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5 December 2013
Gladstone Man Pleads Guilty to his Role in Computer Hacking, ID Theft SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the fifth and final defendant pleaded guilty in federal court today to his role in a $725,000 fraud scheme that involved hacking into business computer systems to steal the identity information of hundreds of their customers.
Vince Evola, 45, of Gladstone, Mo., pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan to conspiracy to commit mail fraud.
By pleading guilty today, Evola admitted that he participated in a computer hacking and identity theft scheme with his ex-wife, Kimberly Evola, 45, of Gladstone, his sisters, Carrie Evola, 46, of Gladstone and Rosemary Evola, 42, of Overland Park, Kan., and Sael Mustafa, 35, a citizen of Jordan who resided in Gladstone.
The three-year-long scheme, which began in 2006, was designed to obtain stolen credit and debit card numbers from hundreds of victims and use that information to make online purchases. Vince Evola acknowledged in today’s plea agreement that a loss between $30,000 and $70,000 can be attributed to his conduct.
All of Vince Evola’s co-defendants already have pleaded guilty and been sentenced. Mustafa, the leader of the scheme, was sentenced on July 8, 2011, to 10 years in federal prison without parole and ordered to pay restitution to his victims. Mustafa committed a substantial part of the fraud scheme outside the United States. Before moving to Gladstone, Mustafa used the wireless network at an Internet café in Jordan to hack into company Web sites, as well as to use the stolen identity information to access online credit card accounts and to conduct fraudulent transactions. He moved from Jordan to Gladstone in January 2009 and continued to operate the scheme until April 2009.
Court documents describe the computer hacking, identity theft and fraud scheme as follows:
Step One: The Computer Hack
Mustafa accessed the computer servers that hosted the Web sites of several businesses to access customer databases and download the customers= personal information. Mustafa exploited these businesses for presumably less secure information, such as e-mail addresses, Web site passwords and security questions. This information was usually provided to the business by a customer registering on the Web site for online services such as a company newsletter, making a reservation, buying a gift card, or receiving e-mail coupons.
Step Two: Accessing Credit Card Accounts
Mustafa and his co-conspirators then tried to use this stolen customer information at major credit card Web sites. Mustafa counted on the likelihood that many identity theft victims used the same password for the hacked accounts that they used for their online credit card accounts. Mustafa visited various credit card Web sites and, by trial and error, tested the stolen identity information to see if it matched the login and password information for their credit card account. If a victim had an account at a particular credit card Web site, and if the victim used the same login and password information, Mustafa was able to access their accounts.
Step Three: Using the Victims’ Accounts
After gaining access to victims' credit card accounts, conspirators purchased more than $240,000 worth of airline tickets (both domestic and international) and more than $30,000 in gift cards online. They also sent, or attempted to send, more than $344,000 in wire transfers and conducted more than $106,000 in other fraudulent online transactions (such as a subscription to the Al-Jazeera Channel). They purchased gift cards or made purchases online from businesses such as Hy-Vee, Nebraska Furniture Mart, AMC Theaters, Bass Pro Shop, Hallmark, Liz Claiborne, Lowes, Red Lobster, Olive Garden, PF Chang’s, and Zales, among others. They directed the products to be mailed to their residences.
Under federal statutes, Evola is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the U.S. Postal Inspection Service and the Gladstone, Mo., Police Department.Georgia Man Pleads to Guilty Trafficking ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Liddon Young, 32, of Stone Mountain, Georgia, pleaded guilty today before U.S. District Judge Frank P. Geraci, Jr. to conspiracy to unlawfully deal firearms without a federal firearms license and unlawfully dealing in firearms without a license, as well as selling firearms to a convicted felon. The charges carry a maximum sentence of 20 years in prison, a fine of $750,000 fine or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that between August 2012 and February 6, 2013, Young conspired with Paul Davis to unlawfully traffic firearms from the Atlanta, Georgia area to Rochester. Young sold multiple firearms and rounds of ammunition to Davis in the Atlanta area which were then transported by Davis and others for illegal resale on the black market in Rochester. Young delivered 11 firearms to Davis on February 6, 2013 in Rochester as part of the conspiracy. Davis and others deposited money into a bank account in Young’s name as payment for the illegal firearms business.
“This is yet another positive development in our continuing fight against violent gun crime,” said U.S. Attorney Hochul. “Today, a person who brought numerous illegal firearms to Rochester stands convicted in Federal Court and faces a lengthy term in prison. Yesterday’s Federal Court jury conviction of three men who used firearms to murder three persons in Greece means that each will likely spend the rest of their lives in jail. As these cases demonstrate, law enforcement will not rest until all violent criminal operations are brought to justice.”
Sentencing is scheduled for March 3, 2014 at 3:30 pm. before Judge Geraci.
Paul Davis was arrested February 6, 2013 after selling a Georgia pistol to a confidential informant. Multiple federal search warrants executed resulted in the seizure of 10 additional firearms and hundreds of rounds of ammunition. Liddon Young was arrested in Rochester on February 8, 2013 in possession of a loaded .380 caliber pistol. Davis was convicted on gun charges in April 2012 and is awaiting sentencing.
The plea is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Joseph Anarumo and the Rochester Police Department, under the direction of Chief James Sheppard.Four More Defendants Plead Guilty in Manhattan Federal Court for Their Roles in Two International SportsbooksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that NOAH SIEGEL pled guilty today in Manhattan federal court to transmission of wagering information in interstate commerce. His co-defendants MOSHE ORATZ and JONATHAN HIRSCH pled guilty to the same offense earlier this week on December 3 and 4, 2013, respectively. An additional co-defendant, MICHAEL SALL, also pled guilty on December 4, 2013, to interstate travel in aid of an unlawful activity – illegal gambling. SIEGEL, ORATZ, HIRSCH, and SALL were charged in April 2013 along with 30 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. All four defendants pled guilty before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Noah Siegel, Moshe Oratz, Jonathan Hirsch, and Michael Sall are the latest defendants convicted for their roles in this highly lucrative, underground gambling operation. Their guilty pleas bring us ever closer to bringing each and every person involved to justice.”
According to the Indictment, other documents filed in Manhattan federal court and statements made at various proceedings in this case, including today’s guilty plea:
Illya Trincher and Hillel Nahmad, SIEGEL, ORATZ, and HIRSCH’s co-defendants, ran a high-stakes illegal gambling business that catered primarily to millionaire and billionaire clients. Their business utilized several online gambling websites that operated illegally in the United States to generate tens of millions of dollars of sports bets each year. SIEGEL was a partner of Trincher and Nahmad in their sportsbook and helped select wagers and handicap bets. ORATZ assisted Trincher and Nahmad’s sportsbook by providing them with accounts at illegal online betting websites, and HIRSCH worked for Trincher and Nahmad’s sportsbook as an accountant and bookkeeper.
The Taiwanchik-Trincher Organization, operated by Anatoly Golubchik and Vadim Trincher, is a nationwide criminal enterprise with strong ties to Russia and Ukraine. The leadership of the organization ran an international sportsbook that catered primarily to Russian oligarchs living in Russia and Ukraine and throughout the world. The Taiwanchik-Trincher Organization laundered tens of millions of dollars in proceeds from the gambling operation from Russia and the Ukraine through shell companies and bank accounts in Cyprus, and from Cyprus into the United States. Once the money arrived in the United States, it was either laundered through additional shell companies or invested in seemingly legitimate investments, such as hedge funds or real estate. SALL helped Golubchik and Trincher invest the proceeds of their illegal international gambling activities into various domestic investments.
SIEGEL, 31, of New York, New York, faces a maximum of two years in prison and one year of supervised release. As part of his plea agreement, SIEGEL agreed to forfeit $400,000. He is scheduled to be sentenced by Judge Furman on April 10, 2013 at 3:45 p.m.
ORATZ, 38, of Brooklyn, New York, faces a maximum of two years in prison and one year of supervised release. As part of his plea agreement, ORATZ, agreed to forfeit $325,000. He is scheduled to be sentenced by Judge Furman on April 8, 2014 at 3:00 p.m.
HIRSCH, 30, of New York, New York, faces a maximum of two years in prison and one year of supervised release. As part of his plea agreement, HIRSCH agreed to forfeit $80,600. He is scheduled to be sentenced by Judge Furman on April 10, 2013 at 3:00 p.m.
SALL, 68, of Sunny Isles Beach, Florida, faces a maximum of five years in prison and three years of supervised release. As part of his plea agreement, SALL agreed to forfeit $1,300,000. He is scheduled to be sentenced by Judge Furman on April 9, 2014 at 3:00 p.m.
ORATZ, HIRSCH, SIEGEL, and SALL are the 20th, 21st, 22nd, and 23rd defendants in this case to plead guilty. The defendants who have pled to date have agreed to forfeit, in total, more than $68,000,000.00. The following defendants previously pled guilty and have been or await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013 and was sentenced on November 25, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013;
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013;
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013;
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013;
- Eugene Trincher pled guilty to gambling charges on November 14, 2013;
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013;
- Illya Trincher pled guilty to gambling charges on November 15, 2013; and
- Ronald Uy pled guilty to structuring financial transactions on November 25, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Four Gang Members Arrested in Gonzales on Federal ChargesRead the Press Release
Today, federal and local authorities arrested four gang members in Gonzales, TX, based on grand jury indictments returned on Wednesday alleging federal drug and firearms violations announced United States Attorney Robert Pitman, ATF Special Agent in Charge Robert Elder, Houston Division, and Gonzales Police Chief Tim Crow.
Those arrested based on federal grand jury indictments unsealed today include:
- 28-year-old Randon Romero, believed to be affiliated with the Texas Mexican Mafia, charged with one count each of felon in possession of a firearm or ammunition, carrying firearms during and in relation to a drug trafficking crime, and possession with intent to distribute methamphetamine;
- 33-year-old Tyrone Stovall, believed to be a member of the Bloods gang, charged with one count each of felon in possession of a firearm or ammunition, carrying firearms during and in relation to a drug trafficking crime, and possession with intent to distribute crack cocaine;
- 33-year-old Mario Banda, believed to be a member of the Texas Syndicate, charged with one count of possession with intent to distribute methamphetamine; and,
- 28-year-old Roman Gabriel Luna, believed to be a member of the Texas Syndicate, charged with one count each of felon in possession of a firearm or ammunition and possession with intent to distribute methamphetamine.
“One of the best ways that federal authorities can effectively partner with local law enforcement is to use our resources to help remove violent and repeat offenders from the community for longer periods of time,” stated United States Attorney Robert Pitman.
Upon conviction, felon in possession of a firearm or ammunition calls for a maximum ten years imprisonment; carrying a firearm during a drug trafficking crime, a mandatory consecutive minimum of five years imprisonment; and, possession with intent to distribute a controlled substance, up to 20 years imprisonment.
All four defendants are scheduled to make their Initial Appearances at 3:00pm today before United States Magistrate Judge Henry J. Bemporad in San Antonio.
These charges resulted from an investigation conducted by the agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) together with investigators from the Gonzales Police Department. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Founder of Investment Company Sentenced in $21 Million Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that James C. Howard, III, 54, of Parkland, FL, the founder of Commodities Online LLC (COL), was sentenced on December 3, 2014 for his participation in a $21 million investment fraud scheme.
U.S. District Judge Joan Lenard sentenced Howard to 189 months in prison, followed by three years of supervised release. The Court also ordered a forfeiture judgment of $21,631,466. The Court will also order restitution to be paid to the victims. The restitution hearing is set for February 24, 2014.
Howard pled guilty on September 16, 2013 to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. According to court documents, Howard conspired with co-defendants Patricia S. Saa, Louis N. Gallo, III, and Michael R. Casey to defraud individuals who invested in COL. From approximately January 2010 through April 2011, Howard and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors.
According to court documents, Howard and his co-conspirators used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. After receiving the funds for the COL ownership units, Howard and Saa diverted a large part of those funds for other purposes. In addition to selling COL ownership units, Howard and his co-conspirators caused certain purported “pre-sold” commodities contracts to be offered for investment via the COL website, stating a pre-determined percentage return on investment and the number of days by when investors would be paid. Howard and his co-conspirators also represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.
Also according to court documents, Howard and his co-conspirators made material misrepresentations and omissions about the leaders of COL. After mid-2010, Howard and his co-conspirators represented that Howard was no longer President of COL and that co-defendant Casey, an attorney, was the President of COL. Howard and his co-conspirators represented that Howard was no longer managing COL, when in fact, Howard remained in charge. Also, Howard and his co-conspirators did not disclose to investors that both Howard and co-defendant Gallo had previously been convicted of federal felonies and that Gallo was still serving a term of supervised release.
The trial of Howard’s codefendants, Casey, Gallo, and Rita Balbirer who were charged in the same indictment is scheduled for March 10, 2014. Balbirer was charged with money laundering.
In addition to codefendants charged in the same indictment with Howard, other participants in the investment fraud conspiracy related to COL have been charged in separate Informations: Timothy B. Josselson, the Chief Operating Officer, Kathryn A. Josselson, the Comptroller, and Robert S. Lananna, the Director of Sales. Timothy Josselson pled guilty November 22, 2013. His sentencing is scheduled for January 30, 2014. Kathryn Josselson pled guilty November 14, 2013. Her sentencing is scheduled for January 23, 2014. Robert Lananna pled guilty November 14, 2013. His sentencing is scheduled for January 31, 2014.
Mr. Ferrer commended the investigative efforts of the FBI and the cooperative efforts of the Miami Regional Office of the U.S. Securities and Exchange Commission. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
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.
Former State Senator Sentenced for Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Brenda Council, 60, was sentenced in the United States District Court in Omaha for the felony offense of wire fraud. The Honorable Lyle E. Strom, Senior United States District Court Judge, sentenced Council to a 3 year term of probation and imposed a $500 fine. No restitution was ordered as the funds have been repaid.
Council, while a Nebraska State Senator, used campaign funds to place wagers at casinos in Kansas, Missouri and Oklahoma. Council solicited campaign contributions from individuals and businesses to fund her race to win reelection to the Nebraska Unicameral. She misappropriated approximately $63,000 of campaign funds and used the monies for gambling between January of 2010 and July of 2012.
Periodic campaign statements accounting for contributions and expenses were filed with the Nebraska Accountability and Disclosure Commission. Many of the filings Council submitted were false as they failed to account for the conversion of campaign funds to finance her gambling. Withdrawals from her election campaign account were frequently made by use of an ATM machine inside the casinos in Kansas, Missouri and Oklahoma.United States Attorney Deborah R. Gilg stated “this felony conviction addresses the breach of trust the public places in its elected officials. This conviction serves as a notice to other public officials that there are severe consequences for violating the public trust. This felony conviction involves the loss of a license to practice law, the forfeiture of the right to hold elected office and to vote.”
Former Narcotics Task Force Officer Sentenced to A Year in Prison for Embezzling Seized MoneyRead the Press Release
BIRMINGHAM – A federal judge today sentenced the former commander of the West Alabama Narcotics Task Force to one year and a day in prison for stealing at least $125,000 from suspected drug proceeds seized by the multi-agency task force, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
JEFFREY LYNN SNYDER, 55, of Carrollton, pleaded guilty in June to one count of theft from a program that received more than $10,000 in federal benefits within a one-year period. U.S. District Court Judge Inge P. Johnson sentenced Snyder to prison and, in accordance with the plea agreement he entered with the government in May, ordered him to pay $125,000 restitution to the West Alabama Narcotics Task Force.
The U.S. Attorney's Office charged Snyder in May with embezzling the task force money between June 2010 and June 2012, when he left the task force.
"Joint task force operations are an important part of the combined law enforcement effort to control illegal drug trafficking. This theft by a city police captain impaired the financial condition of the unit and violated the trust placed in him by fellow officers," Vance said. "Police officers who violate their oath to protect and serve the public are rare, but those who breach that trust must be prosecuted and held to account."
"Honesty and integrity are fundamental guiding principles for any law enforcement officer, regardless of rank or position," Schwein said. "Fortunately, Mr. Snyder's actions are not reflective of the vast majority of the men and women in law enforcement who go to work every day to protect and serve while upholding the principles of honesty and integrity. Today, Mr. Snyder pays the price for his actions and is being held accountable for violating the trust the good people of West Alabama placed in him."
The West Alabama Narcotics Task Force is composed of officers from the Tuscaloosa Police Department, Tuscaloosa County Sheriff's Office, Northport Police Department and University of Alabama Police Department. It is tasked to investigate all drug crimes in Tuscaloosa County.Snyder was a 29-year member of the Tuscaloosa Police Department, retiring as a captain in December 2012. He was detailed to the narcotics task force in 1989 and became its commander in June 2002, according to court records.
Task force members periodically seized money suspected to be proceeds of illegal drug transactions and turned the money in to Snyder, who was responsible for depositing the money into bank accounts while condemnation proceedings were pursued through court, according to his plea agreement. Snyder was entrusted to receive the seized money, log it in task force ledger books and deposit it in task force bank accounts.
Snyder began embezzling from the seized funds no later than June 2010. He executed his scheme "by pocketing some or all of the funds seized during various arrests, and then failing to correctly account for those funds," he acknowledged in his plea agreement.
The FBI investigated the case, with assistance from the West Alabama Narcotics Task Force. Assistant U.S. Attorney Henry Cornelius prosecuted the case.
Former Narcotics Task Force Officer Sentenced to A Year in Prison for Embezzling Seized MoneyRead the Press Release
BIRMINGHAM – A federal judge today sentenced the former commander of the West Alabama Narcotics Task Force to one year and a day in prison for stealing at least $125,000 from suspected drug proceeds seized by the multi-agency task force, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
JEFFREY LYNN SNYDER, 55, of Carrollton, pleaded guilty in June to one count of theft from a program that received more than $10,000 in federal benefits within a one-year period. U.S. District Court Judge Inge P. Johnson sentenced Snyder to prison and, in accordance with the plea agreement he entered with the government in May, ordered him to pay $125,000 restitution to the West Alabama Narcotics Task Force.
The U.S. Attorney's Office charged Snyder in May with embezzling the task force money between June 2010 and June 2012, when he left the task force.
"Joint task force operations are an important part of the combined law enforcement effort to control illegal drug trafficking. This theft by a city police captain impaired the financial condition of the unit and violated the trust placed in him by fellow officers," Vance said. "Police officers who violate their oath to protect and serve the public are rare, but those who breach that trust must be prosecuted and held to account."
"Honesty and integrity are fundamental guiding principles for any law enforcement officer, regardless of rank or position," Schwein said. "Fortunately, Mr. Snyder's actions are not reflective of the vast majority of the men and women in law enforcement who go to work every day to protect and serve while upholding the principles of honesty and integrity. Today, Mr. Snyder pays the price for his actions and is being held accountable for violating the trust the good people of West Alabama placed in him."
The West Alabama Narcotics Task Force is composed of officers from the Tuscaloosa Police Department, Tuscaloosa County Sheriff's Office, Northport Police Department and University of Alabama Police Department. It is tasked to investigate all drug crimes in Tuscaloosa County.Snyder was a 29-year member of the Tuscaloosa Police Department, retiring as a captain in December 2012. He was detailed to the narcotics task force in 1989 and became its commander in June 2002, according to court records.
Task force members periodically seized money suspected to be proceeds of illegal drug transactions and turned the money in to Snyder, who was responsible for depositing the money into bank accounts while condemnation proceedings were pursued through court, according to his plea agreement. Snyder was entrusted to receive the seized money, log it in task force ledger books and deposit it in task force bank accounts.
Snyder began embezzling from the seized funds no later than June 2010. He executed his scheme "by pocketing some or all of the funds seized during various arrests, and then failing to correctly account for those funds," he acknowledged in his plea agreement.
The FBI investigated the case, with assistance from the West Alabama Narcotics Task Force. Assistant U.S. Attorney Henry Cornelius prosecuted the case.
For Second Time in Federal Court, Long Beach Man Guilty of Transporting Women Across State Lines to Work as ProstitutesRead the Press Release
SANTA ANA, California – A Long Beach man with a long history of forcing women into the sex trade pleaded guilty this morning in a sex trafficking case and is expected to be sent to prison for another decade.
William Earl Flavors, also known as “Andre,” 40, who formerly resided in Seattle, pleaded guilty this morning to a charge of transportation into prostitution.
Flavors pleaded guilty before United States District Judge Josephine L. Staton, who scheduled a sentencing hearing for May 9. While Judge Staton will make the final decision, prosecutors and Flavors agree that the appropriate sentence in this case is the statutory maximum sentence of 10 years in federal prison. The 10-year sentence is much longer than the sentence that would be expected for this crime under the United States Sentencing Guidelines, and this 10-year sentence would run consecutive to a four-year sentence he is currently serving in relation to the same conduct.
In court this morning, Flavors admitted that he transported two victims in 2012 from Long Beach to Las Vegas, where they were forced or coerced to work as prostitutes. Flavors also admitted he used coercion and force – including physical abuse and threats of additional physical abuse – to make one of the victims work for him as a prostitute for an eight-month period in 2012.
In a previous case, Flavors was prosecuted by the United States Attorney’s Office and received a 14-year prison sentence in May 2000. In that case, Flavors admitted transporting two teen age girls from Washington and forcing them to work as prostitutes in Orange County.
Flavors completed his sentence in late 2011 and was on supervised release until October 2012, when he was arrested by Long Beach police after a woman reported being attacked by Flavors. Flavors pleaded guilty in state court last year to pimping in relation to his activities in 2012, and he was sentenced to four years in state prison.
Earlier this year, United States District Judge Cormac J. Carney found Flavors to be in violation of his supervised release in the prior federal court case. Judge Carney revoked his supervised release and sentenced Flavors to a four-year prison term, which he is currently serving.
The sentencing that Flavors will receive from Judge Staton in relation to today’s guilty plea will run consecutive to the sentence that he is currently serving.
The current case against Flavors was investigated by the Federal Bureau of Investigation and the Long Beach Police Department.
Release No. 13-138
Final Defendant Sentenced for Food Stamp Fraud Schemes in Wilkinson CountyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Lashaundra Evans, 32 of Wilkinson County, Georgia, was sentenced on Tuesday, December 3, 2013, by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia, to serve twelve (12) months and one (1) day imprisonment and to pay $14,460.00 in restitution to the U.S. Department of Agriculture, as the result of her plea of guilty on July 29, 2013, to federal charges of one count of food stamp fraud.Ms. Evans was part of a food stamp fraud scheme involving Elbert Eugene Shinholster, 77, also of Wilkinson County, who was sentenced on October 18, 2013 to serve forty (40) months in prison and to pay restitution in the amount of $4,680,557.20 for food stamp fraud and money laundering. Mr. Shinholster was the owner and operator of Shinholster’s Grocery and Meat Market located in Irwinton, Georgia. He illegally conspired with almost 2,000 food stamp recipients to defraud the food stamp program. As part of the scheme each food stamp recipient would provide Mr. Shinholster with an electronic benefits transfer (EBT) card and personal identification number. Mr. Shinholster would then run the EBT card through the point of sale machine administered by the Food Stamp Program as though the cardholder had purchased food when, in fact, the cardholder got cash instead. Mr. Shinholster admitted that he knew that an EBT card was to be used to purchase food only and not to be sold for cash. The illegal EBT debit would include an additional thirty (30) per cent of the cash amount as profit for Mr. Shinholster.
In addition to Lashaundra Evans, fifteen other defendants from Wilkinson County pled guilty to participating with Mr. Shinholster in the food stamp fraud and have been sentenced: Tracey McDowell, Kristi Northern, Keisha Robinson, Sheena Sanders, Krystal Allen, Angelina Curry, Brandy Day, Cassandra Harris, Willie Harris, Jazmin Hunter, Janine Jackson, Shanirah Jackson, Shamirah Jackson, Karrie Jackson and Pamela Johnson.
“Ms. Evans took advantage of a worthwhile system that was set up to help people who need a hand, just like her and her children. What is unfortunate about these cases is that this type of fraud unquestionably becomes the topic of conversation as opposed to the many positive stories and many good people who genuinely benefit from the food stamp program,” said U.S. Attorney Michael Moore.
In a second, separate food stamp fraud and money laundering case in Wilkinson County, Alfred Boyd previously entered a plea of guilty to Food Stamp Fraud and was sentenced on October 31, 2013 to serve fifty-two (52) months in prison and to pay restitution in the amount of $800,000.00 to the U.S. Department of Agriculture.
Mr. Boyd owned the Northwind Mini Mart in McIntyre, Georgia. Between December 2009 and March 2011, he conspired with his niece, Chiquita Boyd, and a number of food stamp recipients, to defraud the Food Stamp Program. Each food stamp recipient would provide Mr. Boyd with an electronic benefits transfer (EBT) card and personal identification number and tell the defendant how much cash he or she wanted in exchange for EBT benefits.. Mr. Boyd would then run the EBT card through the point of sale machine administered by the Food Stamp Program as though the cardholder had purchased food when, in fact, the cardholder got cash instead. Mr. Boyd admitted that he knew that an EBT card was to be used to purchase food only and not to be sold for cash. Mr. Boyd would retain a percentage of the cash amount the food stamp recipient requested.
Eleven (11) other defendants from Wilkinson County pled guilty to participating with Mr. Boyd in the food stamp fraud and have been sentenced: Tracey McDowell, Keisha Robinson, Sheena Sanders, Krystal Allen, Brandy Day, Lashaundra Evans, Cassandra Harris, Willie Harris, Jazmin Hunter, Karrie Jackson and Pamela Johnson. Many of the defendants participated with both Mr. Shinholster and Mr. Boyd in food stamp fraud.
“These were cases of greed and serious crimes,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigations. “Honest and law abiding citizens are fed up with people who use deceit and fraud to obtain money that belongs to others for their own personal benefit. We are pleased with the successful resolution of these investigations due to the cooperative efforts of our law enforcement partners.”
The cases were investigated by the Internal Revenue Service Criminal Investigations, the Federal Bureau of Investigation, the Georgia Department of Human Services Office of Inspector General and the Wilkinson County Sheriff’s Office. The cases were prosecuted by Assistant United States Attorneys Michael Solis, Danial Bennett and Julia Bowen.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Felon in Possession of A Firearm Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Antonio Bernita Sims, 37, of Mobile, was sentenced today in federal court for his illegal possession of a firearm having been previously convicted of a felony offense, to a term of 27 months imprisonment. Judge William H. Steele imposed the sentence. The judge also ordered that Sims serve a three-year term of supervised release when he completes his term of imprisonment. No fine was imposed, but the judge ordered that Sims pay a $100 mandatory special assessment.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Felon Convicted of Gun Possession, Facing 15 Year Mandatory TermRead the Press Release
PHILADELPHIA – A federal jury, yesterday, convicted Francis Aponte, 47, of Philadelphia, of possession of a firearm by a convicted felon. On June 17, 2012, Aponte was standing on the sidewalk near Indiana Avenue and 4th Street when two Philadelphia Police Officers spotted him shooting a gun into the air. The officers approached and saw Aponte throw the handgun – a .380 caliber Indian Arms semi-automatic – to the ground. Aponte was arrested and charged as a convicted felon in possession of a firearm. A sentencing hearing is scheduled for March 4, 2014. Aponte faces a mandatory minimum term of 15 years in prison with a maximum sentence of life, up to five-years of supervised release, a maximum fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jose R. Arteaga.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the December 2013 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Glendyn Ayala-Carbajal. Alien in the United States After Deportation. Ayala-Carbajal, 24, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in April 2008 near San Antonio, Texas. If convicted, the statutory maximum penalty would be 20 years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
Sandra Ayala-Dominguez. Alien in the United States After Deportation. Ayala-Dominguez, 42, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in February 2013 near Hildalgo, Texas. If convicted, the statutory maximum penalty would be of 20 years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
Joel Deloera-Escalera, Samuel Garcia-Escalera, and Courtney Riley. Drug Conspiracy, Maintaining Drug-Involved Premises, Possession of Firearm and Ammunition by Alien Illegally in the United States. Deloera-Escalera, 33, Garcia-Escalera, 35, both illegal aliens, and Courtney Riley, 33, of Broken Arrow, are charged with conspiring to distribute 500 grams or more of methamphetamine. Deloera-Escalera and Garcia-Escalera are also charged with maintaining a place for the purpose of storing and distributing methamphetamine, being unlawfully in the United States, and possession of firearms and ammunition. If convicted, all defendants would face the maximum statutory penalty for drug conspiracy of not less than 10 years imprisonment and up to a $10,000,000 fine; Deloera-Escalera and Garcia-Escalera would face an additional term of imprisonment not to exceed 20 years and a fine of up to $500,000 for maintaining a place for the purpose of storing and distributing methamphetamine and up to 10 years maximum imprisonment and $250,000 fine for the firearm charges. The Oklahoma Bureau of Narcotics and Dangerous Drugs is the lead agency.
Adan Gonzalez-Torres. Alien in the United States After Deportation. Gonzalez-Torres, 35, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in May 2010 near Del Rio, Texas. If convicted, the maximum statutory penalty would be 20 years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
Tony Newman-Hilburn and Angela Kay Torres. Possession with Intent to Distribute Marijuana, Possession of Firearms in Furtherance Commission of a Drug Trafficking Crime, and Maintaining on Drug-Invoked Premises. Newman-Hilburn, 35, of Tulsa, is charged with possession with intent to distribute marijuana, possession of a 40 caliber pistol, .32 caliber pistol, 9mm pistol, .2333 caliber pistol, and 12 gauge shotgun in furtherance of a drug trafficking crime. Torres, of Tulsa, is charged with maintaining on drug-invoked premise for the purpose of storing, distributing, and using marijuana. If convicted, the maximum statutory penalty for possession with intent to distribute marijuana would be not more than 5 years imprisonment and/or a $4,000,000 fine; possession of firearms in furtherance of a drug trafficking crime carries a 5 year consecutive sentence and/or $250,000 fine; and maintaining on drug-invoked premise would be not more than 20 years imprisonment and/or a fine not more than $500,000. The Federal Bureau of Investigation is the lead agency.
Juan Saavedra-Juarez. Alien in the United States After Deportation. Saavedra-Juarez, 34, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in September 2011 near Harlingen, Texas. If convicted, the maximum statutory penalty would be 20 years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
Dethan Ashley Sparks and Lukan Thomas Holmes. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country and Assault Resulting in Serious Bodily Injury in Indian Country. Sparks, 18, and Holmes, 19, both of Wyandotte, Oklahoma, are charged with assaulting and injuring an Indian male victim. The Indictment alleges Sparks assaulted the victim with a dangerous weapon by striking him in the face with a rock. If convicted, the statutory maximum penalty would be not more than 10 years imprisonment and/or a $250,000 fine. The Bureau of Indian Affairs, Miami Agency is the lead in the case.
Ramon Torres-Marin. Alien in the United States After Deportation. Torres-Marin, 52, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in December 1999 near El Paso, Texas. If convicted, the maximum statutory penalty would be 20 years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
Jose Ines Vera-Diaz. Alien in the United States After Deportation. Vera-Diaz, 47, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in July 2012 near Del Rio, Texas. If convicted, the maximum statutory penalty would be 20 years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
J. Guadalupe Villalobos Gonzalez. Possession with Intent to Distribute Methamphetamine and Possession of Firearms in Furtherance of a Drug Trafficking Crime. Villalobos Gonzalez, 32, is charged with possession with the intent to distribute 50 grams or more of methamphetamine and possessing a 7.62x39 caliber semi-automatic assault rifle, .38 caliber pistol, and .25 caliber pistol in furtherance of a drug trafficking crime. If convicted, the statutory minimum penalty for possession with intent to distribute 50 grams or more of methamphetamine would be not less than 5 years imprisonment and up to $5,000,000 fine; the firearm charge carries not less than 5 years imprisonment and up to a $250,000 fine. The Oklahoma Bureau of Narcotics and Dangerous Drugs is the lead agency.
El Paso Man Sentenced to Federal Prison for Downloading Child PornRead the Press Release
In El Paso, 33-year-old Thomas Daly, a former machine operator for a local food producer, was sentenced to 188 months in federal prison followed by ten years of supervised release for downloading child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Dennis Ulrich, El Paso Division.
In September 2012, a routine information technology inspection revealed that Daly was downloading and viewing child pornography over the internet using peer-to-peer file sharing networks. A subsequent search warrant executed by HSI agents at the defendant’s residence resulted in the seizure of two computers and various DVDs, CDs, and VHS cassettes. A forensics examination of those items revealed the presence of almost 500 videos and more than 33,000 images depicting child pornography. On September 10, 2013, Daly pleaded guilty to one count of receipt of child pornography.This investigation was conducted by Homeland Security Investigations in El Paso. Assistant United States Attorney Ian Martinez Hanna prosecuted this case on behalf of the government.
Eastern European Man Pleads Guilty to Internet FraudRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dumitru Doban, a/k/a Octavian Kucera, a/k/a Kucera Oktavian, a/k/a Pavel Luhovny, a/k/a Michal Pudil, a/k/a Tomas Kulla, 27, of Moldova, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to wire fraud conspiracy. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the defendant, a citizen of Moldova, participated in a conspiracy to defraud purchasers of motor vehicles over the Internet. As part of the scheme, vehicle advertisements were placed online via websites such as eBay, autotrader.com, and autotraderclassics.com. Potential buyers responded by e-mail to the advertisements and were be contacted by individuals identifying themselves as the listed sellers of the vehicles. E-mail correspondence occurred between the two parties with descriptions of the vehicles, negotiations of the purchase price, shipping information, and purchase information. Once an agreement was reached for the purchase of the vehicles, the buyers were instructed to utilize a third party, such as eBay Motors and Google Wallet, to conduct the transaction. These third-party websites (bogus and unrelated to legitimate third party websites) were made to look legitimate.
After signing up for the third-party websites, the buyers were sent e-mails (purporting to be from the third-party websites, such as eBay Motors and Google Wallet), directing them to send wire transfers for the purchase price, plus shipping costs, to bank accounts that were opened by the defendant in Rochester, New York, Columbus, Ohio, Alexandria, Virginia, and Birmingham, Alabama, using fake names and false Czech Republic passports. After the buyers sent the wire transfers to the bank accounts, the defendant sent the money overseas, primarily to the Ukraine and Moldova, through bank-to-bank wire transfers and money transfer services, or withdrew the money from the accounts. The prospective online buyers never received any of the vehicles supposedly offered for sale as part of the scheme.
A total of 18 people, from New York, California, Nevada, North Carolina, and Arizona, and Canada, were victims of the Internet fraud scheme. Those victims transferred a total of $257,489 to the bank accounts opened by the defendant. As part of the plea agreement, the defendant admitted that the overall conspiracy – which included similar fraudulent conduct by a co-conspirator, Alexandru Turcan, in the Northern District of New York -- involved losses of more than $400,000 but less than $1,000,000.
Another defendant, Vasile Leu, also a citizen of Moldova, is being prosecuted for allegedly participating in the same Internet fraud scheme. A federal grand jury returned an indictment charging Leu with wire fraud conspiracy on September 24, 2013. The case is still pending, and the defendant is presumed innocent unless and until convicted in a Court of law.
Sentencing is scheduled for April 7, 2014, at 3:00 p.m. before Judge Geraci.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian Boetig.Eagle Pass Businessman Pleads Guilty to Role in Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio, 52-year-old Salvador Castillon, owner of South Texas Concrete based in Eagle Pass, pleaded guilty to paying bribes to a Maverick County commissioner in order to secure county construction contracts announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before U.S. District Judge Alia Moses, Castillon pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. According to court records, Castillon was awarded Maverick County construction contracts totaling $416,800 in 2010 and $148,000 in 2011. Castillon admitted that during that time period, he paid the Maverick County Precinct 2 commissioner approximately $57,000 in return for being awarded the construction contracts.
Castillon, who remains on bond pending sentencing, faces up to ten years in federal prison and a maximum $250,000 fine. Sentencing is scheduled for 9:00am on May 12, 2014, before Judge Moses in Del Rio.This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
Eagle Pass Businessman Pleads Guilty to Bank FraudRead the Press Release
In Del Rio today, 41-year-old Jose Flores, III, owner of Eagle Pass-based N5 Group, LLC, (N5) pleaded guilty to a bank fraud scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
According to court records, the defendant, through N5, attempted to serve as raw materials transportation providers to businesses in Eagle Pass and to companies operating in the Eagle Ford Shale in South Texas. In April 2011, N5 established a Large Fleet Accounts Receivable Financing agreement with TAB Bank, Inc in Utah. The primary purpose of N5's account with TAB was to establish a factoring relationship between the two entities. In a factoring arrangement, a bank agrees, for a fee, to serve as the recipient of payments that are owed to a company. Once this agreement is made, the company will assign its accounts receivable to the bank. The bank will then advance a large percentage of the yet-unpaid accounts receivable to the business expecting payment. Thereafter, the bank will begin to collect payments from the customer indebted to the business. Ideally, the company expecting payment will benefit because it will obtain cash from the bank immediately and thus need not wait for its accounts to come due before receiving payment. The bank benefits as well because it charges a commission for its service as receiver of the outstanding accounts.
Appearing before U.S. District Judge Alia Moses, Flores pleaded guilty to one count of bank fraud. By pleading guilty, Flores admitted that in July 2011, he submitted to TAB Bank a forged invoice in the amount of $51,000 for work N5 was to perform for a customer. Pursuant to the factoring agreement, the defendant fraudulently received $35,000 from TAB Bank. When TAB subsequently began its efforts to collect payment from the customer, it found that N5 had never done any work for that customer. In fact, that customer owed N5 no money at all.
Flores faces up to 30 years in federal prison and a maximum $1,000,000 fine as well as $35,000 restitution to TAB Bank. He remains on bond pending sentencing scheduled for May 12, 2014, before Judge Moses in Del Rio.
This investigation was conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Assistant United States Attorney Timothy A. Duree is prosecuting this case on behalf of the Government.
Deported Alien Sentenced to Time Served for Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - An alien found in Pittsburgh, Pennsylvania, has been sentenced in federal court to time served on his conviction of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Jose Mariano Perez-Flores, age 33, of Honduras
According to the information presented to the court, Jose Mariano Perez-Flores, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Aug. 17, 2007. Jose Mariano Perez-Flores was found to be illegally present in Pittsburgh on Sept. 20, 2013.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Department of Homeland Security, Immigration and Custom Enforcement for the investigation leading to the successful prosecution of Perez-Flores.
Cupertino Couple Indicted in Multi-Million Dollar Scheme to Export Stolen Luxury Cars to AsiaRead the Press Release
SAN JOSE – A federal indictment was unsealed today charging Yujen Chen and Maria Chen, husband and wife, with twenty-four felony violations, including wire fraud, international money laundering, exportation of stolen vehicles, and identity theft, arising out of their ownership of 888 Auto Corporation, announced United States Attorney Melinda Haag.
According to the indictment, Yujen Chen, 58, and Maria Chen, 56, of Cupertino, are alleged to have used their automotive business to fraudulently lease luxury vehicles, including vehicles from Porsche, Mercedes-Benz, Audi, BMW, and Toyota, and then to export those vehicles abroad. As part of the scheme, the Chens recruited friends and associates to serve as straw lessees, and sometimes paid them $500 to lease cars on their behalf. Subsequently, the Chens took custody of the cars, and promised the straw lessees they would make the car payments. Instead, the Chens exported the cars, and never paid off the lease obligations. The Chens also used without permission the identities of others to lease cars.
The Chens acted as vehicle brokers, and received money from people to purchase vehicles on their behalf. However, instead of paying the dealers the money received from the purchasers the Chens allegedly used the identities of these purchasers, without authorization, to lease or finance the vehicles, and kept the money for themselves.
The amount of money from the fraud exceeds approximately $3.3 million.
Yujen and Maria Chen were arrested on December 4, 2013. They made their initial appearance in federal court in San Jose today, and were released from custody to home confinement. The defendants next scheduled appearance is on December 10, 2013at 8:30am for further bail review before The Honorable Paul S. Grewal, United States Magistrate Judge.
The maximum statutory penalty for each count of wire fraud, and conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum statutory penalty for each count of international money laundering, in violation of 18 U.S.C. § 1956(a)(2)(A) is 20 years’ imprisonment and a fine of $500,000 or twice the value of the monetary instrument or funds involved. The maximum penalty for each count of exportation of stolen vehicles, in violation of 18 U.S.C. § 553(a)(1), is 10 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss, plus restitution. The maximum penalty for each count of identity theft, in violation of 18 U.S.C. § 1027(a)(7), is 15 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss, plus restitution. The maximum penalty for each count of aggravated identity theft, in violation of 18 U.S.C. § 1028A, is twenty-four months imprisonment consecutive to any other sentence of imprisonment imposed. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Daniel Kaleba is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Nina Burney and Elise Etter. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigative Division; the California Department of Motor Vehicles; the Federal Bureau of Investigation; the United States Customs and Border Protection; and the California Highway Patrol.
Please note, an indictment contains only allegations against a person and, as with all defendants, Yujen Chen and Maria Chen must be presumed innocent unless and until proven guilty.
(Chen indictment )
Coshocton Pharmacist Sentenced to More Than Four Years in Prison for Health Care FraudRead the Press Release
A Coshocton pharmacist was sentenced to more than four years in prison and ordered to pay more than $2.1 million in restitution related to health care fraud, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Ohio Attorney General Mike DeWine.
Barbara Elise Miller pleaded guilty earlier this year in federal court to to five counts of health care fraud and one count of adulteration of drugs after an investigation found that she fraudulently received more than $2 million from state, federal, and private medical insurance companies by way of fraudulent billing practices.
“This defendant not only defrauded victims out of millions of dollars, but her adulteration of drugs also caused health complications for a child,” Dettelbach said.
"This defendant likely thought she could get away with these crimes, but there are checks and balances in place to make sure that those engaging in heath care fraud don't get away with it," DeWine said.
The crimes happened during Miller's time as the owner and operator of Coshocton's Three Rivers Infusion and Pharmacy Specialists, a medial infusion supply company which also provided home health services and medical supplies. Between 2003 and 2009, Miller knowingly and willfully executed a scheme to defraud health care benefit programs such as Ohio Medicaid, Medical Mutual of Ohio, Anthem Blue Cross/Blue Shield of Ohio, TriCare, and Medicare, according to court documents.Miller filed more than $1 million worth of claims for services using a false provider name, overstated the amount of nursing time needed to provide certain injections, and made fraudulent claims regarding the dosage and frequency of which certain drugs were dispensed, according to court documents.
Miller also altered the purity, quality, and strength of the drug Kineret, which is used to reduce the pain and swelling associated with moderate to severe rheumatoid arthritis, according to court documents.
The case was prosecuted by Assistant U.S. Attorney Rebecca Lutzko and attorneys with Ohio Attorney General DeWine's Health Care Fraud Section. The case was investigated by Attorney General DeWine's Medicaid Fraud Control Unit, the Ohio Department of Insurance, the United States Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation.
Conspirator in Bank Fraud Scheme Sentenced to over 2 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Olumide Babafemi Ogunmakinwa, age 47, of Brandywine, Maryland, today to 28 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft in connection with a bank fraud conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
According to Ogunmakinwa’s plea agreement, between February 2011 and March 2011, Ogunmakinwa and his co-defendants created counterfeit checks and stole money using misappropriated bank account information and the personal identifying information of individuals without their knowledge or consent. Specifically, co-conspirator Nathan Silla and other co-conspirators opened bank accounts at financial institutions in their own names, in false names, in the name of a spouse and in the names of corporations they controlled. Silla and the co-conspirators obtained checks from victim individuals and corporations, which they washed to remove the actual payees’ names listed on the checks, then printed the names of a conspirator, false names of a conspirator, or a company controlled by a conspirator onto the washed checks. Ogunmakinwa and other co-conspirators then deposited these altered checks into accounts controlled by conspirators, including accounts controlled by Ogunmakinwa. In addition, Silla and other co-conspirators misappropriated the name and bank account numbers of victim individuals and companies by printing that information onto counterfeit checks, which Ogunmakinwa and others deposited into accounts that they controlled at various bank branches in Montgomery and Prince George’s County, Maryland, and in Washington, D.C., thereby drawing funds off of the victims’ accounts. The conspirators then wrote checks on the accounts that contained victim funds, and either cashed them or deposited those checks into other accounts they controlled.
Ogunmakinwa deposited, cashed, and wrote at least nine fraudulent checks totaling approximately $97,000. The offense involved approximately 10 victims.
Nathan Silla, age 40, of Glenn Dale, Maryland, previously pleaded guilty to his role in the scheme and was sentenced to 12 years in prison, and ordered to pay $331,499.21 in restitution.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Jefferson M. Gray, who prosecuted the case.
Concho County Resident Sentenced to 37 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — Gary Edward Larock, Jr., 35, most recently a resident of Eden, Texas, was sentenced today by U.S. District Judge Sam R. Cummings, to 37 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Larock has been in custody since his arrest in June 2013 on a related criminal complaint. He pleaded guilty in August 2013 to an indictment charging one count of failure to register as a sex offender.
In August 2005, Larock was convicted in New York of third-degree rape, a felony. He was notified that based on that conviction, he was required to register as a sex offender under the Sex Offender Registration and Notification Act. Larock left New York and traveled to California, where, in December 2012, he was arrested by the San Joaquin County Sheriff’s Office on an outstanding warrant from New York for failing to comply with sex offender registration requirements in that state. He was released from jail in California in early February 2013 and traveled to Eden, Texas, where he gained employment. Larock failed to register as a sex offender while living and working in Eden, Texas.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service, the Concho County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Columbia Man Pleads Guilty to Theft from General Motors Spring Hill Facility and Filing A False Tax ReturnRead the Press Release
Anthony Praino, 51, of Columbia, Tennessee, pleaded guilty yesterday in U.S. District Court to interstate transportation of stolen property and filing a false tax return, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The charges stemmed from a joint investigation conducted by the Maury County Sheriff’s Office, the FBI and the IRS-Criminal Investigation, which revealed that in 2011 and 2012, Praino stole nearly a million dollars’ worth of equipment from the General Motors (GM)Spring Hill, Tenn. Plant and then failed to disclose to the IRS the $145,000 profit he received from the sale of the stolen equipment.
“Praino stole from his employer and cheated on his taxes in a manner that will always be addressed by the United States Attorney’s Office and its local, state and federal law enforcement partners,” said U.S. Attorney Rivera. “What was accomplished in this case illustrates the commitment of local and federal law enforcement agencies, working together to bring to justice those placed in a position of trust who choose to commit fraud at a significant cost to their employers and to the public.”
Testimony presented at the guilty plea hearing before District Judge Todd Campbell established that in 2011 GM investigators discovered that a significant amount of expensive equipment was missing from their Spring Hill plant, where Praino was employed as a fork lift operator. Praino emerged as the prime suspect when GM investigators identified some missing equipment being advertised for sale on eBay, and then clandestinely purchased it.
When the equipment was delivered to them, the return address for the sender was determined to be Praino’s. GM referred the matter to the Maury Count Sheriff’s Office, who in turn alerted the FBI and the IRS, given the value and volume of the stolen property.
In April 2012, while agents were conducting surveillance, they observed Praino depositing a large parcel for delivery by a commercial shipping company. Agents quickly determined that the package contained expensive, stolen GM equipment, and was to be delivered to Thailand. Agents obtained and executed a search warrant for Praino’s home in Columbia, Tenn. and found more equipment that had been stolen from the Spring Hill GM facility, which was worth over $500,000.
Follow up investigation disclosed that Praino had received more than $145,000 from selling the stolen GM equipment, which he failed to disclose when filing his tax return. He owed, but failed to pay about $48,000 in additional income tax for that income, which constituted a second separate federal crime. Praino faces a maximum of 13 years in prison and an order of restitution.
“IRS Criminal Investigation Special Agents have both law enforcement and financial investigative expertise, which makes them uniquely qualified to assist state and federal law enforcement agencies with these types of investigations by following the money, added Christopher A. Henry, Special Agent in Charge of the IRS Nashville Field Office. “Often times, in addition to the initial scheme to defraud, federal tax laws are also violated which can lead to additional jail time. We are proud to work with our law enforcement and prosecutorial partners at the U.S. Attorney's Office, the FBI and the Maury County Sheriff's Office to obtain today's result and hold those responsible accountable for their actions.”
"Today's guilty plea is a prime example of how law enforcement from different agencies and departments can pool their collective operational and investigative efforts and resources to bring the most egregious financial crimes facilitators to justice in all of our communities. The thefts from the General Motors Spring Hill Plant not only represent thefts from General Motors, but from each and every American taxpayer as well," said A. Todd McCall, Special Agent in Charge of the FBI Memphis Division. “The FBI is proud to work investigations such as this alongside the U.S. Attorney's Office, The IRS Criminal Investigation Division, and the Maury County Sheriff's Office to bring these types of criminal violators to justice
The case was investigated by the FBI, the IRS-Criminal Investigation and the Maury County Sheriff’s Department. The government was represented by Assistant U.S. Attorney Hilliard Hester.Cleveland Woman Sentenced to Nearly Four Year in Prison for Financial CrimesRead the Press Release
A Cleveland woman was sentenced to nearly four years in prison and ordered to pay $78,004 in restitution for financial crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jocelyn Hale, 32, was sentenced to 45 months of incarceration after pleading guilty in October to one count of conspiracy to commit bank fraud and money laundering, one count of conspiracy to commit wire fraud and money laundering, one count of conspiracy to commit mail fraud and money laundering, four counts of mail fraud, and one count of aggravated identity theft.
Hale’s co-defendant, Angelique Bankston, 42, of South Euclid, was convicted by a jury on November 21, 2013 after almost a three week trial of all 23 counts against her, including the counts listed above and one count of wire fraud, five counts of bank fraud, four additional counts of mail fraud, four additional counts of aggravated identity theft, one count of money laundering, and one count of making a false statement.
In her plea agreement, Hale admitted to using identities of several individuals without their authority, and assisting Bankston to defraud Citizens Bank, Lending Club Corporation, and
Wells Fargo Bank. Bankston and Hale funded one Wells Fargo Bank account with fraudulent checks totaling $13,027.22, and then attempted to quickly remove and launder the fraudulent proceeds.Bankston and Hale also funded a second Wells Fargo Bank account with a fraudulent tax return check in the amount of $6,172, and a Citizens Bank account with illegally obtained funds from a fraudulently obtained Lending Club loan in the amount of $30,000. Once the illegal obtain funds were deposited, Bankston and Hale again quickly attempted to remove and launder those funds. Finally, Hale admitted to assisting Bankston to defraud the Ohio Department of Job and Family Services by filing false and fraudulent claims for unemployment benefits using a fictitious company and fictitious employees based on stolen identities.
Bankston’s sentencing is currently scheduled for April 23, 2014 at 10:00 a.m. at the United States Federal Courthouse in Akron, Ohio.
This case was prosecuted by Assistant United States Attorney Mark S. Bennett and Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, and United States Postal Inspection Service offices in Cleveland.
Charging Document: U.S. V. Mikhail Kuleshov, Et Al.Read the Press Release
Kuleshov, Mikhail et al. 13 MAG 2711 Complaint
Carthage Apartment Manager Sentenced for Fraud, Money Laundering, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carthage, Mo., apartment manager was sentenced in federal court today for a nearly $400,000 fraud scheme involving several apartment complexes.
Barbara J. Evans, 55, of Carthage, was sentenced by U.S. District Judge Gary A. Fenner to three years and five months in federal prison without parole. The court also ordered Evans to pay approximately $206,000 in restitution.
Evans was employed as a property manager for Preservation Housing Management (PHM), which is based in Boston, Mass., and owned the Deerfield Village, Highland Acres, Highland Meadows and Maplewood Manor apartment complexes in Carthage. PHM oversees these properties through its office in Kansas City, Mo.
On Oct. 3, 2012, Evans pleaded guilty to one count of wire fraud, one count of money laundering and one count of filing a false tax return.
Stolen Rent Scheme at Deerfield Village
When a low-income tenant rented an apartment at Deerfield Village and qualified for Section 8 rental assistance/subsidies, Evans generally calculated the move-in rent amounts correctly. However, when tenants reported an increased income, instead of reflecting the increased rent in the computer system, she delayed reporting the increased rent to PHM. As a result, tenants would pay the correct, higher rent amount to Evans, but Evans continued to provide the lower rent payments to PHM. Evans pocketed the difference between the higher rent payments she received from tenants and the lower amounts she passed on to PHM.
From 2003 through 2011, Evans fraudulently received net proceeds of approximately $206,069 from this scheme.
Construction Fraud Scheme
In May 2006, PHM discovered that Meeco Construction, a contractor hired by Evans to perform work on Deerfield Village and Maplewood Manor, was owned by her husband, Mike Evans. Meeco Construction had been performing work on the properties since October 2003. PHM's former president verbally reprimanded Evans and she was instructed to immediately discontinue using vendors related to PHM employees.
In September 2006, Evans, with the help of her daughter, Addison Kinney, created A.J. Construction. Evans created and submitted all A.J. Construction bids and invoices to PHM. PHM policy required two or three competing bids on any construction project over $5,000. Evans, through her capacity as manager, falsified and submitted fictitious competing bids and insurance documents to ensure A.J. Construction would get all of the construction contracts at the HUD subsidized properties she managed. From Sept. 28, 2006, to June 15, 2009, A.J. Construction received $191,922 for work completed at Deerfield Village, Highland Meadows, Highland Acres, and Maplewood Manor. A.J. Construction performed work only for PHM Properties.
Money Laundering
Evans knowingly concealed the proceeds of this wire fraud when she purchased and remitted money orders in the tenants' names. Evans admitted that she cashed or deposited tenants’ rent payments into her own bank account, then used those funds to purchase money orders for lesser amounts. Evans forged tenants’ signatures on the money orders and falsely represented those money orders to be their rent payments.
Tax Fraud
Evans admitted that she filed false federal income tax returns for the years 2006, 2007, 2008, 2009, and 2010 by failing to report $171,790 on her Form 1040, U.S. Individual Income Tax Returns, resulting in a total tax loss to the federal government of $28,737.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the HUD Office of Inspector General, the Missouri State Highway Patrol, IRS-Criminal Investigation and the Carthage, Mo., Police Department.California Man Pleads Guilty to Unauthorized Access Device FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Darnele J. Nelson, 32, of California, pleaded guilty to possessing 15 or more unauthorized access devices, before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on May 5, 2013, Nelson was found with approximately 100 unauthorized access devices, including credit cards, debit cards and gift cards, as he attempted to enter Canada.The conviction is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and Customs and Border Protection, under the direction of Randy Howe, Acting Director of Field Operations.
Sentencing is scheduled for April 1, 2014 at 12:30 p.m. before Judge Arcara.California Businessman Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
Gary Mach, of Palm Desert, Calif., was sentenced to 16 months in prison, two months of house arrest, and 18 months of probation and ordered to pay $270,725 in restitution to the Internal Revenue Service (IRS), the Justice Department and IRS announced today. Mach previously pleaded guilty to conspiracy to defraud the United States on Aug. 18, 2013.
Court documents state that, beginning around January 2002 and continuing through December 2010, Mach failed to report substantial income he earned from CSPS, a pool-servicing business operated throughout Riverside County. Mach and others established fictitious trusts which they used to receive income and hold assets in an attempt to conceal the assets and income from the IRS.
According to court documents, Mach purported to operate a trust called “Quintessential,” and directed that his paychecks be made payable to Quintessential. He also opened a bank account in the name of Quintessential where he deposited CSPS proceeds. Mach admitted that he did not report to the IRS any of the income he earned from CSPS between 2002 and 2010, and used Quintessential to conceal income from the IRS. In furtherance of the conspiracy, Mach also attempted to impede an IRS summons issued to a bank for business account records. Mach closed his bank account after the bank complied with the IRS summons. As set forth in the plea agreement, Mach admitted that his total unreported income for the tax years 2002 through 2010 was $1,410,430, upon which the total tax due and owed to the IRS is $270,275.
Assistant Attorney General Kathryn Keneally of the department’s Tax Division, commended the investigative efforts of the special agents of IRS-Criminal Investigation, who investigated the case, Tax Division Trial Attorneys Sonia M. Owens and Mark L. Williams, who prosecuted the case, and Assistant U.S. Attorneys Sandra R. Brown and Paul Rochmes of the U.S. Attorney’s Office for the Central District of California, who assisted in the prosecution.
Brownwood, Texas, Man Sentenced to 50 Years in Federal Prison for Producing and Receiving Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Aniceto Jose Villarreal, 29, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 50 years in federal prison and a lifetime of supervised release, following his guilty plea in August 2013 to one count of production of child pornography and one count of receipt of child pornography. Villarreal has been in custody since his arrest in June 2013 on a related federal criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On June 25, 2013, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Villarreal’s home and five computers, two telephones and three thumb drives were found.
According to documents filed in the case, Villarreal used his cell phone to create a video of a minor male engaged in sexually explicit conduct. In addition, Villarreal admitted that he collected and traded images and videos of child pornography. Some of the child pornography was collected using peer-to-peer file-sharing software, but most of the images and videos depicting minors engaged in sexually explicit conduct were received and sent by way of his cell phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by ICE HSI, the U.S. Marshals Service and the Brown County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Baltimore Heroin Trafficker Exiled to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Cofield, age 26, of Baltimore, today to 12 years in prison followed by four years of supervised release for conspiring to distribute heroin. Judge Blake further entered an order that Cofield forfeit $58,531 seized on December 11, 2012 during the execution of search warrants.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.According to his plea agreement, from July to December 2012, Cofield engaged in the distribution of heroin in Baltimore City; and instructed coconspirators on how to store and prepare heroin, as well as the storage, collection and transfer of money received from the heroin distribution. The distribution of at least one kilogram or more of heroin was reasonably foreseeable to Cofield.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Vanda Maurice Gilmore, 30, of Mobile, was sentenced in federal court today on charges of possession with intent to distribute cocaine and using and carrying a firearm during and in relation to a drug trafficking felony. Judge William H. Steele imposed a sentence of 27 months imprisonment on the drug charge, which is to run consecutive to the sentence of 60 months imprisonment on the gun charge. The federal statute under which Gilmore was charged with illegally using and carrying the firearm requires by its terms a minimum mandatory sentence of 60 months which must run consecutive to any other sentence imposed. The judge also ordered that when Gilmore is released from his prison term, he will be placed on supervised release for five years. No fine was imposed, but Gilmore was ordered to pay a special mandatory assessment of $200.
The case was investigated by the Mobile County Street Enforcement Narcotics Team, the Mobile Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Antiques Dealer Sentenced to 37 Months in Prison for Wildlife SmugglingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Dan Ashe, the Director of the U.S. Fish and Wildlife Service, announced today that QIANG WANG, a/k/a Jeffrey Wang, a New York antiques dealer, was sentenced in Manhattan federal court to 37 months in prison for his role in a conspiracy to smuggle Asian artifacts made from rhinoceros horns and ivory and violate wildlife trafficking laws. WANG was arrested in February 2013 as part of “Operation Crash,” a nation-wide crackdown on the illegal trafficking in rhinoceros horns, for his role in smuggling libation cups carved from rhinoceros horns from New York to China. He pled guilty in August 2013 and was sentenced today by U.S. District Judge Katherine B. Forrest.
Manhattan U.S Attorney Preet Bharara said: “With his sentence today, Qiang Wang is held accountable for his role in feeding the flourishing black market for artifacts made from endangered species. This Office will continue its work to prosecute those who contribute to the illegal wildlife trade, and to uphold the rules designed to protect wildlife.”
Acting Assistant Attorney General Robert Dreher said: “Wang and others like him involved in smuggling these artifacts made from rhino horn and ivory have helped to create a market for wildlife products that is not sustainable.
This is an active and ongoing investigation that is designed to send a clear message to buyers and sellers that we will vigorously investigate and prosecute those who are involved in this devastating trade.”
U.S. Fish and Wildlife Service Director Dan Ashe said: “We’re reaching a tipping point, where the unprecedented slaughter of rhinos and elephants happening now threatens the viability of these iconic species’ wild populations in Africa. This slaughter is fueled by illegal trade, including that exposed by Operation Crash. We will continue to work relentlessly across the United States government and with our international partners to crack down on poaching and wildlife trafficking.”
According to the Information, WANG’s guilty plea, and statements made during court proceedings:
In China, there is a tradition dating back centuries of intricately carving rhinoceros horn cups. Drinking from such a cup was believed by some to bring good health, and antique carvings are highly prized by collectors. Libation cups and other ornamental carvings are particularly sought after in China and in other Asian countries, as well as in the United States. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including fake antiques made from recently, and often illegally, hunted rhinoceros.
Between approximately January 2011 and February 2013, WANG conspired with at least two others to smuggle objects containing rhinoceros horn and elephant ivory out of the United States knowing that it was illegal to export such items without required permits. Due to their dwindling populations, all rhinoceros and elephant species are protected under international trade agreements. WANG made and used false United States Customs Declarations for the packages containing rhinoceros horn and ivory objects in order to conceal the true contents of the packages, and did not declare them to the U.S. Fish & Wildlife Service U.S. Customs and Border Protection as required under U.S. law and international trade agreements.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns
In sentencing WANG, Judge Forrest said that his behavior helped “create and sustain a marketplace for goods made from endangered wildlife.” Judge Forrest also said that WANG’s conduct was “illegal and extremely troubling.”
In addition to the prison term, Judge Forrest ordered WANG, 34, of Flushing, New York, to forfeit certain ivory goods in his possession, and banned him from all future trade in elephant ivory and rhino horn. Wang was also sentenced to serve a term of three years of supervised release.
Mr. Bharara and Mr. Dreher commended the U.S. Fish and Wildlife Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their outstanding work in this investigation. They also thanked the New York State Department of Environmental Conservation Division of Law Enforcement for their assistance.
The case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Janis M. Echenberg and Senior Counsel with the Environmental Crimes Section of the United States Department of Justice Richard A. Udell are in charge of the prosecution.
Albuquerque Woman Pleads Guilty to Robbing Washington Federal Bank in September 2013Read the Press Release
ALBUQUERQUE – Maria Stovall, 49, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging her with bank robbery.
Stovall was arrested on September 27, 2013, on a criminal complaint charging her with robbing the Washington Federal Bank located at 1301 Wyoming Blvd. NE, in Albuquerque that day. She subsequently was indicted on a bank robbery charge.
During today’s proceedings, Stovall entered a guilty plea to the indictment and admitted robbing Washington Federal Bank on September 27, 2013, by passing a handwritten note demanding money to a bank teller. Court filings reflect that as Stovall fled from the bank with the cash, a bank manager followed her to a nearby hospital where he confronted Stovall and took the backpack that Stovall was carrying. Stovall was arrested by officers of the Albuquerque Police Department shortly thereafter.
Stovall remains on conditions of release at a half-way house pending her sentencing hearing, which has yet to be scheduled. At sentencing, Stovall faces a maximum penalty of 20 years in prison.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley.
Albuquerque Man Pleads Guilty to Federal Carjacking ChargeRead the Press Release
ALBUQUERQUE – Manuel Torrez, 33, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with carjacking. Under the terms of his plea agreement, Torrez will be sentenced to 84 months in federal prison followed by a term of supervised release to be determined by the court.
Torrez was indicted in April 2013, and charged with using force to take an automobile from another person in Bernalillo County, N.M., on March 17, 2013. During his plea hearing, Torrez pled guilty to the indictment and admitted that on March 17, 2013, he forcefully yanked a woman out of her truck, pushed the victim to the ground after a brief struggle, took the victim’s car keys, and drove away in her truck.
Torrez was arrested on local charges shortly after the carjacking and was held in state custody until he was transferred to federal custody in July 2013. He remains detained pending his sentencing hearing, which has yet to be scheduled.
Torrez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Abilene Man Sentenced to 188 Months in Federal Prison for Robbing Citibank in Abilene This SummerRead the Press Release
LUBBOCK, Texas — Jacob Alan Powell, 28, of Abilene, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 188 months in federal prison for committing the July 8, 2013, aggravated bank robbery of a Citibank location in Abilene. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on July 8, 2013, Powell, wearing business attire and a Hardin-Simmons University baseball cap, entered the Citibank, N.A., located at 3409 South 14th Street in Abilene. He waited several minutes before an available teller asked him to her station. Once at the teller counter, he told the teller that he was making a withdrawal. When the teller asked him for his account number, he told her that she didn’t understand and then lifted his suit jacket to show her a gun in his waistband. Fearing for her life as the gun appeared real, the teller opened her cash drawer and put cash in a bag that Powell provided; Powell then quickly left the bank.
The following day, bank surveillance photos were shown on the local news and Powell was identified by witnesses.
The investigation was conducted by the FBI and the Abilene Police Department. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
88 Year-Old Author Sentenced for FraudRead the Press Release
PORTLAND, Ore. – A former resident of Pacific City was sentenced in federal court on December 3, 2013, for stealing more than $78,000 from the Social Security Administration (SSA), the Oregon Department of Human Services (DHS), and Medicaid. Peter C. Byrne, 88, was sentenced to a three year term of probation and required to pay full restitution by the end of the week. Byrne pleaded guilty in August and admitted that between 1992 and 2012 he concealed from SSA and DHS his travels outside the United States and his compensation, while receiving Supplemental Security Income (SSI) and food stamps. Byrne had previously deposited $25,000 with the court for restitution and indicated he was prepared to pay the full balance by the end of the day.
According to documents filed by the government and Byrne’s admissions, Byrne began receiving SSI, a need-based benefit, in 1990 and was required to report to SSA certain travel outside the United States as well as his income and compensation. Between 1992 and 2012, Byrne traveled outside the U.S. for more than 30 days at least 15 times, on some occasions remaining outside the U.S. for more than four months. Between 2009 and 2012, Byrne also maintained bank accounts with Barclays of England and Wells Fargo where he held more than $85,000 at one time, and failed to disclose these bank accounts to SSA and DHS. When Byrne was questioned by SSA and investigators in 2012, he failed to disclose all of his travels and assets. When SSA asked to see his passport, Byrne advised that he had accidentally destroyed his passport by running it through the washing machine.
Investigators subsequently served a search warrant at Byrne’s residence and located financial and travel records, and his Will. Byrne urged that the Will be kept confidential because he feared the Social Security Administration would come after his estate for benefits he unlawfully received. Agents also located a copy of a letter from Byrne to Safari Press directing that any future royalties for his published books be sent to his girlfriend. Byrne had previously been questioned by investigators whether he was receiving royalties for the books he had written on topics such as his search for Bigfoot and game-hunting in Nepal. Byrne denied receiving royalties.
Prosecutors also noted that in the 1990s, Byrne had two previous overpayments of SSI because of unreported travel and assets. Those prior overpayments had been handled administratively by SSA.
The Honorable Garr M. King stated that Byrne’s actions had been intentional and criminal, but agreed with the parties’ recommended sentence of probation primarily because of Byrne’s age.
The case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations, the U.S. Department of Health and Human Services, the Oregon Department of Human Services, and the Tillamook County Sheriff’s Office, and was prosecuted by Special Assistant United States Attorney Helen L. Cooper, as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office in Portland.
20 Detroit-area Residents Charged in Medicare Fraud Strike Force Takedown for Approximately $34 Million in False BillingRead the Press Release
Twenty Detroit-area residents have been charged for their roles in physician home visit, home health care, chiropractic and psychotherapy schemes to submit more than $34 million in false billing to Medicare.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
“Medicare fraud hits every taxpayer and harms so many who are in need of critical health care,” said Acting Assistant Attorney General Raman. “The defendants arrested yesterday and today include doctors, physical therapists and home health care agency owners who were entrusted by Medicare to provide their patients with necessary care and services. Instead, they abused that trust for their own profit. The Strike Force’s operation reflects our continuing and unflagging commitment to put an end to these harmful fraud schemes.”
“Doctors and clinic owners should take note that we are scrutinizing billing data to detect fraud and bring offenders to justice,” said U.S. Attorney McQuade. “We are committed to recovering tax dollars intended for patient care.”
“These charges clearly send the message to criminals that committing fraud against government health care programs puts them squarely in the sights of the Medicare Fraud Strike Force,” said HHS-OIG Special Agent in Charge Pugh. “Taxpayers and patients should know that OIG with its Strike Force partners will continue to root out, expose, and hold accountable those who attack the Medicare program.”
“When medical doctors, physical therapists, and other health care providers conspire to defraud our government health care programs and undermine the public trust, they not only betray their profession, but also steal directly from the American people,” said FBI Special Agent in Charge Abbate. “The FBI and our law enforcement partners in the Medicare Fraud Strike Force will continue our efforts on behalf of the American taxpayer to prevent health care fraud and bring these criminal perpetrators to justice.”
Court documents unsealed this week in the Eastern District of Michigan charge defendants including physicians, owners and operators of companies, office employees and patient recruiters with submitting fraudulent claims for services that were never rendered and with paying kickbacks to obtain patients to be billed. Nineteen of the defendants were arrested or surrendered to authorities yesterday morning and this morning, and one defendant remains at large. In addition, law enforcement agents yesterday and today executed search warrants at nine locations and seizure warrants of 14 bank accounts related to the alleged fraud schemes.
The following charges were unsealed:
United States v. Goldfein, et al.
Two individuals, both medical doctors, were charged in an indictment with conspiring to commit health care fraud for their roles in a $5.4 million scheme to defraud Medicare by submitting fraudulent claims for physician home services that were not provided. The indictment alleges that the fraudulent claims were submitted by a physician clinic that provides both in-home and outpatient health care services. The clinic, with locations in Livonia, Mich., and Swartz Creek, Mich., is known as Tri City Medical Centers P.C.
The defendants charged in the indictment are Aaron Scott Goldfein, 49, of Bloomfield Hills, Mich., and William Clay Sokoll, 58, of Royal Oak, Mich.United States v. Elhorr, et al.
Three individuals, one of whom is a medical doctor and one of whom is a nurse, were charged in a superseding indictment with conspiracy to commit health care fraud for their roles in an $11.5 million scheme to defraud Medicare by submitting fraudulent claims for physician home services that were not provided. The superseding indictment alleges that the fraudulent claims were submitted by a home visiting physician practice. The practice, located in Allen Park, Mich., was known as House Calls Physicians P.L.L.C.
The defendants charged in the superseding indictment are Ali Elhorr, 44, of Dearborn, Mich.; Lama Elhorr, 31, of Hollywood, Fla. (formerly of Dearborn, Mich.); and Kelly White, 44, of Dearborn, Mich.United States v. Khan, et al.
Ten individuals were charged in an indictment with conspiracy to commit health care fraud or conspiracy to pay and receive illegal kickbacks for their roles in a $7 million scheme to defraud Medicare. The defendants include two medical doctors and three owners of home health care agencies, one of whom is also a physical therapist, as well as patient recruiters and office staff. The indictment alleges that the defendants caused the submission of fraudulent claims to Medicare for medically unnecessary home health care services and paid kickbacks in the form of cash payments and prescription narcotics to Medicare beneficiaries for the use of their Medicare beneficiary numbers. The indictment also alleges that physicians received kickbacks in the form of cash payments to certify Medicare beneficiaries for medically unnecessary home health care services. The fraudulent claims were submitted by two home health care agencies, Advance Home Health Care Services Inc. and Perfect Home Health Care Services LLP.
The defendants charged in the indictment are Walayat Khan, 65, of Ypsilanti, Mich.; Adelina Herrero, 72, of Ann Arbor, Mich.; Amer Ehsan, 44, of Canton, Mich.; Haroon Ur Rashid, 47, of West Bloomfield, Mich.; Mohammad Rafiq, 47, of West Bloomfield, Mich.; Salman Ali Sapru, 51, of Ypsilanti, Mich.; Farhan Khan, 25, of Ann Arbor, Mich.; James Zadorski, 48, of Detroit, Mich.; Cynthia Bell, 55, of Detroit, Mich.; and John Sanders, 59, of Pontiac, Mich.United States v. Hassan, et al.
Two individuals were charged in an indictment with conspiracy to commit health care fraud and conspiracy to pay and receive illegal kickbacks for their roles in a $4.5 million scheme to defraud Medicare. The indictment alleges that the defendants, the owner of a home health care agency who is also a physical therapist and a recruiter, caused the submission of fraudulent claims to Medicare for medically unnecessary home health care services and paid kickbacks in the form of cash payments to Medicare beneficiaries for the use of their Medicare beneficiary numbers. The indictment also alleges that physicians received kickbacks in the form of cash payments to certify Medicare beneficiaries for medically unnecessary home health care services. The fraudulent claims were submitted by Cherish Home Health Services LLC.
The defendants charged in the indictment are Zia Hassan, 47, of Saline, Mich., and Nathaniel Miller, 52, of Detroit, Mich.United States v. Minhas
Naseem Minhas, 47, of West Bloomfield, Mich., was charged with conspiracy to commit health care fraud and conspiracy to pay and receive illegal kickbacks for his role in a $5.7 million scheme to defraud Medicare. The indictment alleges that the defendant, the beneficial owner of a home health care agency, caused the submission of fraudulent claims to Medicare for medically unnecessary home health care services and paid kickbacks in the form of cash payments to marketers to recruit Medicare beneficiaries and to certify Medicare beneficiaries for medically unnecessary home health care services. The indictment alleges that the fraudulent claims were submitted by Tricounty Home Care Services Inc.United States v. Lovett, et al.
The owners of a Detroit-area billing company were charged in a criminal complaint for their roles in a health care fraud scheme involving claims for chiropractic and psychotherapy services. The complaint alleges that the operators of ABIX LLC obtained the Medicare numbers of licensed medical service providers in and around Detroit and used this information to bill Medicare for chiropractic and psychotherapy services that were not provided.
The defendants charged in the criminal complaint are Elaine Lovett, 58, of Wayne County, Mich., and Michelle Freeman, 54, of Livingston County, Mich.
An indictment or criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and the Department of Health and Human Services to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
These cases were investigated by the FBI and HHS-OIG and were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. These cases are being prosecuted by Trial Attorney William G. Kanellis, Trial Attorney Matthew C. Thuesen, and Special Trial Attorney Katie R. Fink of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
4 December 2013
Wilkinsburg Convenience Store Owners Get Probation for Defrauding the Food Stamp ProgramRead the Press Release
PITTSBURGH - Owners of a Wilkinsburg convenience store have been sentenced to two years of probation, five months home detention and ordered to pay restitution of $119,871.00 on their conviction on a charge of conspiracy to commit wire fraud, and food stamp fraud, United States Attorney David J. Hickton announced today.
Nicole Gordon, 34, of Turtle Creek, PA and Stanley Saxton, 44, of Verona, PA, siblings and co-owners and operators of Nicky's Corner, located on Montier Street in Wilkinsburg, PA, were sentenced by Senior District Judge Maurice B. Cohill, Jr. Gordon and Saxton also executed civil settlement agreements for violations of the False Claims Act, and agreed to pay to the United States the sum of $119,871.
According to the information presented to the court, Nicky's Corner participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at the store. As a condition of participation in the Food Stamp Program, the defendants certified that they would comply with all rules and regulations of the program and were aware that program rules strictly prohibited the exchange of food stamp benefits for cash and/or for ineligible items, such as cigarettes. Despite this knowledge, on multiple occasions, the defendants exchanged food stamp benefits with customers in exchange for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for their food stamp benefits. Gordon and Saxton also permitted customers to use food stamp benefits to pay for ineligible items, such as cigarettes.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the Criminal Division of the U.S. Attorney's Office and Assistant United States Attorney Colin Callahan is litigating the case on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
U.S. Attorney Hickton commended the Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Nicole Gordon and Stanley Saxton.
West, Texas Man Sentenced to Prison on Federal Firearms and Obstruction of Justice ChargesRead the Press Release
In Waco this afternoon, 31-year-old Bryce Ashley Reed of West, TX, was sentenced to 21 months in federal prison followed by three years of supervised release and ordered to pay a $2,000 fine for conspiracy to make an unregistered destructive device and attempting to obstruct justice announced United States Attorney Robert Pitman and ATF Special Agent in Charge Robert W. Elder, Houston Division.
On October 10, 2013, Reed pleaded guilty to the charges. By pleading guilty, Reed admittedly conspired with others from December 2012 until April 26, 2013, to construct and possess a pipe bomb, then attempt to conceal it from law enforcement or destroy it, thus impairing its availability for use in grand jury proceedings. According to court records, Reed used the Internet to place orders and arrange shipments to his residence of various bomb-making components. Reed also enlisted the assistance of another individual to construct the housing for the pipe bomb. Once completed, Reed took possession of the pipe and stored it inside his residence along with the other components inside two ammunition cans.
According to the factual basis in this case, after the events of April 17, 2013, wherein an explosion at the West Fertilizer Company resulted in the deaths of 15 individuals and the damage and destruction to many structures within a several-block radius of the plant, Reed, whose home was affected by the blast, was staying in a motel in West. On April 26, 2013, knowing that there was a possibility investigators might find the bomb-making components inside his residence and charge him, Reed enlisted the assistance of two individuals to travel to his home in West and retrieve the ammunition cans and bring them to him, which they did. Reed, subsequently, provided a box containing the ammunition cans and the bomb-making materials to another individual with instructions to “get rid of this.” The individual agreed to do so and placed the box in a spare bedroom in his home in Abbott, Texas. On May 7, 2013, the individual, for the first time, looked into the box and discovered its contents. He immediately notified the McLennan County Sheriff’s Office who took possession of the items.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives together with the McLennan County Sheriff’s Office, McLennan County District Attorney’s Office, West Police Department, Texas State Fire Marshal’s Office and Texas Department of Insurance Fraud Unit. Assistant United States Attorneys Mark Frazier and Greg Gloff prosecuted this case on behalf of the Government.
Waterbury Resident Pleads Guilty to Embezzling Funds from National GuardRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DEREK JACKSON, 36, of Waterbury, waived his right to indictment and pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to conspiring to embezzle funds from the Connecticut Army National Guard.
According to court documents and statements made in court, JACKSON was serving in the Connecticut Army National Guard in 2004 when he began conspiring with his payroll supervisor to have supplemental, unauthorized National Guard payments transferred into his bank account. JACKSON admitted that he periodically shared a portion of the unauthorized funds with his payroll supervisor. JACKSON received a total of $89,595.44 in unauthorized payments until January 2010, when the payroll supervisor died.
Judge Covello scheduled sentencing for February 26, 2014, at which time JACKSON faces a maximum term of imprisonment of five years.
This matter is being investigated by the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
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(203) 821-3722 [email protected]Wanblee Man Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for Felony Child Abuse and Neglect.
Simon Glenn, age 21, was indicted on November 19, 2013. He appeared before U.S. Magistrate Judge Veronica L. Duffy on December 3, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 2 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment charges that in November 2013, near Wanblee, Glenn abused a child who had not attained the age of seven years.
The charge is merely an accusation and Glenn is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Glenn was released pending trial. A trial date has not been set.
Virginia Man Sentenced to 70 Months in Prison for Traveling to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – William G. VanSant, 51, of Alexandria, Va., was sentenced today to 70 months in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
VanSant pled guilty to the charges in August 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Robert L. Wilkins. Upon completion of his prison term, VanSant will be placed on 10 years of supervised release. He also will be required to register as a sex offender for at least 15 years after his release from prison.
According to the government's evidence, on March 20, 2013, VanSant contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted a message on a website that is frequented by individuals who have a sexual interest in children. Over the next two days, Vansant continued to engage in online conversations with the undercover officer, whom he believed was the father of an under-aged girl. During this period, VanSant arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
In addition, during the course of their communications, VanSant sent the undercover officer several images of child pornography. On March 22, 2013, VanSant traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested.
Pursuant to a warrant, VanSant’s residence was searched on March 28, 2013. Law enforcement seized two laptop computers, including one that contained seven videos and eight images depicting child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance provided by Assistant U.S. Attorney Catherine K. Connelly, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office. Finally, they commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
13-412Two Massachusetts Men Who Recorded a Private Conversation between two NFL General Managers Enter into Pre-Trial Diversion AgreementsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a resolution has been reached involving charges against two Massachusetts men charged with invading a private conversation between two NFL general managers.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that on Joshua Barber and Nicholas Kaiser, both 21 of Plymouth, Massachusetts, intercepted a telephone conversation between former Buffalo Bills General Manger Buddy Nix and Tampa Bay Bucaneers General Manger Mark Dominik during which they discussed a number of private matters.
On May 20, 2013, Barber and Kaiser were charged by criminal complaint with intentionally intercepting a wire communication between private parties and with making a telephone call without disclosing their identity with the intent to annoy or harass the person at the called number. According to the criminal complaint, the defendants not only gained access to and intercepted the private conversation between the two General Managers, they also recorded it and sold it for $150.00 to a particular outlet. The private, recorded conversation was later made public.
The pending charges were resolved by the defendants entering into pre-trial diversion agreements with the Government. Under the terms of the diversion agreement, Barber and Kaiser must abide by certain terms and conditions for the next 18 months. If the defendants fail to comply with the diversion agreement, the charges could be re-instated by the Government. Those involved in this case supported the diversion disposition agreed to by the Government.
The resolution is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Three Tallahassee Residents Convicted of Food Stamp FraudRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today thatthreemen have been convicted of conspiring todefraud the Supplemental Nutrition Assistance Program (SNAP), as well as other charges. SNAP is also known as the food stamp program. Rodrigue Bissainthe, 26, pled guilty to conspiracy and to two mail fraud charges on November 27, 2013. Darius Jemmott, 21, was convicted of conspiracy, three charges of fraud involving interstate wire communications, and aggravated identity theft at a trial that concluded December 3, 2013. Dwayne Phanor, 24, pled guilty to conspiracy, mail fraud, wire fraud, and seven aggravated identity theft charges on December 4, 2013, after a jury had been sworn to try his case.
SNAP provides economic assistance to qualified low-income people, to help them obtain adequate food. This assistance is provided on Electronic Benefits Transfer (EBT) cards, which function as pre-loaded debit cards. The United States Department of Agriculture funds the SNAP program. In Florida, SNAP is administered by the Department of Children and Family Services (DCF). When these crimes occurred, between January and April 2013, DCF had contracted with JP Morgan Chase (JPMC) to service aspects of the program. The Department of Financial Services (DFS) investigates public assistance fraud arising from DCF programs.
According to matters presented in Court, DCF realized in March 2013 that numerous SNAP applications had been received for a single Tallahassee address, on Magnolia Court. Controlled deliveries of EBT cards to that address led to the arrest of Bissainthe by the Tallahassee Police Department on April 16, 2013. Bissainthe admitted that he was receiving these cards for Phanor and that Phanor had given him an EBT card for his own use.
DFS was able to track the use of another EBT card at local merchants, leading to the identification and arrest of Jemmott on April 18, 2013. Jemmott had that card on his person when arrested and eventually admitted buying it from Phanor.
Phanor was arrested in an adjacent Tallahassee apartment, also on April 18, 2013. Phanor’s backpack held voluminous notations relating to fraudulent EBT applications and change of address requests. Phanor advised that his telephone number was the same as the number that had been used to make calls to a JPMC EBT call center. Phanor admitted filing numerous SNAP applications using other people’s names, Social Security numbers, and dates of birth. Phanor indicated that he gained access to an Ocala Road delivery address through Jemmott. Another address on West Georgia Street was also used.
Some of Phanor’s fraudulent applications were denied, because those people were already receiving SNAP benefits. Phanor admitted calling the JPMC call center, pretending to be the genuine beneficiaries (both men and women), and asking that the benefits be re-directed to the addresses he controlled. His aggravated identity theft convictions were based upon seven of these calls.
A DCF representative presented documents showing that at least 72 fraudulent applications were filed, involving a potential loss of $101,258.82 and an actual loss of $7,291.88. The defendants will be sentenced by United States District Judge Mark Walker. Bissainthe will be sentenced on February 7, 2014, and Jemmott and Phanor on March 14, 2014. The conspiracy, wire fraud, and mail fraud convictions each carry a maximum possible term of twenty years in prison, a $250,000 fine, and a three-year term of supervised release. The penalty for aggravated identity theft is a mandatory two years in prison, a maximum $250,000 fine, and a one-year term of supervised release. Sentence on aggravated identity theft charges must be consecutive to sentences for any other conviction, but may be concurrent with other aggravated identity theft sentences.
U.S. Attorney Marsh praised the joint efforts of the Department of Children and Family Services, the Department of Financial Services, the Tallahassee Police Department, the United States Postal Inspectors, and the United States Secret Service for their hard work, dedication, and expertise in the investigation that led to the prosecution of this case.
This case is being prosecuted by Assistant U.S. Attorney Michael T. Simpson.Three Patient Recruiters for Miami Home Health Company Plead Guilty for Roles in $48 Million Fraud SchemeRead the Press Release
Three patient recruiters for a Miami health care company pleaded guilty yesterday for their participation in a $48 million home health Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Miami residents Marianela Martinez, 45; Omar Hernandez, 48; and Celia Santovenia, 49, pleaded guilty before U.S. District Judge Donald L. Graham in the Southern District of Florida to one count each of conspiracy to receive health care kickbacks. Sentencing has been scheduled for Feb. 11, 2014.
According to court documents, Martinez, Hernandez and Santovenia were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Santovenia also worked for Good Quality Home Health Care Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, the defendants would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Three Defendants Convicted in $3.2M Medicare Fraud SchemeRead the Press Release
SAN FRANCISCO Patrick Adebowale Sogbein, his wife, Adebola Adefunke Adebimpe, and Eduardo Abad were convicted today by a federal jury, following a 13-day trial, of Conspiracy to Commit Health Care Fraud and Health Care Fraud, announced United States Attorney Melinda Haag; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation in San Francisco; and Glenn R. Ferry, the Special Agent in Charge for the Los Angeles Regional Office of Inspector General of the Department of Health and Human Services. Sogbein and Abad were also convicted of Conspiracy to Pay and Receive Kickbacks involving the Medicare Program,
The jury found that from December 2006 through July 2011, Sogbein and Adebimpe, through two Los Angeles area durable medical equipment companies, submitted over $3.2 million in fraudulent claims to Medicare for power wheelchairs and power wheelchair accessories based on bogus prescriptions for Medicare beneficiaries who had been identified by Abad and other street-level recruiters. The jury also found that Sogbein paid and Abad received cash kickbacks in exchange for referral of the Medicare beneficiaries. Sogbein and Adebimpe were paid more than $1.6 million by Medicare.
Prior to trial, on September 30, 2013 and October 21, 2013, respectively, co-defendants Edna Calaustro and Mele Saavedra, both of San Francisco, pled guilty to Conspiracy to Commit Health Care Fraud, Conspiracy to Receive Kickbacks involving the Medicare Program, and Health Care Fraud.
Sogbein and Adebimpe were remanded into custody today following conviction. Abad, Calaustro, and Saavedra remain out of custody.
The evidence at trial showed that in approximately December 2006, Sogbein, the owner of Debs Medical Distributors, a Van Nuys durable medical equipment company, began working with Calaustro, a physician, to obtain bogus prescriptions for power wheelchairs. In 2008, after Sogbein had increasing difficulties with Medicare scrutinizing the claims that he submitted, Sogbein and Adebimpe began submitting claims through a separate company in Adebimpe’s name, Dignity Medical Supply, a Santa Clarita durable medical equipment company. Sogbein and Calaustro worked with Abad, Saavedra, and others to identify Medicare beneficiaries. The evidence showed that Abad and Saavedra recruited beneficiaries at locations in the Tenderloin and South of Market neighborhoods in San Francisco, including a fast food restaurant at the Powell Street cable car turnaround and a Tenderloin neighborhood senior center. After identifying beneficiaries, Calaustro, with Abad or Saavedra, went to the beneficiaries’ homes with a portable copy machine, copied their Medicare cards, and conducted sham examinations to obtain background information for the required Medicare paperwork. Calaustro gave the fraudulent paperwork and bogus prescriptions to Sogbein and Adebimpe. Sogbein and Adebimpe, in turn, created additional fraudulent paperwork in the names of their respective companies and submitted the claims to Medicare. Sogbein paid Calaustro $100 for each power wheelchair prescription. Sogbein paid Abad and Saavedra $100 and $50, respectively, for each beneficiary they identified. Over the five-year period, Sogbein and Adebimpe billed Medicare for over 400 power wheelchairs using the bogus prescriptions written by Calaustro.
“Health Care Fraud is particularly pernicious because it not only defrauds the government but it inhibits Medicare’s ability to help those in need. The verdict today reaffirms this office’s commitment to prosecuting those who intentionally engage in schemes to defraud Medicare,” said United States Attorney Melinda Haag.
“The result of this case represents the FBI’s commitment to aggressively identify and investigate health care fraud crimes,” said FBI Special Agent in Charge David J. Johnson. “Our outstanding partnership with HHS-OIG nationwide allowed us to successfully work with their office in Los Angeles in order to bring down this egregious health care fraud scheme operating throughout California.”
A sentencing hearing for Sogbein, Adebimpe, and Abad is scheduled for March 20, 2013 at 2:00 p.m. before Judge Jeffrey S. White. The maximum statutory penalties for each count of Conspiracy to Engage in Health Care Fraud, in violation of Title 18, United States Code, Section 1349, and Health Care Fraud, in violation of Title 18, United States Code, Section 1347, are 10 years imprisonment and a fine of $250,000, or twice the amount gained in the course of the fraud, whichever is greater, plus restitution. The maximum statutory penalty for Conspiracy to Pay and Receive Kickbacks involving the Medicare program, in violation of Title 18, United States Code, Section 371, is 5 years imprisonment, and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. ? 3553.
Denise Marie Barton and Randy Luskey are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Assistant U.S. Attorney David Countryman, Paralegal Specialist Beth Margen, and Legal Assistant Bridget Kilkenny. The prosecution is the result of ten-month investigation by the Federal Bureau of Investigation in San Francisco and Office of Inspector General, Department of Health and Human Services in Los Angeles.
Spouse of Former Lackawanna County Guardian Ad Litem Pleads Guilty to Federal Income Tax Fraud MisdemeanorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Walter J. Pietralczyk, Jr., age 39, pleaded guilty today to a tax fraud misdemeanor before U.S. Magistrate Judge Thomas M. Blewitt in Scranton.
Pietralczyk is the spouse of Lackawanna County Attorney and former Family Court Guardian Ad Litem Danielle Ross Pietralczyk, both of Jermyn, Pennsylvania.
According to United States Attorney Peter J. Smith, an indictment filed against Ross in February 2013 alleged that the couple’s joint federal tax returns verified by Ross under penalty of perjury failed to report income she received from private paying clients while acting as the guardian ad litem for the Lackawanna County Family Court. The only income Ross reported for 2009 and 2010 was her County compensation reported on 1099 Forms which she received as an independent contractor hired by Lackawanna County.
The indictment charged that as the sole guardian ad litem for the Lackawanna County Family Court, Ross was paid an annual compensation of $38,000. Pursuant to the contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her County compensation at a rate of $50 per hour. Those payments were not reported as income for tax purposes.
The investigation continued beyond the original indictment and ultimately implicated Pietralczyk in the submission of false information to the IRS on tax returns filed by the couple.
Pietralczyk was charged in an Information filed by the U.S. Attorney’s Office in November 2013.
Pursuant to the terms of plea agreements with the Government, both Ross and Pietralczyk have agreed that the tax loss to the United States as a result of the fraud is more than $30,000 but less than $80,000. The restitution amount that will be imposed upon the couple will be determined by the Court as part of the sentences. Pietralczyk’s plea relates to the 2009 tax return.
Ross is scheduled to enter her guilty plea on December 16, 2013, before U.S. Senior District Court Judge A. Richard Caputo. She was dismissed from her position as County Guardian Ad Litem earlier this year.
The prosecutions are the result of a joint investigation by the United States Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and the Lackawanna County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski, assisted by Assistant U.S. Attorney William Houser.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for Pietralczyk is one year imprisonment, a term of supervised release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Sonoma Man Indicted for $1.6 Million Fraud SchemeRead the Press Release
SAN FRANCISCO - A federal Indictment charging Michael Thomas Hamilton, a/k/a Thomas Smith, with 22 counts of mail fraud, wire fraud, and money laundering was unsealed today in federal court, announced United States Attorney Melinda Haag.
Hamilton, 49, of Sonoma, California, was indicted by a federal grand jury on November 19, 2013. According to the Indictment, Hamilton engaged in a scheme to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises regarding a book-selling business, Small Leaf, Hamilton claimed to own and operate. Hamilton represented to prospective investors that Small Leaf was a company engaged in the sale of “proprietary Books, etc. on Amazon.com and other internet websites” and that, for their investment, they would receive intellectual property rights for a number of “performing products of Small Leaf Inc.” By October 2013, according to the Indictment, Hamilton had solicited approximately $1,616,000 from more than 20 investors in California, Oregon, and Massachusetts.
As part of the scheme to defraud, Hamilton allegedly misrepresented that investors would earn high rates of return through the sale of books on Amazon and other platforms; that, if investors did not recoup their investment by a certain date, Small Leaf would reimburse the investor with interest of 10%; and that his book-selling business generated over one million dollars in yearly revenue. Hamilton also allegedly made periodic payments to investors, which he informed investors were royalties earned on the sale of books through Amazon. According to the Indictment, however, Hamilton’s book-selling business generated very little revenue, and most of the payments made to investors were from investments by new victims or additional investments by existing victims.
Hamilton was arrested on December 3, 2013, in Sonoma, California. He made his initial appearance in federal court in San Francisco today, when he was released on bond. Bail was set at $75,000. Hamilton’s next scheduled appearance is on December 12, 2013, at 9:30 a.m., before The Honorable Maria-Elena James, United States Magistrate Judge in San Francisco.
The maximum statutory penalty for each count of mail and wire fraud, in violation of 18 U.S.C. §§ 1341 and 1343, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum statutory penalty for each count of money laundering, in violation of 18 U.S.C. § 1956, is 20 years’ imprisonment and a fine of $500,000 or twice the value of the property involved in the transaction. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert S. Leach is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Mary Mallory and Rayneisha Booth. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against a person and, as with all defendants, Michael Thomas Hamilton must be presumed innocent unless and until proven guilty.
Serial Con Artist Pleads Guilty to Bank Fraud and Aggravated Identity TheftRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that Latasha Callens (35, Tampa) yesterday pleaded guilty to bank fraud, access device fraud, mail fraud, and aggravated identity theft. Callens faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
Callens was indicted on July 24, 2013.
According to the plea agreement, Callens committed crimes from at least as early as July 2011 through May 2013, when she was finally arrested. She committed many of the crimes while on release from state charges, after having failed to appear to face them. Over a period of two years, and at least 58 times, Callens defrauded banks and individuals. As part of her scheme Callens would approach people, usually at ATMs, and give them a sad story about her need to cash a check and her inability to deposit the check into her bank account. Callens would convince her victims to deposit the checks, which were worthless, into their own account and then withdraw funds, sometimes giving them $100 for their trouble.
Callens’ checks were generally drawn on closed accounts, because the checks had been stolen or were from the accounts of deceased individuals. When she was arrested for failure to appear warrants in May 2013, some of the items recovered from Callens included a checkbook, stolen from a purse at a local mall, along with the victim’s (“T.M.”) Florida Driver’s License, Social Security card, a Visa card, and a GTE FCU debit card. At no time was Callens given permission, by the victim, to possess or use these items. Callens also used “T.M.’s” name to rent vehicles.
On December 27, 2012 and December 29, 2012, Callens also committed access device fraud (credit card fraud) by using the stolen identity of “T.J.” (including the date of birth and Social Security Number) to obtain dental care at a Clearwater dental office. Callens was assisted by another woman, who claimed to be “E.A.” (a victim of identity theft from Opa Locka, Florida). “T.J.” purchased $12,000 worth of dental services under the false pretense that “E.A.” would consent to pay for the treatment. Using “E.A.'s” stolen credit card number, Callens paid for herself to receive a root canal, a bridge, an extraction, a temporary crown, a retainer, anesthesia, and other items and services.
For tax years 2010, 2011, and 2012, Callens committed mail fraud, defrauding the Internal Revenue Service and certain taxpayers. Similar to the bank fraud scheme and access device fraud, Callens stole the identities of taxpayers, then using her laptop, Callens filed false and fraudulent tax returns with those stolen identities. As a result Callens obtained tax refunds to which she was not entitled. The refunds were often accessed through bank-issued debit cards, many of which were mailed to Callens.
This case was investigated by Tampa Police Department, the Hillsborough County Sheriff’s Office, the Temple Terrace Police Department, the Clearwater Police Department, the Internal Revenue Service – Criminal Investigation, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Schenectady Woman Pleads Guilty to Mail Fraud and Filing False Federal Income Tax ReturnRead the Press Release
Sent the IRS more than $3.6 million in bogus payments
ALBANY, NEW YORK – PATRICIA ALFIERI, 53, of Schenectady, pled guilty today before Chief U.S. District Judge Gary L. Sharpe to mail fraud and filing a false federal income tax return, announced United States Attorney Richard S. Hartunian and Internal Revenue Service Criminal Investigation Division Special Agent in Charge Toni M. Weirauch. ALFIERI is scheduled to be sentenced on March 11, 2014, in Albany, New York. She faces a maximum term of incarceration of twenty years and a fine of up to $250,000 for the mail fraud charge, and a maximum term of incarceration of three years and a fine of up to $100,000 for the charge of filing a false federal income tax return.
In the plea agreement, ALFIERI admitted that from 2008 through 2013, she mailed 65 bogus checks, in a total amount of more than $3.6 million, to the Internal Revenue Service to cause the IRS to issue “overpayment refunds” to her. Her actions caused the IRS to issue her more than $87,000. The defendant created many of the checks using a computer.
ALFIERI also admitted that she submitted false tax returns to the IRS in 2008, 2009, and 2010 in an effort to avoid paying income tax. Those returns were false because ALFIERI (1) claimed that her federal income tax withholding was higher than it actually was and (2) claimed that she had paid home mortgage interest and real estate taxes when she had not.
The case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.