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Friday 18 October 2013
Mother, Daughter Sentenced for Conspiracy to Commit Bank RobberiesRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that Evie Bowin Herrin, 58, of Kirbyville, Texas, and her daughter Amelia Darci Crew, 31, of Cleveland, Texas, were sentenced on October 3, 2013 by U.S. District Judge Patricia Minaldi for conspiracy to commit bank robbery. Herrin received 86 months in prison, and Crew received 51 months in prison. They both received three years of supervised release. Herrin was ordered to pay a $5,000 fine and $17,730 restitution. They pleaded guilty June 27, 2013.According to evidence presented at the guilty plea, the defendants admitted to stealing $17,730 from banks in Louisiana and Texas. Herrin admitted to entering three banks wearing a disguise. After entering the banks, Herrin would point what looked like a handgun at a teller and present the teller with a note saying to hand over strapped bundles of 100 and 20 dollar bills or she would shoot the bank employees. Herrin left each bank in a car driven by Crew. The robberies occurred on February 13, 2012 at an Iberia Bank in Kinder, La., February 28, 2012 at a Citizens National Bank in Henderson, Texas, and March 15, 2012 at a MidSouth Bank in Sulphur, La.
The FBI and the Kinder, Sulphur and Henderson, Texas police departments investigated the case, and Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Morehouse Parish Woman Sentenced to 12 Months in Prison for Stealing from bank customersRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that Vickie Lenoir, 48, of Mer Rouge, La., was sentenced on October 7, 2013, by U.S. District Court Judge Robert G. James, to 12 months in prison and five years of supervised release for embezzling money from customers at the Capital One bank where she worked. She was also ordered to pay $95,673 in restitution. Lenoir pleaded guilty May 14, 2013.According to evidence presented in court, from December 2008 until October 2012, Lenoir admitted to embezzling more than $95,673 from seven customer accounts at a Bastrop, La., Capital One Bank where she was employed. The missing money was reported after customers began noticing unusual activity in their accounts.
The FBI investigated the case. Assistant U.S. Attorney D. Cytheria Jernigan prosecuted the case.
Missouri Man Charged with Attempted Arson of Planned Parenthood FacilityRead the Press Release
The Justice Department announced today that Jedediah Stout, 30, of Joplin, Mo., was charged today in a complaint filed in U.S. District Court in Springfield, Mo., with the attempted arson of a Planned Parenthood facility.
As stated in the complaint affidavit, on Oct. 3, 2013, and Oct. 4, 2013, Stout made consecutive attempts to set fire to the Planned Parenthood facility in Joplin. In both instances he threw items containing an accelerant onto the roof of the facility, and then ignited material attached to the accelerant. Stout will have his initial appearance in U.S. District Court on Oct. 21, 2013.
Today’s charge is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobaco, Firearms, and Explosives (ATF), the Missouri State Highway Patrol and the Joplin Police Department. Prosecution of this case is being handled by Assistant U.S. Attorney Jim Kelleher in conjunction with the Justice Department’s Civil Rights Division.
Mexican National Sentenced for Illegal Reentry, Failure to Register as A Sex OffenderRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that Carlos Galvan-Lopez, 43, of Mexico, was sentenced on October 3, 2013 by U.S. District Judge Maurice Hicks, Jr., to 50 months in prison for illegally re-entering the United States and failing to register as a sex offender. The defendant is subject to deportation upon release. He pleaded guilty on June 3, 2013.
According to evidence presented at the guilty plea, the Hidalgo, Texas, Sheriff’s Office arrested Galvan-Lopez on December 18, 1995 for aggravated sexual assault. He served time in prison and was deported on December 21, 2010. He was arrested in Shreveport at his place of employment on April 19, 2013, after it was discovered that he had illegally returned to the United States and had not registered as a sex offender.
The U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Maryland Man Sentenced to More Than 30 Years in Prison for 2010 Killing Inside Downtown Office Building-Defendant Later Disposed of Body in Frederick County, Md.-Read the Press Release
WASHINGTON - Marvin Palencia, 37, of Hyattsville, Md., was sentenced on Oct. 11, 2013 to a total of 31 years and four months in prison on charges stemming from the slaying of a man in a downtown office building, U.S. Attorney Ronald C. Machen Jr. announced
Palencia was found guilty by a jury in June 2013 of first-degree murder while armed, possession of a firearm during a crime of violence, carrying a pistol without a license, and tampering with evidence. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable John Ramsey Johnson.
According to the government’s evidence, on Nov. 11, 2010, Palencia shot the victim, Jacobo Vazquez, 36, in the chest and in the back of the head in the laundry room of a ten-story office building in the 100 block of Constitution Avenue NW, where both of the men worked. Palencia was angry because Mr. Vazquez was in a relationship with the defendant’s wife. Palencia and his wife were separated but he hoped for reconciliation.
Prior to the murder, Valencia shared with several people how upset he was with Mr. Vazquez. He also threatened Mr. Vazquez about one week before the murder – telling him that he better not see him at work anymore. Over the course of the next week, Palencia purchased a firearm illegally and verified Mr. Vazquez’s work schedule with his superior.
The government’s evidence showed that Palencia carefully planned out the timing and location of the murder by using his knowledge of the building and the various employee schedules. After killing Mr. Vazquez, Palencia put the body in a cardboard box, wrapped the box in duct tape, plastic, and a cord, and then dumped the body on the side of the road on Interstate 70 in Frederick County, Md. However, in his haste to wrap the box, he unknowingly attached his work identification card to the box. Palencia was arrested Nov. 20, 2010 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers and evidence technicians who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the Maryland State Police, the Maryland State Highway Department and the Maryland State Medical Examiner’s Office. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Marian Russell and Kalisha Johnson-Clark; Intern Matt Lamb, and Litigation Technology Specialists Kimberly Smith and Thomas “Ron” Royal. He thanked Assistant U.S Attorney Seth B. Waxman, who investigated the case, and Assistant U.S. Attorney Emily Miller, who investigated the case and secured the indictment.
Finally, he commended the work of Assistant U.S. Attorneys Nicholas Cannon and Kevin Flynn, who prosecuted the case at trial.
13-351Maryland Man Sentenced to Five Years in Prison for Broad Daylight Kidnapping and Assault-Defendant Abducted Girlfriend After High-Speed Chase-Read the Press Release
WASHINGTON – Christopher Devese, 23, of Capitol Heights, Md., was sentenced on Oct. 11, 2013 to five years in prison for abducting his pregnant girlfriend from a gas station, robbing her and then assaulting her, U.S. Attorney Ronald C. Machen Jr. announced.
Devese pled guilty in July 2013, in the Superior Court of the District of Columbia, to charges of kidnapping, assault with a dangerous weapon, robbery, and felony contempt. The plea was contingent upon the approval of the Honorable John Ramsey Johnson, who accepted it and sentenced Devese. Upon completion of his prison term, Devese will be placed on three years of supervised release.
According to the government’s evidence, on April 27, 2013, at about 12:30 p.m., Devese chased his girlfriend, the victim, in a car from Capitol Heights, Md., into the District of Columbia, as she sped through red lights trying to get away from him. The victim, who had called 911 for help while being pursued by Devese, was finally cornered in a gas station parking lot in the 4900 block of South Dakota Avenue NE. Devese smashed the car window to get into the car and pulled his girlfriend out. He then put her into his car and drove her to an unknown alley in the District of Columbia, where he repeatedly assaulted her, including beating her in the stomach with his casted fist. During the assault, he also robbed the victim of her cell phone, which police recovered from him when he was arrested. Devese then drove the victim back to Capitol Heights, Md., where he assaulted her again before his mother came to the victim’s aid.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit and the FBI/MPD Violent Crimes Task Force. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson, Paralegal Specialist D’Yvonne Key, and Intern Lucie Enns. Finally, he commended the efforts of Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and indicted the case.
13-349Manhattan U.S. Attorney Announces Extradition of A Leader of A Colombian Drug Trafficking Organization and Three Other International Narcotics TraffickersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian R. Crowell, Special Agent in Charge of the New York Division of the United States Drug Enforcement Administration (“DEA”), today announced the extraditions of four defendants charged with international narcotics trafficking offenses: ERICSON VARGAS CARDONA, extradited from Colombia on charges of conspiring to traffic in cocaine and using weapons, including machine guns, assault rifles, and rocket-propelled grenades, in furtherance of the cocaine trafficking conspiracy; DIEGO VALLEJO-REYES, extradited from Colombia on charges of conspiring to traffic in cocaine; and RICARDO QUINTERO and JESUS DOMINGUEZ GALLARDO, extradited from Mexico on charges of conspiring to traffic in methamphetamine and cocaine.
VARGAS CARDONA and VALLEJO-REYES both arrived in the Southern District of New York on October 16, 2013 and were separately presented and arraigned before Magistrate Judge Sarah Netburn yesterday. QUINTERO and DOMINGUEZ GALLARDO arrived in the Southern District of New York on October 11, 2013 and were presented and arraigned before Magistrate Judge Gabriel W. Gorenstein on October 12, 2013 and ordered detained.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, what these four defendants had in common was the criminal intent and wherewithal to import large quantities of cocaine into the United States. Now, having been successfully extradited, they themselves are in the United States. These cases demonstrate the resolve of the DEA and this Office to bring before the bar of American justice those who pour cocaine and other illegal drugs into the flow of American commerce.”
DEA Special Agent in Charge Brian R. Crowell said: “Ricardo Quintero-Muett and Jesus Dominguez-Gallardo are now on American soil to face justice for their roles in sending hundreds of pounds of narcotics into the United States. This three year multi-national drug investigation has brought to justice two key distributors for the Mexican La Familia Michoacan Drug Cartel for their alleged conspiracy in trafficking over one ton of methamphetamine and hundreds of pounds of cocaine, heroin and marijuana into the United States and into our communities, while making millions of dollars poisoning Americans. The United States Attorney’s Office Southern District of New York, the NY Organized Crime Drug Enforcement Strike Force, and our global DEA offices have worked tirelessly to bring both defendants to justice in the country they poisoned. I commend the DEA’s Special Operations Division, San Diego Field Division, Carlsbad Resident Office, Mexico Country Office, Tijuana Resident Office, Los Angeles Field Division, Bogota Colombia Country Office, Interpol, the U.S. Department of Justice Office of International Affairs and the San Diego District Attorney’s Office.”
VARGAS CARDONA
As alleged in the Indictment previously unsealed in Manhattan federal court and documents publicly filed in Colombia in extradition proceedings:
From approximately 2000 to August 2012, VARGAS CARDONA was a member of La Oficina de Envigado (“Oficina”) a Colombia-based narcotics trafficking organization that served as a debt-collection agency for narcotics traffickers, by means including violence, invested in shipments of narcotics, and manufactured cocaine. Oficina distributed thousands of kilograms of cocaine from Colombia to locations worldwide, including the United States. As a member of Oficina, VARGAS CARDONA, among other things, engaged in debt collection activities, established a cocaine laboratory, and participated in acts of violence on behalf of Oficina. In approximately 2008, VARGAS CARDONA assumed control of Oficina. While a member and as a leader of Oficina, he conspired with others to export and to distribute cocaine, and possessed firearms in furtherance of that crime, including semiautomatic assault weapons, machineguns and destructive devices – including rocket-propelled grenades and grenade launchers – and carried explosive devices, including electric and manual detonators.
VALLEJO-REYES
As alleged in the Indictment previously unsealed in Manhattan federal court and documents publicly filed in Colombia in extradition proceedings:
Beginning in at least 2011, VALLEJO-REYES and his co-defendant Elver Hernan Roa-Avila conspired to transport thousands of kilograms of cocaine using numerous airplanes, including airplanes registered in the United States, from Colombia and Venezuela to points in Central America, particularly Honduras, and the Caribbean and, on occasion, to Africa. The airplanes typically were loaded at and departed from clandestine airstrips located in the Apure region of Venezuela. In addition, in September and October 2012, VALLEJO and Roa-Avila conspired to sell approximately 339 kilograms of cocaine in Bogota, Colombia, which the defendants understood would be imported to the United States and distributed. In connection with this conspiracy, 339-kilograms of cocaine supplied by VALLEJO-REYES and Roa-Avila were seized by law enforcement authorities in Colombia.
QUINTERO and DOMINGUEZ GALLARDO
As alleged in the Indictment previously unsealed in Manhattan federal court and documents publicly filed in connection with Mexican extradition proceedings:
QUINTERO and DOMINGUEZ GALLARDO were members of a drug trafficking organization affiliated with the La Familia Michoacana cartel, a violent drug trafficking organization based in the state of Michoacan in southwestern Mexico. The cartel has imported vast quantities of methamphetamine and cocaine into the United States from Mexico, and utilizes violence, including assault, murder and kidnaping, to support its narcotics trafficking activities. In that capacity, QUINTERO and DOMINGUEZ GALLARDO were responsible for the transport of large quantities of methamphetamine and cocaine from Michoacan, Mexico, into Tijuana, Mexico, and ultimately across the United States border into California, primarily by secreting those narcotics in concealed compartments contained within vehicles. In the course of the investigation, law enforcement agents seized hundreds of kilograms of methamphetamine and cocaine belonging to the organization.
QUINTERO, 39, and DOMINGUEZ GALLARDO, 44, have each been charged with conspiring to import methamphetamine and cocaine into the United States and conspiring to distribute methamphetamine and cocaine, knowing that those substances would be imported into the United States (Count One). The charge carries a maximum penalty of life in prison and a mandatory minimum term of 10 years in prison. The case is assigned to U.S. District Judge Paul A. Crotty.
VARGAS CARDONA, 40, has been charged with conspiracy to import cocaine into the United States (Count One); conspiracy to distribute cocaine (Count Two); possessing and discharging M50 machineguns, AUG assault rifles, rocket-propelled grenades and grenade launchers, submachine guns, shotguns, and other firearms, some of which were equipped with silencers, in furtherance of the conspiracy to import cocaine (Count Three); and carrying explosive compounds, grenades, rocket-propelled grenades, and electric and manual detonators during the commission of the conspiracy to import cocaine (Count Four). Counts One and Two carry a maximum penalty of life in prison and a mandatory minimum penalty of 10 years in prison. Count Three carries a maximum penalty of life in prison and a mandatory minimum penalty of 30 years in prison, to run consecutively to any other penalty imposed. Count Four carries a maximum penalty of life in prison and a mandatory minimum penalty of 10 years in prison, to run consecutively to any other penalty imposed. The total mandatory minimum sentence VARGAS CARDONA faces if convicted of all four counts is 50 years in prison. The case is assigned to U.S. District Judge Harold Baer.
VALLEJO-REYES, 56, has been charged with conspiring to import cocaine and to possess cocaine on board a U.S.-registered aircraft with the intent to distribute it (Count One) and with distributing cocaine knowing and intending that it would be imported into the United States (Counts Two and Three). Each count carries a maximum penalty of life in prison and a mandatory minimum term of 10 years in prison. The case is assigned to U.S. District Judge Andrew L. Carter, Jr.
Roa-Avila remains in the custody of Colombian authorities.
The arrests and transfers of the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s New York Field Office; DEA’s New York Organized Crime and Drug Enforcement Strike Force; DEA’s Special Operations Division; DEA’s San Diego Field Division, Carlsbad Resident Office; DEA’s Tijuana, Mexico Country Office; DEA’s Bogota, Colombia Country Office; DEA’s Los Angeles Field Division; Interpol; the U.S. Department of Justice Office of International Affairs; and the San Diego District Attorney’s Office. The DEA’s New York Organized Crime Drug Enforcement Strike Force is comprised of agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, Office of Foreign Assets Control and the New York Department of Taxation and Finance. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area, which is a federally funded crime fighting initiative. Mr. Bharara thanked Colombia’s Cuerpo Técnico de Investigación, a division of La Fiscalía General de la Nación, and the Mexican Military Forces from the 28th Battalion and the Policia Estatal Preventiva for their assistance in this investigation.
These prosecutions are being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Edward Y. Kim and Michael Ferrara are in charge of the prosecution of VARGAS CARDONA. Assistant United States Attorneys Edward Y. Kim, Michael D. Lockard, and Adam Fee are in charge of the prosecution of VALLEJO-REYES. Assistants Jenna Dabbs and Aimee Hector are in charge of the prosecution of QUINTERO and DOMINGUEZ GALLARDO.
The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Ericson Vargas Cardona Indictment
U.S. v. Rafael Antonio Garavito-Garcia and Gustavo Perez-Garcia S5 Indictment
U.S. v. Diego Vellejo-Reyes and Elver Hernan Roa-Avila S5 IndictmentManager of Tukwila Motel Pleads Guilty to Maintaining a Drug Involved PremisesRead the Press Release
A Burien man entered a guilty plea today in the case involving the seizure of three Tukwila, Washington motels that were operated as havens for drug dealing and sex crimes, announced U.S. Attorney Jenny A. Durkan. LAKHVIR PAWAR, 41, was the manager of the Boulevard Motel on International Boulevard in Tukwila. In his plea agreement, PAWAR admits to profiting from drug sales at the motel. Under the terms of the plea agreement, PAWAR will forfeit his interest in the motel and in about $90,000 seized in August 2013 when the motel and two others were seized and shut down by federal authorities. Under the terms of the agreement, if any of PAWAR’s relatives challenge the forfeiture, prosecutors can withdraw from the plea agreement. Prosecutors will recommend a prison term of not more than a year and a day in prison, and will recommend that PAWAR be barred from owning or managing motels and from working at any motel owned or managed by his family during three years of supervised release. Judge John C. Coughenour is not bound by the recommendation and can impose up to the 20 year maximum when PAWAR is sentenced before the court on February 28, 2014.
According to the plea agreement, PAWAR admits that between 2003 and 2013, he was the primary manager at the Boulevard Motel. Between 2007 and 2013, there were 33 drug related incidents, 27 assaults and 11 robberies at the motel. During that time period, PAWAR knew drugs were being sold at the motel and profited from the drug activity. PAWAR directed customers to the rooms where drugs were sold, first taking a fee from the customers. PAWAR also charged those distributing drugs higher rent than other people renting rooms at the motel.
As part of the plea agreement, prosecutors agree not to seek forfeiture of two other motels owned by PAWAR and his relatives: the Everspring Inn on Aurora Avenue North in Seattle and the Rodeway Inn in SeaTac, Washington. However, the agreement states that should there be new evidence of similar illegal conduct at those motels, the government is not precluded from taking action including forfeiture.
The investigation, search and seizure operation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tukwila Police Department. Many additional agencies assisted the investigation, including the U.S. Marshals Service; Department of Homeland Security; Drug Enforcement Administration; Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation; U.S. Department of Agriculture Office of Inspector General; Washington State Patrol; Seattle, Auburn, Kent, Renton, Federal Way, and Port of Seattle Police Departments; Valley SWAT Team; King County Sheriff’s Office; Washington State Department of Corrections; and Washington State Department of Social and Health Services (DSHS).
The case is being handled by Assistant United States Attorneys Justin Arnold, Jill Otake and Richard Cohen.
Man Charged with Assaulting A Federal OfficerRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced that a grand jury returned a one-count indictment charging Dominic A. Times, age 29, with assault on a federal officer.
The indictment alleges that Times assaulted a correctional officer at the Elkton, Ohio, Federal Correctional Institution on January, 13, 2013.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following an investigation by agents of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Long Island Man Arrested for Attempting to Join Al-Qaeda in the Arabian Peninsula, Conspiring to Commit Murder OverseasRead the Press Release
A five-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Marcos Alonso Zea, also known as “Ali Zea,” an American citizen and resident of Brentwood, New York, with conspiracy to commit murder in a foreign country, attempting to provide material support to terrorists, attempting to provide material support to al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (AQAP/AAS), and obstruction and attempted obstruction of justice.1 Zea was arrested earlier this morning at his home on Long Island and is scheduled to be arraigned later today before United States Magistrate Judge Arlene Lindsay at the federal courthouse in Central Islip, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Acting Assistant Attorney General, National Security Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
As set forth in the indictment and other court filings, beginning in the fall of 2011, Zea conspired with others to travel overseas in order to wage violent jihad on the perceived enemies of Islam, which included the secular government in Yemen. In furtherance of the conspiracy, on January 4, 2012, Zea flew from John F. Kennedy Airport (JFK) in Queens, New York, to London, England, en route to Yemen in an attempt to join and fight alongside members of AQAP/AAS, a designated Foreign Terrorist Organization that has claimed responsibility for several terrorist attacks against the United States, including the attempted Christmas Day 2009 bombing of a Detroit-bound passenger plane.
As set forth in the indictment and other court filings, Zea was intercepted by customs officials in the United Kingdom (UK) in transit to Yemen and returned to the United States. Despite being prevented from traveling to Yemen, Zea continued his participation in the terrorist conspiracy. Specifically, Zea encouraged and supported his co-conspirator, Justin Kaliebe, who also was plotting to travel to Yemen to fight jihad. In August 2012, in a covertly recorded conversation between Zea and Kaliebe, Zea bragged about his lies to UK authorities when he was detained, instructed Kaliebe regarding methods to evade electronic surveillance by law enforcement authorities, and discussed Kaliebe’s plans to fight jihad. On January 21, 2013, Kaliebe attempted to travel from New York to Yemen for the purpose of joining AQAP/AAS, but was arrested at JFK by members of the FBI’s Joint Terrorism Task Force (JTTF) and the NYPD’s Intelligence Division.2 Several days before Kaliebe attempted to travel to Yemen to join AQAQ/AAS, Zea gave Kaliebe money to support his trip. During this meeting, which was covertly recorded, Zea stated “I just hope, my story, my, the event that happened to me will help you guys move forward, inspire you.”
In April 2013, after learning that he was under investigation by the JTTF, Zea directed an associate to erase the hard drive on Zea’s home computer, and provided the associate two additional hard drives that Zea had used previously, which he also requested be destroyed. Despite Zea’s efforts to thwart the investigation, the JTTF obtained the hard drives and conducted a forensic examination, which revealed an assortment of violent Islamic extremist materials. For example, the drives contained issues of Inspire magazine, an AQAP/AAS publication that promotes violent jihad, containing articles such as “Which is Better: Martyrdom or Victory?” “Why did I choose al Qaeda?” “What to Expect in Jihad?” and an interview with “Shaykh Abu Hurairah, The Military Commander of al-Qaeda in the Arabian Peninsula.” The electronic media also included a video, disseminated by the propaganda wing of al-Qaeda in Iraq, depicting the detonation of an explosive device on a vehicle carrying western military personnel. In addition, investigators recovered a semi-automatic rifle that Zea had given to an acquaintance shortly before he departed for Yemen.
“Despite being born and raised in the United States, Zea allegedly betrayed his country and attempted to travel to Yemen in order to join a terrorist organization and commit murder,” stated U.S. Attorney Lynch. “When that plan was thwarted, Zea continued to support terrorism by assisting his co-conspirator’s efforts to travel to Yemen to fight violent jihad. When the defendant sensed investigators from the JTTF closing in, he engaged in a desperate effort to cover his tracks by attempting to destroy evidence – a tactic that only confirmed his violent aims. This case clearly demonstrates how the FBI and the NYPD, along with their partners on the JTTF and overseas, work diligently and effectively to counter the efforts of al-Qaeda’s affiliates and their supporters.” Ms. Lynch also expressed her grateful appreciation to the FBI, NYPD, Immigration and Customs Enforcement/Homeland Security Investigations (HSI), the Nassau County Police Department, the Suffolk County Police Department, the New York State Police, and the Port Authority of New York & New Jersey Police Department for their work on the investigation.
FBI Assistant Director-in-Charge Venizelos stated, “Inspired by terrorist propaganda, Mr. Zea allegedly traveled abroad in 2012 in a vain attempt to reach Yemen, join Al-Qaeda in the Arabian Peninsula, and fight violent jihad. When his attempt failed, Zea turned to financing and inspiring another Long Island man’s commitment to global terror. And when Zea learned he was under investigation, he feverishly attempted to destroy the incriminating evidence.”
NYPD Commissioner Kelly stated, “Aspirants with lethal intent who seek terror training abroad are of paramount concern. Fortunately, like Kaliebe before him, Zea was stopped due to the close cooperation between the NYPD and FBI.”
The government’s case is being prosecuted by Assistant United States Attorneys Seth D. DuCharme, John J. Durham, and Michael P. Canty, with assistance provided by Trial Attorney Kelli Andrews of the Counterterrorism Section of the Department of Justice.
The Defendant
MARCOS ALONSO ZEA (a/k/a “Ali Zea”)
Age: 25
Brentwood, New York_____________________________
1 The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
2Kaliebe subsequently pled guilty to one count of attempting to provide material support to terrorists, and one count of attempting to provide material support to AQAP/AAS. Kaliebe is scheduled to be sentenced on December 6, 2013, by United States District Judge Arthur D. Spatt in United States District Court in Central Islip.
Lexington, Missouri, Resident Found Guilty of Robbing the Great Western Bank of Hamburg, IowaRead the Press Release
COUNCIL BLUFFS, IA - On October 18, 2013, Nathan Wayne Smith, a 47 year-old resident of Lexington, Missouri, was found guilty in federal court of robbing the Great Western Bank of Hamburg, Iowa, announced U.S. Attorney Nicholas A. Klinefeldt. The trial was presided over by United States District Court Chief Judge James E. Gritzner. Sentencing has been set for January 29, 2014. Bank robbery carries a potential sentence of up to twenty years in prison, a $250,000 fine, and restitution.
The evidence produced at trial showed that Smith traveled from his home in Lexington, Missouri, to Hamburg, Iowa, arriving at the Great Western Bank around 9:30 a.m. on June 11, 2012. Smith approached a teller in the bank, placed a plastic bag on the counter in front of the teller, and told the teller to fill the bag with money. After obtaining the money from the teller, Smith ran from the bank.
Smith was identified as the party responsible after he was stopped by the Buckner, Missouri, Police Department later in the day on June 11, 2012. Buckner, Missouri, is approximately 150 miles south and east of Hamburg, Iowa.
The investigation was conducted by the Fremont County Sheriff’s Office, the Buckner, Missouri, Police Department, the Lexington, Missouri, Police Department and the Federal Bureau of Investigation. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Leader of Large-Scale Cambria County Drug Distribution Organization Pleads GuiltyRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
George M. Lowmaster, 43, pleaded guilty to four counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Sept. 30, 2010, to May 9, 2011, Lowmaster conspired to manufacture and distribute more than 1,000 marijuana plants. From March 2008, to May 9, 2011, he conspired to commit money laundering to hide the proceeds from the sale of his organization's drug distribution. Also, on July 23, 2008, and Aug. 21, 2010, he distributed less than 500 grams of cocaine on each occasion.
Following today's plea, U.S. Attorney Hickton said, "Almost two years ago, Cambria County District Attorney Kelly Callihan and I announced the Indictment of George Lowmaster and a number of other individuals. As you recall, Mr. Lowmaster led the largest and most extensive drug distribution organization ever dismantled in the Johnstown area.
"Today, I am pleased to announce the guilty plea of George Lowmaster. Mr. Lowmaster's plea brings to completion what has been a comprehensive and lengthy prosecution. Twenty-five other individuals have also pleaded guilty for their participation in Mr. Lowmaster’s organization.
"I want to commend the law enforcement agencies involved in this investigation for their cooperation, hard work and dedication. Even more, their efforts demonstrate the success that can be achieved when we work together. I pledge to continue to devote all available office resources to address the problems facing the Johnstown community."
Judge Gibson scheduled sentencing for Feb. 19, 2014, at 10 a.m. The law provides for a total sentence of twenty years to life in prison, a fine of $24,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of George Lowmaster. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
Justice Department Sues to Shut Down Mississippi Tax Return Preparer for Alledgedly Overstating Tax RefundsRead the Press Release
The United States has requested that the federal district court in Jackson, Miss., permanently bar Danee Aikens from preparing federal income tax returns for others, the Justice Department announced today.
According to the complaint, Aikens prepares federal income tax returns under the name “Comprotax Service” from an office in Durant, Miss. The complaint alleges that Aikens prepared returns that overstated income, including by reporting fictitious household help income, in order to increase the amount of her customers' claim to the Earned Income Tax Credit.
The complaint further alleges that Aikens prepared returns that falsely claimed a refundable education credit on behalf of her clients.
As alleged in the complaint, the loss to the government from Aikens’ return preparation from 2009 through 2012 could exceed $7 million.
Return preparer fraud is one of the Internal Revenue Service's Dirty Dozen Tax Scams for 2013 which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . In the past ten years the Justice Department's Tax Division has obtained injunctions against hundreds of unscrupulous tax-return preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm .
Related Materials:
United States v. Danee Aikens
Complaint for Permanent Injunction
Justice Department Reaches Settlement with Arapahoe, Colo., Sheriff’s Office to Resolve Immigration-Related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it has reached an agreement with the Arapahoe County, Colo. Office of the Sheriff resolving allegations that the Office of the Sheriff violated the anti-discrimination provision of the Immigration and Nationality Act (INA).
The investigation was initiated based on information obtained in the course of a lawsuit filed by a former employee against the Sheriff’s Office alleging discriminatory termination. The Department’s investigation established that the Office of the Sheriff improperly restricted law enforcement positions to U.S. citizens notwithstanding the fact that no law, regulation, executive order or government contract authorized it to restrict employment in this manner. The former employee who filed the lawsuit was in fact a U.S. citizen and had documentation that showed her work authorization but not her citizenship. The INA’s anti-discrimination provision prohibits certain discriminatory hiring practices against work-authorized individuals and permits employers to limit jobs to U.S. citizens only where the employer is required to do so by law, regulation, executive order, or government contract.
Under the settlement agreement, the Office of the Sheriff’s employment eligibility verification practices will be subject to monitoring by the Justice Department and reporting requirements for a period of three years. The Sheriff’s Office also agreed to pay $500 in civil penalties to the United States. The Office of the Sheriff had already addressed the identified victim’s back pay claims through an earlier agreement based on her private lawsuit. In addition, the Office of the Sheriff informed other affected non-U.S. citizen applicants that they could re-apply for available law enforcement positions. The Sheriff’s Office denied that it committed any violation of the anti-discrimination provision but fully cooperated with the investigation and agreed to revise its hiring policies and procedures to ensure compliance with the INA’s anti-discrimination provision.
“Employers must ensure that their hiring practices do not violate the anti-discrimination provision of the INA,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Any restrictions in hiring based on citizenship status must be pursuant to requirements established by law or government contract, not internal policies. The Office of the Sheriff’s cooperation and its efforts to reach out to non-citizens affected by its past policies reflect its commitment to address the issues raised in this investigation in a meaningful manner.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Jury Convicts Opelousas Man for Possessing and Receiving Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a federal jury found former child psychiatrist Gary Jefferson Byrd, 71, of Opelousas, La., guilty on October 8, 2013 of possessing and receiving child pornography. United States District Judge Richard T. Haik presided over the trial.
Following a two-day trial, a jury found Byrd guilty of one count of possession of child pornography and one count of receiving child pornography after deliberating for 40 minutes. Based on witness testimony and documents admitted into evidence, from February 2008 to April 2011, Byrd ordered 44 compact discs containing videos of child pornography from a Canadian company. United States Postal Inspectors executed a search warrant on Byrd’s home and found stacks of compact discs containing thousands of images of child pornography that Byrd had downloaded from the Internet. He also printed hundreds of images of child pornography that he kept in files next to his bed.
Byrd was previously convicted in 1992 by a federal jury of possessing child pornography and served 10 years in prison for that crime. Prior to his conviction, his employment was as a child psychiatrist.
Because of Byrd’s prior child pornography conviction, he faces 5 years to 20 years in prison and a $250,000 fine for possession of child pornography, and he also faces 15 years to 40 years in prison and a $250,000 fine for receiving child pornography. A sentencing date has not been set.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched 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 (CEOS), 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 submitted anonymously.The U.S. Postal Service Investigations conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
Juneau Man indicted by Federal Grand Jury for retaliation against a witnessRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Juneau man was indicted by a federal grand jury in Anchorage, Alaska, for retaliation against a witness.
Mason T. Baker, 21, of Juneau, Alaska, was arraigned yesterday before U.S. Magistrate Judge Leslie C. Longenbaugh, in a one-count indictment on the charge of retaliating against a witness. Baker pled not guilty and was ordered detained pending trial.
According to the indictment, on July 3, 2013, Baker assaulted Individual A causing him/her bodily injury, in order to retaliate against Individual A for providing testimony in the trial of United States v. Richard Corum.
Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting this case, indicated that the law provides for a maximum total sentence of 30 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Drug Enforcement Administration and the Alaska State Troopers conducted the investigation leading to the indictment in this case
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Indictment: Wichita Chiropractor Defrauded Health InsurersRead the Press Release
WICHITA, KAN. – A federal indictment charging a Wichita chiropractor in a $1.3 million health care fraud scheme was unsealed today, U.S. Attorney Barry Grissom. The chiropractor surrendered his license today.
Jeffrey D. Fenn, 32, Wichita, Kansas, was charged with six counts of health care fraud, two counts of aggravated identity theft, one count of illegally obtaining controlled drugs, sixteen counts of money laundering and one count of tax evasion.
The indictment alleges that beginning in March 2011 Fenn devised and executed a scheme to defraud health care benefit programs of more than $1.3 million through his businesses, including Wichita Health and Wellness, Fenn Chiropractic, P.A. and Wichita Pain Associates, P.A. Fenn submitted false claims to Medicare, Blue Cross/Blue Shield of Kansas and Coventry Health Care of Kansas, Inc., and the Federal Employees Health Benefits Program.
The indictment alleges Fenn was responsible for submitting false claims for health care services including:
- Nerve block injections where none were performed.
- Fine needle aspirations where none were performed.
- Nerve conduction tests when the tests were not performed by properly certified personnel.
- Services ostensibly provided by physicians when they were not present at the clinic.
- Services that were medically unnecessary.
Fenn developed what he called an “integrated practice,” hiring physicians, advanced registered nurse practitioners and physical therapists and ostensibly having them perform procedures he was not qualified to perform. He misrepresented to the Kansas Board of Healing Arts that medical doctors had an ownership in his clinic. He used the names of physicians he employed to submit false claims for services.
The tax evasion count alleges he overstated his business deductions for 2011 by $367,800. He claimed business deductions for what were in fact personal expenses. For example, $9,400 he claimed for purchasing a server actually was used to make a down payment on a residential lot in Wichita. The $15,100 he claimed for advertising actually was used to make a down payment on a ski boat.
Upon conviction, the crimes carry the following penalties:
- Health care fraud: A maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
- Aggravated identity theft: A mandatory two years to run consecutively to the underlying sentence on each count.
- Illegally obtaining controlled drugs: A maximum penalty of four years and a fine up to $250,000.
- Money laundering: A maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
- Tax evasion: A maximum penalty of five years and a fine up to $100,000.
Health and Human Services, Office of Inspector General, Office of Investigations, the FBI, Defense Criminal Investigative Service, the Food and Drug Administration and the Internal Revenue Service investigated. Assistant U.S. Attorney Tanya Treadway is prosecuting.
Health Care Center Nursing Supervisor Arrested and Charged with Selling Hydrocodone and Other Pain KillersRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul announced today that Catherine Vitello, 40, of Elma, N.Y., was arrested and charged by criminal complaint with possession with intent to distribute and distribution of hydrocodone, fentanyl and alprazolam. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that the defendant is the Director of Nursing at the St. Catherine Laboure Health Care Center in Buffalo. According to the complaint, the defendant sold un-used prescription drugs from her office. These controlled substances included hydrocodone, fentanyl, oxycontin, morphine, and clonazepam. On two separate occasions in October 2013, Vitello sold hydrocodone, fentanyl and alprazolam to a confidential source working with the Drug Enforcement Administration.
“Today’s charges involve a health care professional who, instead of being a healer, acted as a drug dealer,” said U.S. Attorney Hochul. “Just last week, a jury convicted a local physician of writing over 10,000 illegal prescriptions. Prescription drug abuse is an epidemic in this country and we will continue to do our part to prosecute those who contribute to that epidemic.”
DEA Special Agent in Charge Crowell stated, “Over the past five years, emergency room visits involving the misuse or abuse of pharmaceutical drugs have doubled. Today’s arrests focused on a pharmaceutical drug dealer who led a double life disguised as the Director of Nursing at St. Catherine Laboure Health Care Center. Supplying unused prescription drugs from her office, Catherine Vitello fueled the drug threat to our community and profited over $60,000 in the last year. We allege she distributed diverted prescription drugs on the streets of Buffalo with no concern for public health. I commend the men and women in the DEA Buffalo Resident Office and the Lackawanna Police Department for their diligence in this investigation and doing all they can do to protect our families from this dangerous threat.”
The defendant will make an initial appearance at 1:30 p.m. this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy
The criminal complaint is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Office, the Lackawanna Police Department, under the direction of Chief James Michel, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Guilty Plea Entered by Two More Individuals Charged in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendants Eddy Marin, 50, and Patrick Daoud, 54, pled guilty today before U.S. District Judge Kenneth A. Marra to charges related to obstruction of justice. Marin pled guilty to conspiracy to obstruct justice, in violation of Title 18, United States Code, Section 1512(k). Daoud pled guilty to obstruction of justice, in violation of Title 18, United States Code, Section 1512(c). Sentencing has been scheduled for February 3, 2014 for both men.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigation, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and attorney Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, both defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that, as part of their obstructive conduct, Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Greenwich Doctor Pays $300,000 to Settle Allegations Under the False Claims ActRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JUN XU, M.D., and his professional corporation, REHABILITATON MEDICINE AND ACUPUNCTURE CENTER M.D., LLC., of Riverside, Conn., have entered into a civil settlement with the government in which they will pay $300,000 to resolve allegations that XU violated the False Claims Act.
Acting U.S. Attorney Daly explained that the allegations against Dr. Xu involve fraudulent billing to Medicare for physical therapy services. The government alleges that Dr. Xu submitted claims to Medicare for physical therapy services that were medically unnecessary and/or not performed in accordance with Medicare requirements. Specifically, the government alleges that Dr. Xu billed Medicare for one-on-one physical therapy services when the physical therapist was, in fact, providing group therapy, and that he submitted claims to Medicare for therapy services that were rendered by massage therapists.
Medicare regulations explicitly state “the services of…massage therapists…may not be billed as therapy services.”
To resolve their liability under the False Claims Act, Dr. Xu and his professional corporation paid $300,000 in order to reimburse the Medicare programs for conduct occurring during the time period January 1, 2007 through December 31, 2009.
“Health care providers that overcharge Medicare drain critical funds from the Medicare program and increase health care costs,” Acting U.S. Attorney Daly stated. “The U.S. Attorney’s office is committed to vigorously pursuing physicians and other health care providers who submit fraudulent claims to federal health care programs. Providers who submit false claims to the government face serious monetary and administrative sanctions.”
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $5,500 to $11,000 for each false claim.
In entering into the settlement agreement, Dr. Xu and his professional corporation did not admit liability.
This case was investigated by the Office of Inspector General for the Department of Health and Human Services. The case was prosecuted by Assistant United States Attorney Anne F. Thidemann, with the assistance of Auditor Kevin A. Saunders.
Acting U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Greater Harrison Drug Task Force Investigation Leads to Two Searches and Arrest of Former Stonewood ResidentRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, announced that an investigation by the Greater Harrison Drug & Violent Crime Task Force has led to searches of a Stonewood residence and a Bridgeport motel and the arrest of a former Stonewood, West Virginia, resident.
In February of 2013, the residence in Stonewood was searched, pursuant to a Federal search, and officers recovered heroin and money.
On October 11, 2013, after distributing heroin to a confidential informant, MATTHEW VANHORN, age 27, was arrested. Pursuant to the arrest, Room 435 at the Wingate Hotel in Bridgeport, where VANHORN had been residing since July of 2013, was searched. During the search of the hotel room, officers recovered $4,121 in US currency, multiple bundles of heroin totaling approximately 90 grams, a Nokia cellphone, two bottles of Advil containing empty heroin bags, two pocket books containing various paraphernalia, multiple empty bags of heroin, Samsung cell phone, LG cellphone, I-pad and debit cards. During the execution of the search warrant at the motel, two children were present and in close proximity to empty heroin baggies and packaged heroin.
VANHORN appeared before Magistrate Judge John S. Kaull on October 18, 2013, and was remanded to the custody of the United States Marshal.
Georgia Resident Indicted on Cross-Burning ChargesRead the Press Release
Savannah, GA - Gene Hoyt Vandiver, 34, of Richmond Hill, Georgia, was indicted earlier this month by a federal grand jury sitting in Savannah on charges related to the burning of a cross in his neighbor's yard. Vandiver was charged with one count of interfering with housing rights and with one count of arson. Vandiver had his initial appearance in federal court before United States Magistrate Judge G.R. Smith on October 10, 2013.
According to information presented in court, Vandiver, who is white, allegedly burned a cross in the yard of his neighbor, whom Vandiver believed to be African-American. Vandiver also left a sign in his neighbor’s yard with a racial slur and a hand-drawn picture of a person being lynched.
United States Attorney Edward Tarver stated, "Cross-burning remains a vicious symbol of hate and no one should have to suffer the fear and intimidation caused by such a cruel act. My office will work diligently with our law enforcement partners to prosecute criminal civil rights violations of any form."
The interfering with housing rights charge against Vandiver carries a 10-year maximum prison sentence; the arson charge carries a 10-year consecutive prison sentence. Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government's burden to prove guilt beyond a reasonable doubt.
This case was investigated by the FBI and the Richmond Hill Police Department. Assistant United States Attorneys Tania Groover and Greg Gilluly are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Frank Vennes Sentenced to 15 Years in Federal Prison for Lying to Investors About Petters’ Ponzi SchemeRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, Frank Elroy Vennes, Jr. was sentenced to 180 months in prison in connection with fraudulently raising money from individuals and through hedge funds for investment in Petters Company, Inc. (“PCI”). Vennes was a long-time associate of Thomas J. Petters, the Minnseota businessman who was convicted in 2009 of orchestrating a $3.65 billion Ponzi scheme. United States District Court Judge Richard H. Kyle sentenced Vennes, age 56, of Stuart, Florida, on one count of securities fraud and one count of money laundering. On July 11, 2011, Vennes was charged in a second superseding indictment, and on February 1, 2013, he pleaded guilty to those charges.
From 1995 through September of 2008, Vennes, individually and through his company, Metro Gem, obtained money from others for investment in PCI notes. He also assisted in the formation of hedge funds, known as the Arrowhead Funds, to help raise additional funds for that same purpose. Beginning in 2001 and proceeding through September 24, 2008, he aided and abetted individuals associated with the Arrowhead Funds in making fraudulent misrepresentations to investors regarding investments in PCI.
PCI was owned and operated by Tom Petters, who operated the Ponzi scheme by representing that money invested in PCI promissory notes would finance the purchase of electronics and other consumer merchandise. Purportedly, PCI would resell that merchandise for a profit to certain “big box” retailers, including Sam’s Club and Costco. In truth, however, no merchandise was bought or resold. Instead, Petters diverted hundreds of millions of dollars for his own benefit and the benefit of his co-conspirators. Petters’ Ponzi scheme unraveled in 2008, when federal agents executed search warrants at his business office and other locations.
Beginning in 2000, Vennes worked to form hedge funds to solicit investors in PCI, including Arrowhead Capital Partners II, L.P. and Arrowhead Capital Finance, Ltd., collectively known as the Arrowhead Funds, and Palm Beach Finance Partners, L.P. and Palm Beach Finance II, Ltd., collectively known as the Palm Beach Funds. Because he had a federal criminal record, having been previously convicted on federal narcotics, firearms, and money laundering charges, he had difficulty obtaining funding on his own. As a result, he worked through the Arrowhead Funds and the Palm Beach Funds when trying to solicit money from banks and institutional investors.
From 1999 through September 2008, all paperwork and communication between PCI and the Arrowhead Funds and Palm Beach Funds went through Vennes or one of his employees. At the same time, Vennes received “commissions” from Petters for brokering deals involving both Funds. His commissions were based on the amount of money he raised for Petters and PCI. Between 2001 and 2008, Vennes received more than $100 million in commissions.
During that same time period, Vennes knew that those acting on his behalf were making material misrepresentations and omissions to investors in the Arrowhead and Palm Beach Funds and did nothing to correct the situation. Investors were told, for example, that whenever a retailer purchased consumer electronics or other goods from PCI, those products were paid for by the retailer with funds directly deposited into a bank account under the control of a management company. Thus, investors were falsely assured that all PCI transactions were, in fact, taking place, and all money was secure. However, Vennes, among others, was well aware that no payments were ever received from retailers and, instead, came from PCI alone. Furthermore, investors were never informed of Vennes’ criminal record or his involvement in the Arrowhead and Palm Beach Funds’ transactions. And, finally, they were kept unaware that in late 2007 and early 2008, the PCI notes held by the Arrowhead and Palm Beach Funds were delinquent and were approaching default.
On October 11, 2013, Vennes’s co-defendant in this case, James Nathan Fry, age 60, of Orono, Minnesota, was sentenced to 210 months in prison on five counts of securities fraud, four counts of wire fraud, and three counts of making a false statement to the U.S. Securities and Exchange Commission during its investigation of investments in PCI by hedge funds under the management of Fry’s company, Arrowhead Capital Management. Fry was convicted on June 12, 2013.
On October 25, 2013, sentencing is scheduled for the investment managers of the Palm Beach Funds, who have pleaded guilty to committing fraud in connection to this scheme by making material misrepresentations to investors in their hedge funds concerning investments in PCI. David William Harrold, age 54, of Del Ray Beach, Florida, and Bruce Francis Prevost, age 53, of Palm Beach Gardens, Florida, await sentencing, each on four counts of securities fraud.
This case was the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigations, and the U.S. Postal Inspection Service. It was prosecuted by Assistant U.S. Attorneys Timothy C. Rank, Kimberly A. Svendsen, and Robert M. Lewis.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive attack on financial crimes. It 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 hopes to improve efforts across the federal executive branch, and, with state and local partners, 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.The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from securities fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.
Four additional People Indicted in Federal Court for Participating in Nationwide Timeshare Telemarketing Fraud SchemeRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced that a federal grand jury recently returned indictments against Tina M. Baalman (age: 28), Jason D. Schultz (age: 36), and Jessica M. Gilbert (age: 24) of Green Bay, Wisconsin, as well as Jessica Weinhart (nee Hensen) (age: 30) of Neenah, Wisconsin. Each defendant is charged with one count of Conspiracy to Commit Mail and Wire Fraud. Each is also subject to enhanced penalties under the “Senior Citizens Against Marketing Scams” or SCAMS Act. In total, eight individuals have now been indicted for their role in the conspiracy. Mark S. Parks, Mindy L. Parks, Eileen M. Goltz, and Ashley M. Conant currently face trial for their role in the matter.
As to each defendant, the maximum penalties are not more than twenty years imprisonment, a maximum fine of $250,000, a $100 special assessment, and a maximum three year term of supervised release. Additionally, if it is shown that ten individuals over age 55 were victimized as a result of the defendants’ actions, an additional term of imprisonment of up to ten years must be added to the underlying sentence. According to documents filed in the case, the defendants are accused of participating in the operation of a fraudulent timeshare resale scheme in Green Bay, Wisconsin, which resulted in over fourteen hundred (1,400) victims from all fifty states and Canada being defrauded of over $2.3 million. The defendants operated from 2007 to 2011 under several different names, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Victims were told that interested buyers were prepared to purchase their existing timeshares in exchange for upfront “administrative fees” ranging from a few hundred dollars to a few thousand dollars depending on how much the telemarketers believed they could collect. Many of the victims are elderly and had previously been victimized by similar schemes. This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service with the assistance of the Brown County Sheriff’s Office, Door County Sheriff’s Office, Waupaca County Sheriff’s Office, the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection. The case will be prosecuted by Assistant United States Attorney Daniel R. Humble. An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove each of them guilty beyond a reasonable doubt. # # # # #Four Assailants Sentenced for Robbery of Three Teenage Victims-Victims Were Forced into A Wooded Area at Night-Read the Press Release
WASHINGTON – Four teenagers have been sentenced to prison terms for their roles in the armed robbery of three teenage victims earlier this year in a wooded area of Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendants, who pled guilty to charges in the Superior Court of the District of Columbia, include Emmannuel Avent, 19; Daron Brown, 18; Stephon Christian, 18, and Diquan Lucas, 16. All are from Washington, D.C. Avent pled guilty to a charge of robbery and the others to attempted robbery. The Honorable Stuart G. Nash sentenced Christian on Oct. 11, 2013 to 12 months of incarceration. Avent, Brown, and Lucas were sentenced last month to terms of incarceration of 36 months, 12 months, and 9 months, respectively.
At the plea hearing, the defendants admitted that on March 30, 2013, at approximately 11:40 p.m., Avent, while wearing a ski mask, approached the victims - 14, 15, and 17 - from behind in the 4300 block of Hunt Place NE , saying, “Everybody walk into the woods. If anybody tries to run, he’s going to get shot.” Avent then pulled up his shirt to reveal a black-handled object in his waistband. The victims complied and walked into a wooded area nearby.
Once in the woods, Avent demanded that the victims empty their pockets. The victims turned over a cell phone and $20. As Avent collected these items, Brown, Christian, and Lucas entered the woods from a different direction. Brown and Lucas also were wearing ski masks. Brown, Christian, and Lucas told the victims to give up their tennis shoes. As they gave their shoes to the defendants, Brown checked their pockets for additional proceeds.
After the robbery, Avent told the victims to get on the ground, put their jackets over their heads, and count to 100. The victims complied, and the defendants fled the scene of the robbery together. The victims ran out into a nearby roadway, flagged down a police vehicle, and provided a description of the robbery suspects to the police. Another police vehicle stopped the defendants a short distance away in an alley near Gault Place NE. The police searched the alley and recovered the victims’ shoes, as well as a cell phone belonging to one of the victims. The police also recovered two ski masks in a search of Avent, one ski mask in a search of Lucas, and one ski mask and a black-handled knife on the ground near where the defendants had been stopped.
In announcing the sentencings, U.S. Attorney Machen praised the work of the detectives and officers who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialist Richard Cheatham. Finally, he acknowledged the efforts of Assistant U.S. Attorney Ben Schrader, who investigated and prosecuted the case.
13-350Fort Polk Man Sentenced for Abusive Sexual Contact with A MinorRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that Antwon M. Sewell, 20, of Fort Polk, La., was sentenced on October 3, 2013, by U.S. District Judge Patricia Minaldi, to 15 months in prison with five years of supervised release for committing abusive sexual contact with two minors. Sewell pleaded guilty June 13, 2013.
According to evidence presented in court, Sewell was at a party taking place at an unoccupied residence on the Fort Polk Military base on July 18, 2012. While at the party, he had sexual contact with a 13-year-old and a 14-year-old girl at different times that night. He admitted to providing alcohol to the minors attending the party.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.Fort Polk Man Sentenced to 30 Years in Prison for Second Degree Murder, Attempted MurderRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that Marcus Patterson Carey, 28, of Canton, Ohio, was sentenced on October 8, 2013 by U.S. District Judge Patricia Minaldi, to 30 years in prison for second degree murder and 20 years in prison for attempted second degree murder with both sentences to be served concurrently. He was also ordered to serve five years of supervised release. Carey pleaded guilty on June 12, 2013.
Carey admitted that on June 19, 2010, he killed a Fort Polk soldier by striking him with a hammer and stabbing him multiple times. He also admitted to attempting to kill a former soldier by striking that person with a hammer and stabbing that person multiple times as well.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. United States Attorney Stephanie A. Finley and Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Former Youth Minister Sentenced to 48 Months in Federal Prison on Obscenity ConvictionRead the Press Release
Defendant Worked at Churches in Levelland and Lubbock
LUBBOCK, Texas—Trevor Jacob Fortner, 25, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 48 months in federal prison, following his guilty plea in July 2013 to one count of attempted transfer of obscene material to a minor. Judge Cummings ordered that Fortner surrender to the Bureau of Prisons on November 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Most recently, Fortner was a youth minister at a church in Levelland, Texas; he has also worked in the graphics department of a church in Lubbock.
According to documents filed in the case, on May 7, 2013, Fortner responded to an online personal advertisement that had been posted by an undercover officer with the Lubbock Police Department (LPD). Posing as a 15-year-old girl, the undercover officer responded to Fortner’s initial contact. During ensuing emails and text conversations between Fortner and the undercover officer, Fortner repeatedly affirmed that he understood the girl’s age.
During these text conversations, Fortner discussed meeting the minor girl and described the kind of sexual activity he wished to engage in with her. He asked her to send him “kinky pics” and “dirty pics,” and on May 7, 2013, he sent her a sexually explicit photograph of himself. The following day, Fortner was interviewed by LPD officers and he admitted communicating with a 15-year-old girl and sending her a photograph of himself, which he acknowledged was obscene.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Amanda R. Burch prosecuted.
Former Turnberry Controller Sentenced to 37 Months in Prison for $6 Million EmbezzlementRead the Press Release
LAS VEGAS, Nev. – The former controller for the company that owned or developed the Residences at MGM, Town Square shopping center, Turnberry Place, Turnberry Towers, and the Stirling Club in Las Vegas, was sentenced today to 37 months in prison, three years of supervised release, and ordered to pay approximately $5.6 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Hope Ippoliti, 52, of Las Vegas, who pleaded guilty in March to conspiracy to commit wire fraud, was sentenced by U.S. District Judge Gloria M. Navarro. Ippoliti was permitted to self-report to federal prison by Jan. 14, 2014.
“This was a significant amount of money that was embezzled over an almost five-year period,” said U.S. Attorney Bogden. “Ms. Ippoliti victimized not only Turnberry Associates in the amount of $5.6 million, but caused irreparable harm and financial damage to the many victims and business entities employed and supported by Turnberry Associates.”
Ippoliti worked as the Western Regional Controller for Turnberry West Realty, a subsidiary of Turnberry Associates, LLC. In that capacity, Ippoliti had signatory authority and access to certain Turnberry bank accounts. From about May 17, 2007, to about Jan. 12, 2012, Ippoliti and a co-defendant, Rocco Lazazzaro, conspired to steal from Turnberry Associates and its affiliates. Ippoliti created fund transfer requests containing false information that the funds were intended for business-related purposes when she and Lazazzaro actually intended to withdraw the funds for personal use. Ippoliti faxed or emailed the fund transfer requests from Nevada to Turnberry Associates in Florida to cause the transfer of funds into Bank of America accounts over which she had signatory authority. Ippoliti and Lazazzaro deposited and cashed checks and cashier’s checks drawn on Bank of America bank accounts belonging to Turnberry Associates and its affiliates. The total losses to Turnberry Associates and its affiliates were $5.6 million.
Lazazzaro, who had a lengthy criminal history, was sentenced on Aug. 22 to 51 months in prison.
The case was jointly investigated by the FBI and the United States Secret Service and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former State Social Service Supervisor Sentenced to 33 Months in Prison in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Michael Bowman, age 61, of Baltimore, today to 33 months in prison, followed by three years of supervised release, for wire fraud in connection with a scheme to use personal identifying information of individual bank accounts holders to defraud banks. Bowman also paid restitution of $35,283.70.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; and Inspector General William E. Johnson, Jr. of the Maryland Department of Human Resources.
According to his plea agreement, Bowman was a supervisor for the Maryland Department of Social Services. In September 2011, Bowman’s work email account was flagged for suspicious activity. An email contained an attachment which listed numerous names, bank account numbers and other personal identifying information. Bowman admitted to law enforcement agents that he was lonely and had sought companionship online. Bowman met a man named “Steve” on a networking site in October 2010, who claimed to live in London, to be recently single and to be interested in Bowman. Steve promised to move in with Bowman in Baltimore if Bowman helped provide him with money, including funds to purportedly repair a house that Steve’s father left him upon his father’s death.During the fraud scheme, which extended from October 2010 to September 2011, Steve also introduced Bowman to his friend “David.” Bowman never met Steve or David in person. Bowman was sent account numbers and personal identifying information of bank account holders which Bowman used to impersonate the individual victims. Once Bowman had gained access to the individual victim’s accounts, Bowman obtained account balance information, allowing the co-conspirators to link the individual victims’ account to accounts Bowman opened at banks. The co-conspirators then initiated wire transfers from the victim accounts, through Bowman’s accounts, to third party accounts controlled by Steve, David and others.
Over the course of the fraud scheme, Bowman accessed at least 88 individual accounts, resulting in an intended loss totaling $513,942.96. The only actual loss to a bank from the scheme was in the amount of $35,283.70.
Bowman also wired approximately $10,000 of his own money to Steve and David in small increments. He also participated in a scheme to traffic in counterfeit MoneyGram money orders, whereby he purchased a $1 MoneyGram money order at a grocery store, scanned it and emailed the scanned image to David. Bowman then received approximately 100 forged MoneyGram money orders in the mail, all in the amount of $997. At David’s request, Bowman mailed some of those money orders to a co-conspirator. MoneyGram suffered no actual loss from the scheme.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Maryland Department of Human Resources - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul K. Nitze, who prosecuted the case.
Former Pittsburgh Police Chief Diverted Office Funds, Failed to File Federal Tax ReturnsRead the Press Release
PITTSBURGH – Former Pittsburgh Police Chief Nathan E. Harper pleaded guilty in federal court to charges of conspiracy and willful failure to file income tax returns, United States Attorney David J. Hickton announced today. Harper, 60 of Pittsburgh, pleaded guilty to five counts before United States District Judge Cathy Bissoon.
"This case is about greed and the theft of taxpayer money for private gain," stated U.S. Attorney Hickton. "Public officials, especially those who serve in law enforcement, have a responsibility to make governmental decisions in the best interests of the citizens, not themselves."
FBI Special Agent in Charge Gary Douglas Perdue added, "Investigating public corruption remains one of the FBI’s highest priorities. We will continue to pursue public officials who violate Federal law."
"Each of us is responsible for filing correct and accurate tax returns," said Special Agent in Charge Akeia Conner. "No public official gets a free pass to ignore the tax laws, and IRS Criminal Investigation works diligently to ensure that everyone pays their fair share."
In connection with the guilty plea, the court was advised that Harper was the Chief of the City of Pittsburgh Bureau of Police. From 2009 to 2012, he caused at least $70,628.92 in checks and cash received by the Special Events Office of the Department to be diverted to two unofficial accounts at the Greater Pittsburgh Police Federal Credit Union. Using Visa Debit cards, Harper obtained more than $31,000 in ATM withdrawals and debit purchases, all for his personal benefit. Harper also failed to file federal tax returns for the years 2008 through 2011. The total tax loss for all four years was $22,427.
Judge Bissoon scheduled sentencing for Feb. 25, 2014, at 10 a.m. The law provides for a total sentence of nine years in prison, a fine of $650,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Mr. Harper on bond.
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation conducted the investigation leading to the indictment in this case.
Former Monroe Resident Sentenced to 15 Months in Prison for Stealing More Than $100,000 from Credit Card CompanyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that Durar Mohammed Judeh, 48, of Tupelo, Miss., was sentenced on October 7, 2013 by U.S. District Court Judge Robert G. James, to 15 months in prison and five years of supervised release for bank fraud. He was also ordered to pay $101,280 in restitution. He pleaded guilty May 29, 2013.
In April 2008, Chase Bankcard Services alerted the U.S. Postal Inspection Service that nine credit cards listed for addresses in Monroe had been opened fraudulently. Judeh admitted to using a relative’s personal information to open the accounts and deposited money into an account he controlled, using the cards to steal more than $101,280.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Former Corrections Officer Sentenced to 37 Months in Prison on Federal Bribery Charge-Admitted Taking Money in Return for Smuggling Drugs into D.C. Jail-Read the Press Release
WASHINGTON – Jonathan Womble, 37, a former corrections officer at the District of Columbia Jail, was sentenced on Oct. 9, 2013 to 37 months in prison on a federal charge of conspiracy to commit bribery for accepting $400 in cash in return for smuggling drugs and other contraband into the facility, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Womble pled guilty in June 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Reggie B. Walton. Upon completion of his prison term, Womble will be placed on three years of supervised release.
According to the government’s evidence, the FBI received information in January 2013 that a corrections officer was providing narcotics and other contraband to an inmate at the D.C. Jail. An investigation revealed that the inmate was working with co-conspirators outside the jail to assemble, deliver, receive and distribute narcotics intended for inmates at the jail, and that they were paying an individual to get the drugs into the facility.
On Jan. 27, 2013, Womble met with one of the co-conspirators in the parking lot of a carry-out restaurant in the District of Columbia. The co-conspirator gave Womble a plastic bag, which contained a powdery substance consistent with heroin and marijuana. The bag also contained a cellphone, cellphone charger and $400 in cash. Womble understood that the cash was in exchange for him getting the drugs, cell phone and charger to the inmate in the jail. Two days later, he smuggled the items into the jail and provided them to the inmate.
Plans were subsequently made for another delivery of contraband. However, on Feb. 12, 2013, multiple bags of marijuana were discovered and intercepted inside Womble’s locker at the jail by the District of Columbia Department of Corrections and one of its K-9 dogs. The marijuana had been provided to Womble by a person who wanted it delivered to another inmate.
Womble is among four corrections employees convicted of bribery since December 2012.
In December 2012, Daishawn Goodson, a former corrections officer employed by the Corrections Corporation of America (CCA), pled guilty to taking money to smuggle contraband into the District’s Correctional Treatment Facility. She was sentenced to eight months of home detention. In March 2013, Jeremiah Moorman, a former corrections officer, was found guilty of accepting money under the promise of bringing contraband into the District of Columbia Jail. He was sentenced to two years of probation. Also in March 2013, April Johnston, a former corrections officer for the District of Columbia Jail, pled guilty to taking money to smuggle contraband into the facility. She was sentenced to three months in jail and six months of home detention and ordered to perform 100 hours of community service.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the three agencies who jointly worked the case, including agents from the FBI’s Washington Field Office, an FBI task force officer from Metropolitan Police Department (MPD) and investigators from the District of Columbia Department of Corrections Office of Investigative Services and the Department of Corrections K9 Unit. Finally, they commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lenisse Edloe, Legal Assistant Angela Lawrence, and Assistant U.S. Attorneys Richard E. DiZinno and Christopher R. Kavanaugh, who prosecuted the case.
13-347Former Administrator of Union's Benefits Plan Charged with EmbezzlementRead the Press Release
The former administrator of a group of International Brotherhood of Electrical Workers (IBEW) Local 38 employee benefit plans was charged in a one-count information with embezzling approximately $32,000 from the company that administered the plans, United States Attorney Steven M. Dettelbach said.
John Dietz, age 56, of Twinsburg, Ohio, was employed as Administrator of the IBEW Local 38 Fringe Benefit Funds, Inc. (the “Funds, Inc.”), located in Valley View, Ohio. The Funds, Inc. administers three benefit plans for members of IBEW Local 38: the IBEW Local 38 Health & Welfare Plan, the IBEW Local 38 401(k) Retirement Plan, and the IBEW Local 38 Pension Fund.
The information alleges that from approximately February 21, 2009, through August 5, 2011, Dietz embezzled monies from the Funds, Inc. through various devices, including: (a) paying for personal expenses through charges to the Funds, Inc.’s two credit cards; (b) receiving expense reimbursement checks for personal expenses; and (c) issuing himself mileage reimbursement checks for personal automobile travel.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being handled by Assistant United States Attorney John M. Siegel following investigation by the Department of Labor’s Employee Benefits Security Administration and Office of Inspector General – Office of Investigations.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Florissant Woman Pleads Guilty to Tax and Fraud ChargesRead the Press Release
St. Louis, MO – EVELYN SILAS, Florissant, MO, pled guilty to 13 counts of tax and fraud charges. Silas appeared before United States District Judge Catherine Perry. Sentencing has been set for January 14, 2014.
According to court documents, Silas prepared twenty tax returns for friends and members of her family during the 2009, 2010 and 2011 tax years while employed full-time at the St. Louis Office of the Equal Employment Opportunity Commission (EEOC). Silas added phony information about educational expenses and business income and losses to obtain tax credits for those taxpayers. In all, Silas caused more than $90,000 in tax loss. Silas kept a large percentage of the refunds generated by the fraudulent returns for herself
Each count carries a maximum penalty of three years imprisonment and a $100,000 fine or both. The government will also seek restitution of all tax losses. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by IRS Criminal Investigation with assistance from the EEOC Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
First Independence Bank and Federal Authorities Reach AgreementRead the Press Release
US Attorney Barbara McQuade announced today that her office reached an agreement regarding First Independence Bank’s compliance procedures under the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. Under the Agreement the Bank will pay a fine of $250,000 and ensure that its BSA/AML policies and procedures will comply with all applicable laws and regulations. The Agreement requires the Bank to maintain procedures regarding customer identification and customer due diligence in order to obtain, analyze and maintain sufficient customer information to allow effective suspicious activity monitoring. It also requires guidelines to reasonably ensure identification and timely, accurate reporting of known or suspected criminal activity as required by law.
US Attorney McQuade said that “It is vital that banks perform the required level of customer identification and due diligence and possess the ability to monitor transactions so that they can report properly to authorities when there is any suspicious criminal activity. The banks are one of our country’s first lines of defense against, and identification of, certain financial crimes. We are intent on vigorously enforcing their obligations to perform these obligations effectively.”
The agreement indicates that, prior to 2009, First Independence Bank had unsatisfactory BSA and AML compliance programs and practices. US Attorney McQuade noted that, “since the time the deficiencies were discovered in 2009, First Independence has hired a significant number of new officers and staff, including in its BSA department, purchased sophisticated monitoring software, implemented several enhanced projects to identify possible money laundering in customer accounts, filed suspicious activity reports and devoted considerable resources to improved its BSA and AML compliance policies and procedures and controls.” The Bank has agreed to maintain its systems and procedures and to comply with all applicable laws and regulations regarding AML and BSA.
Federal Jury Finds Three Guilty of Charges Related to Shipping More Than 35 Tons of Marijuana to CharlotteRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury delivered guilty verdicts today against three defendants charged with marijuana trafficking conspiracy and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Evelyn LaChapelle, 28, Natalia Wade, 30, and Corvain Cooper, 33, all from California, were convicted following a four-day trial before U.S. District Court Judge Robert J. Conrad, Jr, which ended today.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to court records, LaChapelle, Wade, and Cooper were initially charged on January 15, 2013 with marijuana trafficking conspiracy and money laundering conspiracy in a multiple-defendant criminal bill of indictment. The indictment was later superseded to include a third charge of structuring financial transactions through banking institutions to avoid reporting requirements. According to evidence presented at trial, the marijuana was shipped to the Charlotte area in commercial crate shipments and overnight packages. Trial evidence revealed that the conspiracy involved more than 35 tons of marijuana being shipped to Charlotte and millions of dollars of laundered proceeds funneled back to the sources of supply in California.
The defendants were convicted of all three charges. At sentencing, LaChapelle and Wade face a mandatory minimum of five and a maximum of 40 years in prison and a $4 million fine for the marijuana trafficking conspiracy charge. Because of his prior conviction and the drug weight for which he has been held liable, Cooper faces a mandatory minimum of 20 years and a maximum of life in prison and a $20 million fine for the same charge. All three defendants face a maximum of 20 years in prison for the money laundering conspiracy charge and the greater of $500,000 or twice the value of the property laundered as a monetary fine. For the structuring of financial transactions offense in a pattern exceeding $100,000 in a 12-month period, all three defendants face a maximum of 10 years in prison and a $250,000 fine. The defendants will remain in federal custody until their sentencing hearing which will be scheduled by the court at a later date.
This prosecution is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation that has resulted in the conviction of more than 50 defendants for marijuana trafficking, money laundering, and firearms violations over the past four years.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was led by HSI and CMPD, with the assistance of several other law enforcement agencies, to include the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Beverly Hills and Culver City, California Police Departments. The prosecution for the government was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Federal Jury Finds Three Guilty of Charges Related to Shipping More Than 35 Tons of Marijuana to CharlotteRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury delivered guilty verdicts today against three defendants charged with marijuana trafficking conspiracy and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Evelyn LaChapelle, 28, Natalia Wade, 30, and Corvain Cooper, 33, all from California, were convicted following a four-day trial before U.S. District Court Judge Robert J. Conrad, Jr, which ended today.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to court records, LaChapelle, Wade, and Cooper were initially charged on January 15, 2013 with marijuana trafficking conspiracy and money laundering conspiracy in a multiple-defendant criminal bill of indictment. The indictment was later superseded to include a third charge of structuring financial transactions through banking institutions to avoid reporting requirements. According to evidence presented at trial, the marijuana was shipped to the Charlotte area in commercial crate shipments and overnight packages. Trial evidence revealed that the conspiracy involved more than 35 tons of marijuana being shipped to Charlotte and millions of dollars of laundered proceeds funneled back to the sources of supply in California.
The defendants were convicted of all three charges. At sentencing, LaChapelle and Wade face a mandatory minimum of five and a maximum of 40 years in prison and a $4 million fine for the marijuana trafficking conspiracy charge. Because of his prior conviction and the drug weight for which he has been held liable, Cooper faces a mandatory minimum of 20 years and a maximum of life in prison and a $20 million fine for the same charge. All three defendants face a maximum of 20 years in prison for the money laundering conspiracy charge and the greater of $500,000 or twice the value of the property laundered as a monetary fine. For the structuring of financial transactions offense in a pattern exceeding $100,000 in a 12-month period, all three defendants face a maximum of 10 years in prison and a $250,000 fine. The defendants will remain in federal custody until their sentencing hearing which will be scheduled by the court at a later date.
This prosecution is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation that has resulted in the conviction of more than 50 defendants for marijuana trafficking, money laundering, and firearms violations over the past four years.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was led by HSI and CMPD, with the assistance of several other law enforcement agencies, to include the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Beverly Hills and Culver City, California Police Departments. The prosecution for the government was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Federal Judge Rules That Local Businessman Liable for over $20 Million in RestitutionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that U.S. District Court Judge Sylvia H. Rambo ruled in favor of the Government on its request for restitution in the case against developer David R. Dodd, II.
In her 37-page opinion filed on October 15, Judge Rambo awarded $20,943,635.13 in restitution as follows:
H&R Mechanical, $1,255,468.62
Weaver Glass, $594,890.00
Stone Fire Protection, $308,755.40
Scheadler Yesco, $390,767.05
Stewart-Amos Steel, $622,146.52
Ciesco, $118,218.11
Macri Concrete, $323,057.70
H.W. Nauman, $31,672.47
Herre Brothers, Inc., $1,265,237.50
Metro Bank, $9,489,864.88
Dauphin County, $2,752,450.64
City of Harrisburg, $3,512,777.70
City of Harrisburg, $308,328.54Judge Rambo concluded that Dodd was responsible for the projects demise and the loss to the contractors.
According to United States Attorney Peter J. Smith, Dodd was charged in two separate indictments returned by federal grand juries in June 2010 and January 2011, both involving fraudulent real estate and business deals associated with the Capital View Commerce Center (CVCC).
Dodd utilized a business known as Industrial Design and Construction, Inc. (IDC) as part of the Capital View Commerce Center (CVCC) project to purchase pre-cast concrete forms for use in the construction of the building.
Dodd concealed his own personal interest in IDC in violation of federal conflict of interest requirements and, through that concealment, wrongfully obtained over one million dollars of funds from HUD through programs administered by the City of Harrisburg and Dauphin County. These funds were placed into a brokerage account at Dodd’s direction to conceal the existence and ownership of the misappropriated funds.
Dodd was also paid $860,454.00 in HUD funds through programs administered by the City of Harrisburg and Dauphin County to pay contractors who performed and completed work on the CVCC project. Although Dodd, through his business Cameron Real Estate, LP, received that money, Dodd kept the money and did not pay the contractors as he was obligated to do.
Dodd pleaded guilty in November 2011 to misappropriation of funds and money laundering based on this conduct. The second indictment will be dismissed as part of the plea agreement but the court can consider the conduct underlying the dismissed charges when arriving at an appropriate sentence. A sentencing date has not been scheduled.
The joint investigation was conducted by the HUD’s Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation and the Dauphin County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney William A. Behe. Support is being provided by the U.S. Attorney’s Office Victim Rights and Asset Recovery Unit.
Executive Director of Non-Profit Sentenced to 2 ½ Years in Prison for Wire Fraud, Admitted Using More Than $200,000 in Grants for Personal Use- Used Money Meant for Youth Programs for Gambling, Other Personal Expenses-Read the Press Release
WASHINGTON - Keely E. Thompson Jr., 48, executive director of Keely’s District Boxing and Youth Center, was sentenced on Oct. 9, 2013 to a 2 ½-–year prison term on a federal charge of wire fraud stemming from a scheme in which he spent District of Columbia and private grant funds, meant for youth programs and activities, on personal goods, entertainment, and services. The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Charles J. Willoughby, Inspector General of the District of Columbia.
Thompson, of Accokeek, Md., pled guilty in June 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Emmet G. Sullivan. Thompson must pay $205,000 in restitution to the entities that granted the misspent funds and forfeit a money judgment in the amount of $205,000. Upon completion of his prison term, Thompson will be placed on three years of supervised release. During that time, he must complete 500 hours of community service.
According to a statement of offense, signed by the defendant as well as the government, Keely’s District Boxing and Youth Center was a non-profit organization based at locations in Northwest and Northeast Washington. The operations were funded with grant money. The funds were to be used to carry out the boxing program’s mission of promoting youth development.
Thompson admitted improperly using $205,000 in funds from 2004 to 2009. The spending included $105,000 for gambling at a casino in Atlantic City, N.J. and on a cruise ship; $50,000 for meals at restaurants, purchases at grocery stores, concerts, speeding tickets and clothing, and an additional $50,000 on other unauthorized expenditures.
Thompson was arrested in November 2010 and has been free on personal recognizance while the case remained pending. In November 2012, a federal grand jury returned an indictment charging him and his wife, Bianca Thompson, the non-profit’s deputy director, with wire fraud and other offenses. The plea agreement in Keely Thompson’s case called for the indictment against Bianca Thompson to be dismissed at the time of his sentencing.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Inspector General Willoughby commended the efforts of those who worked on the case from the FBI’s Washington Field Office and the District of Columbia Inspector General’s Office. They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Nicole Wattelet, Krishawn Graham and Diane Hayes, and Victim/Witness Advocate Yvonne Bryant, and Jelahn Stewart, Chief of the Victim Witness Assistance Unit. Finally, they praised the work of Assistant U.S. Attorneys Seth B. Waxman and Lionel André, who prosecuted the case.
13-348Drug and Firearms Charged Filed on Salineville ManRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a two-count indictment charging Anthony Cunningham, age 56, of Salineville, Ohio, with maintaining a drug-involved premises and being a felon in possession of a firearm and ammunition.
Count 1 of the indictment charges that on or about June 2013, through July 2013, Cunningham maintained a place on State Route 39 in Salineville, Ohio, for the purpose of distributing heroin and cocaine.
Count 2 of the indictment charges that on or about August 2, 2013, Cunningham possessed an American Derringer, model 1, .40 Derringer and Federal .40 caliber ammunition, after he had been previously convicted of Bank Robbery in the U.S. District Court for the Northern District of Ohio, and of Felonious Assault with a Firearm Specification in the Stark County, Ohio, Court of Common Pleas.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbiana County Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
District Man Sentenced to 38-Year Prison Term for Conspiracy to Commit Murder and Other Charges for Role in Gun Battles Between Rival Crews - Second Defendant Sentenced Earlier to 12 Years in Prison-Read the Press Release
WASHINGTON – William Spriggs, 25, was sentenced today to 38 years in prison for conspiracy to commit murder and other charges stemming from a violent rivalry between two street crews in Southeast Washington, announced U.S. Attorney Ronald C. Machen Jr.
Spriggs and Raymond Davis, 21, were found guilty of conspiracy charges in April 2013, following a two-month trial in the Superior Court of the District of Columbia. Spriggs also was convicted of charges of first-degree murder while armed, assault with intent to kill while armed, and other gun-related offenses. He was sentenced by the Honorable John Ramsey Johnson.
Davis also was found guilty of assault with intent to kill while armed and weapons offenses. He was sentenced in June 2013 to a 12-year prison term for his role in the case.
A third defendant, Deante Harding, 25, was found guilty in April 2013 of conspiracy to assault. Harding was sentenced to time served. All three men are from Washington, D.C.
The case centered on a series of shootings that occurred in 2010 in the Benning Terrace neighborhood of Southeast Washington. The rivalry involved individuals from the Avenue, an area in Benning Terrace west of 46th Street SE, and individuals from the Circle, a cul-de-sac in the 600 Block of 46th Place SE. Both crews dealt narcotics, possessed firearms, and sought to evade law enforcement. Spriggs, Davis and Harding were part of the Avenue group.
According to the government’s evidence, during the spring of 2010, individuals from the Avenue traded retaliatory shootings with individuals in the Circle. Davis, for example, on one occasion shot at an individual coming from the Circle. Also, on May 14, 2010, three Avenue members, including Spriggs and Davis, ran into the Circle and fired multiple gunshots, hitting a Circle crew member.
Then, on May 30, 2010, Circle members armed themselves and went to the Avenue and shot at individuals. Several minutes later, several Avenue crew members ran up into the Circle, firing their weapons, where they encountered multiple Circle crew members who fired at them. During the shooting, a bystander from the Circle, Antwan Buckner, 32, was shot and killed.
In its verdict, the jury convicted Spriggs of first-degree murder while armed in the killing of Mr. Buckner, and acquitted Davis of that charge. Harding also was acquitted of some offenses. Harding was arrested in March 2011 and until November 2012 was serving time for a probation violation.
In separate proceedings, other individuals from the Circle were tried and convicted or pled to crimes related to the murder of Mr. Buckner and an additional murder.
In announcing the sentence, U.S. Attorney Machen praised those who worked on the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, Sharon Newman, and Meridith McGarrity; Litigation Technology Specialists Thomas Royal and Kimberly Smith; Victim/Witness Advocate Marcia Rinker and the entire staff of the Victim Witness Assistance Unit, and Assistant U.S. Attorneys Jeff Pearlman and Laura Bach, who investigated and prosecuted the case.
13-354District Man Sentenced to 24 Years in Prison for 2011 Slaying in Northwest Washington-Defendant Stabbed Victim in the Neck-Read the Press Release
WASHINGTON Devon Holmes, 30, also known as “Jamaica,” of Washington D.C., was sentenced today to 24 years in prison for the August 2011 slaying of a man in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Holmes was found guilty by a jury in July 2013 of a charge of second-degree murder while armed, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Holmes will be placed on five years of supervised release.
According to the evidence at trial, at about 2:45 a.m. on Aug. 3, 2011, in the area of 8th and Jefferson Streets NW, Holmes slashed the victim, Marcellus T. Bailey, 24, in the neck with a sharp object, causing a gaping wound and loss of blood. Holmes fled the scene. Mr. Bailey died a short while later. The motive for the attack is unknown. Holmes was arrested on Sept. 9, 2011, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Machen commended those who worked on the case from the Metropolitan Police Department (MPD), including detectives, mobile crime technicians, and others. He also expressed appreciation for the work of Special Agent Kevin R. Horan of the FBI’s Cellular Analysis Survey Team (CAST). In addition, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick and Mia Beamon; Litigation Support Services Specialists Jeanie Latimore-Brown, Kimberly Smith, Claudia Gutierrez, Joshua Ellen, and Joseph Calvarese; Victim/Witness Advocates Marcia Rinker and Tamara Ince; Victim/Witness Services Supervisor David Foster; Witness Security Specialists M. Laverne Forrest and Michael Hailey; Criminal Investigators Mark Crawford and Christopher Brophy, and Intelligence Research Specialists Zachary McMenamin, Sharon Johnson, and Shannon Alexis.
Finally, U.S. Attorney Machen commended the work of Assistant U.S. Attorneys Robert J. Feitel and Kathryn L. Rakoczy, who prosecuted the case at trial.
13-352Disbarred Attorney and Her Ex-Husband Sentenced to Prison for Stealing $2.8 Million from Clients in Medicaid Planning Fraud SchemeRead the Press Release
Orlando, FL – Chief U.S. District Judge Anne Conway sentenced Ross Littlefield (48, Kissimmee) and Linda Littlefield (41, Kissimmee) yesterday for money laundering. Ross Littlefield was sentenced to four years in federal prison. Linda Littlefield was sentenced to five years in prison. As part of their sentence, the court also entered a restitution order in the amount of $2,888,418.05 and a money judgment in the amount of $155,739.93. The Littlefields pleaded guilty on June 11, 2013.
Linda Littlefield, a former attorney, formed The Littlefield Law Group, P.A which ultimately matured to specialize in Medicaid planning. In 2007, Ross Littlefield, Linda Littlefield, and others created a non-profit organization called the JNN Foundation, Inc. and represented that a JNN Special Needs Asset Preservation Pooled Trust could shelter a client’s assets and not affect the beneficiary’s Medicaid or Social Security Income eligibility. Ross Littlefield served as the trustee.
Between 2007 and 2010, Ross and Linda Littlefield fraudulently induced approximately 27 clients to contribute more than $4.7 million to the JNN Foundation. Once the client funds were received by the foundation, the Littlefields transferred the money to other accounts under their control. The Littlefields used the money for their own personal benefit. They purchased property, vehicles, and made personal loans to their other business. As part of their fraudulent scheme, the Littlefields sent false quarterly statements to their clients showing fictitious balances. Consequently, the Littlefields stole more than $2.8 million from their clients.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney David Haas.Daytona Beach Man Sentenced to 5 ½ Years for Possession of Child PornographyRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II today sentenced Carlos Manuel Cruz (40, Daytona Beach) to five years and six months in federal prison for possession of child pornography. Cruz pleaded guilty on April 15, 2013.
According to court documents, the investigation began when an Internet website reported to the National Center for Missing and Exploited Children (NCMEC) that a specific Internet Protocol (IP) address was engaged in distributing child pornography. Law enforcement officials determined the location of the IP address and interviewed Cruz. During the interview, Cruz admitted that he downloaded and viewed child pornography. Search warrants were executed upon computers located at Cruz’s home, revealing that Cruz possessed more than 27 images and 6 videos containing visual depictions of sexually exploited children.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Columbus, Ohio, Tax Return Preparation Firmwith Large Portion of Elderly Customers Shut DownRead the Press Release
A federal court in Columbus, Ohio, has permanently barred Tobias Elsass and his companies, “Fraud Recovery Group Inc.” and “Sensible Tax Services Inc.,” from preparing federal tax returns, promoting the availability of theft loss deductions, or engaging in any other tax-related business in the future. The Court found that Elsass and Fraud Recovery Group have continually and repeatedly promoted a nationwide scheme falsely informing their customers that they were entitled to claim large theft loss tax deductions, and then preparing the tax returns that improperly claimed such deductions. The civil injunction order was signed yesterday by Judge Peter C. Economus of the U.S. District Court for the Southern District of Ohio.
Elsass serves as president and founder of Fraud Recovery Group and Sensible Tax Services. The district court found that Elsass and his companies promoted a scheme that preyed largely on elderly investors across the United States who had suffered financial losses. Elsass and his companies told the investors that they could deduct their financial losses on their federal income tax returns in an advantaged way and receive large refunds. Under federal tax law, victims of truly fraudulent investment schemes, such as a Ponzi scheme, may properly deduct their financial losses as thefts only if they can substantiate that the losses were, among other things, the product of criminal conduct.
In its opinion, the court concluded that Elsass misled his elderly investor customers into believing that they had valid theft loss deductions, thereby inducing them to pay him and his companies to prepare and file amended tax returns. The opinion notes that hundreds of theft loss deductions claimed on tax returns prepared by Elsass and his companies were improper, because the financial losses they sought to deduct were merely the result of company mismanagement instead of criminal conduct – as Elsass knew. Elsass and his companies were also aware that the Internal Revenue Service (IRS) was disallowing such claims, but filed similar claims for other investor customers in any event, in the hope that the later filings would escape IRS scrutiny. The court found that, as a result of such egregious conduct, Elsass and his companies potentially left their investor customers subject “to audits and scrutiny from the IRS.”
The court also determined that Elsass had intentionally engaged in “incompetent or disreputable” behavior not becoming a tax professional. Based on the record before it, the court found that Elsass seemed “perfectly willing to lie and deceive, even to the extent of possibly committing perjury, in order to advance his own interests.” Accordingly, the “sheer magnitude and variety of the Defendants’ transgressions” made permanent injunctive relief appropriate.
The court directed that FRG be closed and its operations terminated. The court’s injunction order permanently bars Elsass from engaging in any business relating to providing tax advice or the preparation of tax returns. Elsass and his companies are also prohibited from owning any interest in, operating, incorporating, working for or having any other association with any tax-related business in the future, and they must immediately divest any ownership interest they presently have with any such entities. The court’s order also requires Elsass and his companies to advise their existing customers of the injunction’s terms, and to provide the Government with a list of all current customers.
In the past decade, the Justice Department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Department of Justice website at www.justice.gov/tax/taxpress2013.htm .
Related Materials:
United States v. Tobias H. Elsass, et. al.
Complaint for Permanent Injunction
Opinion and OrderCharleston Man Sentenced to 5 Years in Federal Prison for Selling Crack CocaineRead the Press Release
CHARLESTON, W.Va. – A Charleston man who sold crack cocaine to a police informant was sentenced on Oct. 17 to five years in federal prison, announced U.S. Attorney Booth Goodwin. Calvin Lee Boswell, also known as “Boo” and “Big Boy,” previously pleaded guilty in June to seven counts of distribution of crack cocaine. On three separate occasions in October 2011, Boswell sold crack cocaine to a confidential informant working in cooperation with the Special Enforcement Unit of the Charleston Police Department.
Boswell, 25, also sold crack cocaine to a confidential informant working for the Metropolitan Drug Enforcement Network Team (MDENT) on November 26, 2012. Boswell distributed crack cocaine three times in December 2012. Each illegal drug transaction was completed in and around Charleston.
This case was investigated by MDENT and the Special Enforcement Unit of the Charleston Police Department. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.California Man Pleads Guilty to Unlawful Possession of Pipe BombsRead the Press Release
ALBUQUERQUE – Yesterday Lloyd Jonathon Fry, 28, a resident of Hollywood, Calif., who was in the process of relocating to Piqua, Ohio, when he was arrested in May 2013, pleaded guilty in Las Cruces federal court to unlawful possession of pipe bombs.
Fry and his co-defendant Rona Ma-Rey Milan Antipatia, 29, a legal permanent resident from the Philippines who resides in Redondo Beach, Calif., were arrested on May 27, 2013, by Border Patrol agents at the U.S. Border Patrol Checkpoint west of Alamogordo, N.M. The arrests were made after the agents discovered four pipe bombs, a fully-loaded subcompact pistol with a 30-round magazine, and marijuana in their vehicle and the small trailer it was towing during a routine inspection at the checkpoint. Fry and Antipatia were then charged in a criminal complaint with possession of marijuana with intent to distribute and using a firearm in relation to a drug trafficking crime.
Yesterday afternoon, Fry pled guilty to a felony information charging him with unlawfully possessing firearms, the four pipe bombs, that were not registered to him in the National Firearms Registration and Transfer Record. At sentencing, Fry faces a maximum penalty of ten years in prison. Fry has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Antipatia has pleaded not guilty to the charges against her. The charges against Antipatia are merely accusations and she is presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations, the U.S. Border Patrol and the Bomb Squad from the Doña Ana County Sheriff’s Office and is being prosecuted by Supervisory Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.Boeing Procurement Officer and Three Contractors Indicted on Federal Bribery and Fraud ChargesRead the Press Release
St. Louis, MO – Former Boeing Procurement Officer Deon Anderson and three Boeing sub-contractors were indicted on multiple counts of mail and wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts. They appeared this morning in federal court in St. Louis to answer an indictment returned October 2, 2013.
Boeing Company Defense Space and Security Division is a defense contractor providing military-style aircraft to the United States Department of Defense and the United States armed services with offices and procurement operations located in St. Louis. Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.
J. L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts. Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company, and oversaw all financial aspects of the company.Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing. Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts.
Globe Dynamics International, Inc., Santa Ana, California is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components. Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts. William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.
According to the indictment beginning in May 2011 and continuing through April 2013,
Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes. Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of the nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $2,000,000. The indictment states that in exchange for that information, they made cash payments to Anderson in St. Louis and in California.Additionally, according to the indictment, between November 2009 and February 2013, Boozer requested Anderson provide him with non-public competitor bid information and historical price information in connection with Boeing military aircraft part purchase order requests for quotes. They communicated by telephone and e-mail between California and St. Louis in code on a regular basis. Boozer frequently requesting “Isle 5," a coded reference to a “price check on aisle 5," understood by Anderson to be a request for historical price information and competitor bid information. Anderson gave the information to Boozer to be used in preparing and submitting bids on behalf of Globe Dynamics in response to approximately sixteen different Boeing requests for quotes relative to those various purchase orders, in exchange for cash payments. Of the sixteen bids, Globe Dynamics was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $1,500,000.
- DEON ANDERSON, St. Louis, MO
- JEFFREY LAVELLE, Mukilteo, WA
- ROBERT DIAZ, JR., Alta Loma, CA
- WILLIAM P. BOOZER, Hacienda Heights, CA
If convicted, each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Bergen County, N.J. Man Sentenced to 100 Months in Prison for Separate Fraud ScemesRead the Press Release
Former Investment Advisor ran Multimillion-dollar Ponzi Scheme,
Swindled Elderly, Disabled WidowCAMDEN, N.J. – A Bergen County, N.J., man who claimed to run New Jersey-based hedge funds using a secret computer program to invest in foreign currency was sentenced today to 100 months in prison for defrauding victims of millions of dollars, conning an elderly, disabled widow out of her life savings and evading his tax obligations, U.S. Attorney Paul J. Fishman announced.
George Sepero, 40, of Glen Rock, N.J., previously pleaded guilty to a superseding information charging him with wire fraud conspiracy, wire fraud and tax evasion before Chief U.S. District Judge Jerome B. Simandle in Camden federal court. Sepero has been remanded to federal custody since July 16, 2012, after violating the conditions of his supervised release through a continuing pattern of fraud.
“George Sepero stole millions in a Ponzi scheme and perpetrated a monstrous fraud on an elderly woman who was the definition of vulnerable,” said U.S. Attorney Fishman. “Blowing fortunes of other people’s money, he continued to commit scam after scam until he was locked up. It is fair that he spend his next years away from the society he victimized.”
According to documents filed in this case and statements made in court:
The Currency Investment Scheme
Beginning in 2009, Sepero – along with conspirators Carmelo Provenzano, 31, of Garfield, N.J., and Daniel Dragan, 43, of Lebanon, N.J. – claimed to run a series of hedge funds in New Jersey, luring investors with the prospect of extraordinary profits in foreign currency trading. The trio made numerous misrepresentations and omissions to induce their victims to invest in Caxton Capital Management and ACCP Pro Consulting Inc. Sepero claimed that he and his conspirators owned and controlled a proprietary computer algorithm for trading foreign currencies; that they had used the algorithm to achieve returns of more than 170 percent in the prior two years; and that any investment funds would be highly liquid and could be withdrawn on days’ notice.
Investors sent the defendants a total of more than $3.5 million. Sepero and the others invested little or no money in foreign currency or any other investment vehicle, instead diverting the vast majority of victims’ investments to pay prior victims in Ponzi-scheme style and to finance extravagant personal expenditures.
Sepero and his conspirators spent investor money on credit card bills averaging $25,000 per month; bar tabs of $18,241, including a $4,000 tip; $14,034 on separate nights at Drai’s Hollywood nightclub in Los Angeles; and flights to Paris and elsewhere. Sepero bought a custom Ford pickup truck for more than $80,000.
The defendants emailed victims fake statements showing their principal had been invested in the foreign currency markets and was achieving substantial results. Many of these e-mails were purportedly sent by an individual named “Mel Tannenbaum,” a fictional character of Provenzano’s invention.
The defendants also e-mailed to several investors screen shots of a computer-based trading program, which they claimed represented the investors’ funds being traded in the currency markets. In reality, the shots reflected trading in fictional accounts set up by the conspirators to dupe investors.
Provenzano and Dragan have also pleaded guilty before Judge Simandle and await sentencing.
The Annuity Account Scheme
Sepero worked as a financial planner at a financial institution for several years, but was fired in 2006 because of investigations into his churning of clients’ accounts. While at the institution, Sepero took control of the annuity account of one of his clients – an elderly, paraplegic woman with dementia – which was her sole means of providing for her retirement and nursing expenses.
After his termination, Sepero lied to the woman and her family, telling them he was still authorized to manage the annuity account. When his victim had money to add to the account, Sepero directed her to give him checks made payable to his company Casa Nostra Enterprises. Instead of transferring the money to the annuity account, Sepero spent it on his own expenses: credit card and other bills, mortgage payments and car payments, among other things.
To hide the fraud, Sepero fabricated a bogus account statement showing that the annuity account was worth more than $700,000, when, for the period covered by the statement, it actually contained $16.57.
Sepero placed recorded phone calls to the administrator of the annuity account, during which he impersonated both his victim’s son and her husband. Her husband died more than three years before Sepero made the calls.
Sepero also pleaded guilty to tax evasion for the tax year 2010, as he derived income from his fraudulent activities, but did not file a tax return and deposited his victims’ money into his companies’ accounts.
In addition to the prison term, Judge Simandle sentenced Sepero to three years of supervised release and ordered him to pay restitution of $4,985,361. In imposing the sentence, Judge Simandle considered Sepero’s criminal behavior while out on supervised release in this case.
According to the government:
During his supervised release, Sepero engaged in a fraudulent “lease to own” agreement with his tenant at the Maywood, N.J., property Sepero was using to secure his bail. When the tenant became suspicious of the arrangement and discovered Sepero’s pending charges, Sepero fabricated an email from PNC Mortgage that made it appear there was a legitimate sale agreement.
Prior to his remand, Sepero also used a relative’s credit card to run up more than $9,000 in unauthorized charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation. He also thanked the Commodity Futures Trading Commission’s New York Regional Office, under the direction of David Meister.
The government is represented by Unit Chief Christopher Kelly and Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Evan Weitz of the Office’s Asset Forfeiture Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.13-404
Defense counsel: John Weischel Esq., Hackensack, N.J.