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11 December 2013
Tigard Man Admits to Theft of U.S. MailRead the Press Release
Postal Carrier is Sentenced to Federal Probation, Resigns from Job and Agrees to Pay RestitutionPORTLAND, Ore. - Bruce Douglas Menzies, 54 of Tigard, Oregon was sentenced today by U.S. District Judge Anna J. Brown to serve three years of probation, pay a $2,500 fine and pay a $100 fee assessment for theft of U.S. mail. Menzies pled guilty on August 25, 2013; as a condition of his plea agreement, he resigned from the U.S. Postal Service and agreed to pay restitution in the amount of $300.
This case came to the attention of the U.S. Postal Inspector General’s Office after they received a complaint from a postal customer in Portland, who reported that her grandmother had been sending birthday cards to her two young children that contained money. However, the greeting cards were received torn open without money, or not received at all. The victim suspected her mail carrier. The Inspector General’s Office gathered evidence of defendant, Menzies, opening numerous items of mail on June 14, 2012, August 4, 2012, and August 29, 2012. Postal carrier, Menzies, was arrested on March 25, 2013.
“The majority of U.S. Postal Service employees are dedicated public servants who take great pride in ensuring the sanctity and security of U.S. Mail”, U.S. Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Pete Gately said. “Unfortunately, Bruce Menzies betrayed the trust placed in him by the Postal Service and the public he was sworn to serve. His actions resulted in deserved consequences for such behavior. Today’s sentencing of Mr. Menzies demonstrates the ongoing commitment of the USPS OIG and the U.S. Attorney’s Office to vigorously investigate and prosecute these types of violations of the law, as we did in this case. The public can remain confident that the USPS OIG will continue to ensure the security of their mail.”
This case was prosecuted by Assistant U.S. Attorney Geoffrey Barrow.
Three Southern Illinois Residents Charged with Methamphetamine ConspiracyRead the Press Release
On December 3, 2013, George G. Oliver, 55, of Makanda, Toni J. Johnson, 32, and Sommer C. Koons, 30, both of Murphysboro, were charged by superseding indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2009 and October 2013, in Union and Jackson Counties. At their bond hearings, Oliver and Johnson were ordered held without bond pending a February 10, 2014, jury trial. The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Union County Sheriff’s Office, Murphysboro Police Department and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team and Union County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Three Mexican Drug Cartel Members Sentenced for Plot to Kidnap Drug DebtorsRead the Press Release
SAN DIEGO – Three Mexican drug cartel members were sentenced today by U.S. District Judge William Q. Hayes for their roles in a conspiracy to kidnap San Diego drug dealers and spirit them away to Mexico for violent revenge over unpaid drug debts.
Carlos Alberto Andrade-De La Cruz was sentenced to 130 months in prison plus five years of supervised release; Luis Miguel Salas-Rodriguez and Antonio Zermeno-Garcia were sentenced 92 months each plus five years of supervised release.
According to sentencing documents, the defendants suspected other drug dealers in San Diego of stealing their methamphetamine. The trio plotted to kidnap their targets from the United States, take them back to Mexico, and use violence to collect on their debts. The defendants were arrested in San Diego after the leader of this plot, defendant Andrade-De La Cruz, illegally crossed into the United States from Mexico and met the others in front of the home of the first intended victim.
The investigation began in March 2012 when the Cross-Border Violence Group of the Federal Bureau of Investigation learned of a plot to kidnap and extort three unidentified drug debtors in San Diego. Acting on this information, the FBI sought and obtained judicial authorization to wiretap the telephone of one of the leaders of this plot.
Based on the intercepts, the FBI learned that the defendants blamed three San Diego-based drug dealers for stealing their methamphetamine. As a result, one of the enforcers was initially ordered either to extort money from these debtors or to take high-end, luxury vehicles from the debtors by force. Wiretap conversations revealed that as the defendants discussed various plans to collect on the debt, defendant Andrade-De La Cruz became frustrated with delay. He ultimately gave the “green light” for co-defendant Zermeno-Garcia to kidnap the first of the drug debtors. Wiretaps revealed that Zermeno-Garcia told his conspirators that a debtor could be turned into “pozole” – a term used by drug cartels to describe a “soup” made by dissolving a human body in acid.
On March 14, 2012, the defendants intended to carry out the kidnapping. Andrade-De La Cruz illegally crossed into the United States from Mexico with fraudulent documents and met up with Salas-Rodriguez and Zermeno-Garcia. The FBI tracked each of the three defendants to a location near the residence of the first intended victim. Because of an imminent threat to life, the FBI’s SWAT Team immediately arrested all three defendants. The FBI located the intended victim who told agents that he would have ended up in the trunk of a vehicle if the FBI had not intervened.
At the sentencing hearing, Judge Hayes described the defendants’ plan as “cold blooded.” In imposing the lengthy terms of incarceration, Judge Hayes stated that he believed that the defendants had every intention to take the victims to Mexico to exact violence.
This case was investigated by the Federal Bureau of Investigation’s Cross-Border Violence Group and highlights the close connection between narcotics trafficking and violence. The Cross-Border Violence Group is a FBI-led task force comprised of federal and local law enforcement from the FBI, DEA, Border Patrol, San Diego Sheriff’s Department, San Diego District Attorney’s Office Bureau of Investigation and the Chula Vista Police Department. Created in 2009, this task force was designed to respond to immediate threats posed by transnational criminal organizations. The Cross-Border Violence Group responds to numerous kidnapping events each year, which are complicated by the fact that threats often arise outside of the United States.
DEFENDANTS Criminal Case No. 12-CR-1244-WQH Carlos Alberto Andrade-De La Cruz
Luis Miguel Salas Rodriguez
Antonio Zermeno Garcia SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 1201(c) - Conspiracy to Commit Kidnapping; Maximum penalty: Life Imprisonment
INVESTIGATING AGENCIESFederal Bureau of Investigation’s Cross-Border Violence Group
Seafood Company and Owner Admit False Records Conspiracy, Overharvesting Sea Scallops Off the Atlantic CoastRead the Press Release
D.C. Air and Seafood To Pay $520,371 in Restitution
NEWARK, N.J. – A Maine seafood company and one of its owners admitted in federal court today that they conspired to falsify records and obstruct justice to conceal the overfishing of Atlantic Sea Scallops, submitting documents that failed to report approximately 79,666 pounds harvested off the coast of New Jersey and Cape Cod in Massachusetts, New Jersey U.S. Attorney Paul J. Fishman announced.
D.C. Air & Seafood Inc., a seafood wholesaler based in Winter Harbor, Maine, and one of its owners, Christopher Byers, 41, also of Winter Harbor, pleaded guilty to separate informations charging them with conspiring with each other and with six fishing boat operators to prepare false reports to conceal the overharvesting. Byers entered the guilty pleas on behalf of himself and the company before U.S. District Judge William H. Walls in Newark federal court. The six boat operators previously pleaded guilty before Judge Walls and await sentencing.
According to documents filed in this case and statements made in court:
D.C. Air & Seafood purchased Atlantic Sea Scallops harvested by federally permitted vessels in the Elephant Trunk Access Area – a large sea scallop fishing ground off the mid-Atlantic coast. The area, and others managed by the National Oceanic and Atmospheric Administration (NOAA), had been closed to fishing as part of an area rotation management program to rebuild the scallop population, but were open to limited scallop fishing by federally permitted vessels for two-week periods in March 2007, July 2007 and March 2008.
During those periods, individual vessels were restricted to harvesting no more than 400 pounds of scallops per vessel per trip. Vessels operated by the conspiring boat operators failed to report a total of 79,666 pounds of scallops harvested off the coast of New Jersey and Cape Cod for purchase by D.C. Air & Seafood during the permit periods. Some of the scallops were off-loaded from the vessels in Atlantic City, N.J., to trucks used by Byers and D.C. Air & Seafood.
Byers admitted during the guilty plea proceeding that D.C. Air & Seafood and he conspired with the six boat operators to conceal the overharvesting of scallops by preparing fishing vessel trip reports – required to be submitted to NOAA – which falsely represented the amount of scallops harvested on certain vessel trips was 400 pounds or less.
As part of its plea agreement, D.C. Air & Seafood agrees to pay $520,371 in restitution to the United States – representing the loss to the government – and to be placed on probation for five years. During the probationary period, the company will be subject to the terms of an environmental compliance plan to ensure all purchases and sales of fish comply with federal law. The company has also agreed not to participate in the scallop industry during that time.
The charge to which Byers pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2014.
U.S. Attorney Fishman credited special agents of the National Oceanic and Atmospheric Administration, under the direction of Special Agent in Charge Logan Gregory, with the investigation.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: William J. Hughes Esq., Atlantic City, N.J.
D.C. Air & Seafod Information
Byers Information
D.C. Air, Byers Plea AgreementsSan Antonio Man Sentenced to 95 Years in Federal Prison for Sexual Exploitation of A ChildRead the Press Release
In San Antonio this morning, United States District Judge Xavier Rodriguez sentenced 31-year-old Luis Moreno to 95 years in federal prison followed by a lifetime of supervised release for the sexual exploitation of a child announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent In Charge Armando Fernandez.
In August, Moreno pleaded guilty to an indictment charging him with twelve counts of production of child pornography, two counts of receipt of child pornography and two counts of possession of child pornography.
According to court records, on various occasions between April 2010 and his arrest in September 2011, Moreno used minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. Testimony during today’s sentencing hearing revealed that Moreno initially used his cell phone, then when the memory was full, a children’s electronic game device to capture, store, receive and distribute hundreds of images of child pornography.
Following today’s hearing, Judge Rodriguez issued a “no contact” order prohibiting Moreno from having any contact with the victims of these offenses.
This investigation was conducted by the Federal Bureau of Investigation and investigators from the Bexar County Sheriff’s Department— both members of the San Antonio Child Exploitation Task Force. Assistant United States Attorneys Bettina Richardson and Tracy Thompson prosecuted this case on behalf of the Government.Rhode Island Man Indicted in KC Case for Child Sex Trafficking, Producing Child PornRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Rhode Island man was indicted by a federal grand jury today for his participation with a Kansas City, Mo., man in child sex trafficking and producing child pornography as part of a scheme that generated more than $200,000 over a three-year period.
Thomas O’Brien, 53, of Rhode Island, was charged with Michael Dye, 46, of Kansas City, Mo., in an eight-count superseding indictment returned by a federal grand jury in Kansas City. Today’s superseding indictment replaces the original indictment returned on July 16, 2013, and adds O’Brien as a defendant along with new charges.
The federal indictment charges O’Brien and Dye together in two separate counts of producing child pornography. O’Brien and Dye allegedly victimized two minors, identified as Child Victim #1 and Child Victim #2, to produce child pornography between June 15, 2005 and Aug. 18, 2008.
The indictment also charges O’Brien and Dye each with one count of the attempted sex trafficking of Child Victim #2 between June 15, 2005 and Aug. 4, 2007.
O’Brien is charged with one count of traveling across state lines (from Rhode Island to Missouri) with the intent to engage in illicit sexual activity with Child Victim #2 between July 29, 2007, and Aug. 4, 2007.
Dye is charged with two counts of selling child pornography related to each of the two child victims. Dye is also charged with one count of grooming Child Victim #1 to participate in illegal activity (the production of child pornography).
The court granted the government’s motion to detain Dye in federal custody without bail after his arrest on July 17, 2013. According to the government’s detention motion, Dye’s actions giving rise to these charges include his active and repeated sexual intercourse with the minor females, his production and sale of child pornography of the two minor females and violent threats against at least one minor female should she ever inform anyone else of these incidents.
Dye allegedly profited extensively from the serial sexual exploitation of at least two minor females. In the course of this investigation, the detention motion says, the government developed evidence that Dye used the minor females to produce child pornography for various customers. Dye allegedly exploited the two minor females to O’Brien, who – in exchange for multiple images and videos of child pornography and access to them for sexual favors – paid the two minor females a “weekly allowance” as well as gifts in the form of multiple vehicles, remodeling projects at Dye’s home, various appliances, and other cash payments in a total amount estimated up to $200,000 over a three-year period.
Under federal statutes, O’Brien and Dye each face a potential life imprisonment upon conviction of the sex trafficking counts, with a mandatory minimum sentence of 10 years on each count. Each of the two counts for the production of child pornography carries a mandatory minimum sentence of 15 years in federal prison without parole. The counts for the sale of child pornography and for grooming a minor each carry a mandatory minimum sentence of five years in federal prison without parole. Traveling across state lines for illicit sexual activity carries a maximum penalty of 30 years in federal prison without parole.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated principally by the FBI.
Additional assistance was provided by the following agencies: The Western Missouri Cyber Crimes Task Force, the Clay County, Mo., Sheriff’s Department, the Platte County, Mo., Sheriff’s Department, the Naval Criminal Investigative Service, the Newport, R.I., Police Department, the Rhode Island State Police, the Winnipeg, Manitoba Police Service in Canada, the Royal Canadian Mounted Police, the Crown’s Attorney’s Office in Canada and the Child Exploitation and Online Protection Centre in the United Kingdom.Repeat Child Sex Offender Sentenced to 210 Months in Prison for Receipt of Child PornographyRead the Press Release
David Kevin Schultz, age 54, of Laurel, Delaware, was sentenced today to 210 months in prison for receipt of child pornography. Schultz also was sentenced to 10 years of supervised release following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he lives, works, or attends school. United States Attorney Charles M. Oberly, III made the announcement following Schultz’s sentencing hearing before United States District Judge Sue L. Robinson.
Schultz is a previously convicted and registered child sex offender. On October 31, 1995, Schultz was convicted of Unlawful Sexual Intercourse Third Degree and Unlawful Sexual Penetration Third Degree involving a female victim who was 13 years old.
According to the indictment and court documents filed in the current case, the current investigation began when Department of Homeland Security agents received information relating to Schultz’s involvement with child pornography from a man who was arrested in a separate child sexual assault investigation in Maryland. Federal law enforcement agents executed a federal search warrant at Schultz’s Laurel, Delaware residence in April 2012, seizing over 30 computers and other physical evidence. During a forensic examination of the computer equipment, agents found a video of Schultz directing a female minor and a young adult male to engage in various sex acts in his Laurel home. Agents also found other images of a female minor engaged in sex acts, which Schultz had edited into “compilation” videos. The forensic examination also revealed that Schultz had used the computers to receive and possess numerous images of child pornography featuring adolescent and prepubescent females via the Internet.
Following the sentencing hearing, United States Attorney Charles M. Oberly, III stated: “The pervasiveness of David Schultz’s involvement with child pornography is shocking. His actions over an extended period of time have caused grievous harm to his own family and others. He has single-handedly corrupted his victims to further his own perversions. He deserves every day of the sentence imposed today.”
"HSI is committed to holding child predators accountable for their actions,” said John Kelleghan, special agent in charge of HSI Philadelphia. “These heinous crimes cause irreparable damage to our children and society. HSI will continue to pursue those who commit such crimes until justice is served.”
This case is being investigated by U.S. Department of Homeland Security, Homeland Security Investigations. This case is being prosecuted by Assistant United States Attorney Edward J. McAndrewReno Attorney Sentenced for Felony Immigration CrimeRead the Press Release
RENO, Nev. – A Reno attorney was sentenced today to three years of probation and ordered to pay a $3,000 fine for his guilty plea to a felony immigration crime, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Robert J. Fry, 63, of Reno, was sentenced by U.S. District Judge Larry R. Hicks. Fry pleaded guilty in April to one count of harboring an alien.
“A lawyer has an obligation to maintain the highest standards of ethical conduct,” said U.S. Attorney Bogden. “When the lawyer fails to do so, respect and confidence in the law can be destroyed. It is therefore important that we use our federal resources to investigate and prosecute persons who compromise the profession and our laws.”
Fry and co-defendant Nelia Bayani, aka Nelia Ramirez, were originally indicted on May 30, 2012, and charged with conspiracy to commit marriage fraud, harboring an alien, marriage fraud and wire fraud. According to the indictment, Bayani, a citizen of the Phillipines, was involved in a romantic relationship with Fry. Bayani, with the assistance of Fry entered into a fraudulent marriage with an American citizen so that Bayani, who had overstayed her visitor’s visa, could lawfully remain in the United States.
Bayani pleaded guilty in April 2013 to the misdemeanor offense of avoidance of examination or inspection of an alien, and was sentenced on Sept. 10, 2013, to five years of probation and 200 hours of community work service.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Office of the Inspector General for the U.S. Department of Veteran’s Affairs Office, and prosecuted by Assistant United States Attorney Megan Rachow.Philadelphia Man Pleads Guilty to Armed Robbery of Kranich’s Jewelry Store in State CollegeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rodger Kent Williams, age 41, pleaded guilty Tuesday before U.S. District Court Judge Matthew W. Brann in Williamsport to interference with commerce by violence, and use and possession of a firearm during a crime of violence in connection with the armed robbery of Kranich’s Jewelry store. Williams also pleaded guilty to one count of interference with commerce by robbery in connection with the armed robbery of another jewelry store in Cary, North Carolina which was transferred from the Eastern District of North Carolina at Raleigh.
According to United States Attorney Peter J. Smith, Williams was indicted in Williamsport on June 13, 2013, following the armed robbery of Kranich’s Jewelry store on January 9, 2013, and the North Carolina jewelry store on January 28, 2013.
Williams and other individuals traveled from Philadelphia to State College where they entered Kranich’s Jewelry store and ordered the store employees to provide display case keys and get on the floor at the rear of the store. Williams displayed a .357 revolver to the employees during the robbery. Williams and the conspirators then took jewelry, rings, a watch, and other valuable merchandise from the store display cases and safes and directly off the person of one of the store employees.
Williams was also indicted on federal charges in Raleigh, North Carolina arising from the robbery of another jewelry store on January 28, 2013, in Cary, North Carolina. In that case, Williams and other individuals again traveled from Philadelphia to J.M. Edwards Fine Jewelry, where Williams displayed the .357 revolver, and then he and the other conspirators robbed the store of jewelry and other items. Police officers apprehended Williams as he exited the store in Cary and recovered the firearms and stolen merchandise. That charge was transferred to the Middle District of Pennsylvania.
The case was investigated by the State College Police Department; the Cary, North Carolina Police Department; and the Federal Bureau of Investigation, Philadelphia and Charlotte Divisions. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel. Mr. Smith expressed his thanks for the assistance and support of the United States Attorney’s Office in the Eastern District of North Carolina in coordinating the transfer of charges to Pennsylvania for the guilty plea and sentencing.Judge Brann ordered a presentence investigation and set the case for a presentence conference on March 20, 2014, when sentencing will be scheduled.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life 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.
Pennsyvlania Man Sentenced for Hacking into Multiple Computer NetworksRead the Press Release
BOSTON – A Pennsylvania man was sentenced today for his role in a scheme to hack into computer networks and sell access to those networks.
Andrew James Miller, 23, of Devon, Penn., was sentenced by U.S. District Judge Mark Wolf to 18 months in prison, 36 months of supervised release, a $25,000 fine, and $6,497 in restitution. In August 2013, he pleaded guilty to conspiracy and two counts of computer intrusion.
From 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers.
Miller obtained log-in credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other log-in credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks. Miller attempted to sell access for $50,000 to two super computers at the Lawrence Livermore Laboratory in Oakland, Calif., that were part of the National Energy Research Scientific Computing Center.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts made the announcement today. The case was investigated by the FBI and prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts.
Overland Park Businessman Pleads Guilty to $1.8 Million Contraband Cigarette ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Overland Park, Mo., man pleaded guilty in federal court today to his role in a $1.8 million conspiracy to traffic in contraband cigarettes.
Randall H. McColley, 67, of Overland Park, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with conspiracy to traffic in contraband cigarettes.
McColley operates Creative Marketing Solutions LLC, a licensed Kansas tobacco wholesaler. McColley admitted that he and an unindicted co-conspirator (who is not identified in court documents) purchased contraband cigarettes from undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Between May 2011 and February 2012, ATF undercover agents sold 108,120 cartons of contraband cigarettes to McColley and the co-conspirator for $1,831,015. The cigarettes were either delivered from the ATF undercover warehouse in Kansas City, Mo., to McColley’s residence (and place of business), or were picked up by McColley. McColley transported the contraband cigarettes to the co-conspirator in El Dorado, Kan.
McColley and this co-conspirator filed false monthly cigarette transaction reports to the states of Missouri and Kansas from May 2011 through March 2012. At no point during the conspiracy was the Kansas or Missouri excise tax paid on the Marlboro cigarette transactions. The total state excise tax lost to the state of Missouri was approximately $91,902.
Federal, Kansas and Missouri law requires that tax stamps be affixed to cigarette packages – prior to their sale to retailers or consumers – reflecting that the required state taxes have been paid. Cigarette packages without the appropriate stamps are considered to be “unstamped” and a quantity in excess of 10,000 unstamped cigarettes is considered “contraband cigarettes.”
Kansas charges an excise tax of $7.90 per carton ($ 0.79 per pack). Missouri levies an excise tax of $0.17 on a pack of 20 cigarettes. There are also other county and municipal taxes levied in Missouri. Jackson County levies an excise tax of $0.05 on a pack of 20 cigarettes. The city of Kansas City levies an excise tax of $0.10 on a pack of 20 cigarettes. The combined tax on a pack of cigarettes would be $0.32 per pack in Kansas City, Jackson County.
Under federal statutes, McColley is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.Omaha Woman Sentenced for Prostitution and Money Laundering ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that Tammy Schuck was sentenced today by Chief United States District Judge Laurie Smith Camp to 33 months imprisonment. Ms. Schuck was also ordered to pay a forfeiture judgment of $235,213.88, representing proceeds and facilitating property of the offenses. Ms. Schuck will also be placed on five years of supervised release following her release from incarceration.
Ms. Schuck pled guilty to conspiracy to promote a prostitution enterprise and to induce interstate travel to engage in prostitution; inducing or attempting to induce interstate travel to engage in prostitution; and a conspiracy to launder money. She also admitted a forfeiture allegation.
Starting in approximately April 2008, and continuing to in or about January 2012, Ms. Schuck operated three “spas” in Omaha, Nebraska. Each of the spas was, in fact, a front for prostitution. The majority of customers received sex acts from workers, rather than legitimate spa services, in exchange for money. Ms. Schuck and other workers had “sessions” with customers during which they provided sex acts in exchange for money. Some customers traveled to the spas from Iowa and from other states to obtain sex acts for money. Customers paid a “door fee” depending on the length of the session and negotiated a separate “tip” with the workers for the sex act.
Ms. Schuck placed advertisements for the spas on the internet. Ms. Schuck also helped create a website for the spas accessible over the internet, and periodically updated the website. Established customers could access a “Members Only” section of the website to read about the female workers providing services and view provocative pictures of them
During the time when Ms. Schuck owned and managed the spas, there were an overall total of more than twenty workers providing commercial sex acts.United States Attorney Deborah R. Gilg stated, “This defendant and her conspirators victimized dozens of women over a number of years. The United States Attorney’s Office, in cooperation with State and federal agencies, will continue to aggressively investigate and prosecute cases of human trafficking in all its forms.”
The investigation was conducted by the Federal Bureau of Investigation, the Omaha Police Department and the Internal Revenue Service, under the auspices of the Child Exploitation Task Force, which also includes the Council Bluffs Police Department, the Douglas County Sheriff’s Office, the La Vista Police Department, the Mills County Sheriff’s Office and the Nebraska State Patrol.Oklahoma Man Sentenced for Transportation of a Minor with Intent to Engage in Sexual ActivityRead the Press Release
United States Attorney Deborah R. Gilg announced that Dennis Lewis, age 43 of Tulsa, Oklahoma, was sentenced for transportation of a minor with intent to engage in criminal sexual activity. The Honorable Joseph F. Bataillon sentenced Lewis to 10 years in prison. After his release from prison Lewis will begin a 5 year term of supervised release.
For approximately one year, Lewis was communicating with 14 year old from the Bellevue area that he had met on Facebook. In April of this year the volume of Facebook communications and text messaging increased. The content of a lot of the communication was sexual in nature. This case culminated when Lewis drove to the Bellevue area, picked up that minor and transported that minor to Tulsa for the purpose of engaging in sexual intercourse. He was arrested by the Tulsa Police Department prior to any sexual intercourse occurring.
The case was prosecuted as a part of Project Safe Childhood. Project Safe Childhood is an initiative of the United States Department of Justice designed to protect children from individuals who would exploit them online or offline and includes individuals who travel in interstate commerce and fail to register as sex offenders as required by law. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ohio Man Sentenced to More Than 14 Years in Federal Prison for Crack Cocaine ConspiracyRead the Press Release
Owen’s brother previously sentenced in Oct. to almost 11 years in prison for his part in crack distribution scheme
CHARLESTON, W.Va. – An Ohio man was sentenced today to 14 years and seven months in federal prison for his role in a crack cocaine distribution conspiracy, U.S. Attorney Booth Goodwin announced. Retsyn Deshawn Owens, 43, of Akron, Ohio, previously pleaded guilty in April to conspiracy to distribute crack cocaine and heroin. Owens participated in a crack distribution scheme that included his brother and co-defendant, Renardo Darnell Owens, in February this year.
Renardo Darnell Owens, 38, also of Akron, Ohio, was sentenced in October to ten years and ten months in prison after previously pleading guilty to a crack cocaine distribution conspiracy charge.
On February 11, 2013, Renardo Owens sold crack cocaine to a police informant working in cooperation with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $140. The next day, Renardo Owens sold $300 worth of crack cocaine to an informant. He also gave the informant $500 worth of crack cocaine and expected to be paid after the drugs were sold.
On February 13, 2013, Owens’ brother, Retsyn, arranged to meet the police informant at a predetermined location in Charleston. After arriving at the predetermined location, Retsyn Owens accepted $500 from the informant. The money that Retsyn Owens received from the informant on February 13, 2013 was payment for a crack cocaine transaction his brother had performed two days prior.
Retsyn Owens also provided the informant $500 worth of crack cocaine on February 13, 2013 and expected payment after the drugs were sold. On February 14, 2013, Renardo Owens accepted $500 from a police informant as payment for crack cocaine. Also, on February 14, 2013, Renardo Owens handed the informant $1,000 worth of crack cocaine and expected payment after the drugs were sold. On February 15, 2013, MDENT agents executed a search warrant at a Charleston residence and seized drug paraphernalia, cash, and three bags containing crack cocaine. During the execution of the search warrant, police also arrested Renardo Owens, who was inside of the residence at the time.
Renardo Owens was previously convicted in October 1999 of cocaine possession and trafficking in the Court of Common Pleas in Summit County, Ohio.
Retsyn Owens was on federal supervised release out of New York at the time he committed the federal drug felony in West Virginia.
In today’s hearing, United States District Judge Thomas E. Johnston sentenced Retsyn Owens to a total of 175 months in prison: 24 months for the revocation of supervised release and 151 months for the drug offense. Judge Johnston ordered the prison sentences to be served consecutively.
The Metropolitan Drug Enforcement Network Team and the Charleston Police Department conducted the investigation. Assistant United States Attorney Joshua Hanks handled both prosecutions.
Ocala Dentist Sentenced to 3 Years in Federal PrisonRead the Press Release
Ocala, Florida – U.S. Magistrate Judge Philip R. Lammens yesterday sentenced Thomas W. Harter, D.M.D., (49, Ocala) to three years in federal prison for six misdemeanor counts of failure to file income tax returns. The court also ordered Harter to pay $438,384 in restitution to the Internal Revenue Service (IRS), an amount representing the tax loss from his crimes.
Harter was found guilty by a federal jury on September 17, 2013.
According to the evidence and testimony presented at trial, Harter worked as a dentist in the Ocala area for approximately twenty years. He stopped filing federal income tax returns, beginning in the year 2000. From 2006 through 2011, Harter received a gross income, from his dental practice, of at least $1,709,230. Despite this income, Harter willfully failed to file a single tax return or pay any income tax during that same time period.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Newark Man Admits Role in Multiple Armed Robberies of New Jersey EstablishmentsRead the Press Release
NEWARK, N.J. – A Newark, N.J. man today admitted committing two armed robberies of commercial establishments in Essex County, N.J., U.S. Attorney Paul J. Fishman announced.
Antwon Yarbrough, 27, of Newark, N.J., pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiring to commit Hobbs Act robberies.
According documents filed in this case and statements made in court:
Between April 2013 and May 2013, Yarbrough conspired with others to rob a Krauszers store in West Orange, N.J., on April 24, 2013, and a Subway restaurant in Verona, N.J., on May 20, 2013. Yarbrough and his conspirators robbed these establishments at gunpoint. In each robbery, Yarbrough and his co-conspirators used plastic zip ties to restrain their victims. They then stole cash, cigarettes, and other items.
In the Krauszers robbery on April 24, 2013, Yarbrough and another robber entered the store wearing dark hoodies, face masks, and gloves. Yarbrough secured the door from the inside using a zip tie, while the other robber pointed a firearm at an employee and forced the employee to the floor. The robber restrained the employee with zip ties then struck the employee in the head with the gun. Yarbrough restrained the hands and feet of two other victims, one of whom Yarbrough struck in the head with his forearm. Yarbrough and the other robber then emptied the cash register of several hundred dollars, stole several cartons of Newport cigarettes, and fled.
In the Subway robbery on May 20, 2013, Yarbrough and two other robbers again entered the restaurant wearing dark hoodies, face masks, and gloves. Both robbers accompanying Yarbrough brandished firearms. After entering the restaurant, the robbers restrained an employee by tying the employee’s hands and feet with zip ties. The robbers then emptied the cash register of several hundred dollars and fled.
The Hobbs Act conspiracy to which Yarbrough pleaded guilty is punishable by a maximum potential penalty of 20 years in prison, and a fine of $250,000, or twice the gross gain or loss arising out of the offense. Sentencing is scheduled for March 18, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange police departments, along with the N.J. State Police and the Essex County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Stacy Biancamano Esq., West Orange, N.J.
Yarbrough Information
Navajo Man Sentenced to 300 Months Prison for Producing Images of Child PornographyRead the Press Release
PHOENIX – On Dec. 11, 2013, Carl Carlson, 46, of Teesto, Arizona – a member of the Navajo Nation, was sentenced by U.S. District Judge James A. Teilborgto a total of 300 months in prison, followed by a lifetime term of supervised release. Carlson is also required to register as a sex offender in compliance with federal, state and local laws.
In January 2011, the Federal Bureau of Investigation received a report that a Navajo man was in possession of photographs of child pornography. Through further investigation, agents determined that Carlson had sexually assaulted several juvenile victims while they were under his care on the Navajo Nation Indian Reservation. Carlson took photographs while he sexually assaulted the children. He had these images developed and kept them until they were discovered and turned over to law enforcement. Carlson pled guilty on May 15, 2013, to Production of Child Pornography and Abusive Sexual Conduct.
The investigation in this case was conducted by the Federal Bureau of Investigation, Flagstaff Resident Office. The prosecution was handled by Melissa B. Karlen, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8248-PHX-JAT
RELEASE NUMBER: 2013-096_CarlsonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
N.J. Turnpike Authority Employee Admits Stealing at Least $1.5 MillionRead the Press Release
NEWARK, N.J. – A former claims manager for the N.J. Turnpike Authority today admitted devising a scheme which led to the theft of at least $1.5 million from the authority and various insurance companies, U.S. Attorney Paul J. Fishman announced.
Gerardo A. Blasi, 55, of Clifton, N.J., pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with using the mails as part of a scheme to defraud the Turnpike Authority and certain insurance companies and to obtain money and property by false and fraudulent pretenses, representations and promises.
According to the documents filed in this case and statements made in court:
From May 2009 until June 2013, while working as the claims manager for the Turnpike Authority (NJTA) it was Blasi’s job to negotiate and recover the costs of repairs from insurance companies of motorists who caused damage to property belonging to the NJTA. With the assistance of representatives from two New Jersey-based insurance claims adjusting companies, Blasi inflated the costs to repair the damages done to NJTA property by insured motorists. The inflated claims were submitted to the motorists’ insurance companies and payment was directed through the mail to the one of the New Jersey-based claims adjusting companies instead of to the NJTA. Payments for actual costs were passed on to the NJTA, and Blasi and his conspirators shared the difference between the inflated costs and the payments for actual costs sent to the NJTA.
Despite a NJTA policy of not attempting to recover on damages caused by motorists who died from accidents on the Turnpike, Blasi continued to process those claims. Because the NJTA was unaware that Blasi had processed the claims, he was able to share the entire payment sent by the insurance company between himself and one of his conspirators. Blasi and others defrauded the NJTA and various insurance companies of at least $1.5 million.
The charge to which Blasi pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 19, 2014.
U.S. Attorney Fishman credited special agents from the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s plea. He also thanked the N.J. Turnpike Authority, under the direction of Executive Director Veronique Hakim, for its cooperation during the investigation.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division.
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Defense counsel: Anthony Iacullo Esq., CliftonBlasi Information
Members of the Varrio South Park Gang Charged with Racketeering Conspiracy, Attempted Murder, Robbery, and Narcotics TraffickingRead the Press Release
SAN FRANCISCO – A seventeen-count federal indictment charging eight members and associates of the Varrio South Park (“VSP”) gang was returned by the Grand Jury on December 10, 2013 and unsealed today in federal court, announced United States Attorney Melinda Haag.
Three defendants were arrested last night during a joint law enforcement operation in Sonoma County, California. Four additional defendants were already in state custody and have been transferred to federal custody to face charges. One defendant is being sought. The defendants in custody were arraigned before The Honorable Maria-Elena James, United States Chief Magistrate Judge this morning.
Of the eight defendants named in the indictment, seven — David Martinez; Edmund Deneiliom; Ruben Quiroz; Cesar Castellanos; Lucio Mendoza; Samuel Tewolde; and Kalin Carell — are charged with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, and conspiracy to commit assault with a dangerous weapon in aid of racketeering, arising from their participation in the VSP gang. These seven defendants are also charged with using firearms in furtherance of crimes of violence. According to the indictment, VSP is a racketeering enterprise and its members and associates agreed to conduct the affairs of the enterprise through, among other crimes, narcotics trafficking, witness intimidation, robbery, and murder.
Two of the defendants – David Martinez and Ruben Quiroz – are also charged with conspiracy to commit a robbery affecting interstate commerce and a robbery affecting interstate commerce arising from an August 19, 2013, robbery and high-speed car chase during which Martinez fired shots at the victim’s vehicle.
Two other defendants – Samuel Tewolde and Cesar Castellanos – are each charged with separate counts of attempted murder in aid of racketeering. The attempted murder charge against Tewolde arises from an incident on September 5, 2013, in the parking lot of a restaurant in downtown Santa Rosa, where Tewolde fired shots at an individual whom he believed to have “snitched” against other members of VSP. Casetellanos’s attempted murder charge arises from an incident on October 9, 2012, where he shot and wounded a fellow gang member whom Castellanos believed to have challenged his status and authority within the gang. Castellanos is also charged with one count of witness tampering for threatening to kill a woman to prevent her ex-boyfriend from testifying against Tewolde.
Defendants David Martinez and Edmund Deneiliom are also charged with trafficking methamphetamine and marijuana. Defendant Edmund Deneiliom and Andrew Hill-Piccola are also charged with being felons in possession of firearms.
The maximum possible punishments faced by each defendant are as follows:
- David Martinez, a/k/a “Oso,” a/k/a “Fat Boy,” a/k/a “Big Homie” – Life
- Edmund Deneiliom, a/k/a “EZ” – Life
- Ruben Quiroz – Life
- Cesar Castellanos, a/k/a “Cheese” – Life
- Lucio Mendoza, a/k/a “Juce” – Life
- Samuel Tewolde – Life
- Kalin Carell – Life
- Andrew Hill-Piccola – 10 years
Any sentence following conviction would be imposed by the court only after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentence, 18 U.S.C. § 3553(a).
Assistant U.S. Attorney Randy Luskey and Special Assistant U.S. Attorney Marc Price Wolf are prosecuting these cases with the assistance of Kevin Costello and Daniel Charlier-Smith. This prosecution is the result of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, the Santa Rosa Police Department, the Sonoma County District Attorney’s Office, the Sonoma County Sherriff’s Office, and the California Department of Corrections and Rehabilitation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, the defendants in this case must be presumed innocent unless and until proven guilty.
(Varrio South Park indictment )
Member of Albanian Drug Gang Called the “Wolfpack” Sentenced in Manhattan Federal Court to 135 Months in Prison in Connection with Narcotics and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANKIE FROKAJ, a leader of an Albanian drug gang called the “Wolfpack,” was sentenced today by United States District Judge George B. Daniels to 135 months in prison in connection with his role in the organization. FROKAJ pled guilty in April 2013 to one count of conspiring to distribute 1,000 kilograms and more of marijuana. All thirteen members and associates of the Wolfpack originally charged in this case in September 2012 have pled guilty, and 10 have now been sentenced to terms ranging from probation to 168 months in prison.
Manhattan U.S. Attorney Preet Bharara said: “Today, Frankie Frokaj became the latest member of the Wolfpack organization to be punished for his role in this Bronx-based narcotics trafficking crew, whose members also illegally carried and sold dangerous firearms. All 13 defendants charged in this case have been convicted, several have been sentenced to significant prison time, and the Bronx neighborhood streets are safer as a result.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case:
The Wolfpack was a criminal organization composed primarily of individuals of Albanian descent that operated from at least 2008 until August 2012 in the Bronx, New York. The group planned and committed a variety of criminal acts as opportunities arose, including narcotics distribution and weapons possession. For example, the group maintained dedicated phones over which customers could order cocaine and marijuana, and coordinated the use of cars to deliver cocaine and marijuana to its customers. Members and associates of the Wolfpack used these “drug routes” to distribute at least 1,000 kilograms of marijuana and 500 grams of cocaine. The group also distributed prescription pills containing oxycodone, a Schedule II controlled substance.
Wolfpack members, including Christopher Nrecaj, David Nrecaj, Joseph Camaj, and FROKAJ, carried firearms in furtherance of their narcotics crimes and engaged in the sale of firearms. To date, the Government has recovered eight firearms and ammunition from members of the Wolfpack through sales involving a confidential informant and during their arrests, including:
- a Sig Sauer nine millimeter handgun, a Bushmaster rifle, a Mac 11 machine pistol, and ammunition purchased by the CI from David Nrecaj;
- a Taurus PT99 AF nine millimeter handgun and ammunition purchased by the CI from David Nrecaj and Corry Lombardi;
- two nine millimeter handguns and a pump action shotgun recovered during the course of Christopher and David Nrecaj’s arrests; and
- a .22 caliber handgun recovered during the course of Driton Haxhijaj’s arrest. Haxhijaj was found hiding in a closet, and the handgun and roughly one pound of marijuana were found in the same closet.
The Government has further recovered a bullet-proof vest, quantities of cocaine and marijuana, drug ledgers, digital scales, and other drug paraphernalia from various members and associates of the Wolfpack.
In addition to the prison term, FROKAJ, 29 of the Bronx, New York, was also sentenced to five years of supervised release and ordered to forfeit $3,000,000.
The earlier sentencings of Wolfpack members and associates included the following:
- On December 3, 2013, Christopher Nrecaj was sentenced to 168 months in prison on narcotics and firearms charges;
- On December 3, 2013, Corry Lombardi was sentenced to 70 months in prison on narcotics charges;
- On December 3, 2013, Driton Haxhijaj was sentenced to 60 months in prison on narcotics charges;
- On August 7, 2013, Joseph Camaj was sentenced to 70 months in prison on narcotics charges;
- On August 3, 2013, Deda Frokaj was sentenced to 63 months in prison on narcotics charges;
- On April 18, 2013, George Cekaj was sentenced to 151 months in prison on narcotics charges;
The three remaining defendants are scheduled for sentencing in January and February 2014.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the New York City Police Department.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Peter M. Skinner and Rebecca G. Mermelstein are in charge of the prosecution.
Mattapan Man Charged with the Possession and Distribution of Child PornographyRead the Press Release
BOSTON – A Mattapan man was charged today with possession and distribution of child pornography.
Luis Miguel Gonazlez-Buzetta, of Mattapan, was charged with possessing and distributing child pornography. According to the criminal complaint affidavit, filed in U.S. District Court, federal agents learned that Gonzalez-Buzetta, using a Google email address, had been sending and receiving images containing child pornography to individuals located outside of Massachusetts. On June 28, 2013 a search was executed at Gonzalez-Buzetta’s home, where digital devices containing child pornography were recovered. According to the affidavit, a forensic examination of Gonzalez-Buzetta’s computer revealed a collection of child pornography depicting pre-pubescent girls engaged in sexual activity, including those previously images identified as having been distributed by the defendant.
If convicted, Gonzalez-Buzetta faces a mandatory minimum sentence of five years and up to 20 years in prison, a five year mandatory minimum and up to a lifetime of supervised release and a $250,000 fine on the charge of distribution of child pornography; and up to 10 years in prison, lifetime supervised release, and a $250,000 fine on the charge of possession of child pornography.
United States Attorney Carmen M. Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Bruce M. Foucart, Special Agent in Charge U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. The U.S. Attorney’s Office also wishes to thank the Suffolk County District Attorney’s Office, the United States Secret Service, and the Boston Police Department for their tremendous work on the case and their continued cooperation with the prosecution. The case is being prosecuted by Assistant United States Attorney Stacy Dawson Belf of Ortiz=s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lockport Nurse Pleads Guilty to Misprision of Felony ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced that Janelle Hawkins, 36, of Lockport, N.Y., a registered nurse, pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to misprision of felony. The charge carries a maximum penalty of three years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that from July, 2009 through August 17, 2010, the defendant knew that her boyfriend, Eric Williams, a co-defendant in the investigation, was using the residence she owned at 118 Chestnut Street in Lockport to engage in drug trafficking activities. After conducting an extensive criminal investigation, including obtaining a wiretap for Williams’ cellular telephone, members of the Niagara County Drug Task Force and the Drug Enforcement Administration executed a federal search warrant at Hawkins’ residence on August 17, 2010. Agents seized drug paraphernalia and $8,614.00 in cash. They also seized more than a half kilogram of cocaine after apprehending Williams in a downstairs bathroom at Hawkins’ residence as he was flushing cocaine down a toilet.
Williams pleaded guilty to conspiracy to possess with intent to distribute and to distribute cocaine and was sentenced to five years in prison. Hawkins is one of 23 defendants convicted as a result of this drug investigation.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Lafayette, Tennessee, Man Charged with Two Armed Bank Robberies in Kentucky and CarjackingRead the Press Release
BOWLING GREEN, Ky. – A Lafayette, Tennessee, man was charged today by a federal grand jury with the armed robbery of two banks located in Kentucky and one-count carjacking in Adair County, Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the six-count indictment, Eugene Earl Gentry, age 63, is charged with two counts of bank robbery, three counts of brandishing a firearm during a crime of violence and one count of carjacking. Gentry allegedly brandished a black semi-automatic handgun while robbing the United Citizens Bank, located at 1582 Campbellsville Road, in Columbia, Kentucky, of approximately $90,000 on October 15, 2012. On the same day, in Adair County, Kentucky, Gentry is charged with taking a 1998 Ford Ranger Pickup from a person identified as “M.C.” and in doing so brandished a black semi-automatic handgun which carries an additional charge of carjacking. One year later, on October 29, 2013, Gentry allegedly brandished a Hi-Point, semi-automatic, 9mm handgun while attempting to rob the Citizens Bank, located at 209 Campbellsville Bypass, located in Campbellsville, Kentucky.
If convicted at trial, Gentry faces 122 years in prison, a fine of $1.5 million, and supervised release for a period of five years.
This case is being prosecuted by Assistant United States Attorney Randy Ream and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Campbellsville Police Department, Columbia Police Department and the Adair County, Kentucky, Sheriff’s Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Jury Convicts Inmate in Murder for Hire Plot Against Federal JudgeRead the Press Release
FORT WORTH, Texas - Phillip Monroe Ballard, 72, of Fort Worth, has been convicted in the attempted murder for hire of a federal judge in Texas, announced United States Attorney Kenneth Magidson of the Southern District of Texas. The verdict was returned this afternoon after approximately two days of trial and less than an hour of deliberation.
From on or about Sept. 9, 2012 and continuing through Sep. 27, 2012, Ballard solicited the murder for hire of a U.S. District Judge in the Northern District of Texas. During trial, the jury heard from four government witnesses, one of whom was an informant who testified he had developed a friendship with Ballard as they both were in custody on unrelated criminal matters. He stated that Ballard had asked him if he would help him arrange the shooting death of the judge, who was presiding over his federal tax case. They eventually negotiated a price of $100,000.
The informant reported the incident to authorities and the plot was foiled before any harm came to the judge.
Ballard’s defense claimed he never had any actual intent to kill the judge. The jury disagreed and convicted him as charged.
U.S. District Judge Donald E Walter from the Western District of Louisiana presided over trial. He has set sentencing for March 2014 in Fort Worth, at which time Ballard faces up to 20 years in prison and a $250,000 fine. Ballard will remain in custody pending that hearing.
The case was investigated by the FBI. Assistant U.S. Attorneys Mark McIntyre and Craig Feazel from the Southern District of Texas are prosecuting the case.
John Charles Mccluskey to Receive Life Prison<br /> Sentence for Murdering Oklahoma CoupleRead the Press Release
John Charles McCluskey, 48, will receive a life prison sentence for a host of crimes arising out of the carjacking and murder of a couple from Tecumseh, Okla., after a federal jury today announced that it could not reach a unanimous decision on whether to impose the death penalty.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven C. Yarbrough of the District of New Mexico, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas made the announcement.
McCluskey was charged with several capital offenses in a 20-count indictment arising out of the carjacking and murders of Gary and Linda Haas, both 61, in Quay County, N.M., on Aug. 2, 2010. On Oct. 7, 2013, the jury found McCluskey guilty on all counts of the indictment after an eight-week trial. On Nov. 5, 2013, the jury found McCluskey eligible for the death penalty following a three-week proceeding. The capital trial concluded today when the jury said it was unable to reach a unanimous verdict on the death penalty. McCluskey will receive a sentence of life in prison. The court has not yet scheduled a date for the imposition of the sentence.
“During an exceptionally violent criminal episode in the summer of 2010, John Charles McCluskey escaped from prison where he was serving a sentence for attempted murder, committed multiple kidnappings during his interstate flight from justice, and mercilessly killed two innocent victims to eliminate them as witnesses,” said Acting Assistant Attorney General Raman. “Through the hard work of federal and state law enforcement and Department of Justice prosecutors, McCluskey and his co-defendants have been brought to justice. Our thoughts are with the victims and their family.”
“The men and women on this jury dedicated the last six months of their lives to performing a very difficult, but necessary, civil service. I respect their verdict and thank them for their personal sacrifice,” said Acting U.S. Attorney Steven C. Yarbrough. “Hopefully, the fact that John Charles McCluskey has been found guilty of every count charged and will now spend the rest of his life in prison with no possibility of parole will bring some measure of comfort and closure to the friends and family Gary and Linda Haas left behind. The prosecutors and investigators who so tirelessly have worked toward the pursuit of justice are also to be commended.”
According to the evidence presented at trial, on July 30, 2010, McCluskey and co-defendant Tracy Allen Province, 46, escaped from an Arizona state prison with the aid of co-defendant Casslyn Mae Welch, 47. On Aug. 2, 2010, McCluskey, Province and Welch carjacked Mr. and Mrs. Haas and their pickup truck and camping trailer at a rest stop off Interstate 40 in Quay County, N.M. McCluskey shot and killed Mr. and Mrs. Haas in the trailer in a remote location east of Tucumcari, N.M. The three confederates then drove the Haases’ truck and trailer to a remote area in Guadalupe County, N.M., where they unhitched, burned and abandoned the trailer with the Haases’ remains still inside. On Aug. 4, 2010, the New Mexico State Police discovered the burned remains of Mr. and Mrs. Haas in the trailer. Province was arrested in Wyoming on Aug. 9, 2010, and McCluskey and Welch were arrested in Arizona on Aug. 19, 2010, following a nationwide, multi-agency manhunt.
The trial evidence also established that McCluskey has the following prior convictions: convictions in 1993 in Pennsylvania for aggravated assault with a firearm and three armed robberies for which he served 15 years in state custody; convictions in 2009 in Arizona for attempted second degree murder and aggravated assault with a firearm, for which he received a 15-year state prison sentence in Arizona; and convictions in 2011 in Arizona for escape, kidnapping, armed robbery, aggravated assault, and felon in possession of a firearm, for which he received a 43-year prison sentence to run consecutive to his 15-year sentence.
On Jan. 20, 2012, Province and Welch each entered a guilty plea to numerous crimes arising out of the carjacking and murder of Mr. and Mrs. Haas, and both testified during the guilt phase of McCluskey’s trial. Under the terms of his plea agreement, Province will be sentenced to five consecutive terms of life in prison without the possibility of release. Welch faces a maximum penalty of life in prison under her plea agreement. Both remain in custody pending their sentencing hearings, which have yet to be scheduled.
“A long, painful ordeal for the Haas family has finally come to an end. Nothing we can do or say here today can return Gary and Linda Haas to their loved ones, but we hope this sentence gives them some measure of closure,” said FBI Special Agent in Charge Carol K.O. Lee. “I would like to recognize the FBI investigators and support personnel who contributed to this case, as well as the federal prosecutors, victim/witness specialists, the New Mexico State Police, and U.S. Marshals Service. The Albuquerque FBI Division will continue to combat violent crime in our big cities and small towns by working closely with our state and local partners.”
“I hope the conviction of John McCluskey brings a sense of closure to the family of Gary and Linda Haas,” said New Mexico State Police Chief Pete N. Kassetas. “This was a difficult and complex investigation but is yet another example of the exemplary relationship the New Mexico State Police maintains with our Federal law enforcement partners. I would like to thank the Federal Bureau of Investigation, United States Attorney’s Office, the Criminal Division of the Department of Justice and all the other New Mexico and Arizona law enforcement agencies that participated in the investigation, capture of John McCluskey and subsequent successful prosecution.”
The case was investigated by Albuquerque and Phoenix Divisions of the FBI and the New Mexico State Police. It is being prosecuted by Assistant U.S. Attorneys Linda Mott and Gregory J. Fouratt of the District of New Mexico and Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Case Section.John Charles Mccluskey to Receive Life Prison Sentence for Murdering Oklahoma CoupleRead the Press Release
ALBUQUERQUE –John Charles McCluskey, 48, will receive a life prison sentence for a host of crimes arising out of the carjacking and murder of a couple from Tecumseh, Okla., after a federal jury today announced that it could not reach a unanimous decision on whether to impose the death penalty, announced Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, Acting U.S. Attorney Steven C. Yarbrough of the District of New Mexico, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and New Mexico State Police Chief Pete N. Kassetas.
McCluskey was charged with several capital offenses in a 20-count indictment arising out of the Aug. 2, 2010, carjacking and murders of Gary and Linda Haas, both 61, in Quay County, N.M. On Oct. 7, 2013, the jury found McCluskey guilty on all counts of the indictment after an eight-week trial. On Nov. 5, 2013, the jury found McCluskey eligible for the death penalty following a three-week proceeding. The capital trial concluded today when the jury said it was unable to reach a unanimous verdict on the death penalty. McCluskey will receive a sentence of life in prison. The court has not yet scheduled a date for the imposition of the sentence.“During an exceptionally violent criminal episode in the summer of 2010, John Charles McCluskey escaped from prison where he was serving a sentence for attempted murder, committed multiple kidnappings during his interstate flight from justice, and mercilessly killed two innocent victims to eliminate them as witnesses,” said Acting Assistant Attorney General Mythili Raman. “Through the hard work of federal and state law enforcement and Department of Justice prosecutors, McCluskey and his co-defendants have been brought to justice. Our thoughts are with the victims and their family.”
“The men and women on this jury dedicated the last six months of their lives to performing a very difficult, but necessary, civil service. I respect their verdict and thank them for their personal sacrifice,” said Acting U.S. Attorney Steven C. Yarbrough. “Hopefully, the fact that John Charles McCluskey has been found guilty of every count charged and will now spend the rest of his life in prison with no possibility of parole will bring some measure of comfort and closure to the friends and family Gary and Linda Haas left behind. The prosecutors and investigators who so tirelessly have worked toward the pursuit of justice are also to be commended.”
According to the evidence presented at trial, on July 30, 2010, McCluskey and co-defendant Tracy Allen Province, 46, escaped from an Arizona state prison with the aid of co-defendant Casslyn Mae Welch, 47. On Aug. 2, 2010, McCluskey, Province and Welch carjacked Mr. and Mrs. Haas and their pickup truck and camping trailer at a rest stop off Interstate 40 in Quay County. McCluskey shot and killed Mr. and Mrs. Haas in the trailer in a remote location east of Tucumcari, N.M. The three confederates then drove the Haases’ truck and trailer to a remote area in Guadalupe County, N.M., where they unhitched, burned and abandoned the trailer with the Haases’ remains still inside. On Aug. 4, 2010, the New Mexico State Police discovered the burned remains of Mr. and Mrs. Haas in the trailer. Province was arrested in Wyoming on Aug. 9, 2010, and McCluskey and Welch were arrested in Arizona on Aug. 19, 2010, following a nationwide, multi-agency manhunt.
The trial evidence also established that McCluskey has the following prior convictions: convictions in 1993 in Pennsylvania for aggravated assault with a firearm and three armed robberies for which he served 15 years in state custody; convictions in 2009 in Arizona for attempted second degree murder and aggravated assault with a firearm, for which he received a 15-year state prison sentence in Arizona; and convictions in 2011 in Arizona for escape, kidnapping, armed robbery, aggravated assault, and felon in possession of a firearm, for which he received a 43-year prison sentence to run consecutive to his 15-year sentence.
On Jan. 20, 2012, Province and Welch each entered a guilty plea to numerous crimes arising out of the carjacking and murder of Mr. and Mrs. Haas, and both testified during the guilt phase of McCluskey’s trial. Under the terms of his plea agreement, Province will be sentenced to five consecutive terms of life imprisonment without the possibility of release. Welch faces a maximum penalty of life imprisonment under her plea agreement. Both remain in custody pending their sentencing hearings, which have yet to be scheduled.
“A long, painful ordeal for the Haas family has finally come to an end. Nothing we can do or say here today can return Gary and Linda Haas to their loved ones, but we hope this sentence gives them some measure of closure,” said FBI Special Agent in Charge Carol K.O. Lee. “I would like to recognize the FBI investigators and support personnel who contributed to this case, as well as the federal prosecutors, victim/witness specialists, the New Mexico State Police, and U.S. Marshals Service. The Albuquerque FBI Division will continue to combat violent crime in our big cities and small towns by working closely with our state and local partners.”
“I hope the conviction of John McCluskey brings a sense of closure to the family of Gary and Linda Haas,” said New Mexico State Police Chief Pete N. Kassetas. “This was a difficult and complex investigation but is yet another example of the exemplary relationship the New Mexico State Police maintains with our Federal law enforcement partners. I would like to thank the Federal Bureau of Investigation, United States Attorney’s Office, the Criminal Division of the Department of Justice and all the other New Mexico and Arizona law enforcement agencies that participated in the investigation, capture of John McCluskey and subsequent successful prosecution.”
The case was investigated by Albuquerque and Phoenix Divisions of the FBI and the New Mexico State Police. It is being prosecuted by Assistant U.S. Attorneys Linda Mott and Gregory J. Fouratt of the District of New Mexico, and Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Case Section.
Jeremy T. Lauzon Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on December 9, 2013, before U.S. District Judge Sam E. Haddon, JEREMY T. LAUZON, a 34-year-old resident of Billings, was sentenced to a term of:
- Prison: 21 months
- Special Assessment: $100
- Supervised Release: 3 years
LAUZON was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
On December 27, 2000, LAUZON was convicted of felony possession of a controlled substance in the State of Oregon which prohibited him from possession of firearms.
At approximately 8:41 p.m. on August 30, 2011, a sergeant with the Yellowstone County Sheriff's Office was dispatched to a residence in Billings regarding a complaint about a neighbor who fired a gun. When the sergeant arrived, he spoke with M.C. who stated that her neighbor, LAUZON, fired a gun into the ground near her boyfriend, J.K., and their two daughters. M.C., however, did not witness the incident.
The sergeant spoke with the two daughters and J.K. The daughters stated that there was an argument earlier that day with LAUZON about LAUZON's dogs entering their backyard. Later that day, the children were in their backyard with their dad when the dogs again ran onto their property. The children returned the dogs to LAUZON who was standing in his backyard. J.K., however, stated that he could overhear LAUZON yelling at the girls and telling them that the dogs could go wherever they wanted. J.K. then became upset and started to walk quickly toward LAUZON. According to J.K., he was about twenty to thirty feet away from LAUZON when LAUZON started to walk toward him. They were both arguing with each other. LAUZON then pulled out a gun from his side and fired it into the ground. The children and J.K. then turned around and retreated back into their house.
Additional units arrived on scene and helped search for LAUZON. LAUZON was subsequently detained. LAUZON admitted that he fired the gun into the ground. LAUZON also consented to a search of his residence. In an office in the residence, the officers recovered a Hi-Point model CF380 .380 caliber semi-automatic handgun.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LAUZON will likely serve all of the time imposed by the court. In the federal system, LAUZON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jamie Lynn Strosky Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on December 9, 2013, before U.S. District Judge Sam E. Haddon, JAMIE LYNN STROSKY, a 33-year-old resident of Shepherd, was sentenced.
STROSKY was sentenced in connection with her guilty pleas to conspiracy to possess with intent to distribute methamphetamine and distribution of methamphetamine to:
- ison: 105 months
- ecial Assessment: $100
- pervised Release: 5 years
In Offers of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
Homar Renova-Castillo, an alien and citizen of Mexico, was previously convicted in 2000 in Yellowstone County for felony criminal endangerment. Renova-Castillo was then deported from the United States on January 31, 2002, and left through El Paso, Texas. Renova-Castillo was subsequently found in the United States. Specifically, on November 19, 2012, Renova-Castillo was pulled over in a motor vehicle near Park City by law enforcement.
In August of 2012, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force (EMHIDTA) began investigating the sale of methamphetamine in Billings by STROSKY and Renova-Castillo.
On August 22, 2012, agents spoke with an individual identified here as "D.N." D.N. stated that he had made two trips to Idaho with Renova-Castillo to pick up methamphetamine. D.N. estimated that they picked up two pounds of methamphetamine each time. D.N. said that a woman named Jamie was Renova-Castillo(s "right-hand girl."
On September 6, 2012, agents met with a confidential informant (CI) who provided information about STROSKY. The CI stated that STROSKY had been selling methamphetamine since 2000. The CI indicated that STROSKY went to Idaho to obtain methamphetamine. The CI stated that STROSKY got her methamphetamine from a Mexican male named Homar. The CI indicated that approximately two months prior, STROSKY met with Renova-Castillo and she was "fronted" one ounce of methamphetamine.
On November 6, 2012, the CI met STROSKY at a residence in Billings. STROSKY sold the CI a quarter (1/4) ounce of methamphetamine for $550. STROSKY told the CI that she was paying $21,000 for one pound of methamphetamine. The methamphetamine was later tested at the DEA lab and the actual weight was 7.0 grams.
On November 8, 2012, the CI and STROSKY met in a parking lot in Billings Heights, and the CI purchased methamphetamine from STROSKY for $550. The methamphetamine was later tested at the DEA lab and the actual weight was 6.7 grams.
On November 14, 2012, the CI met STROSKY at STROSKY's residence in Shepherd. The CI purchased meth from STROSKY for $550. The methamphetamine was later tested at the DEA lab and the actual weight was 6.6 grams. Additionally, STROSKY told the CI that she recently had one pound of methamphetamine stolen from a stash house.
On December 7, 2012, the CI made another purchase of methamphetamine from STROSKY at a location in Billings. The methamphetamine was later tested at the DEA lab and the actual weight was 6.8 grams.
On December 11, 2012, STROSKY told the CI that she planned to re-up with "her guy" in the next few days.
On December 21, 2012, agents spoke with "K.V." K.V. admitted that she stole the pound of methamphetamine that STROSKY kept at her "stash house." K.V. said that she was told by another individual that K.S. was "babysitting" the methamphetamine at K.S.'s residence in the Billings Heights for STROSKY. K.V. stated that around November 12, 2012, she and her boyfriend broke into K.S.'s residence and stole a safe from the closet in the bedroom. Inside the safe, K.V. found two bags of methamphetamine, $100 in cash and two watches.
The CI made additional purchases of approximately ( ounce of methamphetamine from STROSKY on January 8th, 22nd, and 29th of 2013 and April 3, 2013.
On February 3, 2013, Renova-Castillo and his wife were stopped in a motor vehicle near Wickenburg, Arizona and Renova-Castillo was subsequently arrested. In a statement provided to law enforcement, Renova-Castillo indicated that he has purchased drugs from his source in Las Vegas, Nevada. He admitted that on two occasions he transported cocaine and methamphetamine from Las Vegas to Billings.
Renova-Castillo pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that she will likely serve all of the time imposed by the court. In the federal system, she does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation Task Force.
German Engineering Firm Bilfinger Resolves <br /> Foreign Corrupt Practices Act Charges <br /> and Agrees to Pay $32 Million Criminal PenaltyRead the Press Release
Bilfinger SE, an international engineering and services company based in Mannheim, Germany, has agreed to pay a $32 million penalty to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials of the Federal Republic of Nigeria to obtain and retain contracts related to the Eastern Gas Gathering System (EGGS) project, which was valued at approximately $387 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
As part of the agreed resolution, the department today filed a three-count criminal information in U.S. District Court for the Southern District of Texas charging Bilfinger with violating and conspiring to violate the FCPA’s anti-bribery provisions. The department and Bilfinger agreed to resolve the charges by entering into a deferred prosecution agreement for a term of three years. In addition to the monetary penalty, Bilfinger agreed to implement rigorous internal controls, continue cooperating fully with the department, and retain an independent corporate compliance monitor for at least 18 months. The agreement acknowledges Bilfinger’s cooperation with the department and its remediation efforts.
According to court documents, from late 2003 through June 2005, Bilfinger conspired with Willbros Group Inc. and others to make corrupt payments totaling more than $6 million to Nigerian government officials to assist in obtaining and retaining contracts related to the EGGS project. Bilfinger and Willbros formed a joint venture to bid on the EGGS project and inflated the price of the joint venture’s bid by 3 percent to cover the cost of paying bribes to Nigerian officials. As part of the conspiracy, Bilfinger employees bribed Nigerian officials with cash that Bilfinger employees sent from Germany to Nigeria. At another point in the conspiracy, when Willbros employees encountered difficulty obtaining enough money to make their share of the bribe payments, Bilfinger loaned them $1 million, with the express purpose of paying bribes to the Nigerian officials.
Including today’s action, the department has filed criminal charges in the Southern District of Texas against three institutions and four executives and consultants in connection with the EGGS bribery scheme:· On Sept. 14, 2006, Jim Bob Brown, a former Willbros executive, pleaded guilty to one count of conspiracy to violate the FCPA in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract and in connection with his role in making corrupt payments in Ecuador. Brown was sentenced on Jan. 28, 2010, to serve 12 months and one day in prison, to be followed by two years of supervised release, and ordered to pay a $17,500 fine.
· On Nov. 5, 2007, Jason Steph, also a former Willbros executive, pleaded guilty to one count of conspiracy to violate the FCPA in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract. Steph was sentenced on Jan. 28, 2010, to serve 15 months in prison, to be followed by two years of supervised release, and ordered to pay a $2,000 fine.
· On May 14, 2008, Willbros Group Inc. and Willbros International Inc. entered into a deferred prosecution agreement and agreed to pay a $22 million criminal penalty in connection with the company’s payment of bribes to government officials in Nigeria and Ecuador. On March 30, 2012, the government moved to dismiss the charges against Willbros on the grounds that Willbros had satisfied its obligations under the deferred prosecution agreement, and on April 2, 2012, the court granted the United States’ motion.
· On Dec. 19, 2008, Kenneth Tillery, a former Willbros executive, was charged with conspiring to make and making bribe payments to Nigerian and Ecuadoran officials in connection with the EGGS project and pipeline projects in Ecuador and conspiring to launder the bribe payments. Tillery remains a fugitive. The charges against Tillery are merely accusations, and he is presumed innocent unless and until proven guilty.
· On Nov. 12, 2009, Paul Grayson Novak, a former Willbros consultant, pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract. Novak was sentenced on May 3, 2013, to serve 15 months in prison, to be followed by two years of supervised release, and ordered to pay a $1 million fine.
The case was investigated by the FBI’s Washington Field Office and its team of special agents dedicated to the investigation of foreign bribery cases. The case is being prosecuted by Senior Trial Attorney Laura N. Perkins of the Criminal Division’s Fraud Section.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Former Washington, D.C.-Area Accountant Sentenced to Prison for Tax FraudRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced today that John T. Hoang, of Woodbridge, Va., was sentenced in federal district court in Washington, D.C., for willfully aiding and assisting in the preparation of false income tax returns for the 2004 tax year. U.S. District Judge Richard J. Leon sentenced Hoang to serve 48 months in prison, 24 months of supervised release and 240 hours of community service. Judge Leon also ordered him to pay $331,896 in restitution to the IRS. Hoang previously pled guilty on July 31, 2013.
According to court documents and statements made in court, Hoang was a certified public accountant (CPA) and an attorney. From January 2005 through April 2007, Hoang operated John T. Hoang CPA, a tax return preparation business,, and was one of two partners who owned Tax-Smart Technology Services. Hoang operated these businesses from various locations in Washington, D.C., and Fairfax, Va. In 2008, a federal district court in Virginia barred Hoang from preparing federal tax returns.
As alleged in court documents, in his capacity as a tax return preparer, Hoang prepared and supervised the preparation of client tax returns to be filed with the IRS and various state taxing authorities. For the tax years 2004, 2005 and 2006, Hoang prepared hundreds of U.S. Individual Income Tax Returns and earned substantial income from his tax preparation activities. Hoang further received a substantial portion of the refunds issued by the IRS to his clients through his businesses. Despite earning revenue through his businesses of approximately $1 million in 2004; $2 million in 2005; and $3 million in 2006, Hoang failed to file any federal income tax returns or pay any federal income taxes for himself or his businesses during this time.
Hoang admitted that he prepared and caused the preparation of false and fraudulent 2004, 2005 and 2006 income tax returns for his clients. When preparing these false tax returns and related schedules for his clients, Hoang created wholly fictitious business income and expenses for what seemed to be a technology licensing business. The false information resulted in the client-taxpayers reporting fake losses from business activity and receiving either refunds larger than those they were entitled or decreases in the amount of taxes due. Hoang admitted that the tax loss caused by certain false returns he prepared was greater than $30,000 per return, and that he prepared at least 24 such false returns for the 2004 through 2006 tax years.
As part of the plea agreement, Hoang admitted that the total tax loss caused by his criminal conduct is greater than $1.5 million.
The case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Jorge Almonte and Jeffrey B. Bender of the Justice Department’s Tax Division.
Former Motel Owner, Anil Patel, Sentenced for Tax FraudRead the Press Release
ANIL PATEL, age 47, formerly a resident of Metairie, Louisiana, was sentenced today by U.S. District Judge Sarah S. Vance to thirteen months incarceration, announced U. S. Attorney Kenneth A. Polite, Jr.
According to court documents, on August 6, 2009, PATEL signed and filed a 2008 U. S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. That tax return did not report approximately $426,744 in income, which resulted in $111,378 in tax due and owing to the Internal Revenue Service.
PATEL was the former owner of the Trade Winds and La Village motels that were located on Airline Drive in Metairie, Louisiana. As part of his plea agreement, PATEL agreed to accept responsibility for failing to report $1,373,076 in total unreported income for the tax years 2006 - 2009. As a result, the tax due and owing to the IRS for those years is $393,048. PATEL also previously agreed to pay taxes due and owing to both the parish and state.
“Those who cheat on their taxes impose an unfair burden on everyone else who dutifully pay their fair share,” stated U.S. Attorney Polite.
“Mr. Patel underreported his taxable income by over $425,000 in a single year”, stated Gabriel L. Grchan, Special Agent in Charge of Internal Revenue Service Criminal Investigations, “the agents of Criminal Investigation will continue to diligently pursue those individuals that evade their responsibility to accurately report their earnings and pay their fair share of taxes. We will continue to work with the United States Attorney Office, our federal, state and local law enforcement partners to ferret out those that fail to obey the law.”
U.S. Attorney Polite also acknowledges the outstanding job performed by the Jefferson Parish Sheriff’s Office and Special Agents of the Internal Revenue Service, Criminal Investigations.
The prosecution was handled by Assistant U. S. Attorney Jon Maestri.
Former Houston Banker Arrested for Bank FraudRead the Press Release
HOUSTON – Carlos Ibarra, 33, formerly of Houston, has been arrested on charges of bank fraud and money laundering, announced United States Attorney Kenneth Magidson.
Ibarra was taken into custody yesterday without incident at a family member’s residence in Houston. He is expected to appear this afternoon before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m.
The 10-count sealed indictment was returned June 19, 2013, and unsealed upon his arrest. It alleges he knowingly executed a scheme to defraud Chase Bank and obtain money under the control of the bank by means of materially false and fraudulent pretenses.
Ibarra had been employed by J.P. Morgan Chase Bank in Houston. Between September 2010 and June 2012, Ibarra allegedly purchased cashier’s checks on an account at Chase that belonged to a deceased individual. According to the indictment, he gave those checks to others for them to deposit into their own bank accounts. They then made wire transfers and obtained cashier’s checks as instructed by Ibarra, according to the allegations.
If convicted, Ibarra faces up to 30 years imprisonment on each of three counts of bank fraud and a possible $1 fine. For the remaining seven charges of money laundering, Ibarra also faces up to 20 years and a maximum $500,000 fine upon each conviction.
The indictment further contains a notice of forfeiture of $779,000, alleged illegal proceeds derived from the charged crimes.
The case was investigated by the Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Executive Director of Rockwall Housing Development Corporation Admits Role in Conspiracy to Steal Federal Funds from HUDRead the Press Release
DALLAS — Jennifer Tyson, 37, of Rockwall, Texas, the former Executive Director/Manager of the Rockwall Housing Development Corporation (RHDC), appeared yesterday before U.S. Magistrate Judge Renée Harris Toliver and admitted conspiring to steal federal funds from the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Tyson pleaded guilty to an Information charging one count of conspiracy to commit theft concerning programs receiving federal funds. She faces a maximum statutory penalty of five years in federal prison, a $250,000 fine, or twice the pecuniary gain to Tyson or loss to the victim(s), and restitution. Sentencing is set for March 19, 2014, before U.S. District Judge Ed Kinkeade.
The RDHC is a landlord to several authorized public housing agencies (PHAs) in Rockwall. These PHAs, and, in turn, the RHDC, receive federal funds from HUD through the “Housing Choice Voucher Program.” The RHDC owns and operates a 36-unit apartment complex in Rockwall, known as “the Meadows.”
In her role as the RHDC’s Executive Director/Manager from June 2009 to November 2012, Tyson was an agent of the RHDC. Her responsibilities included, among other things, reviewing and processing monthly housing assistance payments and had managerial discretion and responsibility for the day-to-day running of the Meadows.
According to the factual resume filed in the case, beginning in March 2010 and continuing until June 2011, Tyson wrote approximately 128 RHDC checks, made out to Co-conspirator B, totaling approximately $126,063. While this co-conspirator did perform some work for the Meadows, such as watering plants and picking up trash, Co-conspirator B did not earn, and was not owed, $126,063 over the course of less than 16 months.
Generally, Co-conspirator B cashed the checks that Tyson gave to him. Then, Tyson, along with this Co-conspirator B and his fiancé, Co-conspirator A, used the cash to purchase illegal narcotics for their own personal use.
From February 2011 until January 2012, Tyson wrote approximately 94 RHDC checks made out to “cash” and used the proceeds for her own personal use.
From October 2009 until October 2012, Tyson wrote approximately 55 RHDC checks made out to “reimbursement” and used the proceeds for her own personal use.
In January 2011, Co-conspirator A was evicted from the Meadows and began living with Co-conspirator B in hotels in Rockwall. Tyson would occasionally visit them and the three would often use illegal narcotics in these hotel rooms. Tyson paid for these hotel stays using RHDC funds.
The investigation was conducted by HUD and the FBI. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
Former Employee of Allstate Electrical to Serve Eight Months in Prison for Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – Renea I. Windham, of Oklahoma City, was sentenced today to eight months in federal prison for making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors, Inc., in Oklahoma City. According to the Information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At the plea hearing on September 11, 2013, Windham admitted that she prepared that check to herself without Allstate’s permission, and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The Information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At the plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
Today, United States District Judge Robin J. Cauthron sentenced Windham to eight months of imprisonment, followed by three years of supervised release. Windham was ordered to pay restitution to Allstate and its insurance company in the amount of $143,057.10. She was also ordered to pay $26,682.00 in restitution to the Internal Revenue Service for federal income tax due from her unreported embezzlement income.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Former Chief Executive of Mortgage Servicing Company Sentenced for Scheme to Withhold Funds from <br /> Wells Fargo BankRead the Press Release
Earl Gross, 74, of Las Vegas, the former President and Chief Executive Officer of U.S. Mortgage, a loan servicing company, was sentenced to serve 18 months in prison for his role in an $8 million scheme to defraud Wells Fargo Bank.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement after the sentence was imposed by U.S. District Court Judge Andrew P. Gordon of the District of Nevada.
On June 11, 2013, Gross pleaded guilty to one count of bank fraud. In addition to his prison term, Gross was ordered to forfeit $8,440,439 in fraudulent proceeds.
According to plea documents, Wells Fargo Bank contracted with U.S. Mortgage to service pools of residential mortgage loans held by investors in mortgage backed securities. Under the agreement, Gross and U.S. Mortgage were obligated to collect from the borrowers the monthly payments that the borrowers made toward their mortgage obligations and forward these proceeds to Wells Fargo Bank. In the event that a borrower paid off the loan – usually by selling the mortgaged property – U.S. Mortgage was obligated to remit to Wells Fargo Bank the full payoff amount. U.S. Mortgage agreed to provide Wells Fargo Bank with monthly reports that described the status of the loans, and it received servicing fees for each loan it serviced.
According to the indictment, from 2004 to 2009, Mr. Gross and U.S. Mortgage withheld over $8 million in loan payoffs that were due Wells Fargo Bank by submitting to the bank reports stating that numerous borrowers were continuing to make monthly payments when in fact they had paid off the loans in full. Rather than remit the full payoff amount to Wells Fargo Bank, Gross and U.S. Mortgage forwarded only what the borrowers’ monthly payments would have been and retained the difference in U.S. Mortgage’s bank account. To deceive Wells Fargo Bank about the status of paid-off loans, Gross and U.S. Mortgage created fake amortization schedules indicating that borrowers who had sold and paid off homes were continuing to make monthly payments. In addition to withholding loan payoff amounts to which he was not entitled, Gross charged Wells Fargo Bank fees to service mortgage loans that had been paid off.
The case was investigated by the FBI and prosecuted by Deputy Chief Charles La Bella and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, with assistance from Roberto Iraola of the Office of International Affairs and the United States Attorney’s Office for the District of Nevada.
Today’s guilty plea was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the Task Force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the Task Force, visit www.StopFraud.gov .Florida Man Charged in $3.9 Million Fraud Scheme Targeting InvestorsRead the Press Release
PITTSBURGH - A resident of Tampa, Fla., was indicted on Dec. 3, 2013, by a federal grand jury in Pittsburgh on charges of wire fraud, United States Attorney David J. Hickton announced today.
The 13-count indictment named Fotios Geivelis, Jr., a/k/a Frank Geivelis, a/k/a Frank Anastasio, 34, as the sole defendant.
According to the indictment, Geivelis, through operation of his Florida company, Worldwide Funding III, Ltd. (WWF), obtained in excess of $3.9 million in increments of $60,000 or $90,000 from more than three dozen investors, to each of whom he promised to obtain a $10 million “non-recourse” overseas loan for a “humanitarian” or “job-creating” project. The funds were wired into the escrow accounts of a Florida attorney Geivelis designated as the “Paymaster,” and thereafter paid out to that attorney, brokers who had referred the investors to WWF and to Geivelis, who spent his share on personal expenses such as hotels, casinos, restaurants, strip clubs, automobiles, clothing and jewelry. No loans were ever obtained for the investors, who Geivelis attempted to lull by repeated assurances that their deals would close within a short period of time.
The law provides for a maximum total sentence (at each count) of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Court Shuts Down Atlanta-Area Tax PreparerRead the Press Release
A federal court in Atlanta permanently barred Matthew Adegbite and his companies, MAS & Associates CPA LLC and Mathew A. Adegbite CPA PC, from preparing federal income tax returns for others, the Justice Department announced today. The permanent injunction order was signed today by Judge Clarence Cooper of the U.S. District Court for the Northern District of Georgia.
According to the complaint, Adegbite has prepared more than 1,000 returns since 2008. Allegedly, Adegbite repeatedly understated his clients’ federal tax liabilities by claiming false or inflated tax deductions and credits his clients were not eligible to take. Adegbite’s alleged schemes include claiming the First Time Home Buyer Credit for taxpayers who did not actually purchase homes, deducting fictitious business expenses for taxpayers who did not operate a business and inflating deductions for legitimate businesses to claim losses for otherwise profitable enterprises. The complaint further alleged that the harm to the U.S. Treasury as a result of his conduct could amount to millions of dollars and that a permanent injunction was warranted to prevent further harm.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2013 . The IRS has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the department website.
Related Materials:
United States v. Matthew Adegbite, et al.
Final Judgment and Permanent InjunctionExecutive of Two Publicly Traded Companies Sentenced to 15 Months in Securities Fraud SchemeRead the Press Release
BOSTON – A Canadian man who served as an executive of two public companies, both of which traded on the over-the-counter securities market, was sentenced today for his role in a securities fraud scheme.
Seijin Ki, 42, of Toronto, was sentenced by United States District Court Judge William G. Young to 15 months in prison, one year of supervised release, a $4,000 fine, and ordered to forfeit illegal earnings. In October 2013, Ki pleaded guilty to wire fraud and mail fraud.
Ki was convicted for his role in a scheme to pay secret kickbacks to an investment fund representative who had agreed to steer the investment fund to buy stock in Lightlake Therapeutics, Inc. and Church & Crawford, Inc. The kickbacks were concealed through the use of a sham consulting agreement and other fraudulent documents. Ki did not know that the purported investment fund representative was actually an undercover federal agent.
The conviction and sentence followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities and Exchange Commission.
Ki is one of 15 defendants convicted of crimes associated with the illegal kickback scheme.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges, as well as those against the other defendants.United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Escambia High School Teacher Arrested on Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA - - United States Attorney Pamela C. Marsh announced that Jeffrey B. Richards, age 63, of Milton, was arrested today on a federal criminal complaint charging him with the distribution, receipt and possession of child pornography.
The criminal complaint, sworn to by a special agent of the Federal Bureau of Investigation, alleges that between December 2012 and December 2013, Richards utilized peer-to-peer software to share hundreds of images of child pornography online.
Richards made his initial appearance on the criminal complaint today before United States Magistrate Judge Charles J. Kahn, Jr.
The complaint was a result of a joint investigation by the Federal Bureau of Investigation, the Department of Homeland Security, the Pensacola Police Department and other members of the Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg.
A criminal complaint is merely a preliminary allegation that a defendant has committed a violation of federal criminal law. All defendants are presumed innocent until and unless the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial.Eric Bartoli Arrested in Peru After A Decade as A FugitiveRead the Press Release
Eric V. Bartoli, who was indicted in 2003 on a 10-count indictment and has been a fugitive for more than a decade, has been arrested in Peru, said Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Bartoli is accused of operation a large-scale ponzi scheme from 1995 through 1999. Bartoli allegedly created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America and Belize. Bartoli and his co-conspirators allegedly operated Cyprus to sell certificates of deposit and unregistered mutual funds. Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims include retirees, according to court records.
Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.
A 10-count federal indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003. He was charged with conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud, money laundering, and attempted income tax evasion.
Bartoli has been featured on shows including American Greed and Life on the Run and on a wanted poster by the FBI posted on www.fbi.gov.
Bartoli was taken into custody this morning at 6:15a.m. in Chorillos, Lima, Peru by the Peruvian National Police without incident. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police. The United States Government appreciates the Government of Peru’s cooperation on this sensitive case.
“We are thankful for our continued partnership with the international law enforcement community. A team of Cleveland and international FBI resources worked closely with the Peruvian authorities to locate and apprehend Eric Bartoli,” Anthony said. “We hope that the long awaited prosecution of Bartoli will provide some satisfaction to the many individuals he defrauded.”
“We are gratified by the all the hard work that was done to bring Mr. Bartoli into custody,” Dettelbach said.
Emergency Room Doctor Sentenced for Failure to File Tax ReturnsRead the Press Release
Dr. Michael Austin, 57, of Atlanta, Ga., was sentenced today to serve one year and one day in federal prison for willfully failing to file individual income tax returns for tax years 2008 and 2009, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Austin was further ordered to serve one year of supervised release and to pay restitution to the Internal Revenue Service (IRS). Austin previously pleaded guilty to these charges on Aug. 27, 2013.
According to documents filed in court, during 2008 and 2009, Austin was a medical doctor licensed by the state of Georgia who earned substantial income from practicing of medicine at various hospitals, clinics and other health care institutions. As alleged in the case, Austin earned at least $213,931 in 2008 and $210,644 in 2009, which required him to file an income tax return with the Internal Revenue Service (IRS). Nonetheless, as Austin admitted in his plea agreement, he willfully failed to file an individual income tax return for both years. In total, Dr. Austin agreed to pay restitution of at least $215,906.44 to the IRS.
This case was investigated by special agents of the IRS - Criminal Investigation. Trial Attorney Hayden Brockett of the department's Tax Division prosecuted the case, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia.
Eleven Indicted for Alleged Conspiracy to Distribute Drugs, Launder Money and Sell Millions in Contraband CigarettesRead the Press Release
Criminal Proceeds Laundered Through Eastern Europe
Baltimore, Maryland - A federal grand jury has indicted 11 individuals on charges related to a conspiracy to traffic over $6.6 million in contraband cigarettes. The indictment was returned on December 3, 2013, and unsealed today upon the arrest of eight defendants and the execution of twelve search warrants.
Charged in the indictment are:
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 41, of Owings Mills, Maryland; Zarakh Yelizarov, age 51, of Baltimore, Maryland; Salim Yusufov, age 43, of Baltimore; Artur Zakharyan, age 52, of Owings Mills; Ilgar Rakhamimov, age 39, of Owings Mills; Timur Yusufov, age 35, of Baltimore; Nikolay Zakharyan, age 23, of Owings Mills; Adam Azerman, age 59, of Pikesville; Shamil Novakhov, age 58, of Brooklyn, New York; Yuliya Rakhamimov, age 33, of Owings Mills; and
Ruslan Ykiew, age 38, of Brooklyn, New York.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“The indictment alleges that the defendants participated in a criminal conspiracy to traffic in illegal drugs and contraband cigarettes and launder the criminal proceeds through wire transfers to Eastern European countries,” said U.S. Attorney Rod J. Rosenstein.
“FDA’s regulatory standards are designed to ensure the safety and quality of drugs distributed to American consumers,” said Special Agent-in-Charge Antoinette V. Henry, FDA’s Office of Criminal Investigations. “We will continue to work with our law enforcement partners to investigate all persons who disregard regulatory requirements and jeopardize the public health by participating in the distribution of unapproved products.”
The 42-count indictment alleges that the defendants are family members and associates who primarily live in northwest Baltimore County and New York City and operate businesses in the Pikesville area of Baltimore County, and in Baltimore City, including Healthway Pharmacy and Europe Restaurant. In addition to trafficking in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid, the indictment alleges that some of the defendants also have distributed oxycodone, sold drug samples and laundered money.
According to the indictment, the cigarette tax in Maryland is $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York is $4.35 per package of cigarettes ($43.50 per carton of cigarettes). Specifically, the indictment alleges that since December 2011, Elmar Rakhamimov has paid approximately $5.4 million for contraband cigarettes, which were received and stored at his residence in Maryland. The conspirators then transported the cigarettes to the New York area and resold them for a profit. According to the indictment, Elmar Rakhamimov, Artur Zakharyan and Ilgar Rakhamimov acted as a broker, middleman and distributor of contraband cigarettes and Nikolay Zakharyan, Adam Azerman, Shamil Novakhov andRuslan Ykiew transported contraband cigarettes to New York and other cities for resale. Elmar Rakhamimov and Yuliya Rakhamimov sometimes paid for the contraband cigarettes with prescription and counterfeit prescription drugs as well as other controlled substances. Elmar Rakhamimov and other conspirators used Rakhamimov’s residence and his restaurant to conduct the illegal transactions of contraband cigarettes and drugs. The indictment alleges that Salim Yusufov, who owned Healthway Pharmacy, received more than $81,000 in kickbacks for the contraband cigarette transactions.
Further, the indictment alleges that Elmar Rakhamimov and Zarakh Yelizarov conducted financial transactions involving the proceeds of the contraband cigarette sales, in order to conceal the nature, source, ownership and control of the proceeds of the illegal activity. Specifically, the indictment alleges that Rakhamimov and Yelizarov conducted wire transfers of cash from bank accounts they controlled in Latvia, Cyprus and Estonia.
In a separate indictment, Salim Yusufov, who owned and operated Healthway Pharmacy in Pikesville, is charged with illegally providing unapproved prescription drugs from Germany and Eastern Europe and sold them to customers. According to the indictment, Corvalol, also referred to Corvalolum, and Valocordin, is not approved by the FDA for distribution in the United States, although it is sold in Eastern European countries, where it is used to treat elevated blood pressure and as a tranquilizer and sedative. Valocordin and Corvalol contain large amounts of phenobarbital, a prescription drug regulated by the FDA. The indictment alleges that from July 23, 2010 through July 14, 2011, Yusufov imported and distributed Valocordin, dispensing the drug without a prescription.
All the defendants except Yuliya Rakhamimov face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes and for each of 18 counts of trafficking in contraband cigarettes. Elmar and Yuliya Rakhamimov face a maximum of 20 years in prison for each of 10 counts of distribution of oxycodone; and Elmar Rakhamimov and Zarakh Yelizarov face a maximum of 20 years in prison for each of 12 counts of money laundering. Elmar Rakhamimov also faces 10 years in prison for sale of a drug sample.
Salim Yusufov also faces a maximum of three years in prison for each of five counts of receipt and delivery of misbranded drugs, and for each of five counts of dispensing prescription drugs without a prescription.
Six of the defendants are scheduled to have initial appearances this afternoon in U.S. District Court in Baltimore. Shamil Novakhov and Ruslan Ykiew were arrested in New York and will have initial appearances this afternoon in the U.S. District Court for the Eastern District of New York.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Durham Man Sentenced to Twenty Years for Federal Firearm OffensesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge Malcolm J. Howard sentenced JASON LEMAR MEDLYN, 31, of Durham, North Carolina, to 240 months imprisonment followed by 3 years of supervised release.
Investigation of this case was conducted by the Granville County Sheriff’s Office, the Durham Police Department, and the Raleigh-Durham Safe Streets Task Force comprised of the North Carolina State Highway Patrol, Raleigh Police Department, Durham Police Department, Durham County Sheriff’s Office, North Carolina Alcohol Law Enforcement, Cary Police Department, and the Garner Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
On July 10, 2013 MEDLYN pled guilty to three federal charges: Conspiracy to possess stolen firearms and ammunition, in violation of Title 18, United States Code, section 371; Possession of firearm in a school zone; aiding and abetting, in violation of Title 18, United States Code, sections 922(q)(2)(A) and 924 and 2; Felon in possession of a firearm and ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, on May 31, 2012, MEDLYN and his co-conspirator, Ireshia Donte Summers broke into two residences in Granville County and stole, among other things, personal property, firearms and ammunition. The defendants were discovered while still at the second residence by the homeowner. A Granville County Sheriff’s Deputy responding to the call regarding the residential break in, pursued two males from Durham, NC, later identified as MEDLYN and Summers. The passenger in the fleeing vehicle fired shots at the pursuing deputy. A North Carolina State Highway Patrolman picked up the chase in Wake County and the passenger then fired shots at the trooper.
The car sped through two school zones in Durham before crashing. Three hand guns were found near the vehicle along with a stolen television, nooks, and jewelry.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.Downsville Man Pleads Guilty to Receiving Child PornRead the Press Release
MONROE, La. – U.S. Attorney Stephanie A. Finley announced that Randy A. Powell, 33, of Downsville, La., pleaded guilty Tuesday before U.S. Magistrate Judge Karen L. Hayes to receiving child pornography.
According to evidence presented at the guilty plea, in February 2012, Ouachita Parish Sheriff’s Office deputies learned that Powell, who is a registered sex offender, was maintaining social media accounts under an alias, which is a violation of his sex offender registration requirements. Authorities arrested Powell February 23, 2013, and his home was searched. They found 1,041 images and 150 videos of prepubescent children. Approximately 50 of the videos/photos depicted children in bondage. Powell admitted to investigators that he used a file-sharing program to download the images. Powell has a previous conviction for attempted possession of child pornography.
Powell faces five to 40 years in prison, a $250,000 fine, and five years to life of supervised release for one count of receiving child pornography. Sentencing is set for April 7, 2014. The Federal Bureau of Investigation and the Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Monroe FBI office number is (318) 387-0773.
Defendant Who Supplied Three Rocket-Propelled Grenade Launchers Pleads Guilty in Manhattan Federal Court to Attempting to Provide Material Support to TerroristsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the Drug Enforcement Administration (DEA), announced that IOANNIS VIGLAKIS, a/k/a “Pablo,” pled guilty yesterday in Manhattan federal court to attempting to provide material support to the Fuerzas Armadas Revolucionarias de Colombia (“FARC”), a Colombian terrorist organization. VIGLAKIS, a citizen of Greece, was arrested in Panama City, Panama, in coordination with Panamanian authorities during August 2012. He waived extradition and was subsequently turned over to the custody of the United States. VIGLAKIS pled guilty before U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “By providing functioning rocket-propelled grenade launchers and other military-grade weapons to an individual he believed to be a FARC associate, Ioannis Viglakis was attempting to arm a known terrorist organization that he understood would use those weapons against Americans and Colombians. This Office will not stop its efforts to pursue and prosecute those who agree to provide weapons to a terrorist organization knowing that they might be used to attack American forces.”
DEA Administrator Michele M. Leonhart said: “This investigation clearly demonstrates DEA’s unique ability to disrupt and dismantle the arms-trafficking networks that supply weapons to the most significant global narco-terror organizations. DEA will continue to aggressively pursue international arms dealers and narco-terrorists who are focused on harming our nation's security.”
According to the Indictment previously unsealed in this case:
Beginning in November 2011, VIGLAKIS had a series of meetings with a DEA confidential source (the “CS”) who represented himself to be an associate of the FARC. During those meetings, which took place in Europe and Central America, the CS informed VIGLAKIS that he was seeking weapons for use by the FARC to attack American forces in Colombia. VIGLAKIS offered to provide the FARC with functional, bona fide, military-grade weapons – including assault rifles, rocket-propelled grenade (“RPG”) launchers and surface-to-air missiles – in exchange for cocaine and cash. During the meetings, VIGLAKIS and the CS also discussed the FARC’s use of these weapons to fight the Colombian and American governments, including by shooting down American aircraft in Colombia.
During the following months, VIGLAKIS indicated that he would provide the CS with several RPG launchers as a sample. On July 18, 2012, VIGLAKIS successfully arranged for the delivery in Europe of six live RPGs and three working RPG launchers, which were received by a DEA undercover agent.
VIGLAKIS, 53, pled guilty to one count of attempting to provide material support to the FARC. He faces a maximum sentence of 15 years in prison, and is scheduled to be sentenced by Judge Forrest on April 11, 2014, at 11:00 a.m.
Mr. Bharara praised the outstanding work of the Special Operations Division of the DEA, as well as the DEA Panama Country Office, the DEA Madrid Country Office, and the DEA Copenhagen Country Office. Mr. Bharara also thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the Government of the Republic of Panama.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian R. Everdell, Aimee Hector, and Michael Lockard are in charge of the prosecution.
U.S. v. Ioannis Viglakis S1 Indictment
December Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 21 indictments charging 22 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jose Abel-Davila, age 27, of Omaha, is charged with illegal reentry into the United States on or about October 11, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Fidelsi Alvarez, age 35, of Bellevue, Nebraska, is charged with illegal reentry into the United States on or about December 2, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Franklin A. Ansu, age 30, of La Vista, Nebraska is charged in a three-count Indictment. Count I of the Indictment charges Ansu with submitting a false document to the United States Air Force at Offutt Air Force Base in the District of Nebraska on or about May 16, 2011. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with submitting a false statement to the United States Office of Personnel Management Investigations Service at Offutt Air Force Base on or about May 24, 2011. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment. Count III of the Indictment charges Ansu with aiding and abetting the misuse of a Social Security Number from on or about December 31, 2009 through on or about September 25, 2010. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Richard Allen Brownrigg, age 58, of Winnebago, Nebraska is charged with resisting and interfering with a police officer of the Bureau of Indian Affairs on or about November 2, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Dana Lee Dick, age 57, of Macy, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with assault with a deadly weapon on or about October 27, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years supervised release, and a $100 special assessment. Count II charges the defendant with felony child abuse on or about October 27, 2013. The maximum possible penalty if convicted is imprisonment of 5 years, a fine of $10,000, 3 years of supervised release, and a $100 special assessment.
* David C. Evans, age 35, of Omaha, is charged in a two-count indictment. Count I of the Indictment charges Evans with receipt of child pornography from on or about July 11, 2012 and continuing until November 14, 2012. The maximum possible penalty if convicted is imprisonment of not less than 5 years or more than 20 years, a $250,000 fine, supervised release for life, and a $100 special assessment. Evans is charged in Count II of the Indictment with possession of child pornography from on or about July 11, 2012, and continuing until November 14, 2012. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Brandon Lamar Ford, also known as Gotti, age 28, of Lincoln, is charged in a six-count indictment. Counts I, III and IV charges Ford with distribution of a mixture or substance containing cocaine base on or about August 23, September 10, and September 23, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, 3 years supervised release and a $100 special assessment for each count. Counts II and V charge Ford with distribution of a mixture or substance containing cocaine base within 1000 feet of an elementary school on or about August 28, 2013 and November 19, 2013. The maximum possible penalty if convicted is imprisonment of not less than 1 year or more than 40 years, a $2 million fine, 6 years of supervised release, and a $100 special assessment for each count. Count VI of the Indictment alleges that on or about November 19, 2013, Brandon Lamar Ford possessed a Ruger 9 millimeter pistol, during, in relation to, and in furtherance of the drug trafficking offense alleged in Count V. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to life to be served consecutive to any other sentence imposed, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count V of the indictment, including but not limited to: $437.00 in United States currency, should be forfeited to the United States.
* Loni Lee Frenchman, age 33, of Winnebago, Nebraska, is charged with assault with a dangerous weapon on or about October 23, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years supervised release, and a $100 special assessment.
* Luis Garcia-Guzman, age 29, is charged in a six-count Indictment. Count I of the indictment charges Garcia-Guzman with possession with intent to distribute 5 grams or more of actual methamphetamine on or about October 7, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release and a $100 special assessment. Counts II, and III and VI allege that on or about August 15 and 19, 2013 and September 27, 2013, the defendant distributed a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty if convicted for each count is imprisonment of up to 20 years, a $1 million fine, a 5 year term of supervised release and a $100 special assessment. Counts IV and V of the Indictment allege that on or about September 5 and 12, 2013 the defendant distributed 5 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in Counts I through VI of this Indictment, including but not limited to $422.00 in United States currency seized from the defendant, should be forfeited to the United States.
* Jose Garcia-Martinez, age 37, of Omaha, is charged with illegal reentry into the United States on or about November 9, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Cristobal Gomez-Padilla, age 38, of Omaha, is charged with illegal reentry into the United States on or about November 19, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Mateo Heredia-Sanchez, age 33, of Omaha, is charged with illegal reentry into the United States on or about November 20, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Gaudencio Landa-Hernandez, age 32, of Omaha, is charged with illegal reentry into the United States on or about October 10, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Noah W. Marco, age 32, of Omaha is charged with conspiring with others to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine at least as early as July 1, 2013 up to August 8, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Jason Montgomery, age 31, of Omaha is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on November 7, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in Count I of this Indictment, including but not limited to, United States currency seized from the defendant, should be forfeited to the United States.
* Roberto Sanchez Quiroz, age 28, of Sanger, California, is charged with possession with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin on or about November 20, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in Count I of this Indictment, including but not limited to $14,598.78 in United States currency seized from the defendant, should be forfeited to the United States.
* Domingo Ramos-Ramos, age 30, of Omaha, is charged with illegal reentry into the United States on or about November 9, 2013, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.* Grace Roland, age 46, of Magnet, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges Roland with embezzling funds from the Magnet Post Office in Magnet, Nebraska on or about April, 6, 2013, in an amount of more than of $1000.00. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II alleges that on or about April 6, 2013, the defendant stole United States Postal Service Money Orders. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Arman Simonyah, age 31, and Vahe Akopyan, age 27, both of Glendale, California, are charged in a two-count Indictment. Count I of the Indictment charges both Simonyah and Akopyan with possession of 32 counterfeit Wal-Mart gift cards on or about November 15, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendants with illegal possession of a card-encoder on or about November 15, 2013. The maximum possible penalty if convicted is imprisonment of 15 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in Counts I and II of the Indictment, including but not limited to, $146,400.00 in United States currency seized from the defendants, should be forfeited to the United States.
* Lisa Kay Stork, age 53, of Tekamah, Nebraska, is charged in a two-count Indictment. Count I alleges that on or about December 28, 2009, Stork provided a false statement to the Social Security Administration. The maximum penalty if convicted is 5 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with Social Security fraud, specifically, it is alleged Stork received approximately $206,048.80 in Social Security Administration Disability Benefits to which she was not entitled beginning in or around September 22, 2002, and continuing without interruption until around May 1, 2012. The maximum penalty if convicted is 5 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.* Jose Luis Vergaro-Jimenez, age 43, of Wayne, Nebraska, is charged with illegal reentry into the United States on or about November 24, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
Court Prohibits S.C. Tax Return Preparer from Preparing Returns for OthersRead the Press Release
A federal district judge in Charleston, S.C., has permanently barred Jessica Geddis, of Summerville, S.C., from preparing federal income tax returns for others, the Justice Department announced today. Geddis consented to the entry of the injunction.
According to the government’s complaint, Geddis prepared federal income tax returns from her home and as a tax preparer at Smith’s Tax Service and, later, at MBM Tax and Accounting Services LLC. As alleged in the complaint, Geddis prepared returns that unlawfully overstated tax refunds through a household help scheme. The complaint alleged that Geddis prepared returns for herself and others that overstated income by reporting fictitious household help income in order to increase the amount of her customers’ refundable tax credits, including the Earned Income Tax Credit, Child Tax Credit and Making Work Pay Credit. The complaint further alleged that Geddis directed the Internal Revenue Service (IRS) to deposit all, or a portion of, her customers’ overstated refunds into bank accounts that she controlled. According to the complaint, the IRS reviewed Geddis’ bank records and determined that she received at least 148 tax refunds totaling $281,678 between January 2008 and May 2012.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013, which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dosen-Tax-Scams-for-2013 . The IRS has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm.
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United States v. Jessica Geddis
Permanent Injunction
Connecticut Pharmacies Pay $90,000 to Settle Allegations Under the Controlled Substances ActRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HOWE’S PHARMACY of Milford and NELSON’S PHARMACY of Naugatuck have each entered into a civil settlement agreement with the government to resolve allegations that they violated civil provisions of the Controlled Substances Act. Howe’s Pharmacy has agreed to pay a total of $50,000 and Nelson’s Pharmacy has agreed to pay a total of $40,000.
The allegations against Howe’s Pharmacy, located at 78 Broad Street in Milford, include claims that pharmacists filled prescriptions without exercising their corresponding responsibility to ensure that the prescriptions were issued for a medically appropriate reason, failed to verify that prescriptions issued for Schedule II controlled substances contained the signature of a prescribing physician, failed to ensure that a filled prescription contained the DEA number of the authorizing medical practitioner, filled a prescription for “office use” rather than issuing a prescription to an identifiable person and, in several instances, filled a postdated prescription.
The allegations against Nelson’s Pharmacy, located at 153 Maple Street in Naugatuck, include the failure to insure that prescriptions it filled contained an authorized practitioner’s DEA number, and the failure to account for accurate inventories of Oxycodone 10 mg. tablets, Oxycodone 15 mg. tablets, Oxycodone 30 mg. tablets and Endocet 10/325 tablets.
Congress, with the passage of the Controlled Substances Act, took steps to attempt to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances, from their manufacture to their consumption by the ultimate user, was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances while at the same time ensuring an adequate supply of those substances needed to meet the medical and scientific needs of the United States.
This investigation was conducted by investigators from the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill, and the Connecticut Department of Consumer Protection, Drug Control Division. The prosecutions were led by Assistant U.S. Attorney Alan M. Soloway.
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(203) 821-3722 [email protected]Collin County Man Guilty in Foreign Currency Trading Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 54-year-old Plano, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Kevin G. White pleaded guilty to committing mail fraud in connection with a commodity trading fraud scheme today before U.S. Magistrate Judge Don D. Bush.According to information presented in court, White operated Revelation Forex Fund (RFF), which was a fund that conducted foreign exchange currency trading. RFF had its offices in Plano. In order to lure investors to purchase partnership interests in RFF, White falsely overstated the past rate of return on investment for RFF, that RFF returns had been audited, and the length of time RFF had actually been in existence. RFF received investments totaling over $7.4 million. White admitted to using approximately $1.8 million of investor funds for non-investment purposes. The loss to investors was approximately $4 million.
White faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Andy Williams.
Camden, N.J., Man Admits Conspiracy to Steal Checks from MailRead the Press Release
CAMDEN, N.J. – A Camden man today admitted his role in a scheme in which he and others stole business checks from the U.S. Mail in New Jersey, Pennsylvania, and Delaware, altered them, and cashed them at banks using a series of conspirators, U.S. Attorney Paul J. Fishman announced.
Derrick Warner, 29, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to commit bank fraud and one count of possession of a firearm by a previously convicted felon: Warner admitted to illegally possessing the weapon (a Smith and Wesson .44 Magnum handgun) after purchasing it for a conspirator.
According to documents filed in this case and statements made in court: Warner and others stole checks from curbside U.S. mailboxes in business industrial parks in Burlington and Camden counties in New Jersey and in Pennsylvania and Delaware. Warner and his conspirators would then recruit a conspirator to cash the stolen checks. Once they identified a person to cash the check, Warner and others would alter the stolen checks so that the name of the “payee” of the check would match the name of the recruited check casher. Warner, the check casher, and often a conspirator would then travel to a bank where the check casher would cash the check.
Warner and his conspirators cashed or attempted to cash more than 45 stolen and altered business checks worth more than $200,000. The scheme resulted in a total loss of more than $100,000 to the victim banks.
Warner is also charged with being a felon in possession of a handgun in late March 2013. He admitted that he purchased the firearm in Camden on behalf of one of his conspirators.
The conspiracy to commit bank fraud to which Warner pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss resulting from the offense. The felon in possession of a firearm count is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for April 4, 2014.
U.S. Attorney Fishman credited special agents from the U.S. Postal Inspection Service, under the direction of Inspector in Charge David Bosch; and the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, for the investigation leading to today's guilty plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Richard Sparaco Esq., Cherry Hill, N.J.Warner Information