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Friday 18 October 2013
Baltimore Car Dealer Owner Sentenced to 30 Months for Structuring Deposits of over $2 Million to Evade Bank Reporting RequirementsRead the Press Release
Businesses that Break Up Cash Transactions to Avoid Paper Trail Face Prosecution
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Amefika Gray, age 39, of Baltimore, today to 30 months in prison followed by two years of supervised release for structuring bank deposits totaling over $2 million over a two year period to avoid bank reporting requirements. Judge Hollander also ordered that Gray forfeit $800,000, a Mercedes Benz vehicle and three residential properties located in Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“Federal law requires large currency transactions to be reported in order to deter money laundering, tax evasion and other criminal conduct,” said U.S. Attorney Rod J. Rosenstein. “Businesses that break up their cash deposits to avoid currency reporting requirements face federal criminal prosecution.”
According to his plea, Gray owns Network Auto Group, a car dealership operating at 2631 Gwynns Falls Parkway in Baltimore. Between January 15, 2010 and April 28, 2012, Gray made regular deposits of $10,000 or just under $10,000 into his personal and business bank accounts, including at least 25 instances in which Gray made multiple deposits under $10,000 the same day into the same bank or into different banks. The amount of the structured deposits over this two year period totaled $2,017,205.23. Gray deposited the money in such amounts because he knew that the banks were required to report to the Internal Revenue Service all deposits over $10,000.
The government presented evidence to the court that the cash that Gray structured was the proceeds of drug trafficking activity.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Evan T. Shea, who prosecuted the case.
Apollo Woman Sentenced to 42 Months in Prison for Massive Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Apollo, Pa., has been sentenced in federal court to 42 months of incarceration and three years of supervised release on her conviction of mail and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Bonnie Gardner, 56.
According to information presented to the court, Gardner participated in a massive fraud scheme involving more than $15 million in losses to more than 100 victims. The investigation has subsequently determined that Gardner and Frank Guzik, Jr., through various investment and development groups, such as East Haven Investments, East Haven Development, East Haven Realty, etc., devised and implemented an elaborate Ponzi scheme through which they successfully solicited investors.
The purported business of East Haven was to purchase properties, make various improvements to the properties, and then to sell them. In order to secure the investments, Guzik and Gardner made a series of misrepresentations to the investors. As collateral for the investments, Guzik and Gardner provided the investors mortgages on various properties. The investors believed that East Haven would be unable to sell the properties on which they held mortgages unless the mortgages were satisfied. Many of these mortgages were never filed, which the investors later learned.
The investigation has also revealed that the satisfaction pieces on some of the mortgages were forgeries. Guzik and Gardner also provided multiple investors with mortgages on the same properties. Thus, the purported value to the mortgagees was well in excess of the property's value. The investors were, of course, unaware that other investors held mortgages on the same properties.
Some of the investors received, if requested, monthly interest payments on their investments. Others chose to roll their monthly interest over into the investment, having been erroneously told by Guzik and Gardner that no tax was due on the accrued interest if it was rolled over. The investment never really earned any interest, despite the investor statements indications to the contrary and despite the payment of interest payments. In other words, Guzik and Gardner used new investor funds to pay interest to individual who had invested earlier, and also to support the lifestyles Guzik and Gardner were living.
Beginning in April of 2005, Guzik and Gardner needed to sell some of the properties to generate cash flow and to show investors that East Haven was profitable, but they could not sell the properties. Thus, Guzik and Gardner convinced a number of individuals to act as straw purchases of the properties. The mortgage documents falsely reported that the purchasers made substantial down payments from their own funds to purchase the properties. In fact, Guzik and Gardner deposited investor funds into the straw purchasers' bank accounts and then the straw purchasers would withdraw the money in the form of a certified check that they would bring to the closings as if they had made the down payment from their own funds. In addition, Guzik and Gardner paid the straw purchasers, using investor funds, the mortgage and utility payments for those properties. Guzik and Gardner then prepared a glossy pamphlet reporting the sales of the properties for use in inducing further investors.
Beginning around November 2007 and continuing until in or around March 2008, Guzik began withdrawing funds from the East Haven accounts by cash and check. By the end of March 2008, East Haven's National City accounts, into which investor checks had been deposited and from which investor interest checks had been drawn, had minimal or zero balances. During the same time period, Guzik withdrew $200,000 to purchase untraceable gold coins from International Precious Metals in Texas. Guzik also received two- short term loans totaling $475,000 in early March 2008, promising to repay them at 20% interest by March 18, 2008.
On or about March 17, 2008, Guzik disappeared, and has not been heard from since. He did not repay the loans, stopped making interest payments on investments totaling approximately $15 million, and never accounted for the principle investments. His whereabouts are still unknown.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, the Criminal Investigation Division of the Internal Revenue Service, and the Monroeville Police Department for the investigation leading to the successful prosecution of Gardner.
Annandale Accountant Sentenced to 36 Months in Prison for Tax Fraud and Making False Statements to the GovernmentRead the Press Release
ALEXANDRIA, Va. – Mohammad T. Al-Suqi, 55, of Annandale, Va., was sentenced today to 36 months in prison, followed by two years of supervised release, for preparing and filing false tax returns and making false statements to federal agents when interviewed about the activities. He was also ordered to pay restitution to the Internal Revenue Service.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by United States District Judge James C. Cacheris.
Al-Suqi was indicted by a federal grand jury on April 25, 2013, and was convicted of nineteen counts of aiding the preparation of a false income tax return, two counts of filing his own false income tax returns, and one count of making false statements to federal agents following a jury trial on July 12, 2013.
According to court records and evidence at trial, the defendant owned and operated the tax preparation businesses Ideal Accounting Solution and Mass Accounting and Tax Corp. in Falls Church, Va. For the tax years 2007 through 2010, the defendant prepared and filed on behalf of his taxpayer clients federal income tax returns that contained materially false and fraudulent information, including false itemized deductions on Schedule A and fraudulent education credits on Form 8863, all of which resulted in large federal income tax refunds for the taxpayers and at least $4 million in losses to the IRS. For his part, the defendant received fees of between $100 and $250 per return and prepared thousands of federal income tax returns during the relevant time period.
As part of the government’s investigation, the defendant also prepared a fraudulent tax return in 2011 for an undercover IRS agent posing as a taxpayer. The episode, which was recorded by the undercover agent and presented to the jury at trial, showed the defendant falsifying expenses and deductions in order to produce an income tax refund and indicating that his success as a tax preparer was associated with his ability to manufacture large refunds for his clients.
The defendant also included false and fraudulent expenses and credits on his own 2008 and 2009 federal income tax returns. In 2013, after the IRS revoked his ability to file electronic tax returns, the defendant continued to prepare and electronically file tax returns using an electronic filing number assigned to his wife, and the defendant lied to IRS agents when he was questioned about the activities.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorneys Jasmine H. Yoon and Paul J. Nathanson and former Assistant United States Attorney Charles F. Connolly prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Annandale Accountant Sentenced to 36 Months in Prison for Tax Fraud and Making False Statements to the GovernmentRead the Press Release
ALEXANDRIA, Va. – Mohammad T. Al-Suqi, 55, of Annandale, Va., was sentenced today to 36 months in prison, followed by two years of supervised release, for preparing and filing false tax returns and making false statements to federal agents when interviewed about the activities. He was also ordered to pay restitution to the Internal Revenue Service.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by United States District Judge James C. Cacheris.
Al-Suqi was indicted by a federal grand jury on April 25, 2013, and was convicted of nineteen counts of aiding the preparation of a false income tax return, two counts of filing his own false income tax returns, and one count of making false statements to federal agents following a jury trial on July 12, 2013.
According to court records and evidence at trial, the defendant owned and operated the tax preparation businesses Ideal Accounting Solution and Mass Accounting and Tax Corp. in Falls Church, Va. For the tax years 2007 through 2010, the defendant prepared and filed on behalf of his taxpayer clients federal income tax returns that contained materially false and fraudulent information, including false itemized deductions on Schedule A and fraudulent education credits on Form 8863, all of which resulted in large federal income tax refunds for the taxpayers and at least $4 million in losses to the IRS. For his part, the defendant received fees of between $100 and $250 per return and prepared thousands of federal income tax returns during the relevant time period.
As part of the government’s investigation, the defendant also prepared a fraudulent tax return in 2011 for an undercover IRS agent posing as a taxpayer. The episode, which was recorded by the undercover agent and presented to the jury at trial, showed the defendant falsifying expenses and deductions in order to produce an income tax refund and indicating that his success as a tax preparer was associated with his ability to manufacture large refunds for his clients.
The defendant also included false and fraudulent expenses and credits on his own 2008 and 2009 federal income tax returns. In 2013, after the IRS revoked his ability to file electronic tax returns, the defendant continued to prepare and electronically file tax returns using an electronic filing number assigned to his wife, and the defendant lied to IRS agents when he was questioned about the activities.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorneys Jasmine H. Yoon and Paul J. Nathanson and former Assistant United States Attorney Charles F. Connolly prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Additional Charges Brought Against Tax Return Preparers Previously Charged with Helping Clients Hide Millions in Offshore Israeli BanksRead the Press Release
David Kalai and Nadav Kalai face additional charges after a federal grand jury in the Central District of California returned a second superseding indictment yesterday. The superseding indictment charged each with two counts of willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR). In June 2012, the grand jury charged David Kalai, Nadav Kalai, and David Almog with conspiring to defraud the United States, the Department of Justice and Internal Revenue Service (IRS) announced today.
As alleged in the June 2012 superseding indictment, David Kalai and Nadav Kalai were principals of United Revenue Service Inc. (URS), a tax preparation business with 12 offices located throughout the United States. David Kalai worked primarily at URS’ former headquarters in Newport Beach, Calif., and later at URS’ location in Costa Mesa, Calif. Nadav Kalai, who is David Kalai’s son, worked out of URS’ headquarters in Bethesda, Md., as well as URS locations in Newport Beach and Costa Mesa. David Almog was the branch manager of the New York office of URS and supervised tax return preparers for URS East Coast locations.
U.S. citizens, resident aliens and legal permanent residents have an obligation to report to the IRS on Schedule B of the U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign country in a particular year by checking “Yes” or “No” in the appropriate box and identifying the country where the account was maintained. They further have an obligation to report all income earned from the foreign financial account on the tax returns. Separately, U.S. citizens, resident aliens and permanent legal residents with a foreign financial interest in, or signatory authority over, a foreign financial account worth more than $10,000 in a particular year, must also file a FBAR with the Treasury disclosing such an account by June 30 of the following year.
The superseding indictment further alleged that the co-conspirators prepared false individual income tax returns which did not disclose the clients’ foreign financial accounts nor report the income earned from those accounts. In order to conceal the clients’ ownership and control of assets and conceal the clients’ income from the IRS, the co-conspirators incorporated offshore companies in Belize and elsewhere and helped clients open secret bank accounts at the Luxembourg locations of two Israeli banks referred to as Bank A and Bank B in court documents. Bank A is a large financial institution headquartered in Tel-Aviv, Israel, with branches worldwide. Bank B is a mid-size financial institution headquartered in Tel-Aviv, with a worldwide presence on four continents.
The indictment also alleged, the co-conspirators incorporated offshore companies in Belize and elsewhere to act as named account holders on the secret accounts at the Israeli banks. The co-conspirators then facilitated the transfer of client funds to the secret accounts and prepared and filed tax returns that falsely reported the money sent offshore as a false investment loss or a false business expense. The co-conspirators also failed to disclose the existence of, and the clients’ financial interest in, and authority over, the clients’ secret accounts and caused the clients to fail to file FBARs with the Department of the Treasury.
In addition to the earlier charges, yesterday’s superseding indictment alleges that David Kalai and Nadav Kalai each failed to file a FBAR for calendar years 2008 and 2009 concerning a foreign account held at Bank A in Luxembourg. The second superseding indictment alleges that both David Kalai and Nadav Kalai had a financial interest, signature or other authority over a foreign financial account that had an aggregate value of more than $10,000 during 2008 and 2009.
If convicted, each defendant faces a maximum of five years in prison for each count and a maximum fine of $250,000 for each count. The charges contained in the indictment are only allegations. The defendants are presumed innocent and it is the government’s burden to prove guilt beyond a reasonable doubt.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Tax Division Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci, who prosecuted the case, and Assistant U.S. Attorney Sandra A. Brown of the U.S. Attorney’s Office for the Central District of California, who assisted with the prosecution. The case was investigated by special agents of IRS – Criminal Investigation.
14 Defendants Indicted in Meth Trafficking ConspiracyRead the Press Release
AUGUSTA, GA - A federal indictment, unsealed yesterday in federal court, has charged 14 defendants conspiring to traffic large amounts of methamphetamine from Mexico to Richmond, Columbia, and McDuffie Counties in Georgia, and to areas of South Carolina.
The charges result from a joint investigation by the FBI’s Safe Streets Task Force, the DEA, the Richmond County Sheriff’s Office, State of Georgia Pardons and Parole Office, and the Georgia Bureau of Investigation.
United States Attorney Edward Tarver said, ASuccessful investigations such as these are the result of great cooperation between federal and local law enforcement agencies. We are committed to bringing justice to those who profit from the scourge of illegal narcotics trafficking, and to seizing and forfeiting their ill-gotten gains.@
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “ This Mexico-based criminal enterprise is alleged to have established its methamphetamine distribution base of operations within the Central Savannah River area and, after an intensive investigation culminated in an extensive law enforcement action this week, those operations have come to a sudden end. The FBI’s Safe Streets Task Force (SSTF) operating out of the Augusta area brought in additional resources from the Richmond County Sheriff’s Office, the DEA, the Georgia Bureau of Investigation (GBI), as well as officers from the Georgia State Pardons and Parole Office in order to better neutralize this organized and structured international drug distribution enterprise.”
If convicted of the drug trafficking conspiracy charge, each defendant faces a maximum of life in prison and a potential fine of $10,000,000. Tarver noted that the United States is also seeking to forfeit various items of personal property involved in the offenses, including $2 million as the alleged proceeds of the defendants= drug trafficking.
Of the 14 defendants charged, 11 have been arrested :
- Florentino Binzha- Elisa, 46, of Warrenville, SC;
- Gilberto Fabona Gaona, 38, of Augusta, GA;
- Jesus Avala Lombera, 32, of Augusta, GA;
- Oscar Piedra, aka Oscar Hernandez, 39, of Augusta, GA;
- Fidel Sanchez Garcia, 32, of Augusta, GA;
- Henri Vertez Travis, 38, of Hephzibah, GA;
- Tyler James Barcenas, 21, of Augusta, GA;
- Naun Padilla, 34, of Augusta, GA;
- Huber Romero, 37, of Augusta, GA;
- Victor Eduardo Ovalle, Jr., 20, of Harlem, GA; and,
- Jose Ines Davila, 34, of North Augusta, SC.The 3 remaining defendants still at large are:
- Eduardo Juarez Gallegos, 44, of Ridgeland, SC;
- Jorge Perez Rodriguez, 31, of Harlem, GA; and,
- Maximo Moreno, aka Maximo Castillo, 70, Harlem, GA.Anyone with information as to the whereabouts of these 3 defendants are asked to call the FBI at: (706) 722-3702.
Mr. Tarver emphasized that the indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government=s burden to prove guilt beyond a reasonable doubt.Assistant United States Attorney Patricia Green Rhodes is prosecuting the case for the Government. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Thursday 17 October 2013
Wichita Falls Man Sentenced to 97 Months in Federal Prison for Role in Major Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas— Dewey Wells, 45, of Wichita Falls, Texas, was sentenced by U.S. District Judge Reed C. O’Connor on October 7, 2013, to 97 months in federal prison following his guilty plea in April 2013 to his role in a major methamphetamine distribution conspiracy operating in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Wells pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine.
According to documents filed in the case, Wells admitted that on multiple occasions between November 2011 and September 4, 2012, he received multi-ounce quantities of methamphetamine from co-conspirators Steve Ysasaga, David Calandreli and others in Wichita Falls. Wells further admitted that he distributed the methamphetamine to co-conspirators Tommy Vasquez, Frankie Hubbard and others in the Wichita Falls area.
Wells also admitted that on March 8, 2012, he sold approximately 2.5 grams of methamphetamine to an undercover Texas Department of Public Safety (DPS) agent. During the transaction, Wells told the undercover agent that his supplier went by the name of “Joker,” which is co-conspirator Ysasaga’s nickname.
In addition, Wells admitted that he sold methamphetamine to an undercover DPS agent on two other occasions that same month.
To date, 36 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 28 defendants have been sentenced. The case against three defendants has not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Western Michigan U.S. Attorney’s Office Seeks to Identify Victims in Cases Against Kentwood Pharmacy PharmacistsRead the Press Release
GRAND RAPIDS, MICHIGAN – The U.S. Attorney’s Office for the Western District of Michigan is handling criminal cases involving various individuals in connection with their employment at Kentwood Pharmacy. From approximately 2004 through November 2010, Kentwood Pharmacy operated retail pharmacies in Grand Rapids (formerly Eastgate Pharmacy), Shepard, Alma, and St. Louis, Michigan. Additionally they serviced nursing homes, adult foster care homes, and other long term care facilities throughout Michigan and Northern Indiana.
To date, three pharmacists have pled guilty to misbranding prescription drugs during their employment at Kentwood Pharmacy and are scheduled to be sentenced, in Federal Court, on November 13 and 14, 2013, before District Court Judge Janet T. Neff. Individual patients may have received drugs from Kentwood Pharmacy as early as 2004, and continuing through 2010, which were misbranded or adulterated. Examples of such misbranded or adulterated drugs include mislabeled drugs, discolored drugs, or expired drugs. Persons who believe they may have been victims of this crime because they received or paid for drugs supplied by Kentwood Pharmacy between 2004 and November 2010, which were misbranded or adulterated are asked to contact the U.S. Attorney’s Office for the Western District of Michigan.
Potential victims may contact the Western District of Michigan U.S. Attorney’s Office by visiting the office’s website and accessing a form related to this case at: http://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program.html Alternatively, potential victims may call the office’s Victim Witness Unit at (616) 808-2034 and provide the information over the phone.END
Westbrook Woman Sentenced to 70 Months in Prison for Role in Killingworth Bank RobberyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JENNIFER JACQUES, 32, of Westbrook, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 70 months of imprisonment, followed by three years of supervised release, for her role in the August 2012 robbery of the TD Bank in Killingworth.
According to court documents and statements made in court, in the afternoon of August 6, 2012, JACQUES drove Marcus Dwyer and Dario Pabey to the TD Bank on Route 81 in Killingworth. Dwyer and Pabey then entered the bank wearing masks and demanded that everyone lie on the floor. Dwyer pointed a gun at bank employees and customers and then jumped over the teller door and ordered the employees to open the vault. He accompanied the employees to the vault while Pabey controlled the lobby area. Pabey used zip ties to tie the hands of one bank employee and demanded that the customers give him their wallets, mobile phones and car keys. As Pabey was starting to restrain a second person with zip ties, Dwyer ran past him with a bag of money that he had taken from the vault. Pabey followed and grabbed a patron who had surrendered his car keys to him and forced him out of the bank.
Dwyer and Pabey fled in the customer’s vehicle, which was abandoned a short distance from the bank at a pre-planned location where JACQUES was waiting. JACQUES then drove Dwyer and Pabey away from the bank while they changed out of the clothes they had worn during the robbery.
The investigation revealed that $43,573 was stolen from the bank and its patrons during the robbery.
In September 2012, after an indictment charging Dwyer and Pabey had been returned, JACQUES, without the knowledge of law enforcement, traveled to New York to meet Dwyer, who was a fugitive from justice, and drove him to Connecticut. On September 19, 2012, Dwyer was apprehended by the FBI and Connecticut State Police in New London.On October 17, 2012, JACQUES pleaded guilty to one count of bank robbery. Dwyer and Pabey previously pleaded guilty to the same charge and were sentenced to prison terms of 188 months and 180 months, respectively.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorneys Ray Miller and Sarala Nagala.
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[email protected]Washington, Missouri, Man Sentenced for Role in 2011 Murder ConspiracyRead the Press Release
St. Louis, MO – SCOTT ALAN COMPTON, of Washington, MO, was sentenced to five years imprisonment for his actions that resulted in the April 22, 2011, death of Jamie Benson of Houston, TX. In February, Compton pleaded guilty to one count of conspiracy to possess with the intent to distribute over 500 grams of cocaine. Compton was sentenced October 9 by United States District Court Judge Audrey G. Fleissig
According to court documents, in early April 2011, Compton, along with co-defendants Lodgy Jackson and Andreus O’Bryant, among others, joined in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis after luring Mr. Benson from Houston to St. Louis. Compton was recruited by O’Bryant to act as an individual interested in purchasing over 500 grams of cocaine from Mr. Benson for an inflated price. Compton played that role. In doing so, Compton, along with O’Bryant and Jackson, convinced Mr. Benson that a drug transaction was going to occur when, in reality, O’Bryant, Jackson and others intended to rob Mr. Benson of the cocaine and murder him.In the early morning hours of April 22, 2011, Jackson shot and murdered Benson inside O’Bryant’s vehicle that was parked in a St. Louis alley. Jackson and others abandoned Benson's body in the alley where it was later discovered by the St. Louis Metropolitan Police Department. O’Bryant, Jackson and others undertook significant efforts to cover-up the conspiracy and destroy evidence of the crime -- but were ultimately unsuccessful.
O’Bryant and Jackson have previously pleaded guilty for their crimes and await sentencing. Each faces a term of imprisonment of up to life. In determining the actual sentences, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department and the St. Charles County Police Department.United States Attorney Announces City-wide Drug Bust, Arrest of More Than 20 DefendantsRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today a city-wide operation that dismantled a massive drug trafficking organization in the Indianapolis area. The arrests are part of “Operation Five Dollar Footlong,” which targeted a group that allegedly imported thousands of pounds of marijuana into the city. As a result of the search and arrest warrants executed early this morning, 21 defendants have been charged (10 federally, 11 in state court) and significant quantities of drugs and guns have been seized.
“In two years, this federal operation has resulted in the seizure of more than 15,000 pounds of marijuana and nearly $5 million in suspected drug proceeds,” Hogsett said. “Thanks to the tireless work of our law enforcement partners, we can say today that another dangerous criminal organization has been dismantled in Indianapolis.”
Background on “Operation Five Dollar Footlong”
In March 2011, members of a Drug Enforcement Administration (DEA) task force and the Metro Drug Task Force (Metro Drug) began an investigation into marijuana trafficking in the Indianapolis metropolitan area. Based on information received by the agencies, it was believed that illegal activities were being coordinated out of a Mexican grocery store on the west side of Indianapolis.
In October 2011, charges were filed against multiple individuals for this drug activity. A search of a tractor trailer and a warehouse resulted in the seizure of five tons of marijuana and more than $4.3 million in drug proceeds. The investigation was dubbed “Operation Five Dollar Footlong” because the tractor trailer in which the drug proceeds were found was carrying a large quantity of sandwich wrappers when it was stopped by law enforcement.
In the two years that followed, agents continued investigating the activities of those involved in the marijuana trafficking organization. Utilizing extensive phone and in-person surveillance, agents uncovered an extensive network of drug activity in the Indianapolis area. Allegations unsealed today indicate that Mexican suppliers were regularly shipping thousands of pounds of marijuana into Indianapolis. Once sold, the drug proceeds would be hidden in vehicles and transported to the Mexican border.
This Morning’s Operation
Early this morning, federal agents executed 17 federal and state search warrants in Indianapolis as part of “Operation Five Dollar Footlong,” most of which targeted people and property on the near-west side of the city. A total of 21 defendants have been charged in federal and state court for their alleged roles in the drug trafficking organization, 16 of whom were brought into custody today. That includes eight federal defendants and eight state defendants.
Preliminary information on the search warrants executed today indicates that seizures included:
• Approximately 100 pounds of marijuana.
• More than 1.5 pounds of methamphetamine.
• Weapons, including 7 firearms.
• At least 26 vehicles believed to have been used in the scheme.
• Between $80-100,000 in suspected drug proceeds.In addition, documents unsealed today indicate that over the last two years, agents have seized an additional two tons of marijuana in Indianapolis as part of this ongoing investigation.
At approximately 6:00am, an arrest warrant was executed at 5937 Beachview Drive in Indianapolis. Law enforcement officers were confronted by an armed suspect who ignored verbal commands to lower his weapon, reportedly pointing his gun at the detectives. The suspect was shot and pronounced dead at the scene. The death investigation will be conducted by the Indianapolis Metropolitan Police Department’s Critical Incident Response Team.
Criminal Procedure
All told, twenty five defendants have now been federally charged as part of Operation Five Dollar Footlong. According to Assistant U.S. Attorney Melanie Conour, the defendants arrested today on federal charges are scheduled to have initial appearances before a Magistrate Judge in Indianapolis this afternoon. If convicted, those defendants face ten years to life imprisonment on the count of conspiracy with the intent to distribute 1,000 kilograms or more of marijuana. Defendants arrested on state charges face a variety of charges related to their roles in the organization.
These arrests are the result of a collaborative investigation involving the DEA and the Indianapolis Metro Drug Task Force, along with the Internal Revenue Service, the United States Marshals Service, Homeland Security Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. State and local partners included the Marion County Prosecutor’s Office, the Hamilton County Drug Task Force, the Indianapolis Metropolitan Police Department and a number of other local law enforcement agencies.
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.
Two Individuals Charged in Manhattan Federal Court with Alleged Sex Trafficking of MinorsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced today the arrests of ELFEGO BOYD and NORMAN DARBY in connection with sex trafficking of minor girls. BOYD was arrested yesterday in the Bronx, New York, and DARBY was arrested yesterday in Manhattan. Both defendants were presented yesterday before U.S. Magistrate Judge Sarah Netburn and ordered detained pending trial.
According to the allegations in the Complaint unsealed yesterday in Manhattan federal court:
From September 2010 through June 2012, the BOYD and DARBY have been engaged in a criminal sex trafficking enterprise that recruited and exploited minor girls, and then prostituted them using an online classifieds website for the defendants’ profit. The defendants lured minor girls into prostitution by, among other things, targeting runaways, offering the victims shelter, and romancing them. They then took provocative pictures of the minor victims, which the defendants then posted online in an effort to sell the victims for sex.
Minor Victim-1
In September 2010, Minor Victim-1, who was 15 years old at the time, met BOYD in Times Square, after running away from her home in Pennsylvania to New York City. BOYD, who introduced himself as “Kush da Dawn,” asked Minor Victim-1 if she wanted to prostitute for him and she agreed. He then provided food and shelter to Minor Victim-1. While staying with BOYD, Minor Victim-1 also met DARBY, who introduced himself as “Black.” Both BOYD and DARBY placed advertisements offering Minor Victim-1 for sex using an online classifieds website. The ads did not receive any responses and Minor Victim-1 left New York City and returned to Pennsylvania a short while later.
In the spring of 2011, Minor Victim-1 traveled from Pennsylvania to New York City where she again encountered BOYD and stayed at his apartment in the Bronx. BOYD told Minor Victim-1 that he loved her and that they were boyfriend-girlfriend. He then posted online advertisements offering Minor Victim-1 for sex in exchange for money. At BOYD’s direction, Minor Victim-1 had sex in exchange for money with multiple men who responded to those ads, after which BOYD took all the money.
Later, BOYD took Minor Victim-1 to a house in Long Island where she stayed along with BOYD, DARBY and others, for several months. During that period, DARBY and Minor Victim-1 posted advertisements offering her for sex online in exchange for money. At BOYD and DARBY’s direction, Minor Victim-1 had sex in exchange for money with several men who responded to those ads at hotels.
Eventually, BOYD returned to New York City with Minor Victim-1. At BOYD’s direction, Minor Victim-1 continued to have sex in exchange for money with multiple men who responded to online advertisements, after which BOYD took all the money. Minor Victim-1, who turned 16 years old during the period she was being offered for sex by BOYD and DARBY, told BOYD her age on one or more occasions.
In November 2011, after getting into an argument with BOYD, Minor Victim-1 ran away from him.
Minor Victim-2 and Minor Victim-3
Minor Victim-2, who was 15 years old, along with Minor Victim-3, who was 17 years old, met BOYD, who identified himself as “Kush da Dawn,” in Manhattan in the spring of 2012 after running away from Oklahoma (the “Oklahoma Victims”). BOYD told the Oklahoma Victims he had “connections” and could help them rent a room at a hotel. Instead, BOYD took the Oklahoma Victims to his apartment in the Bronx.
BOYD took provocative pictures of the Oklahoma Victims in lingerie he provided and posted the pictures in advertisements online prostituting them. At BOYD’s direction, the Oklahoma Victims had sex in exchange for money with multiple men who responded to online advertisements, after which BOYD took half of the money.
Minor Victim-3 informed BOYD that she was 17 years old at the time he was prostituting her. In response, BOYD told Minor Victim-3 that he was the only one who needed to know her age.
BOYD, 27, of the Bronx, NY, is charged with one count of conspiracy to commit sex trafficking, three counts of sex trafficking of minors, and two counts of use of interstate facilities to promote a sex trafficking and prostitution enterprise. DARBY, 32, of the Bronx, NY, is charged with one count of conspiracy to commit sex trafficking, one count of sex trafficking of minors, and one count of use of interstate facilities to promote a sex trafficking and prostitution enterprise. Both defendants face a maximum sentence of life in prison.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD, and noted that the investigation is continuing.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant United States Attorneys Andrea Griswold and Amy Garzon are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
US v. Elfego Boyd and Norman Darby Complaint
Two Compton Men Plead Guilty to Federal Hate Crime Charges Resulting from New Year's Eve Attack on African-American YouthsRead the Press Release
Two Latino men associated with the Compton 155 street gang pleaded guilty today to federal hate crime charges related to a racially motivated attack on African-American juveniles at a residence in Compton, Calif. on New Year’s Eve.
Jeffrey Aguilar, 20, who uses the moniker “Terco,” and Efren Marquez Jr., 22, who is also known as “Stretch” and “Junior,” each pleaded guilty to violating the Matthew Shepard-James Byrd Hate Crime Prevention Act.
Appearing before United States District Judge Terry J. Hatter Jr., Aguilar admitted that on Dec. 31, 2012, he and another individual physically attacked a 17-year-old African-American, who was walking down a street in the City of Compton. Aguilar chased down and struck the victim in the head with a metal pipe. During the incident, Marquez threatened to shoot another African-American juvenile who was present. Both Aguilar and Marquez admitted that the attack on the 17-year-old victim was substantially motivated by his race and color.
“These juvenile victims were threatened and assaulted because of their race,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Such intimidation and violence has no place in our society. The Justice Department will continue to vigorously prosecute those who commit such acts of hate.”
“The perpetrators of hate crimes hurt not only the individuals who are attacked, but also society as a whole,” said United States Attorney André Birotte Jr. “For this reason, we are dedicated to working with our law enforcement partners to ensure that justice is brought to those who choose to commit such heinous crimes.”
“Finding justice for victims of civil rights violations is among the most important responsibilities of FBI agents,” said Bill Lewis, Assistant Director for the FBI's Los Angeles Field Office. “The success of this case is due to the shared goals and long-term cooperation between the Los Angeles Sheriff's Department and the FBI, and prosecutors at the Department of Justice.”
“Hate crimes affect not only the victims, they also destroy our society’s democratic principles” said Sheriff Lee Baca of the Los Angeles Sheriff’s Department. “Law enforcement is dedicated to protecting the civil rights of all members of our community. The success of this joint investigation sends a message that racially motivated crimes will not be tolerated.”
Aguilar and Marquez are scheduled to be sentenced by Judge Hatter on Jan. 6, 2014. At sentencing, each defendant will face a statutory maximum penalty of 10 years in federal prison.
This case is the result of an investigation conducted by the FBI and the Los Angeles County Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorney Reema El-Amamy of the Violent and Organized Crime Section of the U.S. Attorney’s Office and Trial Attorney Saeed Mody of the Civil Rights Division.
Two Compton Men Plead Guilty to Federal Hate Crime Charges Resulting from New Year’s Eve Attack on African-American YouthsRead the Press Release
LOS ANGELES – Two Latino men associated with a Compton street gang pleaded guilty this morning to federal hate crime charges stemming from a racially motivated attack on African-American juveniles on New Year’s Eve.
Jeffrey Aguilar, who is also known as “Terco,” 20, and Efren Marquez Jr., who is also known as “Stretch” and “Junior,” 22, each pleaded guilty to violating the Matthew Shepard-James Byrd Hate Crime Prevention Act.
Appearing before United States District Judge Terry J. Hatter Jr., Aguilar admitted that on December 31, 2012, he and another individual physically attacked a 17-year-old African-American, who was walking down a street in the City of Compton. Aguilar chased down and struck the victim in the head with a metal pipe. During the incident, Marquez threatened to shoot another African-American juvenile who was present. Both Aguilar and Marquez admitted that the attack on the 17-year-old victim was substantially motivated by his race and color.
“The perpetrators of hate crimes hurt not only the individuals who are attacked, but also society as a whole,” said United States Attorney André Birotte Jr. “For this reason, we are dedicated to working with our law enforcement partners to ensure that justice is brought to those who chose to commit such heinous crimes.”
Roy L. Austin, Jr., Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, commented: “These juvenile victims were threatened and assaulted because of their race. Such intimidation and violence has no place in our society. The Justice Department will continue to vigorously prosecute those who commit such acts of hate.”
Aguilar and Marquez are scheduled to be sentenced by Judge Hatter on January 6. At sentencing each defendant will face a statutory maximum penalty of 10 years in federal prison.
“Finding justice for victims of civil rights violations is among the most important responsibilities of FBI agents,” said Bill Lewis, Assistant Director for the FBI’s Los Angeles Field Office. “The success of this case is due to the shared goals and long-term cooperation between the Los Angeles Sheriff's Department and the FBI, and prosecutors at the Department of Justice and the United States Attorney’s Office in Los Angeles.”
Sheriff Lee Baca commented: “Hate crimes affect not only the victims, they also destroy our society’s democratic principles. Law enforcement is dedicated to protecting the civil rights of all members of our community. The success of this joint investigation sends a message that racially motivated crimes will not be tolerated.”
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Los Angeles County Sheriff's Department.
Release No. 13-121
Twelve Charged with Conspiring to Distribute Street DrugsRead the Press Release
PITTSBURGH – Eleven Pennsylvania residents and a resident of Brooklyn, New York, have been indicted by a federal grand jury in Pittsburgh for violating federal narcotics trafficking and firearm laws, United States Attorney David J. Hickton announced today.
The five-count indictment, returned on Oct. 15, 2013, and unsealed today charges:
Neil Thomas, 29, of Imperial, Pa.;
Marcus Battles, 27, of Pittsburgh, Pa.;
Luis Colon, 30, of Brooklyn, NY;
Gabriel Garcia, 24, of Carnegie, Pa.;
Christopher Greene, 30, of Leetsdale, Pa.;
Stephanie Goehring, 26, of Aliquippa, Pa.;
Ryan Hutchinson, 28, of Coraopolis, Pa.;
William Krszal, 22, of Coraopolis, Pa.;
Phillip Lacher, 25, of Conway, Pa.;
Colin Mitchell, 28, of Sewickley, Pa.;
Dustin Petry, 26, of Pittsburgh, Pa.; and
Kailen Young, 28, of Coraopolis, Pa.According to the indictment, between January 2013 and October 2013, the defendants (except for Krszal and Lacher) conspired to distribute and possess with intent to distribute 100 grams or more of heroin; Garcia and Petry possessed firearms in furtherance of a drug trafficking crime and distributed heroin or possessed heroin with intent to distribute it; and Thomas, Greene, Krszal, and Lacher conspired to distribute and possess with intent to distribute 3,4-methylenedioxymethamphetamine (also known as MDMA or “molly”) and methamphetamine. The indictment seeks forfeiture of the proceeds of the crimes as well as property acquired with the proceeds and property used to commit the crimes, including Thomas’s 2008 Can Am motorcycle and Goehring's 2008 Pontiac car.
The law provides for maximum total sentences ranging from up to 20 years to up to life in prison as well as mandatory minimum sentences starting at five years in prison. Fines ranging from $1,000,000 to up to $8,000,000 may also be imposed. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General's Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Bureau of Police, the Allegheny County Sheriff's Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Title Company Manager Pleads Guilty in $4.8 Million Mortgage Fraud SchemeRead the Press Release
Five Co-Conspirators Previously Pleaded Guilty
Baltimore, Maryland – Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 47, of Riva, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $4.8 million.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
According to her plea agreement, in 2002, Kreamer’s Maryland license to issue title insurance policies was revoked after she was convicted of theft for fraudulently endorsing checks at a title attorney’s office where she worked. Despite her conviction, from 2007 until January 2010, Kreamer worked at Sanford Title Services LLC located in Columbia, Maryland, and had significant day-to-day responsibility for the operation of Sanford Title. From June 2008 to January 2010, Kreamer and co-conspirators Niesha Williams, Rhonda Scott, Emeka Udeze and Demetrius Peete arranged various aspects of real estate transactions so they could siphon profits out of the transaction for themselves. They used many fraudulent techniques to further the conspiracy, including: short sales in which the property was sold for a higher price than was represented to the lien holder and the seller; sales of properties not owned by the seller at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; real estate transactions in which the buyer’s financial status was misrepresented to lenders; transactions in which the seller and/or buyer were shown different settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves.
In addition, Kreamer admitted that she personally facilitated deals between her co-conspirators, prepared false settlement statements, improperly disbursed funds contrary to the settlement and lender approved disbursements sheets, failed to pay off mortgage loans in accordance with the settlement documents, directed funds to entities created by herself and her co-conspirators, received proceeds of fraudulent transactions, and improperly issued title insurance policies.
Kreamer admitted that the scheme involved at least 30 victims, including lenders, sellers and buyers of real estate, a title insurance company and lien holders. She further agreed that her offense involved sophisticated means and her abuse of a position of trust at Sanford Title. The reasonably foreseeable loss associated with Kreamer’s conduct is at least $4.8 million.
Kreamer faces a maximum penalty of 30 years in prison and a $1 million fine for conspiring to commit wire fraud. U.S. District Judge James K. Bredar scheduled sentencing for January 22, 2014, at 4:30 p.m.
Niesha Williams, age 34, of Fort Washington, Maryland; Rhonda Scott, age 52, of Oxon Hill, Maryland; Emeka Udeze, age 38, of Bowie, Maryland; Demetrius Peete, age 46, of Manassas, Virginia; and Gregory Green, age 49, of Waldorf, Maryland, each previously pleaded guilty to their roles in the fraud and are awaiting sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.
Swansea Man Pleads Guilty to Five “Note Job” Bank RobberiesRead the Press Release
PROVIDENCE, R.I. – Scott Niemic, 36, of Swansea, Mass., pleaded guilty in U.S. District Court in Providence on October 9, 2013, to committing five “note-job” bank robberies, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Warwick Police Chief Colonel Stephen M. McCartney. A “note-job” bank robbery occurs when a note demanding money is passed or an oral demand is made but no weapon is shown.
Appearing before U.S. District Court Judge William E. Smith, Niemic pleaded guilty to five counts of bank robbery, admitting to the court that in a span of twenty-six days between March 22 and April 16, 2012, he robbed four banks in Massachusetts and one bank in Rhode Island.
According to information presented to the court, Niemic entered each of the banks wearing black wrap-around sunglasses and a baseball cap, and handed a note to a bank employee that stated that he was armed, that he was demanding money and that no dye packs were to be included with the cash. In some instances he verbally told bank employees he was armed. In four of the robberies Niemic kept a cell phone to his ear purporting to be having a conversation with another person.
At the time of his guilty plea, Niemic admitted to robbing a Plymouth, Mass., bank on March 22, 2012, of $4,923; a second bank in Plymouth on March 27th of $3,592; a Warwick, R.I., bank on April 3rd of $8,100; a Bellingham, Mass., bank on April 10th of $5,045; and a Wellesley, Mass., bank on April 16th of $5,453.
According to information presented to the court, investigators determined that the note left at the scene of the Warwick robbery on April 3rd was written on a piece of paper torn from a receipt for excise taxes paid for a motor vehicle registered in Old Town, Maine. The investigation determined that the car was registered to Scott Niemic’s mother and that the defendant, who was living in Swansea, had possession of the vehicle. After locating the vehicle at the defendant’s residence on April 4, 2012, police executed a court authorized search of the vehicle. Among the items seized was a piece of paper that matched the torn paper handed to the bank employee the day before. Police learned that Scott Niemic was also in possession of a second vehicle.
According to information presented to the court, on April 23, 2012, an FBI agent who was a member of the law enforcement team investigating the bank robberies spotted Niemic operating a vehicle on Rte. 24 in Massachusetts and contacted Massachusetts State Police for assistance. A state trooper attempted to stop Niemic’s vehicle but Niemic refused to stop, instead fleeing onto the streets of Fall River. Niemic was apprehended after driving at speeds in excess of 120 miles per hour and crashing his vehicle. From Niemic’s vehicle, investigators recovered nearly $8,100 in cash.
Niemic is scheduled to be sentenced on January 10, 2014. At sentencing, Niemic faces statutory penalties on each charge of bank robbery of up to 20 years imprisonment; a fine of $250,000 fine; and 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The robberies were investigated by the FBI, and police departments from Warwick, R.I., Plymouth, Mass., Bellingham, Mass., and Wellesley, Mass, with the assistance of the Swansea and Westport, Mass., Police Departments and Massachusetts State Police.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]State Leaders Discuss Prisoner Reentry and Growing Prison CostsNeighbor-states' Successes in Reducing Crime and Recidivism ReviewedRead the Press Release
BIRMINGHAM – Alabama state leaders from all three branches of government came together at the Smart on Crime Reentry Policy Summit this week to discuss the urgent need to control prison crowding, corrections spending, and recidivism rates.
Each year, Alabama invests nearly $500 million to operate its prison system. Even with this investment, more than 40 percent of Alabama's prisoners are repeat offenders. This summit represented a key first step in bringing together stakeholders from across the state to discuss strategies for addressing these challenges.
"Prison overcrowding is a major concern, and we are working to identify innovative solutions," Gov. Robert Bentley said. "Wednesday's summit was a good opportunity to discuss how Alabama can explore a variety of options on how to be smart on crime while also protecting public safety. The Department of Corrections is doing a good job with the resources available, and we are working together to address this issue in a comprehensive manner."
State leaders from North Carolina, Texas, and Georgia joined experts from around the country in Birmingham to participate in the summit and discuss how an approach called Justice Reinvestment worked in their states to improve public safety, reduce corrections and related criminal justice spending, and reinvest savings in strategies that can decrease crime and strengthen neighborhoods.All three states enacted policies to improve the quality of supervision and treatment for individuals on probation and parole, and have seen outcomes improve and costs fall as a result. Forum participants then broke into smaller panels to discuss how those strategies might be applied in Alabama.
"Successful reentry programs help those who have served their time in prison develop into law-abiding citizens," said U.S. Attorney Joyce White Vance. "These programs reduce crime and the amount of taxpayer money that must be spent on prisons. I'm grateful for the strong leadership shown by our governor, legislators and judges, and their willingness to explore evidence-based, data-driven policies used so successfully by our neighbors in Texas, North Carolina and Georgia to reduce crime and control cost," she said.
"The course correction we need in our criminal justice system won't happen overnight," Alabama Corrections Commissioner Kim Thomas said. "Large-scale reentry programs must be addressed by a broad group of criminal justice stakeholders and include more than just the prison commissioner tweaking policies. We need to establish proven reentry models to break the cycle of crime and incarceration, making our communities safer, and wisely investing the taxpayer dollars."
Alabama Sen. Cam Ward emphasized the need for immediate action. "We cannot afford to wait any longer to address prison crowding, corrections spending and recidivism, especially when we've seen other states succeed in similar efforts. I hope my colleagues will join me in an effort to craft policy solutions to ensure our corrections resources have the greatest public safety impact possible," he said.Skagit County Man Sentenced to 12+ Years in Prison for Possession of Child PornographyRead the Press Release
A 29-year-old Anacortes, Washington man was sentenced today in U.S. District Court in Seattle to 151 months in prison and 20 years of supervised release for possession of child pornography, announced U.S. Attorney Jenny A. Durkan. CONOR RYAN KELLY BRODERICK has prior convictions for sex offenses, and came to the attention of police following reports from two victims that BRODERICK was harassing them, and threatening to post explicit pictures of them on the internet. At sentencing U.S. District Judge Thomas S. Zilly said he was troubled by BRODERICK’s previous convictions.
According to records filed in the case, BRODERICK was arrested November 3, 2012 by Anacortes Police after a stalking incident. The stalking followed a report to police by two different women claiming BRODERICK was threatening to post nude pictures of them on the internet unless they sent him additional pictures. While incarcerated, BRODERICK called an acquaintance and told the person to remove a memory card from his computer. Investigators who had been monitoring the jail calls, obtained a search warrant and ultimately determined the memory card and other media storage devices contained more than 100 images of child pornography. Later, while released on bail, BRODERICK entered into a “sexting” relationship with a girl in Kentucky who identified herself as a 14-year-old. BRODERICK has these prior convictions: Rape of a Child in the Third Degree (three counts), in Skagit County (2007) and Dealing in Depictions of Minors Engaged in Sexually Explicit Activity (two counts), in Skagit County (2007).
In asking for the 151 month prison sentence, prosecutors wrote to the court, “The picture that emerges of the defendant is clear and consistent – he is a sexual predator who has a compulsion to have sexual contact with children and view child pornography. … Moreover, the defendant to date has shown no ability to control himself. In his previous child pornography case, he violated his probation by accessing the internet, viewing more pornography, and not completing his sex therapy treatment.”
BRODERICK was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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 case was prosecuted by Assistant United States Attorney Jerrod Patterson. The case was investigated by the Anacortes Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Rochester Man Pleads Guilty to Money Laudering ConspiracyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Brian Campbell, 74, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, to conspiring to engage in money laundering activities. The charge carries a maximum penalty of 20 years in prison, a fine of $500,000 or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant worked for Kenneth Griffin, a co-defendant who was convicted in May 2013, at an employment staffing business that was used to commit fraud. The fraud involved creating false invoices and other supporting documents that the defendant then sold to a series of financing companies on a weekly basis for immediate cash. When a financing company realized that it had been sold uncollectible invoices and stopped dealing with Griffin's business, the defendant would change business names and continue the scheme with another financing company.
Griffin and others involved in the conspiracy sought to conceal their ill-gotten gains, which totaled approximately $567,000, by laundering the proceeds of the fraud using anonymous debit cards. These cards were provided to lower-level employees, who were directed to go to ATMs in the Rochester area to withdraw cash and return with the money, which was shared among the co-conspirators.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-in-Charge Toni M. Weirauch, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for January 16, 2014, at 3:00 p.m., before Judge Geraci.Rochester Man Pleads Guilty to Possessing Stolen FirearmsRead the Press Release
CONCORD, N.H. –Timothy LaFond, 35, formerly of 3 Pleasant Street in Rochester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to possessing stolen firearms, announced United States Attorney John P. Kacavas.
During the plea hearing, Lafond admitted that on February 25, 2012, he met with an undercover law enforcement officer in Rochester, New Hampshire and sold him two stolen firearms: (1) a Stag Arms, Model STAG-15, 5.56 caliber rifle and (2) a Bushmaster, Model XM15-E2S, .223 caliber rifle for $1,300. Both of these weapons had been reported stolen from Seacoast Gun and Pawn in Rochester on February 23, 2013. LaFond faces up to ten (10) years in prison, a fine of up to $250,000.00, and is scheduled to be sentenced on January 21, 2014.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rochester, New Hampshire Police Department, and the New Hampshire Drug Task Force, with assistance from the York County, Maine Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney John J. Farley.
Robber Sentenced to 108 Months in PrisonRead the Press Release
PHILADELPHIA - Oronda Ligon, 31, of Philadelphia, PA, was sentenced October 16, 2013 to 108 months in prison for an armed home invasion in which an Upper Darby woman was terrorized. Ligon was convicted in March 2013 of Hobbs Act robbery after breaking into a home with two other men in May of 2011. While in the process of carrying a safe out of the home, the robbers were confronted by a female resident of the home, who had been in the basement, heard a noise, and came upstairs to find the three men robbing her house. Ligon pushed the victim to the floor and one of his cohorts pointed a gun at the victim’s chest. The robbers took a safe containing business proceeds and family jewelry totaling more than $50,000.
In addition to the prison term, U.S. District Court Judge Mitchell Goldberg ordered three years of supervised release and restitution in the amount of $54,900.
This case was investigated by the Federal Bureau of Investigation and the Upper Darby Police Department. It was prosecuted by Assistant United States Attorney Anthony Wzorek.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Ridgefield Man Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that LOUIS VUCCI, JR., 44, of Ridgefield, waived his right to indictment and pleaded guilty on October 3 before U.S. Magistrate Judge Thomas P. Smith in Hartford to evading the payment of nearly $200,000 in federal taxes over a five-year period.
According to court documents and statements made in court, from 2005 through 2009, VUCCI was the president and CEO of Diamond Ranch Foods (“DRF”), a publicly-traded company in the business of selling and distributing meat products in the New York area. In pleading guilty, VUCCI admitted that he underreported his income by $112,310 in 2005, $109,473 in 2006, $174,300 in 2007, $187,704 in 2008, and $95,126 in 2009. The unreported income consisted of weekly pay checks from DRF in the amount of $2,500 that were made payable to VUCCI’s spouse, who did not work for DRF, and deposited into a bank account in his spouse’s name. Also, in 2008 and 2009, VUCCI had one of DRF’s customers pay him for purchases with blank checks, which checks he then completed and deposited into his personal bank account. The checks totaled $26,236 in 2008 and $65,387 in 2009.
In addition, large cash deposits totaling $16,100 in 2008 and $25,020 in 2009 were made into VUCCI’s personal bank accounts. These deposits were cash payments from another DRF customer for DRF sales to the customer.
VUCCI’s federal individual income tax returns reported income of $19,590 in 2005, $12,500 in 2006, $12,000 in 2007, $30,000 in 2008, $125,202 in 2009. The reported low income from 2005 to 2008 automatically qualified VUCCI for the Earned Income Credit yielding refunds rather than taxes owed.
The total tax loss to the government from 2005 to 2009 is $196,425.From mid-2005 to mid-2007, VUCCI and his spouse rented a home in Greenwich for $8,500 per month, had car expenses in excess of $1,000 per month, and paid a housekeeper for approximately 20 hours per week. In 2007, VUCCI purchased a house in Ridgefield for $975,000 and continued on with the car payments.
VUCCI pleaded guilty to one count of tax evasion. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 23, 2013, at which time he faces a maximum term of imprisonment of five years and a fine of up to approximately $390,000. He has agreed to pay back taxes and applicable interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Retired University Professor Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – James Uphoff, 76, of Oakwood, Ohio pleaded guilty in U.S. District Court to one count of possession of child pornography following an investigation that began when employees of Wright State University found questionable material on a printer and copy machine on campus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Wright State University Interim Police Chief David Finnie and Oakwood Police Chief Alex Bebris announced the plea entered today before U.S. District Judge Walter H. Rice.
According to court documents, in early September 2012, just prior to Uphoff’s retirement from Wright State, University Police began investigating Uphoff after the employees found the materials. Investigators also examined a university-owned computer Uphoff used, and searched Uphoff’s Oakwood residence.
Investigators seized computer media from Uphoff’s residence and had it examined at the Miami Valley Regional Computer Forensic Laboratory. Analysts found approximately 550 images and two videos of child pornography on three of the computer devices. The examination also recovered printouts depicting images of naked teenage boys and young adults in bondage
and/or pornographic poses.The plea agreement contains a sentencing range of at least six and not more than 24 months. The court will conduct an investigation and schedule a sentencing date later.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorney Christy Muncy, who prosecuted the case.
Renewal Escapee Sentenced to 20 Months in PrisonRead the Press Release
PITTSBURGH – A Renewal Center resident has been sentenced in federal court to 20 months incarceration and three years supervised release on his conviction of escape from custody, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Alfonso Evans, 23, of Pittsburgh, Pa.
According to the information presented to the court, Evans escaped from the Renewal Center on Sept. 29, 2012, and never returned.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The United States Postal Inspection Service and the United States Marshals Service conducted the investigation that led to the prosecution of Alfonso Evans.
Pittsburgh Man Pleads Guilty to Child Sex TraffickingRead the Press Release
PITTSBURGH - A Pittsburgh man pleaded guilty in federal court to a charge of sex trafficking of a child, United States Attorney David J. Hickton announced today.
William Miller, age 37, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that in and around January of 2012, and on or about Feb. 6, 2012, Miller employed, used, persuaded, induced, enticed, and coerced a minor, Jane Doe, for the purpose of producing visual depictions of sexually explicit conduct, namely a digital video and images. In addition, from in and around December of 2011, to on or about Feb. 10, 2012, Miller knowingly recruited, enticed, harbored, transported, provided and obtained a minor, Jane Doe, to engage in a commercial sex act.
Judge Ambrose scheduled sentencing for March 27, 2014, at 10:00 a.m. The law provides for a total mandatory minimum sentence of 10 years and a maximum sentence of life in prison, a fine of $250,000, or both. Pursuant to the defendant's plea agreement with the government, Miller agreed to a sentence of 12 years imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Miller.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.justice.gov/psc.
Pay to Play: Three Madison County Tax Buyers Plead Guilty to Price FixingRead the Press Release
Three individuals who participated in Madison County tax sales from 2005-2008 pled guilty in US District Court on October 17, 2013, to violating the Sherman Antitrust Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Barrett R. Rochman, 70, of Makanda, IL, Scott K. McLean, 51, of Belleville, IL, and John A. Vassen, 56, of O’Fallon, IL, each pled guilty to participating in noncompetitive tax sales.
The former treasurer of Madison County, Illinois, Fred Bathon pled guilty in US District Court on antitrust charges on February 5, 2013. Bathon was convicted of structuring Madison County property tax sales in a way that increased interest rates for the tax buyers in exchange for campaign contributors.
The charges allege that at Illinois tax lien auctions, investors bid to purchase tax lien certificates issued against delinquent tax payers. Investors are supposed to compete to purchase these tax liens by bidding on the interest rate the property owner will be required to pay prior to redeeming the tax lien attached to the owner's property. The bid opens at no more than the statutory maximum of 18% and through a competitive bidding process can be driven as low as 0 percent. The bidder offering the least penalty percentage rate, i.e., the bidder who is willing to allow the owner to redeem his property for the smallest penalty, is allowed to purchase the tax lien. As such, competitive bidding benefits financially distressed homeowners by reducing the amount of money that they have to pay to save their home from foreclosure; however, that same system reduces the profit made by tax buyers. Tax buyers prefer to receive high interest rates, which corresponds to higher profits.
For the tax sales conducted in 2005-2008, Fred Bathon structured the tax sales in a way that eliminated competitive bidding and allowed the tax buyers to engage in price fixing by only bidding the statutory maximum interest rate of 18%. The tax buyers who pled guilty today were charged with making campaign donations to Bathon in exchange for receiving property tax liens at non-competitive interest rates.
By 2007 and 2008, the bid rigging and price fixing was so pervasive that distressed homeowners were charged the statutory maximum interest rate on nearly every property tax lien sold. During the tax auction occurring November 14-15, 2007, 2,549 out of 2,574 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 99.03% of the property tax liens auctioned. During the tax auction occurring November 13-14, 2008, 2,290 out of 2,364 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 96.86% of the property tax liens auctioned.
A violation of the Sherman Antitrust Act is punishable by up to 10 years imprisonment and a $1,000,000 fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the statutory maximum. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Sentencing for all three tax buyers has been scheduled for February 21, 2014. Bathon is scheduled for sentencing on December 6, 2013.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service, and the Federal Bureau of Investigation. The case is being prosecuted by United States Attorney Stephen R. Wigginton and Assistant United States Attorney Steven D. Weinhoeft.
Owner of Loan Modification Company Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – DEREK DOHERTY was sentenced to 15 months in prison and ordered to pay $98,835 restitution involving a scheme to defraud clients by taking advance fees for loan audits that he never performed.
According to court documents, between April and August 2010, Doherty created Home Safe Financial, a mortgage loan modification and audit company operating first in St. Louis, then Overland Park, Kansas, before merging with California-based Financial Hope for America in August 2010. Doherty advertised to potential clients a paid loan audit accompanied by a free loan modification. He represented that he and his company would review client's mortgage loans and determine whether the mortgages complied with the provisions of various federal housing and lending statutes and regulations, for a fee of $3000. He mailed contracts and accepted payments from clients, while representing that he had the ability to perform a loan audit and that a loan audit would be completed. However Doherty never completed any of the loan audits and, in fact, never purchased the necessary software to perform them.
Doherty, Temecula, CA, formally of St. Louis, pled guilty in May to one felony count of mail fraud. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney’s Office.Ohio Man Charged with Discharging Well Drilling Waste into Chagrin River TributaryRead the Press Release
A two-count criminal information was filed charging an Ohio man with discharging well drilling waste into Beecher Brook, a tributary of the Chagrin River, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
James L. Hidey, 45, of Dover, Ohio, in 2008 worked for Great Plains Exploration, an oil and gas well drilling company based in Northeast Ohio. On two separate occasions in 2008, Hidey directed the discharge of brine into a stormwater sewer after the completion of gas wells in Mayfield Heights and Highland Heights. The brine flowed from the stormwater sewers into Beecher Brook and eventually into the Chargrin River, according to the information.
Brine is water with a high quantity of salt dissolved into it and is used during the drilling phase of the well installation. It must be handled and disposed of properly because of the toxicity of brine.
“Clean, fresh water is one of our greatest resource in Northern Ohio,” Dettelbach said. “We must and will continue to aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”
“Dumping toxic substances like brine into sewers and rivers can be extremely harmful to the environment and a real threat to Ohio families,” said Ohio Attorney General Mike DeWine. “We will continue to work with our task force partners to enforce environmental protection laws and hold violators accountable.”
“Our natural resources must be protected,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA's criminal enforcement program in Ohio. “We will continue to investigate and refer for prosecution anyone who commits crimes against the environment.”
This case is being prosecuted by Special Assistant United States Attorney Brad J. Beeson, following an investigation by the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, and the Ohio Environmental Protection Agency, all members of the Northeast Ohio Environmental Crimes Task Force.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
O.C. Doctor Who Illegally Prescribed Addictive Pain Medications, Often Meeting with Patients at Starbucks, Gets 11¼-Year SentenceRead the Press Release
SANTA ANA, California – An Orange County physician who admitted that he illegally prescribed dangerous, addictive painkillers to “patients” he barely examined during meetings that were often held at Starbucks stores was sentenced late today to over 11 years in federal prison.
Alvin Mingczech Yee, 44, of Mission Viejo, was sentenced this afternoon to 135 months in prison by United States District Judge Andrew J. Guilford.
Yee pleaded guilty in April to seven counts of illegal distribution of a controlled substance by a practitioner. Yee specifically admitted that he prescribed drugs, such as oxycodone and alprazolam, “while intentionally acting outside the usual course of professional practice and without a legitimate medical purpose.”
According to court documents previously filed in this case, Yee met with numerous “patients,” including three undercover operatives, during evening meetings at Starbucks across Orange County, where he wrote prescriptions for drugs best known by brand names such as OxyContin, Vicodin and Xanax.
The investigation of Yee was conducted by the Drug Enforcement Administration, which received the assistance of the Orange Police Department, the Huntington Beach Police Department and the California Medical Board.
Release No. 13-122
Northampton County Attorney Charged with Tax FraudRead the Press Release
Nicholas R. Sabatine, III, 62 of Nazareth, PA was charged today by Information with one count of filing a false tax return, announced United States Attorney Zane David Memeger.
Sabatine faces a maximum sentence of three years imprisonment, a one year term of supervised release, a $100,000 fine, together with cost of prosecution, and a $100 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525North Providence Man Sentenced to 51 Months in Federal Prison on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Michael Domenech, 28, of North Providence, R.I., was sentenced on October 8, 2013, to 51 months in federal prison for trafficking crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
At sentencing, Domenech was also sentenced by U.S. District Court Judge John J. McConnell, Jr. to serve three years supervised release upon completion of his term of imprisonment. Domenech pleaded guilty on July 10, 2013, to one count each of possession of cocaine base with the intent to distribute and being a felon in possession of a firearm.
According to information presented to the court, on January 17, 2013, as part of an ongoing drug trafficking investigation, Rhode Island State Police executed a court authorized search of Domenech’s North Providence residence. During the search, State Police seized five plastic baggies containing approximately 1.2 grams of crack cocaine, nearly $1,400 in cash, various items used in the packaging and distribution of drugs, a loaded .22 caliber pistol and seventeen additional rounds of ammunition.
According to court records, Domenech was previously convicted in Rhode Island state court of a felony crime and sentenced to one year imprisonment to be followed by five years of probation. Domenech was serving his term of probation when he was arrested by Rhode Island State Police.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Mortgage Company Executive Sentenced in Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General, and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announced the sentencing of Patrick J. Mansell, 68, of Boca Raton, FL, Vice President of Coastal States Mortgage Corporation (Coastal). Mansell was sentenced to a statutory maximum penalty of five years in prison, followed by three years of supervised release by U.S. District Judge Robin S. Rosenbaum. Mansell previously pled guilty to conspiracy to commit wire fraud to defraud government sponsored entities, Fannie Mae and Freddie Mac.
According to the Information, from April 2007 through November 2008, in the Southern District of Florida, Coastal was a licensed mortgage brokerage whose primary business was the selling and servicing of mortgage loans for both Freddie Mac and Fannie Mae. At the change of plea hearing, Mansell admitted that Coastal failed to remit some of the mortgage loan payoffs it received and processed from borrowers to Freddie Mac and Fannie Mae, as required by the contractual agreement entered into between them. This resulted in an $18,735,903.77 loss to Freddie Mac and Fannie Mae. The misappropriation was concealed by the regular submission of false financial reports and monthly mortgage payments by Coastal, via an interstate internet portal, to Freddie Mac and Fannie Mae. These monthly mortgage payments by Coastal misled the lenders into believing the loans were still performing.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General and Florida’s Office of Financial Regulation. The case was prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
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.
Mortgage Broker Sentenced in $39 Million Mortgage FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General, announced the sentencing of defendant Quelyory A. Rigal, 38, of Homestead, to 200 months in prison, followed by five years of supervised release by U.S. District Judge William J. Zloch.
Rigal was indicted with seven other defendants in Case No. 12-60088-CR-Zloch for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The indictment charged defendant Rigal with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. Defendant Rigal was found guilty on all counts charged in the indictment.
The other defendants were: Juan Carlos Sanchez, of New York, N.Y., Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL. With the exception of Rigal who proceeded to trial, all other defendants plead guilty to conspiracy to commit mail and wire fraud. Defendant Sanchez was sentenced to 180 months in prison and three years of supervised release. Defendants Lazardi was sentenced to 25 months in prison and three years of supervised release. Defendant Campo was sentenced to 70 months in prison and five years of supervised release. Defendant Mena was sentenced to 54 months in prison and three years of supervised release. Defendant Arboleda was sentenced to 30 months in prison and three years of supervised release. Defendant Montero was sentenced to 22 months in prison and three years of supervised release. Defendant Mota was sentenced to five years of supervised release.
According to the indictment, from January 2007 through November 2008, the defendants conspired to recruit individuals willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information as to material facts regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators created false documents to support the mortgage applications. Once the loans closed, the conspirators diverted portions of the mortgage proceeds for their personal use and benefit. The indictment alleges that the conspirators obtained approximately $39 million in 163 fraudulent mortgage loans at Marina Oaks, resulting in $34 million in losses to the various lenders including Fannie Mae, which reported losses over $4.1 million to date, while Freddie Mac faces potential exposure of an additional $8.5 million.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General, as the lead investigative agency in the prosecution of Rigal, and IRS-CI and the Broward Sheriff’s Office for their participation in this investigation. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
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.
Melinda Wormuth Arraigned on Two Felony ChargesRead the Press Release
Town Of Halfmoon Supervisor Charged in Two-Count Indictment Alleging Extortion
“Under Color of Official Right”and False StatementsALBANY, NEW YORK – Town of Halfmoon Supervisor Melinda Wormuth appeared today before Magistrate Judge Randolph F. Treece in federal court in Albany to be arraigned on two felony charges, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation.1
Ms. Wormuth, 46, of Halfmoon, NY was charged yesterday in a sealed indictment, which was unsealed today at her initial appearance. Count One of the Indictment charges Ms. Wormuth with accepting money in return for her official actions. Specifically, she is charged with having received $7,500 in cash, which was characterized as “consultant fees,” in return for using her official position as Town Supervisor and as a member of the Saratoga County Board of Supervisors to lobby for the legalization of professional Mixed Martial Arts. Count Two of the Indictment charges her with lying to federal investigators about legal advice she claimed to have obtained while accepting the “consultant fees.” If convicted, Ms. Wormuth faces up to 20 years in prison on Count One and up to 5 years in prison on Count Two. She could also be ordered to pay a fine of up to $250,000 on each count.
The charges are the result of an ongoing investigation by the Federal-State Anti-Corruption Task Force that includes the Federal Bureau of Investigation, the New York Attorney General’s Office, the Internal Revenue Service, the New York Comptroller’s Office, and others.
United States Attorney Hartunian stated: “These charges are an example of the culture of corruption which has no place in New York State public offices. Citizens trust their public officials to behave ethically, and it is a travesty when this pubic trust is broken. I will continue to work with my federal and state partners to ensure that public officials uphold that trust and, when they don’t, are held accountable for their actions.”
United States Attorney Hartunian also cited the cooperation of state and federal investigators in pursuing this investigation and the coordination of state and federal prosecutors in developing the specific charges brought today.
Special Agent in Charge Vale stated, “Today’s arrest demonstrates the FBI’s commitment to the investigation of corruption at all levels of government. Together with our law enforcement partners, the FBI will continue to work to ensure that all those who participate in corrupt schemes, which erode our communities and defraud those they are entrusted to serve, are held accountable for their actions.”
The prosecution is being handled by Assistant U.S. Attorney Michael Olmsted in Syracuse, NY. Press inquiries should be directed to Assistant U.S. Attorney Elizabeth Coombe.
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1An Indictment is a mere accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mark J. Avery indicted for $52 million dollar wire fraud and money laundering schemeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former Anchorage resident was charged by a federal grand jury with 5 counts of wire fraud and 9 counts of money laundering.
Mark J. Avery, 54, of San Francisco, California, has been indicted by a federal grand jury in Anchorage alleging he defrauded May Wong Smith and May Smith Trust, a trust of which he was an appointed trustee, of over $52 million dollars for personal gain.
The Ninth Circuit Court of Appeals reversed Avery’s conviction on similar charges for honest services wire fraud earlier this year after the Supreme Court ruled that the theory of honest services fraud under which Avery was previously convicted was held unconstitutional. This indictment alleges that Avery, a trustee and lawyer to the May Smith Trust, engaged in a scheme to defraud the trust and May Wong Smith. Avery held those positions from early 2002 and received yearly compensation in the amount of $600,000 in trustee fees for his role as trustee and fiduciary to these trusts. Avery was also owner/operator of Avery and Associates, L.L.C., Security Aviation, Inc., and Regional Protective Services, L.L.C., located at 3230 C Street, Anchorage, Alaska. Avery’s companies, many of which were created after receipt of trust funds, were engaged in air charter services, aeromedical evacuation, legal services, development of real property, and court imposed electronic monitoring.
According to the indictment, May Wong Smith was born in China in 1922 and shortly after World War II; May Wong Smith married Stanley Smith, a citizen of Australia. Stanley Smith amassed millions of dollars from post-war business investments and became a quiet benefactor of various charitable organizations. Stanley Smith died in 1968 and May Wong Smith never remarried.
The May Smith Trust, the trust Avery is charged with defrauding, was established on October 10, 1982, to provide for May Wong Smiths support and maintenance during her life and certain charitable purposes after her death. May Wong Smith was a trustee of her own trust since inception.
In the early 1980's, May Wong Smith began to show signs of dementia. From that time, her mental condition began to deteriorate to the point where she was not capable of living without assisted care. Due to her mental condition she had full time live-in care from at least 1991 until her death in Nassau, Bahamas on July 15, 2006. In spite of her compromised mental capacity, she remained a trustee until her death in July 2006.
The Indictment alleges that Avery engaged in a scheme that involved pledged assets of the May Smith Trust as collateral for a $50 million dollar loan made to Avery.
Avery is charged with defrauding May Wong Smith and the May Smith Trust by using the $50 million loan funds for his personal use with no written business plan, and, among other things, no controls over how the money was to be spent or repaid. Avery is also charged with laundering the proceeds of the fraud funds obtained from the pledging of assets from the May Smith Trust not only to create and purchase businesses, but to pay off two home mortgages, personal debt, and to purchase property for his personal benefit. Some of the property included, real property, two World War II era fighters, a P-51D Mustang, and an F4U-4 Corsair. Other purchases included, other antique aircraft, a 47' Carver Yacht, a 37' heavy-duty patrol boat, all-terrain vehicles, motor homes and snow machines. Avery is charged with titling these assets either in his business or in his own name. The indictment further alleges that none of the assets or scheme resulted in any benefit to the May Smith Trust or May Wong Smith.
The Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division 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.
Manchester Man Sentenced to Twelve Years in Federal Prison for Drug and Gun ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE –Raymond Negron, 32, of Manchester, New Hampshire was sentenced in United States District Court for the District of New Hampshire to twelve years in prison for unlawful distribution of oxycodone and cocaine, unlawful possession with the intent to distribute oxycodone and cocaine, sale of a firearm to a prohibited person, possession of a firearm with an obliterated serial number, and possession of an unregistered firearm, announced United States Attorney John P. Kacavas.
The investigation began in 2011, when Negron was suspected of trafficking drugs within the city of Manchester. During the course of the investigation, Negron sold quantities of oxycodone tablets and cocaine on four separate occasions. During one of the drug sales, Negron also sold an SKS 7.62 caliber rifle to an individual he knew to have a prior felony conviction. The investigation further revealed that the firearm had been stolen from a pawn shop in Miami, Florida.
On March 20, 2012, a search warrant was executed at Negron’s Hanover Street residence, where investigators discovered quantities of oxycodone tablets and cocaine as well as items used for packaging and distributing narcotics and a “sawed off” Mossberg 20 gauge bolt action shotgun which had an obliterated serial number.
The case was investigated by the United States Drug Enforcement Administration’s High Intensity Drug Trafficking Area Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Hampshire State Police, and the Manchester, New Hampshire Police Department. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.Long Island Doctor Convicted of Conspiracy to Distribute Oxycodone and Distribution of OxycodoneRead the Press Release
Today, following three weeks of trial, a jury in federal court in Central Islip, New York, returned a verdict convicting Long Island doctor Leonard I. Stambler of Baldwin Harbor, New York, of conspiracy to distribute oxycodone and distribution of oxycodone, in connection with prescriptions that he provided to patients without a legitimate medical purpose. The defendant faces imprisonment of up to 20 years at sentencing. Sentencing is scheduled for February 14, 2014, before United States District Judge Joseph F. Bianco. After the verdict, the defendant’s bail was revoked, and he was ordered detained pending sentencing
The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York; Thomas V. Dale, Commissioner, Nassau County Police Department; Joseph A. D’Amico, Superintendent, New York State Police; and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York.
At trial, the government’s evidence established that Stambler provided prescriptions for hundreds of oxycodone pills to two of his patients without a legitimate medical purpose and outside the course of a professional medical practice, and also conspired with those patients and assisted them in the sale of pills that he prescribed. On November 21, 2011, investigators with the DEA Task Force observed Stambler driving his patient, Christopher Adams, to a pharmacy in East Rockaway, New York, where Stambler and Adams filled a prescription that Stambler had written in the name of Adams’s girlfriend, Nancy Cook. As investigators watched, Stambler then drove Adams to a nearby location to meet with a third individual where some of the oxycodone pills were exchanged for cash. Investigators stopped Stambler’s vehicle shortly after the drug deal. The government’s evidence also established that on a separate occasion, Stambler drove Cook, who was also Stambler’s patient, to a home in East Rockaway where she sold oxycodone pills to the same individual involved in the November 21, 2011, drug deal. Both Adams and Cook testified at trial about Stambler’s participation in the drug transactions as well as their own destructive addiction to oxycodone.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug, and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin like euphoria.
“Instead of living up to his responsibilities as a trusted physician, Stambler assumed the role of a drug dealer, acting to put hundreds of oxycodone pills onto the streets of Long Island for no valid medical reason, but simply to make money,” stated United States Attorney Lynch. “This conviction should serve as a warning to any physicians engaged in such conduct that in addition to losing his or her license to practice medicine, they will face the prospect of a felony conviction.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
Stambler’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, the United States Attorney’s Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant
Name: LEONARD I. STAMBLER
Age: 62Local Woman Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
St. Louis, MO – CARLA MATHEWS pled guilty to a charge involving the sex trafficking of two area women by force and intimidation on Thursday, October 10, before United States District Judge Henry Autrey.
According to court documents, between January 2010 and December 2011, Carla Mathews recruited and maintained women, physically assaulted them and forced them to engage in prostitution in the St. Louis metropolitan area. Mathews took the women to various hotels and kept the money for herself. She confiscated their food-stamp identification (EBT) cards to control them and deprive them of food and drink as a method of control and provided the drug MDMA and clothing in preparation for the commercial sex dates she arranged for them.
Mathews, St. Louis, pled guilty Thursday, October 10 to conspiracy to commit sex trafficking by force, fraud or coercion before United States District Judge Henry Autrey. Sentencing has been set for January 6, 2014.
Carla Mathews now faces 10 years to life 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.
Mathews brother and co-defendant pled guilty to the same charges in March and was sentenced in July to 10 years in prison.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Agriculture-Office of Investigations and the Breckenridge Hills Police Department. Assistant United States Attorney Noelle Collins is handling the case for the U.S. Attorney's Office.
Local Man Pleads Guilty to Multiple Tax Fraud ChargesRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announced that on October 15, 2013, Anthony Simms (37, formerly of Riverview) pleaded guilty to seven counts of passing forged Treasury checks, seven counts of theft of government property, and seven counts of aggravated identity theft. Simms faces a maximum penalty of ten years in federal prison for each of the passing forged Treasury checks and theft of government property counts, plus two consecutive years in prison on the aggravated identity theft counts. The government is also seeking a forfeiture money judgment in the amount of the proceeds from the offenses. His sentencing hearing has been set for January 13, 2014, at 1:30 p.m. before United States District Judge James D. Whittemore.
According to court documents, from November 9, 2011 through January 25, 2012, Simms deposited fifty-seven third party tax refund Treasury checks and eight tax refund cashier’s checks into his business account at SunTrust Bank, through various ATMs located in the Tampa area. Simms was the sole signatory on the business account and the only one who used the ATM card for these deposits. Simms knew that the signatures of the payees on the back of the checks were forged and that he was not authorized or entitled to deposit or cash these checks. The payees on the checks did not know or have any dealings with Simms, his business, and did not authorize a check in their name to be deposited into Simms’ account. Other payees on some of the Treasury checks were deceased. The total amount of money deposited into Simms’ account from all of these tax refund checks was $449,689.
This case was investigated by the United States Secret Service and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Assistant United States Attorney Kelley C. Howard-Allen.
Local Doctor Indicted on Federal Drug ChargesRead the Press Release
St. Louis, MO – DR. HARRY OSAGHAEMORGAN, Richmond Heights, MO, was indicted October 9 by a federal grand jury on five felony counts of causing, or attempted to cause, the dispensing of Schedule II and IV controlled substance drugs outside the normal practice of medicine. The drugs involved were large quantities of oxycodone, morphine, oxymorphone, Xanax and Valium.
According to the indictment, between January and May 2012, Dr. Osaghaemorgan was the sole physician for Doctor’s Medical Center, a pain management clinic located at 2015 Smizer Station Road, Valley Park, MO. The Medical Center employed several office managers and staff that were paid $10 for every patient they were able to solicit via telephone to schedule an appointment to see Dr. Osaghaemorgan. The indictment states that Dr. Osaghaemorgan wrote prescriptions with little or no medical examination and for no legitimate medical purpose. Patient’s office visits were paid for in cash and insurance was not accepted. During the four-months that Doctor’s Medical Center was in operation, Dr. Osaghaemorgan wrote approximately 1300 controlled substance prescriptions generating approximately $195,481 cash revenue. Also during that period, out of the clinic’s 538 patients, only 10 had Missouri addresses. The remaining 528 reported residences in 19 other states with 246 listed in Kentucky. Further, the indictment alleges that 104 patients reported identical addresses.
If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or a fine up to $1 million. 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 the Diversion Unit of the Drug Enforcement Administration. Assistant United States Attorney John T Davis 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.
Jacksonville Man Pleads Guilty in Federal Court to Producing Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces that on October 2, 2013, James Daniel Kasper (29, Jacksonville) pleaded guilty to using a minor to produce images of child pornography. Kasper faces a mandatory minimum penalty of not less than 15 years and up to 30 years in federal prison. Kasper has been in custody since his arrest on March 20, 2013. A sentencing hearing has not yet been set.
According to court documents, in February 2013, law enforcement officers in Tennessee arrested a registered sex offender on child pornography charges, and an FBI agent accessed the individual=s email account. The agent discovered that several hundred emails had been exchanged between the arrested individual and others, many of which contained images and videos depicting child pornography. Another email account contained correspondence between the individual and numerous other email accounts, including one identified as the Aghostt4891" account. Further investigation revealed that the “ghostt4891” account belonged to Kasper and that Kasper had sent images of child pornography to others via email and had uploaded them over the internet to a website whose server is outside of the United States.
According to court documents, on March 20, 2013, FBI agents and other law enforcement officers executed a federal search warrant at Kasper=s apartment on Sunbeam Road in Jacksonville. During the search, agents seized a laptop computer and a thumb drive. Agents also contacted Kasper at his place of employment. When interviewed, he stated, among things, that while babysitting a 9-year-old minor child, he used his smart phone to produce sexually explicit photos of the child. After taking the photos, Kasper uploaded the images over the internet to a particular website and sent them to others via email. Kasper also stated that he used a peer-to-peer file sharing program to search for child pornography on the internet.
According to court documents, the thumb drive seized at Kasper’s residence contained at least 49 images of child pornography produced by Kasper that depicted the minor child.
This case was investigated by the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictment: Two Topeka Men Behind Robbery, Shooting at ValeroRead the Press Release
TOPEKA, KAN. – Two Topeka men have been indicted on federal charges in connection with the July 28 robbery and shooting at a Valero gas station in Topeka, U.S. Attorney Barry Grissom and Shawnee County District Attorney Chad Taylor announced today.
Corey Eugene Johnson, 39, Topeka, Kan., and Shawn Michael Sneed, 20, Topeka, Kan., are charged with one count of armed robbery and one count of discharging a firearm during the robbery.
The indictment alleges that on July 28, 2013, Johnson and Sneed robbed the Valero gas station at 1161 S.W. Gage Boulevard in Topeka. It alleges they caused a firearm to be discharged during the robbery.
A 52-year-old Topeka man who has been identified as Salim Salti was shot during the robbery.
“We’re working with the Shawnee County District Attorney’s Office and the FBI and Topeka Police Department’s Violent Crime Task Force in this case,” said U.S. Attorney Barry Grissom. “Protecting public safety and prosecuting violent gun crimes are the top priority for us all.”
“I am very pleased with the quality of investigation in this case by both our local law enforcement agencies and the federal task force,” said Chad Taylor, Shawnee County District Attorney. “Once again, this indictment reflects the continued cooperation and commitment by my office and the United States Attorney’s Office. That cooperation allowed us to jointly determine which prosecution jurisdiction would provide the stiffest penalties possible, in order to help ensure the safety of this community and make a statement to those who would commit violent crimes.”
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery charge, and a penalty of not less than 10 years – consecutive to sentence on the robbery count – and a fine up to $250,000 on the firearm charge. The Topeka Police Department, the FBI and the Shawnee County District Attorney’s Office investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment: Mayetta Man Facing Federal ChargesOf Domestic Violence Assaults on Indian LandsRead the Press Release
TOPEKA, KAN. – A Mayetta, Kan., man has been indicted on federal charges of habitual domestic violence assaults that took place on tribal lands, U.S. Attorney Barry Grissom said today.
William L. Wilson, 28, Mayetta, Kan., is charged with one count of domestic assault by an habitual offender occurring on tribal lands. The indictment alleges that on Sept. 7, 2013, he assaulted his wife. The assault is alleged to have occurred on the Prairie Band Potawatomi Nation’s tribal lands in Jackson County, Kan.
The indictment alleges Wilson has two prior convictions for domestic assault.
“Domestic violence is a serious problem,” said U.S. Attorney Barry Grissom. “We are determined to use every means we have to protect women and girls in Indian Country.”
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Prairie Band Potawatomi Tribal Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indianapolis Attorney to Serve 10 Years in Prison for Defrauding ClientsRead the Press Release
INDIANAPOLIS – Chief U.S. District Judge Richard L. Young today sentenced Indianapolis attorney William F. Conour to 120 months (10 years) in federal prison for defrauding his clients of more than $4.5 million over more than a decade. Conour was ordered to pay over 6.7 million dollars in restitution to his victims.
On July 15, 2013, Conour entered an open plea of guilty to the scheme as charged. He has been in the custody of the U.S. Marshals Service since his bond was revoked on June 27, 2013. At that time, Judge Young granted the government’s motion to revoke bond after finding that Conour had breached the conditions of his bond when he dissipated assets without prior consent by the government.
Today’s sentence was announced by Jim Lewis, U.S. Attorney for the Central District of Illinois, and Robert A. Jones, Special Agent in Charge, FBI, Indianapolis Division.
According to court documents and statements made in court, from 1999 and continuing through April 2012, Conour kept a majority of his clients’ settlement proceeds for his own use and benefit. Most of Conour’s law practice was devoted to representing clients who had suffered serious injuries or death caused by construction site accidents, automobile collisions, and accidents resulting in traumatic brain injury. Instead of depositing the full amount of client settlements into client ‘trust’ accounts, Conour provided funds only sufficient to enable the client to receive monthly payments for a year. Further, Conour used newly obtained settlement funds to pay old settlements and debts.
The U.S. Attorney’s Office for the Southern District of Indiana has been recused in this matter. The U.S. Attorney General appointed the Central District of Illinois to handle the case prosecution. The government was represented by Assistant U.S. Attorney Jason M. Bohm, Central District of Illinois, Urbana Division.
The Federal Bureau of Investigation, with assistance provided by the Indiana State Police, conducted the investigation.
Illegal Alien sentenced to 65 years in prison for unlawful reentry, identity theft and firearms possessionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Javier Martinez, a citizen of the Dominican Republic, was sentenced to 65 years in federal prison.
Javier Martinez, 48, was convicted by a jury in June 2013 of twelve criminal offenses, including one count of reentry after deportation, five counts of making false claims of United States citizenship, five counts of aggravated identity theft, and one count of possession of a firearm by an illegal alien.
According to Assistant U.S. Attorney Thomas C. Bradley, who prosecuted the case, Martinez was deported from Miami to the Dominican Republic in 1992, but later unlawfully returned to the United States. Evidence at trial matched the defendant’s fingerprints to those of the person removed in 1992. Martinez was also convicted of illegally using the name Victor Rodriguez Flores, a resident of Puerto Rico, to apply for an Alaska identification card and to obtain employment at Anchorage hotels including: the Sheraton; the Embassy Suites; the Quality Inn; and the Millennium Hotel. Evidence presented at trial showed that Martinez falsely claimed to be a U.S. citizen on application forms filed with the Alaska DMV and each of the hotels where he worked.
Martinez was also convicted of possession of a firearm, a Ruger .45 caliber semiautomatic pistol. Illegal aliens are prohibited from possessing firearms under federal law, as are convicted felons, drug addicts, and fugitives from justice. Witnesses testified at trial that Martinez brought the pistol to the Millennium Hotel on October 29, 2011, after having been fired from his job at the hotel, and used it to shoot Kerry Fadely, his former supervisor. The firearm was recovered at the scene along with a letter from Martinez explaining the reasons he was unhappy working at the hotel. The letter directed the Millennium Hotel to send his final paycheck to the Anchorage jail.
The defendant testified at the June trial, claiming that he was never actually deported from the United States in 1992, because after being placed on the flight by immigration officers, he went out the back of the plane and into the terminal. Two special agents from Homeland Security Investigations testified at trial that Martinez had admitted to them that he was deported in 1992. They also testified that when they asked Martinez about the firearm he left at the Millennium Hotel, he stated that it was easier to buy a gun in Anchorage than to buy a pack of cigarettes or a six pack of beer.
Chief U.S District Court Judge Ralph R. Beistline described the killing of Kerry Fadely as a “cowardly act” in imposing the maximum sentence available under the law.
Judge Beistline described Martinez as a person who cannot be deterred and cannot be rehabilitated, who had no “socially redeeming values” and was a “dangerous man” from whom the public needed protection. The judge also addressed Martinez’ extensive criminal record, which includes drug dealing and repeated assaults against women.
Martinez still faces first degree murder and other charges in Alaska State court in connection with the shooting.
Ms. Loeffler commends the Immigration and Customs Enforcement’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the officers of the Anchorage Police Department for the investigation leading to the conviction of Javier Martinez.
Hudson County Contractor Admits Paying $65,000 in Bribes to Bayonne Official for Government-Funded ProjectsRead the Press Release
TRENTON, N.J. - A Hudson County, N.J. man today admitted his role in paying bribes to a Bayonne public official for the public official’s assistance in securing projects funded by the U.S. Department of Housing and Urban Development, U.S. Attorney Paul J. Fishman announced.
Joseph Arrigo, 45, of Bayonne, N.J., pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of paying bribes totaling approximately $65,000 to a Bayonne official who served as the director of Bayonne’s Department of Community Development. Arrigo also pleaded guilty to one count of theft and conversion of government funds in the amount of $40,000, and one count of submitting a false tax return for tax year 2011.
According to documents filed in this case and statements made in court:
Arrigo was the owner of Shadow Contracting LLC, a general contracting company in Bayonne. The Bayonne Department of Community Development (CBDCD) was a government agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants of up to $20,000 to low-income families to rehabilitate their homes and to repair conditions that were considered to affect their health and safety, and their homes’ accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations for the same purpose. A Bayonne public official served as the director of the CBDCD and was responsible for reviewing applications for HUD grant funds from the City of Bayonne and awarding such funds to qualified applicants.
In September 2010, the public official solicited cash payments from Arrigo in exchange for the public official’s assistance in awarding HUD grant funds from the City of Bayonne to Arrigo as the owner of Shadow Contracting. From September 2010 to February 2013, Arrigo made cash payments to the public official totaling approximately $65,000 in exchange for the public official’s assistance in awarding HUD grant funds from Bayonne to Arrigo that totaled approximately $426,000.
In September 2011, Arrigo assisted another contractor by supplying with a bid on behalf of Shadow Contracting that was higher than the contractor’s bid to enable the other contractor to obtain HUD grant funds from the City of Bayonne. The contractor then submitted the two bids to the CBDCD and, as a result of his collusion with Arrigo, the contractor fraudulently obtained $20,000 in HUD grant funds from the CBDCD. In December 2011, Arrigo caused the same contractor to provide Arrigo with a bid that was higher than Arrigo’s bid for the purpose of obtaining HUD grant funds from Bayonne. Arrigo submitted the contractor’s bid along with his own to the CBDCD and, as a result, fraudulently obtained another $20,000 in HUD grant funds from the CBDCD.
Arrigo also made and subscribed a U.S. Individual Tax Return, Form 1040, for tax year 2011, which he did not believe to be true and correct as to every material matter, including approximately $151,993 in unreported income.
The bribery and theft of government funds charges to which Arrigo pleaded guilty carry maximum potential penalties of 10 years in prison and maximum fines of $250,000. The charge of filing a false tax return, to which Arrigo pleaded guilty, carries a maximum potential penalty of three years in prison and a fine of $250,000. Sentencing is currently scheduled forFeb. 3, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the U.S. Attorney=s Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the office’s Appeals Division.
13-401
Defense counsel: Charles J. Uliano Esq., West Long Branch, N.J.
Arrigo, Joseph Information
Hospice Owner Convicted in Multi-Million Dollar Health Care FraudRead the Press Release
PHILADELPHIA - Matthew Kolodesh, a/k/a "Matvei Kolodech", 51, of Churchville, PA, was found guilty of conspiracy to defraud Medicare of more than $14 million through his home hospice business, announced United States Attorne ZaneDavid Memeger. A federal jury delivered its verdict today. Kolodesh's business, Home Care Hospice, Inc. ("HCH"), located at 2801Grant Avenue in Philadelphia, submitted claims totaling approximately $14.3 million for patients that were not eligible for or did not receive the hospice services billed to Medicare. Kolodesh also allegedly diverted $9.36 million dollars from HCH's operating account for his own personal use, such as extensive renovations to his house, travel expenses, college tuition for his son, and a luxury automobile. He siphoned substantial sums of cash from the HCH operating account through kickbacks from HCH vendors using a system of phony and inflated invoicing, and a cash kickback scam through sham charitable donations made in the name of the hospice
The jury found Kolodesh guilty of conspiracy to commit health care fraud, 21 counts of health care fraud, 11 counts of money laundering, and two counts of mail fraud. Kolodesh faces a statutory maximum sentence of 370 years in prison. The government will also seek restitution to Medicare in the amount of $14.3 million and proceeds from the money laundering.
“Cases like this involve the type of fraud and abuse that this office and the Department of Justice fights every day,” said Memeger. “The guilty verdict here bolsters our resolve to investigate and prosecute fraudsters who believe they can steal the public’s hard-earned tax dollars and government funds with impunity.”
“Criminals like Matvei Kolodech, who hide behind others in hopes of avoiding prosecution, should take notice of today’s jury verdict,” said Special Agent-in-Charge Nick DiGiulio, of the US Department of Health and Human Services, Office of Inspector General. “We will continue to aggressively investigate ring leaders like Kolodech, whose fraudulent organizations rob Medicare of precious resources.”
Kolodesh and his co-conspirator, identified only as "A.P.," would pay health care professionals, including doctors, for referring patients to HCH even when those patients were not eligible or appropriate for hospice services. In an effort to mask the alleged kickback scheme, HCH fraudulently represented that some of those health care professionals were paid for servicesas medical directors, advisors, or hospice physicians.
Among the ineligible patients were patients who were not terminally ill and patients who were on the service list for more than six months. At the direction of Kolodesh and A.P., HCH staff would routinely "doctor" or alter patient charts to make it appear on paper as though the patient's medical condition was worse than it actually was. The staff was also allegedly directed to bill certain claims at a higher, more costlier rate of service than was actually provided to the patient.
In February 2007, HCH was notified that it was subject to a claims review audit. Kolodesh, through A.P., directed members of HCH staff to falsify documentation to be submitted for the audit. In September 2007, HCH was notified that it had exceeded its cap for Medicare reimbursement and would have to repay $2,625,047 to the government program. At that point, Kolodesh ordered a mass discharge of patients. In October 2007, A.P. had 79 hospice patients discharged and a total of 128 discharged by January 2008, some of whom had been ineligible for hospice or inappropriately maintained on hospice service in excess of six months. Of those discharged patients, 16 were admitted to Kolodesh's other hospice business, Community Home Health in Bucks County. Once the Medicare cap was resolved, 11 of those patients were returned to HCH.
In August and September 2005, Kolodesh and A.P. applied for a low interest loan worth $2.5 million with the Philadelphia Industrial Development Corporation. The purpose of PIDC loan is to stimulate business investment and create jobs in the city of Philadelphia. Kolodesh indicated that the funds were to be used to acquire and renovate a property for his business and the creation of 50 jobs in Philadelphia at the 2801 Grant Avenue site of HCH. In reality, Kolodesh knew that between August 2005 and July 2009, the job quota was not being met, and in the summer of 2008 he set up a sham office for CHH (his Bucks County health care business) at that location and falsely identified 73 CHH employees as working at the office location on Grant Avenue who, in fact, had never worked there.
The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen with the Department of Justice’s Criminal Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Hillsborough County Man Sentenced to 15 Years in Federal Prison for Firearm and Ammunition ChargeRead the Press Release
Tampa, Florida – On October 15, 2013, U.S. District Judge James S. Moody, Jr. sentenced Raymond Edward Braun (40, Wimauma) to 15 years in federal prison for being a felon in possession of a firearm and ammunition. Braun pleaded guilty on July 2, 2013.
According to court documents, the Hillsborough County Sheriff’s Office received a complaint on March 20, 2013, that Braun was in possession of a rifle. Deputies arrived at Braun’s residence and eventually recovered the rifle. The firearm was loaded with six rounds of ammunition. Prior to this incident, Braun was previously convicted of a number of felonies. As a previously convicted felon, he is prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice's Project Safe Neighborhoods program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
High School Cafeteria Manager Charged with Fraud SchemeRead the Press Release
Glenn Werley, 47, of Sarasota, Florida, was charged by Information, filed October 7, 2013, with one count of wire fraud, announced United States Attorney Zane David Memeger. While working as the cafeteria manager for Bucks County Technical High School, the Information alleges, Werley defrauded the National School Lunch Program and School Breakfast Program of $179,000.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a 3-year period of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by United States Department of Agriculture Office of Inspector General and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525