 17, 2014.
According to testimony and evidence presented at trial, St. Gourdin downloaded videos of child pornography using a file sharing program. After viewing the videos, he deleted them using a software program to wipe his computer clean. However, computer forensic agents from a U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) task force located the videos previously deleted from his computer. The jury heard St. Gourdin’s recorded confession stating that he searched for the child pornography because of his sexual curiosity for those types of videos.
This case was investigated by ICE-HSI. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
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.
Jason Anthony Carter Convicted in Connection with Meth Lab ExplosionRead the Press Release
GREENEVILLE, Tenn. – On Oct. 31, 2013, Jason Anthony Carter, 35, of Bristol, Tenn., was convicted of conspiring to manufacture methamphetamine, possession of equipment, chemicals, products, and materials used for manufacturing or attempting to manufacture methamphetamine, and creating a substantial risk of harm to human life while manufacturing or attempting to manufacture methamphetamine, following a two-day jury trial in U.S. District Court in Greeneville.
Sentencing is set for 1:30 p.m., on Mar. 3, 2014, in U.S. District Court in Greeneville. Carter faces a possible sentence of up to 40 years in federal prison and up to $1,500,000 in fines.
A federal grand jury indicted Carter, along with Amanda Kiser Steadman, 32, and James Hulon Steadman, 41, both of Bristol Tenn., on these charges in November 2012. According to evidence presented at trial, Carter and the Steadmans planned to manufacture methamphetamine at an apartment building in Bristol in August 2012. They purchased the supplies needed to manufacture methamphetamine at various businesses in Bristol before returning to the apartment to begin cooking methamphetamine utilizing the “one-pot” or “shake and bake” method. Once at the apartment, Carter assisted with the preparation of the materials to manufacture methamphetamine. Evidence further showed that while the methamphetamine was cooking, several explosions occurred, resulting in a fire in the apartment and serious injuries to Amanda Steadman.
Both Amanda Kiser Steadman and James Hulon Steadman were previously convicted and are currently awaiting sentencing.
This investigation was a joint effort of the Bristol Tennessee Police Department, Tennessee Methamphetamine Task Force, Drug Enforcement Administration, Second Judicial District Drug Task Force, and Sullivan County Sheriff’s Office. Assistant U.S. Attorney Suzanne Kerney-Quillen represents the United States.
Indian River Man Sentenced on Internet Transportation of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Daniel V. Garcia, Chief, Phoenix Police Department, and Michelle Morris, Chief, Sebastian Police Department, announce that U.S. District Judge Donald L. Graham sentenced Alfred E. Daking Jr., 70, of Sebastian, Florida, to 180 months in prison, followed by a lifetime period of supervised release and a $100 special assessment.
According to court documents, Daking sent over 800 emails to a 13 year old boy from Phoenix, Arizona. Daking also attached child and adult pornography to some of the emails. During the Phoenix Police Department’s investigation, it was confirmed that the emails were sent from Daking’s residence located in Sebastian, Florida.
Upon execution of a federal search warrant at Daking’s residence, agents from HSI, the Sebastian Police Department and the Phoenix Police Department located a desk top computer. An on-sight forensic preview scan of the computer found approximately 20 images of child pornography. Daking admitted that the computer was his and that he exclusively used the computer. He identified his email address and admitted sending sexually suggestive emails to the minor in Phoenix, Arizona.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Phoenix Police Department and the Sebastian Police Department. The case is being prosecuted by Assistant U.S. Attorney Diana M. Acosta.
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.
Indian River Man Sentenced on Internet Transportation of Child PornographyRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, Florida Department of Financial Services, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that defendants Maykel Marquez, 32, of Jupiter, and Noelia Marichal, 52, of West Palm Beach, were sentenced today by U.S. District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents. Maykel Marquez was sentenced to 58 months of incarceration, followed by 2 years of supervised release and Noelia Marichal was sentenced to 48 months of incarceration, followed by 2 years of supervised release. Marquez was ordered to pay $1,177,775.04 in restitution and Marichal was ordered to pay $1,359,208.73 in restitution.
Each of the defendants previously pled guilty to one count of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349; multiple counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2; and one count of conspiring to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1), all in violation of Title 18, United States Code, Section 1956(h). Maykel Marquez also pled guilty to multiple counts of money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii), and 2.
According to court documents, between approximately October 2006 and December 2012, the conspiracy members staged automobile accidents by recruiting individuals, including these defendants, to participate in the accidents. The participants were referred to as “Perro” and “Perra” or “Macho” and “Hembra.” Thereafter, the clinic owners caused the submission of false insurance claims through chiropractic clinics that were controlled by members of the conspiracy. To execute the scheme, the true owners of the chiropractic clinics recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The co-conspirators also hired complicit chiropractors and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme.
Furthermore, according to court records, once fraud proceeds were received from the insurance companies, the co-conspirators also recruited individuals including these defendants, to help the clinics launder the insurance proceeds. Sentencing documents showed that Marquez cashed checks worth $568,517.23 and Marichal cashed checks worth $101,344.26 in laundered proceeds.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney's Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney's Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney's Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney's Office.
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.
Huntsville Man Sentenced for Tax EvasionRead the Press Release
HUNTSVILLE -- A federal judge today sentenced a Huntsville man to five years probation, including eight months home detention, for tax evasion and ordered him to pay $3.7 million in restitution to the government, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent In Charge Veronica Hyman-Pillot.
U.S. District Judge Abdul K. Kallon sentenced PAUL BRACY, 71, on one count of tax evasion. The U.S. Attorney's Office charged Bracy in July. According to court documents, the IRS was about to determine Bracy was personally responsible for $60,995 in unpaid taxes associated with businesses he owned, when Bracy conveyed four pieces of real property, via “sham transactions,” to others in order to avoid IRS seizure of the properties to satisfy the outstanding tax amount. As part of his plea agreement, Bracy agreed to pay the $3,747,650 in restitution to the government.
“Most citizens diligently pay their taxes,” said Vance. “The willful failure of others to do so is patently unfair and criminal. We will aggressively seek to investigate and prosecute those individuals.”
“Individuals who earn income should accurately report their income to the IRS,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “The sentence today, should reassure Americans, that those individuals who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes will be prosecuted."
The IRS-CI investigated the case, which was prosecuted by the U.S. Attorney's Office for the Northern District of Alabama.
Harrisburg Man Sentenced to 11 Years for Drug TraffickingRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that Marlon T. Holmes, a/k/a “Peanut,” age 37, of Harrisburg, Pennsylvania, was sentenced to 11 years in federal prison for drug trafficking.
According to United States Attorney Peter J. Smith, Holmes was charged with cocaine trafficking in Harrisburg from 2007 through October 2008. A grand jury indicted Holmes in 2008, but he remained a fugitive for approximately three years before he was arrested by authorities in November 2011. In June 2012, Holmes entered a guilty plea to cocaine and crack cocaine trafficking before the Senior United States District Court Judge William A. Caldwell.
Today, Judge Caldwell sentenced Holmes to a sentence of 11 years of incarceration and a fine of $900. Upon his release from prison, Holmes must serve three years of supervised release.
The United States Drug Enforcement Administration, the Dauphin County Drug Task Force, and the Harrisburg Bureau of Police worked together on this investigation. Prosecution was assigned to Assistant United States Attorney Michael A. Consiglio.