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4 December 2013
Another Houston Man Sentenced in Area Armored Car RobberiesRead the Press Release
HOUSTON – Hendrick Dwayne Lynn, 30, of Houston, has been ordered to federal prison following his conviction in the robbery and attempted robbery of two armored cars operating in and around Houston, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Gray H. Miller handed Lynn a sentence of 60 months for his conviction of two counts of interference with commerce by robbery and one count of conspiracy to interfere with commerce by robbery. Lynn will be on supervised release for five years. Lynn will also be jointly and severally liable to pay back the money stolen from a Loomis Armored truck on Nov. 21, 2009.
Four others also charged in the case - Walter Keitric Freeman, 24, Chad Eric Haywood, 25, and Corinthians Lachell Phillips, 29, all of Houston, and Allen Moore Jr., 47, of Dallas – all previously also entered guilty pleas and were sentenced for their roles in the crimes. Haywood was convicted of two counts of interference with commerce by robbery and sentenced to 60 months in addition to a consecutive term of 120 months for discharging a firearm during a crime of violence for a total of 180 months. Freeman was sentenced to 57 months for his conviction of conspiracy to interfere with commerce by robbery as well as a consecutive sentence of 120 months for discharging of a firearm during the commission of a crime of violence for a total of 177 months. Phillips was convicted of the conspiracy charge and sentenced to 97 months. Moore, who was convicted of interference with commerce by robbery and discharging a firearm during a crime of violence will be sentenced in February 2014.
Loomis Armored US Inc., who operated the trucks during the alleged robbery and robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Lynn, Haywood and Moore were charged with their involvement in the Aug. 7, 2009, attempted robbery of a Loomis armored truck at the Bank of America at 3704 Old Spanish Trail in Houston. Lynn drove to the location, at which time Haywood and Moore, who were armed with Glock pistols, jumped out and shot at the guard. The guard, who has since recovered, had been filling an ATM machine, but it was already locked and, therefore, no money was obtained.
The second incident occurred on Nov. 21, 2009, at which time another guard was shot. On that date, Lynn drove Freeman and Haywood to Senor Check Cashing Store #2 located at 5950 S. Gessner Rd. in Houston. Freeman fired his pistol and shot in the direction of the guard. The guard was hit, but survived. On that same date, Phillips drove a second vehicle to the Gessner location and, following the robbery, switched vehicles with Haywood, Freeman and Lynn.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Alvarado Pharmacy and Owner Plead Guilty to Importing Unapproved Oncology Drugs and Fraudulently Billing MedicareRead the Press Release
United States Attorney Laura E. Duffy announced today that Alvarado Medical Plaza Pharmacy, Inc. (“Alvarado Pharmacy”) and its owner, William Burdine, pleaded guilty to healthcare fraud charges involving the illegal importation and sale of unapproved cancer drugs to Medicare patients in San Diego.
Alvarado Pharmacy and Burdine entered the pleas before U.S. Magistrate Judge Nita L. Stormes, and are scheduled to return to court on February 21, 2014, for a sentencing hearing before U.S. District Judge Janis L. Sammartino. The guilty pleas must be accepted by Judge Sammartino before becoming final.
In pleading guilty to a charge of Health Care Fraud, Alvarado Pharmacy admitted that between May 2010 and June 2011, it ordered $752,688.00 of unapproved prescription oncology drugs from a Canadian distributor, Quality Specialty Products (“QSP”). The drugs ordered from QSP were unapproved versions of drugs sold in the United States as Avastin, Eloxatin, Gemzar, Neupogen, Rituxin, Taxotere, and Zometa, and were shipped from Canada to Alvarado Pharmacy in San Diego. The pharmacy admitted that it was aware that the drugs were not intended for sale in the United States because (a) the packaging and shipping documents indicated that the drugs were shipped from outside the United States; (b) many of the invoices identified the origin of the drugs and intended markets for the drugs as countries other than the United States; (c) the labels did not bear the “RX Only” language required by the Food and Drug Administration (“FDA”); (d) the labels did not bear the National Drug Code numbers found on the labels of the drugs intended for the U.S. market; (e) many of the labels had information in foreign languages; (f) the drugs were purchased at a substantial discount; and (g) the packing slips indicated that the drugs came from Canada.
Alvarado Pharmacy further admitted that it supplied the unapproved foreign oncology drugs purchased from QSP to doctors pre-mixed, in an infusion bag, without advising the doctors that the drugs came from abroad and were not approved for use in the United States. The pharmacy admitted that it was aware that some of these drugs from QSP would be administered to Medicare patients, and doctors would bill Medicare for those drugs using the reimbursement code for the FDA-approved drugs. As Medicare provides reimbursement only for drugs approved for use in the United States, Alvarado Pharmacy caused scores of such false claims for Medicare reimbursement to be submitted by doctors. Indeed, between May 2010 and June 2011, Alvarado Pharmacy caused Medicare to be defrauded out of $1,004,284.04 in unapproved foreign drugs.
William Burdine, the owner of Alvarado Pharmacy and a pharmacist licensed in the State of California, also pleaded guilty today to unlawfully importing the unapproved oncology drugs into the United States. Burdine admitted that he ordered the unapproved oncology drugs from QSP in Canada, knowing that it was unlawful to import into the United States drugs that have not been approved by the FDA for use and sale in this country.
Individuals who are concerned about oncology drugs they may have received from Alvarado Pharmacy or William Burdine are encouraged to contact their treating physician.
DEFENDANTS Criminal Case No. 13cr4295-JLS Alvarado Medical Plaza Pharmacy, Inc.
William Burdine SUMMARY OF CHARGESAlvarado Medical Plaza Pharmacy Inc.
Health Care Fraud, in violation of Title 18, United States Code, Section 1347.
Maximum Penalty for a corporation: 5 years’ probation, a $500,000 fine and $400 special assessment.William Burdine
Importation Contrary to Law, in violation of Title 18, United States Code, Section 545.
AGENCY
Maximum Penalty: 10 years in custody, $250,000 fine and a $100 special assessmentU.S. Food and Drug Administration, Office of Criminal Investigations
3 December 2013
Wise Attorney Sentenced on Felony ChargesRead the Press Release
ABINGDON, VIRGINIA – An attorney from Wise, Va., was sentenced this morning in the United States District Court for the Western District of Virginia in Abingdon on four felony drug charges.
Stuart Collins, 42, of Wise, Va., previously pleaded guilty to four counts of obtaining controlled substances by fraud.
“This case is yet another example of the ways in which the scourge of prescription drug abuse affects people at all levels of society,” United States Attorney Timothy J. Heaphy said today. “Mr. Collins’ addiction led him to illegally obtain prescription medication, and to obstruct justice when his crimes were discovered. The 20-month sentence handed down this morning reflects this office’s priority on the pill problem, and on punishing obstruction wherever it occurs.”
Collins had previously admitted that on multiple occasions he received pharmaceutical drugs from a local doctor. Collins deliberately did not inform that doctor that he was receiving pharmaceutical drugs from another doctor. The United States asserted that Collins’ tampering with witnesses was a basis for the sentence imposed today.
The investigation of the case was conducted by the Bristol Office of the Federal Bureau of Investigation with the assistance of the Virginia State Police, Southwest Regional Drug Task Force, Wise County Sheriff’s Office and Wise Police Department. Assistant United States Attorneys Jennifer Bockhorst, Donald Wolthuis and Randy Ramseyer prosecuted the case for the United States.
Willowick Woman Sentenced to 4 1/2 Years in Prison for Tax ConvictionRead the Press Release
Margaret Monone Greenaway was sentenced today to 54 months imprisonment for claiming false income tax refunds totaling $5,271,794 for the years 2010 and 2011, said Steven M. Dettelbach, United States Attorney. The sentence was imposed by United States District Judge David D. Dowd, Jr., who also imposed a three-year term supervised release following Greenaway’s incarceration.
Greenaway pleaded guilty to the two-count indictment against her on October 17, 2013. In her written plea agreement, Greenaway admitted to filing income tax returns under her name during a prior marriage, Margaret M. Demaria-Susevich, using a “single” filing status, on which she claimed refunds to which she was not entitled of $1,326,671 for 2010 and $3,945,123 for 2011. The claimed refunds were based on purported wages and withholding reflected in fake W-2 forms she attached to the returns. She fabricated the W-2 forms by using the employer information on W-2 forms issued to her husband and inserting made-up amounts of wages and withholding purportedly paid to her. Greenaway never worked for that employer. Greenaway received the requested $3.9 million refund check for 2011 and deposited it into new bank accounts she opened. The bank, however, alerted law enforcement authorities of possible fraud involving the check, enabling the IRS to retrieve the funds before she could spend them.
Greenaway, age 53, resided in Willowick, Ohio, until being placed in pre-trial detention in early July 2013. After being arrested on the indictment on May 16, 2013, she was initially released on bond. Judge Dowd revoked her bond, however, after finding that she had violated the terms of her release. She has been in federal custody since that time, including a period in which she was evaluated for mental competency to stand trial. After a hearing in which he found Greenaway to be competent, Judge Dowd scheduled the case for trial. Greenaway pleaded guilty the day before her trial was set to begin.The case was prosecuted by Assistant United States Attorney John M. Siegel following an investigation by the Internal Revenue Service – Criminal Investigation, Cleveland, Ohio.
Valentin Valdes-Ayala Arrested for Bankruptcy FraudRead the Press Release
SAN JUAN, Puerto Rico – On November 26, 2013, a federal grand jury in the District of Puerto Rico returned a 31-count indictment against Valentin Valdés-Ayala, charging him with bankruptcy fraud, destruction, alteration or falsification of records in bankruptcy, wire fraud, aggravated identity theft and contempt of court, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations, in collaboration with the US Trustee, is in charge of the investigation.
According to the indictment, the purpose of the fraudulent scheme was to obtain financial gain and to hinder, delay, and obstruct collection efforts by the Commonwealth of Puerto Rico, through ASUME, and/or by child support pension beneficiaries against child support debtors who had failed to comply with their child support obligations.
Valdés-Ayala incorporated a non-profit organization called Fundacion Lucha Pro-Padres Convictos por Pencion, Corp. [sic] with the alleged purpose of defending the principles and dignity of every father convicted for failure to make child support payments and obtaining and promoting the release of all inmates as well as defending father-child relationships. He also created Tears in Prison, Inc., a for-profit corporation that was incorporated with the stated purpose of preparing bankruptcy petitions.
The defendant, through Fundacion Lucha Pro-Padres Convictos por Pencion, Corp. [sic], solicited individuals who were incarcerated or facing incarceration for failure to comply with their child support payments, promising those individuals that – in exchange for fees paid to him and/or his entity -- they would be released from prison and/or avoid imprisonment without first having to make any payments towards their child support debt. Valdés-Ayala at times also promised that he would obtain the elimination and/or reduction of child support debt.
The defendant would then file or cause to be filed Chapter 13 bankruptcy petitions which allowed the debtors to be released from prison without first having to pay overdue child support to ASUME due to the operation of bankruptcy’s automatic stay against collection actions.
With respect to his fees, Valdés-Ayala indicated to his prospective clients that his fee included legal representation (even though he is not a lawyer), filing fees, and a term membership in his entity, which would guarantee them legal representation in their child support case throughout the duration of their term membership. Upon receipt of payment the defendant would coordinate a meeting with the individual subject to incarceration and/or his or her family member(s) and provide a receipt.
The defendant prepared and filed and/or caused to be filed Chapter 13 bankruptcy petitions in the clients’ names. The Chapter 13 petitions were not filed for the purpose of having the clients engage Chapter 13 reorganization of their debts, but for the improper purpose of using the United States bankruptcy laws to collect fees by promising relief from incarceration.
It was further part of the scheme to defraud that Valdés-Ayala assisted hundreds of debtors with the filing of false and fraudulent Chapter 13 bankruptcy petitions. From August 2010, up to November 2013, 412 applications for credit counseling certificates were processed through Valdés-Ayala’s account with the Credit Advisors Foundation.
“The U.S. Attorney’s Office in Puerto Rico will continue to investigate and prosecute cases involving bankruptcy fraud”, said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The defendant defrauded not only his clients, but also child support beneficiaries and the government Puerto Rico, and he did so by using the United States Bankruptcy courts. Valdés-Ayala sought to obtain as much money as possible, for as long as possible, from his clients. When the fraudulent bankruptcy petitions ultimately were dismissed by the bankruptcy courts, the defendant ceased contact with his clients, who again faced imminent incarceration for past due child support payments.”
“The bankruptcy process is based on the honor system and when used appropriately allows many debtors to get a fresh start. However, when this trust is abused by debtors intentionally making false statements to the bankruptcy court, the FBI will work with the U.S. Attorney’s Office and Bankruptcy Trustee to hold them accountable to ensure the public’s continued trust in the bankruptcy process,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
The case is being prosecuted by Assistant U.S. Attorney Mariana Bauzà. If convicted, the defendant could face a maximum of 30 years in prison and a mandatory consecutive sentence of two years for each of the two aggravated identity theft charges. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
United States Attorney Announces Sentencings in Two Bankruptcy Fraud CasesRead the Press Release
SAN FRANCISCO – United States Attorney Melinda Haag announced that defendants in two unrelated cases were sentenced to terms of imprisonment for committing bankruptcy fraud.
In the first case, Patricia Bonavito was sentenced on November 13, 2013, to six months in prison for giving false statements in a bankruptcy proceeding.
Bonavito pleaded guilty on August 20, 2013 to making numerous false statements, under the penalty of perjury, in furtherance of a bankruptcy petition through which she sought relief of $308,249.00 in debts. According to the plea agreement, Bonavito admitted to knowingly making these false statements concerning matters material to the determination of whether the Bankruptcy Court would forgive her debt. The false statements included the following: Bonavito denied that anyone owed her any money, when in fact someone owed her a 50% interest in a $150,000 promissory note; she denied having any other income or transferring any property during the two years prior to filing her bankruptcy petition, when in fact she had received more than $500,000 from the sale of properties in San Francisco and New York; she denied that her name was on any real property not listed on her original petition, when in fact she purchased a property in New York for $385,000 shortly after filing for bankruptcy in San Francisco; finally Bonavito denied giving any money to friends or relatives in the year prior to filing, when in fact she had transferred $200,000 to her daughter mere months before filing.
Bonavito, 59, formerly of San Francisco and currently from New York City, was indicted by a federal Grand Jury on April 17, 2013. She was charged with eight counts of false statements in bankruptcy proceedings, in violation of 18 U.S.C. § 152(3), and one count of false testimony under oath in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(2).
Bonavito’s sentence was handed down by The Honorable Judge William H. Alsup, United States District Court Judge, in San Francisco following a guilty plea on four counts of false statements in bankruptcy proceedings, in violation of 18 U.S.C. § 152(3). Judge Alsup also sentenced the defendant to a three year period of supervised release. The defendant will begin serving the sentence on January 7, 2014.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the Bonavito case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation with assistance from the United States Bankruptcy Trustee.
In a second case, Walter Bruce Harrell was sentenced on November 26, 2013, to ten months in prison for bankruptcy fraud and for giving false statements in a bankruptcy proceeding.
Harrell pleaded guilty on August 2, 2013 to filing bankruptcy petitions in furtherance of a scheme to defraud creditors owning mortgages and to making false statements in a bankruptcy petition. According to the plea agreement and indictment, the defendant operated a scheme in which he would pay individuals to file bankruptcy petitions in U.S. Bankruptcy Court. At the same time, the defendant had his clients – who were homeowners facing foreclosures of their properties – deed fractional interests in those properties to the bankruptcy filers. When the bankruptcy petitions were filed, Harrell would notify the creditors who were seeking to foreclose on his clients’ properties that the properties were part of a bankruptcy. Because of the “automatic stay” provisions of the U.S. Bankruptcy Code, the creditors were prohibited from proceeding with any foreclosure sales. Instead, the creditors were required to have their attorneys file motions to lift that automatic stay in the Bankruptcy Court. Although these motions were invariably granted, Harrell’s actions caused delays in the foreclosure process and caused the creditors to incur attorneys’ fees in moving to lift the automatic stay.
Harrell, 72, of Montara, was indicted by a federal Grand Jury on February 14, 2013. He was charged with eight counts of bankruptcy fraud, in violation of 18 U.S.C. § 157, and two counts of making false statements in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(3).
“The integrity of evidence received by our bankruptcy courts is critical to the courts’ ability to function effectively,” United States Attorney Melinda Haag stated. “This office will vigorously prosecute people who intentionally submit false and misleading information in federal bankruptcy proceedings.”
Harrell’s sentence was handed down by The Honorable Judge Susan Illston, United States District Court Judge, in San Francisco following a guilty plea on one count of bankruptcy fraud, in violation of 18 U.S.C. § 157, and one count of making false statements in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(3). Judge Illston also sentenced the defendant to a three year period of supervised release. The defendant will begin serving the sentence on January 31, 2014.
Kyle F. Waldinger is the Assistant U.S. Attorney who is prosecuting the Harrell case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Alameda County District Attorney’s Office, with assistance from the United States Bankruptcy Trustee.
(Bonavito indictment )
(Harrell indictment )
United States Agrees to Comprehensive Settlement with Suffolk County Police Department to Resolve Investigation of Discriminatory Policing Against LatinosRead the Press Release
The Civil Rights Division of the U.S. Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York announced today that they have tentatively agreed to a settlement with the Suffolk County Police Department (SCPD) which calls for SCPD to implement new and enhanced policies and procedures to ensure nondiscrimination in the provision of police services to Latino communities in Suffolk County. The agreement, which the Department of Justice has agreed to, requires approval of the Suffolk County Legislature before it will be formally executed by the parties.
The United States commenced an investigation of SCPD in 2009 in the wake of the killing of Marcelo Lucero, an Ecuadorian national, who was murdered by a group of teenagers in Patchogue, N.Y., as he was walking home on the evening of Nov. 8, 2008. The United States’ investigation, pursuant to the Violent Crime and Law Enforcement Act of 1994 and the Omnibus Crime Control and Safe Streets Act of 1968, focused on discriminatory policing allegations, including claims that SCPD discouraged Latino victims from filing complaints and cooperating with the police, and failed to investigate crimes and hate crime incidents involving Latinos. The United States issued a Technical Assistance letter on Sept. 13, 2011, which recommended a wide range of reforms to improve policing by the SCPD, and primarily focused on promoting trust between SCPD and the Latino community. The County cooperated with the United States’ investigation, and has already instituted a number of the recommendations from the Technical Assistance letter. The agreement announced today memorializes those recommendations and commits SCPD to significant changes in how it engages the Latino community.
Specifically, the agreement calls for SCPD to ensure that it polices equitably, respectfully and free of unlawful bias. Other highlights include enhanced training and investigation of allegations of hate crimes and bias incidents, meaningful access to police services for individuals with limited English proficiency (LEP), strengthened SCPD outreach efforts in Latino communities, and the development and maintenance of a true Community Oriented Policing Enforcement (COPE) program throughout the county. The United States will monitor compliance with the agreement, which terminates only when SCPD has substantially complied with all of the requirements for at least one year.
“We look forward to working alongside the Suffolk County Police Department and Suffolk County to implement our agreement,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “By working together, our goal is for all Suffolk residents -- existing and future -- to know that SCPD is there to serve and protect them and that they stand equal with their neighbors before the law.”
“All residents of Suffolk County deserve full and unbiased police protection, regardless of national origin, race, or citizenship status,” said U.S. Attorney Loretta E. Lynch for the Eastern District of New York. “When people feel they cannot turn to the police for protection, they have lost one of our most basic rights – the right to feel safe in one’s community. Law enforcement also suffers when it does not hear from everyone under its umbrella of protection. I commend Suffolk County and SCPD for its cooperation with the United States’ investigation and its willingness to ensure fairness and equal treatment for all.”
The case was handled by Assistant U.S. Attorney Michael J. Goldberger, Chief of Civil Rights in the Civil Division of the U.S. Attorney’s Office; Special Litigation Counsel Laura Coon in the Special Litigation Section of the Civil Rights Division; and Trial Attorneys Silvia Dominguez and Jack Morse in the Special Litigation Section.
United States Agrees to Comprehensive Settlement to Resolve Its Investigation of the Suffolk County Police Department for Discriminatory Policing Against LatinosRead the Press Release
WASHINGTON, D.C. and BROOKLYN, NEW YORK – The Civil Rights Division of the U.S. Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York today announced that they have tentatively agreed to a settlement with the Suffolk County Police Department which calls for SCPD to implement new and enhanced policies and procedures to ensure nondiscrimination in the provision of police services to Latino communities in Suffolk County. The agreement, which the Department of Justice has agreed to, requires approval of the Suffolk County Legislature before it will be formally executed by the parties.
The United States commenced an investigation of SCPD in 2009 in the wake of the killing of Marcelo Lucero, an Ecuadorian national who was murdered by a group of teenagers in Patchogue, New York, as he was walking home on the evening November 8, 2008. The United States’ investigation, pursuant to the Violent Crime and Law Enforcement Act of 1994, 42 U.S.C. ' 14141, and the Omnibus Crime Control and Safe Streets Act of 1968, 42 U.S.C. ' 3789d, focused on discriminatory policing allegations, including claims that SCPD discouraged Latino victims from filing complaints and cooperating with the police and failed to investigate crimes and hate-crime incidents involving Latinos. The United States issued a Technical Assistance letter on September 13, 2011, which recommended a wide range of reforms to improve policing by the SCPD, focused particularly on promoting trust between SCPD and the Latino community. The County cooperated with the United States’ investigation, and has already instituted a number of the recommendations from the Technical Assistance letter. The agreement announced today memorializes those recommendations and commits SCPD to significant changes in how it engages the Latino community.
Specifically, the agreement calls for SCPD to ensure that it polices equitably, respectfully, and free of unlawful bias. Other highlights include enhanced training and investigation of allegations of hate crimes and bias incidents, meaningful access to police services for individuals with limited English proficiency (LEP), strengthening of SCPD’s outreach efforts in Latino communities, and developing and maintaining a true Community Oriented Policing Enforcement (COPE) program throughout the county. The United States will monitor compliance with the agreement, which terminates only when SCPD has substantially complied with all of the requirements of the agreement for at least one year.
Loretta E. Lynch, United States Attorney for the Eastern District of New York stated, “All residents of Suffolk County deserve full and unbiased police protection, regardless of national origin, race, or citizenship status. When people feel they cannot turn to the police for protection, they have lost one of our most basic rights – the right to feel safe in one’s community. Law enforcement also suffers when it does not hear from everyone under its umbrella of protection. I commend Suffolk County and SCPD for its cooperation with the United States’ investigation and its willingness to ensure fairness and equal treatment for all.”
The case was handled by AUSA Michael J. Goldberger, Chief of Civil Rights in the Civil Division of the U.S. Attorney’s Office; Laura Coon, Special Litigation Counsel in the Special Litigation Section of the Civil Rights Division; and Silvia Dominguez and Jack Morse, Trial Attorneys in the Special Litigation Section.
Two Retailers Plead Guilty to Food Stamp FraudRead the Press Release
Baltimore, Maryland – Amara Cisse, age 50, and his wife Fanta Keita, age 45, both of Windsor Mill, Maryland, pleaded guilty today to food stamp fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.
The pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.Cisse owned Simbo Food Mart, a convenience store located at 2103 West Pratt Street in Baltimore. Keita worked at the store with her husband. According to their plea agreements, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Cisse completed the required government form in May of 2010 to become an authorized retailer in the program, certifying that he understood that it was a violation of SNAP regulations to trade cash for SNAP benefits. From November 1, 2010 to May 2013, Cisse and Keita exchanged SNAP benefits for cash at less than face value of the EBT benefits, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills.
The indictment alleges that Cisse and Keita obtained more than $600,000 in payments for food sales that never occurred. According to the plea agreement, the Court will need to determine the actual amount of the financial loss for the purpose of calculating the sentencing guidelines and restitution.
Keita faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett scheduled her sentencing for March 3, 2014, at 3:00 p.m. Cisse and the government have agreed that if the Court accepts his plea agreement Cisse will be sentenced to 27 months in prison. Judge Bennett has scheduled his sentencing for March 6, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Two Luzerne County Men Charged with Sex Trafficking of Children and Producing and Transporting Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Pittston residents were indicted by a federal grand jury in Scranton today for sex trafficking of children and producing and distributing child pornography.
According to United States Attorney Peter J. Smith, the indictment alleges that Gregory Boone, age 29, and Randy Coleman, Jr., age 33, conspired to use minor females to engage in prostitution during August and September 2013 and used cell phones to produce and transmit images of child pornography which were used in “escort services” advertisements on a website.
The indictment alleges that Boone, Coleman, and others whose identities are known to the grand jury, recruited at least three minor females–and attempted to recruit a fourth–to engage in prostitution in Luzerne, Lackawanna, and Dauphin Counties, took photographs of the minors and posted them on the website, rented motel rooms for customers to meet with minors for sex, and shared in the profits of the prostitution activities.
Both defendants are charged with conspiracy to commit sex trafficking of children; sex trafficking of children as aiders and abettors; conspiracy to produce child pornography; three counts of producing child pornography as aiders and abettors; conspiracy to transport and ship child pornography; and three counts of transporting and shipping child pornography as aiders and abettors.
The charges stem from an investigation by the U. S. Department of Homeland Security(HSI) Immigration and Customs Enforcement(ICE), the Pennsylvania State Police, the Pittston Police, and the Luzerne County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and 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, each defendant faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment on the child pornography production charges; a mandatory minimum sentence of 10 years’ imprisonment and a possible life imprisonment sentence on the sex trafficking of children offenses; and a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment on the transporting child pornography charges.
In addition to a prison sentence, both defendants also face 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources.”
Two Forsyth City Councilmen Sentenced for Accepting BribesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that two former Councilmen of the City of Forsyth, Georgia, James Edward Calloway and Desi Surtane Hansford, were sentenced by the Honorable Marc T. Treadwell in United States District Court in Macon, Georgia today for accepting bribes in connection with the performance of their official duties.The defendants entered guilty pleas on September 3, 2013. Facts stipulated in the written plea agreements of the two men show the following:
Mr. Calloway had been a Councilman for twenty-two years and Mr. Hansford for five. Both served on the Combined Utilities Committee of the Council, which oversees electric, water, sewer and telecommunications for the City of Forsyth.
On December 27, 2012, Mr. Calloway solicited a bribe from a water and waste treatment company of $20,000 to guarantee the votes to give it the water waste contract for the City. That company immediately notified the Federal Bureau of Investigation (FBI) of the solicitation and cooperated fully and actively with that agency throughout the investigation, which revealed that at least in part Mr. Calloway’s motive in soliciting the payment was to help Councilman Hansford rescue his home from foreclosure.
A representative of the water and waste treatment company, cooperating with the FBI, met with the two councilmen on January 18, 2013, at a truck stop off I-75 in Jackson, Georgia, and paid them $10,000 in currency provided by the FBI while secretly recording the meeting per FBI instructions. Mr. Calloway assured the company representative that the company would recover the amount of the bribe through a future project on which the company would be employed. Following this meeting and payment Mr. Calloway and Mr. Hansford split the money equally.
A second $10,000 payment was delivered to Mr. Calloway one week later, January 25, 2013, under similar circumstances to the first, after which he was immediately arrested and subsequently confessed. He also admitted receiving four Atlanta Falcons playoff tickets from the company, which he and Mr. Hansford shared.
Mr. Calloway then cooperated with the government and participated in paying an additional $5000 (half of the second $10,000 payment) to Mr. Hansford, who was then also arrested.
Mr. Calloway was sentenced to serve 24 months in prison. He was also ordered to pay a $7,500 fine.
Mr. Hansford received a sentence of 18 months in prison. He was also ordered to pay restitution in the amount of $3000.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Sonja Profit.
“When people entrust elected officials with public office, they have a right to expect that those positions of authority will be used for the public good, not for personal gain. By prosecuting these offenses, I hope that we remind other public officials that they are not above the law and that we restore the public’s confidence in the many government officials who choose to serve so that they can truly make a positive impact,” said United States Attorney Michael J. Moore.
Ricky Maxwell, Acting Special Agent in Charge, FBI, Atlanta Field Office, stated, “While most individuals, elected or otherwise, who choose to serve the public do so admirably and honorably, the need to be vigilant for corrupt or criminal activity remains. The FBI continues to carry its Public Corruption Program as its # 1 criminal investigative priority due to the vast potential for harm that exists. We ask that anyone with information regarding public corruption related matters please contact their nearest FBI field office.”
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Two Foreign Nationals Plead Guilty in <br /> Puerto Rican Identity Trafficking ConspiracyRead the Press Release
A Dominican national and a Mexican national each pleaded guilty today in connection with their roles in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Gregory B. Starr of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Jorge Luis “Daniel” Mendez, 37, formerly of San Juan, Puerto Rico, and Enrique Rogelio Mendez-Solis, 37, formerly of Seymour, Ind., pleaded guilty before U.S. District Judge Juan M. Pérez-Giménez in the District of Puerto Rico to one count of conspiracy to commit identification fraud, one count of conspiracy to commit alien smuggling for financial gain and three counts of aggravated identity theft. They face a maximum sentence of 15 years in prison for conspiracy to commit identification fraud, 10 years in prison for conspiracy to commit alien smuggling for financial gain, and two years in prison for each aggravated identity theft count when they are sentenced on April 28, 2014.
Both defendants were charged in a superseding indictment returned by a federal grand jury in Puerto Rico on March 22, 2012. To date, 53 individuals have been charged for their roles in the identity trafficking scheme, 49 defendants have been arrested, and 49 have pleaded guilty.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that these identity brokers in the United States ordered the identity documents from the document suppliers in Savarona on behalf of their customers by making coded telephone calls. The conspirators are charged with using text messages, money transfer services, and express, priority, or regular U.S. mail to complete their illicit transactions.
Court documents allege that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, DeKalb and Aurora, Ill.; Seymour, Columbus and Indianapolis, Ind.; Hartford, Conn.; Clewiston, Fla.; Lilburn and Norcross, Ga.; Salisbury, Md.; Columbus and Fairfield, Ohio; Dorchester, Lawrence, Salem and Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington and Hickory, N.C.; Hazelton and Philadelphia, Penn.; Houston; Abingdon and Albertville, Ala.; and Providence, R.I.
Mendez admitted that he operated as a Savarona supplier. Mendez-Solis admitted that he operated as an identity broker in the Seymour, Ind., area.
The charges are the result of Operation Island Express, an ongoing, nationally coordinated investigation led by the ICE Homeland Security Investigations’ (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2), as well as various ICE, USPIS, DSS and IRS-CI offices around the country, provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft . Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html ; www.ssa.gov/pubs/10064.html ; www.fbi.gov/about-us/investigate/cyber/identity_theft ; and www.irs.gov/privacy/article/0,,id=186436,00.html .Two Conneaut Men Indicted for Stealing Firearms from Lake County StoreRead the Press Release
A federal grand jury returned a two-count indictment charging Jory Rhodes, age 26, and Brandon Haley, age 28, both of Conneaut, Ohio, with theft of firearms from a Federal Firearms Licensee and possession of a stolen firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on October 25, 2012, Rhodes and Haley stole a firearm from a Federal Firearms Licensee, Great Lakes Outdoor Supply, in Madison Township. Specifically, it is alleged that Rhodes and Haley visited the Great Lakes Outdoor Supply with the intent to steal something of value, and that when the employees were not looking, Rhodes reached into a display case and stole a $1,129 Remington Arms .45 caliber pistol while Haley acted as lookout.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense, and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Adam Hollingsworth.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Cabot Residents Indicted on Federal Drug ChargesRead the Press Release
Dodson faces three counts of assault with a deadly weapon
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Mark Lyle Dodson, age 53, and Mary Olszak, age 52, both of Cabot, Arkansas, were indicted today by a federal grand jury. The nine-count indictment charges Dodson and Olszak with one count of conspiring to distribute five grams or more of methamphetamine, also known as “ice”. Dodson faces three additional counts of assault with a deadly weapon for firing at officers aiding federal agents and three related counts of possession of a firearm in relation to a crime of violence. Olszak was indicted on two additional counts of distributing methamphetamine.
The weapons charges against Dodson stem from the shooting that occurred during execution of a search warrant in Cabot on November 22, 2013. According to the indictment, Dobson fired a 16-gauge shotgun at three members of the Jacksonville Police Special Response Team, who were assisting Special Agents of the Drug Enforcement Administration (DEA).
If convicted, the methamphetamine conspiracy exposes the defendants to between five and forty years’ imprisonment, and methamphetamine distribution counts subject Olszak to up to twenty years’ imprisonment. For his part, Dodson also faces twenty years’ imprisonment on each of the three counts of assault on an officer assisting federal agents. Related counts charging Dodson with possession of a firearm in connection with a crime of violence trigger mandatory imposition of a consecutive sentence of ten years’ to life imprisonment on the first count, and consecutive sentences of twenty-five years’ to life imprisonment on any additional count(s).
The Drug Enforcement Administration, Little Rock Field Office; Jacksonville Police Department; and Pulaski County Sheriff’s Office are investigating this matter. Assistant United States Attorney Alexander D. Morgan is prosecuting the case for the United States.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Three Patient Recruiters for Miami Home Health Company<br /> Plead Guilty for Roles in $48 Million Fraud SchemeRead the Press Release
Three patient recruiters for a Miami health care company pleaded guilty today for their participation in a $48 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, 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 .Three Jasper County Residents Indicted on Methamphetamine Related ChargesRead the Press Release
David C. Halterman, 44, Ashley M. Attaway, 28, and Rebecca A. Moore, 36, all of Yale, IL, were indicted on December 3, 2013, on methamphetamine related charges in a three count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charged that from April 2013, until on or about October 12, 2013, in Jasper County, within the Southern District of Illinois, the State of Indiana, and elsewhere, Halterman, Attaway, and Moore did knowingly combine, conspire, and agree with others known and unknown to the Grand Jury, to knowingly and intentionally distribute methamphetamine. The amount involved in the conspiracy was 500 grams or more of methamphetamine.
Count 2 charged that on October 11-12, 2013, in Jasper County, Halterman did knowingly and intentionally possess with the intent to distribute methamphetamine. The total amount of methamphetamine involved was 50 grams or more.
Count 3 charged that from April 2013, until on or about October 12, 2013, in Jasper County, Moore did knowingly maintain a place, namely a residence located [in] Yale, Illinois, for the purpose of using and distributing a mixture and substance containing methamphetamine.
With respect to Count 1, all three persons face penalties of 10 years to life in prison, up to a $10,000,000 fine, and at least 5 years supervised release to follow incarceration.
With respect to Count 2, Halterman faces penalties of 5-40 years in prison, up to a $5,000,000 fine, and at least 4 years supervised release to follow his incarceration.
With respect to Count 3, Moore faces penalties of up to 20 years in prison, up to a $500,000 fine, and up to 4 years supervised release to follow his incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Jasper County Sheriff’s Department, the Crawford County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, and Firearms. The Jasper County State’s Attorney’s Office has assisted in the investigation in this case.
The case is being handled by Assistant United States Attorney George Norwood.
Three Area Men Sentenced to Prison Terms for Series of Violent RobberiesGroup Targeted Victims in Adams Morgan and Near Metro Stations, Sold Stolen Phones to Eco-ATM Machines for ProfitRead the Press Release
WASHINGTON – Three men, all from the Washington D.C. area, were sentenced today to prison terms for multiple robberies and other crimes committed in a series of attacks on city streets and at a Metro station, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The men - Anthony J. Doggett, 21, Desean Floyd, 19, and Dominique C. Jones, 20 – pled guilty to conspiracy, robbery, and other charges in September 2013 in the Superior Court of the District of Columbia. They were sentenced by the Honorable Stuart G. Nash. Doggett was sentenced to a total of 13 years in prison. Floyd was sentenced to eight years of incarceration, and Jones was sentenced to a seven-year prison term. Upon completion of their prison terms, the men will be placed on five years of supervised release.
Doggett, Floyd and Jones admitted actively participating in a group that committed crimes in the Adams Morgan, L’Enfant Plaza, and Stadium Armory areas. Since at least Jan. 1, 2013, the group’s members canvassed the areas looking for targets of opportunity and teamed up to rob their victims. Members went out in groups of two or more and looked for potential victims who might have expensive cell phones, such as iPhone5s, or other property of value. The men would then work together as a team to steal the property. When they encountered resistance, the men assaulted the victims until someone in the group escaped with the property. The defendants sold stolen phones for a profit, on the street or to an Eco-ATM machine, and split the proceeds.
Doggett, of Suitland, Md., pled guilty to one count each of conspiracy, robbery, attempted robbery, accessory after the fact to armed robbery, unauthorized use of a vehicle, and contempt. Floyd, of Oxon Hill, Md., pled guilty to one count each of conspiracy, robbery, attempted robbery, accessory after the fact to armed robbery, and attempted perjury. Jones, of Washington, D.C., pled guilty to one count each of conspiracy, robbery, possession of a firearm during a crime of violence, and attempted robbery.
As part of their plea agreements, the defendants admitted participating in various crimes, including these incidents:
-Jan. 20, 2013: Robbery in the 1400 Block of Pennsylvania Avenue SE
Jones admitted to taking part in the robbery of a woman during the late morning hours in the 1400 block of Pennsylvania Avenue SE. As the victim was about to get into her car, Jones and another individual approached and cornered her. They then demanded that she give them her purse and her car keys. The woman did so against her will, and Jones and the other individual then fled with her property. About a week later, Doggett and another individual returned to the area with the woman’s stolen car keys and stole her car.
Jones pled guilty to attempted robbery and Doggett pled guilty to unauthorized use of a vehicle for their roles in these crimes.
-Feb. 3, 2013: Robbery in the 1300 Block of Q Street NW
Doggett and Floyd admitted to taking part in the robbery of a man in the 1300 Block of Q Street NW. As the victim was walking down the street, Doggett, Floyd and another individual decided to rob him. The defendants approached the victim and began to assault him, causing him to fall to the ground. When the victim attempted to defend himself, the defendants repeatedly punched him in his head and body. They then took the victim’s iPhone and wallet and fled the scene. Doggett sold the stolen iPhone to an Eco-ATM machine at the Pentagon City Mall and received $300 for the phone. The defendants split the proceeds from the sale of the stolen phone.
Doggett and Floyd each pled guilty to robbery for their roles in this crime.
-Feb. 5, 2013: Armed Robbery at 19th Street and Constitution Avenue NE
Doggett, Floyd, and Jones admitted to taking part in crimes related to the armed robberies of multiple victims at 19th Street and Constitution Avenue NE. Jones and another individual went out into the street with a gun at about 8 p.m. and began to look for targets they could rob. They observed a young couple walking down the street. Jones and the other individual held the young couple at gunpoint, ordering them to get down on their knees and to surrender their property. A third victim was walking down the street and walked into this armed robbery-in-progress. Jones and the other individual robbed the third victim at gunpoint as well. Jones and the other individual then fled the scene with the property of the three victims.
Jones and the other individual went to a nearby abandoned house, where they met Doggett and Floyd. Jones told Doggett and Floyd that they had just committed an armed robbery. Doggett and Floyd then began to help Jones and the other individual “wipe” the stolen phones, meaning that they cleared the personal settings on the phones and set the phones back to factory settings. Doggett and Floyd also served as look-outs to see whether the police were following them. Doggett and Floyd did this in order to prevent the arrest of Jones and the other individual and ensure that the police would be unable to track the stolen property.
Jones pled guilty to robbery and possession of a firearm during a crime of violence, and Doggett and Floyd each pled guilty to accessory after the fact to armed robbery for their roles in these crimes.
-Feb. 10, 2013: Robbery at L’Enfant Plaza Metro Station
Doggett and Floyd admitted to taking part in an early-morning robbery at L’Enfant Plaza Metro Station, located at 600 Maryland Avenue SW. The men saw the victim, who was on the platform waiting for the Metro and looking at his iPhone, which he held in his hand. The men decided to steal the phone from the victim. One of the men snatched the phone out of the victim’s hands, while others intentionally got in his way. When the victim attempted to follow them, a third individual began to punch him. Doggett later sold the victim’s stolen iPhone to an Eco-ATM machine at the Pentagon City Mall and received $300 for the phone. Doggett, Floyd and the third individual split the proceeds from the sale of the stolen phone.
Doggett and Floyd pled guilty to attempted robbery for their role in this crime.
-Feb. 10, 2013: Contempt of Court
Doggett was under court order to observe a 24-hour home confinement on Feb. 10, 2013. On that same date, he intentionally left his home to commit the above robbery at L’Enfant Plaza, and then traveled to Virginia to sell the stolen phone to an Eco-ATM machine. Doggett pled guilty to contempt of court for his role in this crime.
-March 14, 2013: Perjury
Floyd testified before a grand jury of the Superior Court of the District of Columbia on March 14, 2013. He took an oath that he would testify truthfully. Floyd willfully and knowingly testified about matters which were not true and which he knew or believed to be false, including that he denied knowing about particular crimes in which he was involved and denied knowing one of his co-conspirators. Floyd pled guilty to attempted perjury for his role in this crime.
In announcing the sentences, U.S. Attorney Machen and Chief Lanier commended the work of the officers, detectives and crime scene technicians who worked on the case for the MPD. They also expressed appreciation for the efforts of the Metro Transit Police Department, which assisted in the investigation. Finally, they praised the work of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Clare Pozos, who prosecuted the matter.
13-410Texas Man Sentenced in Idaho Federal Court for Tax FraudRead the Press Release
Defendant Will Pay Over $1.4 Million in Restitution for Conspiring to File False Claims for IRS Tax Refunds
POCATELLO – Lawrence Sikutwa, 34, of Dallas, Texas, was sentenced today in United States District Court to 21 months in prison for conspiracy to file false claims for a refund, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Sikutwa to serve three years of supervised release and pay $1,466,799 in restitution to the Internal Revenue Service. He pleaded guilty to the charge on August 28, 2013.
According to the plea agreement, Sikutwa operated a tax preparation business in Dallas. He entered into an agreement with various co-conspirators in Pocatello and elsewhere to solicit clients for him. The co-conspirators contacted persons who needed tax preparation services, obtained their tax documents from them, and then shipped the information to Sikutwa to prepare the tax returns. Sikutwa added false dependents and false income, falsely claimed head-of-household status, and made other entries to increase the amount of the refund. According to the plea agreement, Sikutwa distributed a small portion of the actual refund to the taxpayer, representing it was the entire refund, and failed to provide copies of the returns to the taxpayers. Sikutwa admitted that he was aware the tax returns were false.
According to the plea agreement, during 2006, Sikutwa filed 168 tax returns for tax year 2005, resulting in refunds of $654,368. In 2007, he filed 124 tax returns for tax year 2006, resulting in refunds of $588,982. Under the name of Harris Tax Services, Sikutwa prepared and filed 99 returns for tax year 2007, resulting in refunds of $456,888.
The case was investigated by Internal Revenue Service-Criminal Investigation.
Texas Man Sentenced for Cattle Fraud in KansasRead the Press Release
WICHITA, KAN. – A Texas man has been sentenced to 21 months in federal prison for cattle fraud in Kansas, U.S. Attorney Barry Grissom said today.
William P. Cadle, 50, DeKalb, Texas, was sentenced Monday in U.S. District Court in Wichita. He pleaded guilty to one count of loan fraud and one count of criminal conversion.
In his plea, Candle admitted that on Feb. 6, 2012, he committed loan fraud against First National Bank in Independence, Kan. He obtained a loan from the First National Bank and identified cattle to be used as collateral for the loan. The security agreement grossly overstated the number of cattle he had to collateralize the loan. The security agreement also identified Angus cattle purchased with a Farm Service Agency loan as belonging to Cadle. In fact the cattle were purchased by Cadle’s son with a loan from the Farm Service Agency, and Cadle did not have enough collateral to secure his loan from First National Bank.
From September 2011 to March 2012, Cadle began selling the cattle secured by the Farm Service Agency loan. He concealed the fact the cattle were mortgaged by FSA and he did not make payments to FSA upon the sale. By the spring of 2012 he had sold all the cattle.
Grissom commended the U.S. Department of Agriculture and Assistant U.S. Attorney Aaron Smith for their work on the case.
Siblings Plead Guilty to Social Security FraudRead the Press Release
PORTLAND, Ore. – Two family members charged in a multi-family member conspiracy to defraud social service agencies have pleaded guilty to Social Security fraud. Jason Boutros, 49, of Portland, admitted in federal court yesterday that he concealed a family member’s travel outside the United States while continuing to accept Supplemental Security Income benefits on her behalf. He also admitted to submitting a voucher for payment for home-care services for his mother that he never provided because she also was outside the United States. Sentencing is set for March 3, 2014, before the Honorable Michael H. Simon.
According to papers filed in court, Boutros has agreed to pay approximately $220,000 in restitution for Supplemental Security Income and medical benefits family members received that they were not entitled to.
Boutros’ sister, Killda Boutros, 46, of Portland, pleaded guilty to similar charges on November 14, 2013.
This case was investigated by agents for the Medicaid Fraud Unit, the Department of Health and Human Services, and the Social Security Administration, Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Helen L. Cooper as part of a partnership venture between the U.S. Attorney’s Office in Portland, Oregon, and the Seattle Region of the Social Security Administration, Office of the General Counsel.
For more information, please see the attached indictment Here
Sentencing of Two eBay RICO DefendantsRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announced that Tyrone Clark and Joedy Nixon, both Detroit, Michigan residents, were sentenced today by Chief United States District Judge William Steele for a conspiracy to commit a RICO violation. Clark received a sentence of 76 months and Nixon received a sentence of 51 months. Both were ordered to make restitution.
Both Clark and Nixon previously entered guilty pleas to the conspiracy charge and admitted their involvement in stealing electronics from retail stores in a number of states. Both admitted some of the stolen electronics were subsequently sold on eBay.
The cases arose from an investigation by the United States Secret Service and were prosecuted by Assistant United States Attorney Deborah Griffin.
San Francisco Man Sentenced to Twelve Months for Structuring Currency Transactions to Evade Reporting RequirementsRead the Press Release
SAN FRANCISCO – Tailiang Li was sentenced today to twelve months in prison for unlawfully structuring cash transactions, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez announced.
Li, 63, of San Francisco, pleaded guilty on August 6, 2013. According to the plea, Li knowingly structured financial transactions at a domestic financial institution with the purpose of avoiding the currency reporting requirements. Between February 14, 2008 and May 1, 2009, Li purchased, with cash, 174 - $1,000 money orders ($174,000) from the United States Postal Service. He purchased money orders from the following post offices: Millbrae Main Station, Chinatown Station, Sunset Station, Irving Station, Golden Gate Station, Steiner Station, and Geary Station. He typically purchased money orders from at least two or more post offices in one day. However, if he did purchase money orders from the same post office on the same day, he took particular care not to purchase from the same window clerk.
Li was charged on February 12, 2013 with 20 counts of structuring transactions to evade reporting requirements. He pleaded guilty to 2 counts. Li was also ordered to forfeit $174,000. This sum represents the funds that were involved in the structuring violations.
Thomas Moore is the Assistant United States Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Li indictment )
Salina Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
WICHITA, KAN. – A Salina man has been sentenced to 180 months in federal prison for receiving and distributing child pornography, U.S. Attorney Barry Grissom said today.
Justin S. Tatum, 32, Salina, Kan., was sentenced Monday in U.S. District Court in Wichita. He pleaded guilty to three counts of distributing child pornography, related to two different investigations. In his plea, Tatum admitted sending images of child pornography to Jeffrey Wiederholt in exchange for child pornography that Wiederholt produced. Tatum sent a video of an adult male pulling a diaper off a girl no more than three years of age to expose her genitals to the camera. He also sent a video of an adult male sexually abusing a girl no more than five years old. The investigation began in 2011 when Immigration and Customs Enforcement agents acted on a lead related to Wiederholt, uncovering emails between Tatum and Wiederholt.
Wiederholt was charged and convicted in U.S. District Court in the Western District of Missouri. He was sentenced to 70 years.
Tatum also admitted to using an encrypted peer-to-peer program to trade child pornography with individuals he met on the Internet. An investigation into these activities began in July 2011 when a detective with the Sheriff’s Department in Martin County, Florida, downloaded images of child pornography from Tatum on July 15 and 18, 2011. On Aug. 10, 2011, officers of the Salina Police Department executed a search warrant at Tatum’s home in Salina.
Grissom commended Immigration and Customs Enforcement, the Martin County, Fla., Sheriff’s Department, the Salina Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Sacaton Man Sentenced to 37 Months in Prison for Domestic ViolenceRead the Press Release
PHOENIX – On Dec. 3, 2013, Lawrence Antonio Jackson, 22, a member of the Gila River Indian Community from Sacaton, Ariz., was sentenced by U.S. District Judge McKibbento 37 months in prison following a plea of guilty to domestic assault by a habitual offender on Sept. 16, 2013.
On April 9, 2013, within the Gila River Indian Community, Jackson threw a full can of beer at the side of the victim’s head, causing her to momentarily black out. He then cut her on the arms with a knife. Prior to this assault, Jackson had been twice convicted of domestic violence in the Tribal Court.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-00856-PHX-NVW
RELEASE NUMBER: 2013-091_JacksonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Rapper Gucci Mane Arraigned on Federal Gun ChargesRead the Press Release
ATLANTA – Radric Davis, an Atlanta-based rap artist who performs under the name Gucci Mane, has been charged in federal court with two separate counts of possessing a firearm while being a felon.
“The indictment charges that on two separate occasions, this defendant, a convicted felon, threatened individuals, including the police and his attorney with a gun” said United States Attorney Sally Quillian Yates. “This is how people get hurt, and we are committed to ensuring that convicted felons not have guns.”
“When offenders such as this use firearms to threaten individuals, including law enforcement officers sworn to protect our community, ATF takes this very seriously,” said ATF Special Agent in Charge Christopher Shaefer. “ATF remains on the frontline of preventing violent crime along with our law enforcement partners and will continue to pursue those who violate the law, regardless of their celebrity status.”
“The Atlanta Police Department has made it a priority to take violent repeat offenders off our city streets and see that they are held responsible for their actions. We are thankful for the cooperation with our partner agencies, especially the U.S. Attorney’s Office, in bringing Mr. Davis to justice. We cannot tolerate convicted felons ignoring the law by carrying firearms and endangering our citizens,” said Atlanta Police Chief George N. Turner.
According to United States Attorney Yates, the charges, and other information presented in court: On September 12, 2013, Davis, who was a felon at the time, was found in possession of a firearm. Then, just two days later, on September 14th, he again possessed a firearm different from the earlier gun. On both occasions, Davis displayed the loaded firearm, acted erratically, and made threats to individuals, including police and his attorney.Davis, 33, of Atlanta, Ga., was indicted by a federal grand jury on November 19, 2013. He made his initial appearance before Magistrate Judge Linda T. Walker and was detained in custody pending his trial.
Each charge of being a felon in possession of a firearm carries a maximum sentence of 10-years in prison and a fine of up to $250,000. In determining the actual sentence, the sentencing Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that an indictment contains only allegations. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by law enforcement partner members of the Violent Repeat Offenders Initiative, including the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Atlanta Police Department.
Assistant United States Attorney Kim S. Dammers is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Postal Customer Sentenced for Embezzling $33,072.68 from the United States Postal ServiceRead the Press Release
SYRACUSE, NEW YORK – Richard S. Hartunian, United States Attorney for the Northern District of New York, announced that JOHN GIBSON, III, age 38, of Oswego, N.Y. was sentenced today before the Honorable Glenn T. Suddaby in the United States District Court in Syracuse, New York.
GIBSON was sentenced to 3 years probation in connection with his plea to Theft of Government Property, in violation of Title 18, United States Code, Section 641. Additionally, GIBSON was ordered to pay $33,072.68 in restitution; was ordered to serve 6 months of home detention and two months of weekend incarceration; ordered to perform 100 hours of community service; and pay a special assessment of $100.
On June 4, 2013, GIBSON admitted that from June 2012 through August 2012, he purchased 91 postal money orders using 42 checks drawn on closed checking accounts in the total amount of $33,072.68.
GIBSON’s prosecution is the result of a joint investigation by the U.S. Postal Inspection Service and the United States Postal Service Office of Inspector General. The investigation began in June 2012. The prosecution was handled in the United States Attorney’s Office by Assistant U.S. Attorney Tamara B. Thomson
Owners of St. Charles Real Estate Company Sentenced for Tax FraudRead the Press Release
St. Louis, MO - JOHN and ANTHONY CALANDRELLA were sentenced today for their failure to file income tax returns for three years on the income from their company, Golden Delta Enterprises. John was sentenced to 18 months in prison; Anthony was sentenced to 6 months in prison.
According to court documents, John and Anthony Calandrella owned Golden Delta Enterprises, (GDE), a business that purchased, renovated and then sold or rented homes in the St. Louis metropolitan area. For the tax years 2003, 2004 and 2005, GDE generated substantial profits, part of which went directly to the defendants. Accordingly, they received substantial, personal gross income which required them to prepare and file individual federal income tax returns. However, for these three tax years, the Calandrellas’ had returns prepared for these tax years, but failed to file these returns or pay any taxes due and owing to the United States of America. Additionally, they sent letters to the Internal Revenue Service claiming to be citizens of the sovereign state of Missouri, therefore not required to sign or file federal income tax returns or pay federal income taxes. They also concealed personal income and assets in order to lower potential tax liability. Finally, the brothers used GDE funds to purchase literature from well-known promoters of tax evasion schemes and activities. For the tax years 2003-2005, John Calandrella caused a loss to the United States in the amount of $227,032; Anthony Calandrella caused a loss of $198,644. Both were ordered to pay those amounts in restitution.
"The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Honest individuals should not have to pick up the tab for those people not filing returns."
John P. Calandrella and Anthony R. Calandrella, both of Lake St. Louis, MO, pled guilty in July to three felony counts of attempting to evade taxes. They appeared today for sentencing before United States District Judge Jean C. Hamilton.
This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Stephen Casey handled the case for the U.S. Attorney’s Office.
Owner of Mountain Pure Water Indicted on Multiple Counts of Wire Fraud and Money LaunderingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced that John B. Stacks, owner of Mountain Pure Water, was indicted today by a Federal Grand Jury on three counts of wire fraud, three counts of money laundering, one count of submitting a false claim to the Small Business Administration (SBA), and four counts of making a false statement.
The Indictment charges that Stacks obtained an SBA loan in 2009 for $703,300 under false pretenses. According to the Indictment, Stacks claimed he had over $500,000 worth of Mountain Pure Water equipment at his farm in Damascus, Arkansas. Stacks further alleged that this equipment was destroyed when a tornado touched down in the area in May 2008. The wire fraud and money laundering charges stem from three transfers of money from the SBA in Kansas City, Missouri to Stacks’ General Account at Home Bank of Arkansas in Greenbriar. The false claim and statement charges are related to the Loan Authorization and Agreement and other related documents and statements Stacks submitted to the SBA to induce the SBA to make the loan.
If convicted, Stacks faces a statutory maximum penalty for Wire Fraud of not more than 20 years; a statutory maximum penalty for Money Laundering of not more than 10 years; a statutory penalty for False Claim of not more than 5 years; and a statutory penalty for false statement of not more than 5 years of imprisonment.
The case was investigated by the SBA Office of Inspector General and the IRS Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Angela Jegley and First Assistant United States Attorney Pat Harris.
Owner of Atlanta Income Tax Preparation Firm Pleads Guilty to Multi-Million Dollar Refund FraudRead the Press Release
ATLANTA - Anita R. Ford, a/k/a Anita R. Dixon has pleaded guilty today for aiding or assisting in the presentation and filing of false personal income tax returns with the U.S. Internal Revenue Service.
“By filing thousands of false tax returns this defendant caused the U.S. Treasury to issue millions of dollars in fraudulent refunds to her clients,” said United States Attorney Sally Quillian Yates. “Her scheme was stopped when she prepared a false tax return for an undercover IRS agent. This conviction should make abusive return preparers think twice before attempting to rob the U.S. Treasury.”
“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching fraudulent refund claims,” stated IRS Criminal Investigation Special Agent in Charge, Veronica F. Hyman-Pillot. “The message this case sends is that participation in refund fraud schemes does not pay and those who do will be prosecuted. Additionally, taxpayers who receive fraudulent refunds, whether knowingly or not are responsible for repaying the money.”
According to United States Attorney Yates, the charges and other information presented in court: Between 2004 and 2012, Ford owned and operated Georgia Peach Financial & Fast Tax Service (“Georgia Peach”), an Atlanta personal income tax preparation business. During that time Ford prepared and electronically filed (“e-filed”) thousands of Form 1040 individual income tax returns with the IRS that intentionally misstated her clients’ income in order to generate fraudulent refunds. In particular, Ford made up fake side businesses with fake income and fake expenses, and then attached false Schedules C’s (“Profit or Loss from Business”) to the clients’ tax returns showing such made up income and expenses. This had the effect of off-setting her clients’ income tax liability from their real salaries, as reflected in Forms W2 (“Wage & Tax Statement”) issued by their real employers, generating false credits and refunds.
In March 2011, a Special Agent of IRS-CI visited Georgia Peach in an undercover capacity, posing as a taxpayer seeking to have a return prepared. Ford began preparing a tax return in the agent’s cover identity, based on a Form W2 in the cover identity, and informed the agent that they would owe approximately $200. In truth, the agent would have been due a refund of almost $400. Ford then created a fictitious Form Schedule C for a fake beauty salon business, with $30,000 in fake business expenses, generating a fraudulent refund of over $4,000, and e-filed the completed tax return with the IRS. To prepare and e-file the return, Ford charged a fee of $510. Ford did not provide a copy of the tax return to the undercover agent or review it with the undercover agent before e-filing it.
The returns identified in the scheme sought fraudulent refunds ranging from several thousand dollars to tens of thousands of dollars, including at least one fraudulent refund of more than $30,000. As part of her plea agreement with the United States, Ford agreed that she is responsible for between $2.5 and $7 million in losses to the IRS.
Ford, 49, of Jonesboro, Ga., pleaded guilty to both counts of a two-count Criminal Information filed against her on October 4, 2013. The charges each carry a maximum sentence of three years, for a total of six years in federal prison, and a fine of up to $250,000 on each count. Also, as part of the plea agreement, Ford has agreed to pay $5,732,021.50 in restitution to the United States Treasury. The sentencing has not yet been scheduled. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of IRS-CI.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
The IRS would like to remind people that while most preparers provide excellent service to their clients, the IRS urges taxpayers to be very careful when choosing a tax preparer. Taxpayers should be as careful as they would be in choosing a doctor or a lawyer. It is important to know that even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the tax return.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Northern KY. Fireworks Dealer Awaits Sentence for Explosives CrimeRead the Press Release
COVINGTON, KY - Sam Droganes, 48, of Ft. Mitchell, KY., awaits sentencing for being a felon in possession of explosives, a violation of federal law.
Droganes, who will be sentenced in March 2014, pleaded guilty on November 27, 2013 and admitted selling 1.3G (display) fireworks to a confidential informant who was working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The sale occurred on May 28, 2013, at Droganes’s store, which is located in Covington, KY., Droganes is a convicted felon, having previously been convicted in federal court in 2010 of an offense involving the same type of explosives. Under federal law, convicted felons are prohibited from possessing firearms and explosives.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Stuart L. Lowrey, Special Agent in Charge, ATF, jointly made the announcement.
The investigation was conducted by ATF. Assistant U.S. Attorney Elaine K. Leonhard represents the U.S. Attorney’s Office in this case.
Droganes is currently scheduled to appear for sentencing, before U.S. District Judge Amul R. Thapar, in Covington, on March 20, 2014 at 2:00 p.m. Droganes faces a maximum prison sentence of 10 years. However, any sentence will be imposed by the Court after consideration of the United States Sentencing Guidelines and the applicable federal statutes governing the imposition of sentences.
New York City Police Officer and Criminal Associates Charged with Extorting Queens RestauranteurRead the Press Release
A three-count indictment was unsealed today in federal court in Brooklyn, New York charging Redinel Dervishaj, Besnik Llakatura, and Denis Nikolla with Hobbs Act extortion conspiracy, attempted Hobbs Act extortion, and brandishing a firearm in relation to the extortion.1 The charges arose from the defendants’ extortion of money from a Queens County restaurant owner. Llakatura was at the time of the alleged offenses a police officer with the New York City Police Department (NYPD), assigned to the 120th Precinct in Staten Island, New York. He was suspended without pay upon his arrest. The defendants are scheduled to be arraigned this afternoon at the United States District Court for the Eastern District of New York, before United States Magistrate Judge Joan Azrack.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Raymond W. Kelly, Commissioner, NYPD.
“The defendants told their victims they offered “protection,” but in reality they peddled fear and intimidation through the Albanian community – their community – of Queens,” stated United States Attorney Lynch. “When one victim turned to law enforcement for help, he was betrayed again by a corrupt officer on the take, who turned his back on his badge, his oath and his friend in exchange for extortion money in his pocket.” Ms. Lynch expressed her thanks to members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division for its cooperation and assistance in the investigation.
“By creating a climate of fear, the defendants allegedly coerced an innocent restaurant owner into paying for so-called protective services. The victim was further betrayed when seeking the assistance of Besnik Llakatura, an NYPD officer whose sinister intentions were shrouded by his badge of honor. But Llakatura didn’t serve his community with honor; he, instead, abused his powers to the detriment of the public trust. He remains an exception to those law enforcement officers who work selflessly to weed out crime and corruption in their communities,” stated FBI Assistant Director-in-Charge Venizelos.
“Llakatura is alleged to have exploited his friendship and shared heritage in order to help the defendants extort a restaurateur. Once it was reported, the NYPD Internal Affairs Bureau, and the Department’s Organized Crime Investigations Division thoroughly responded, resulting in the charges being announced today.” Commissioner Kelly said.
According to the indictment and court filings, Dervishaj, Llakatura, and Nikolla demanded monthly payments from a Queens restaurant owner in exchange for “protection,” repeatedly using threats and intimidation to ensure his compliance. The scheme began shortly after the victim opened a restaurant in Astoria when he was visited by Dervishaj and told that he had opened a business in “our neighborhood” and, as a result, “you have to pay us.” The restaurant owner, who understood that he was targeted because he, like the defendants, is of Albanian descent, sought help from his friend Llakatura. Unbeknownst to him, Llakatura, an NYPD officer on Staten Island since 2006, was conspiring with Dervishaj in the extortion. Llakatura discouraged the restaurant owner from going to the police and sought to leverage his position to persuade the victim that he had no choice but to make the demanded payments. When the victim resisted, he was threatened with physical violence and chased at gunpoint down the street in Queens by Nikolla.
Court-authorized wiretaps of the defendants’ telephones uncovered detailed evidence of their efforts to maintain control over businesses in the neighborhood through fear, intimidation, and violence. In one intercepted call, Llakatura joked about how he “taxes” local businesses. In another, Nikolla described to Dervishaj how he had grabbed another victim “by the neck” because he had told Nikolla that he only had $2,000 and could not pay more.2
Over the course of five months, each of the three defendants took turns collecting monthly payments from the Astoria restaurant owner, ultimately collecting $24,000 in so-called protection money.
The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata and M. Kristin Mace.
The Defendants
REDINEL DERVISHAJ, a/k/a “Redi”
Age: 37
Queens, New YorkBESNIK LLAKATURA, a/k/a “Besi” and “Nick”
Age: 34
Staten Island, New YorkDENIS NIKOLLA
Age: 33
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-668 (ENV)
_____________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
2 The referenced language from the intercepted calls is based on draft translations from Albanian.
Michigan Aquarium Store Operators Plead Guilty to Illegal Trafficking of Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and Edward Grace, Deputy Assistant Director, U.S. Fish & Wildlife Service Office of Law Enforcement, announced that Richard Perrin, 80, formerly of Romulus, Michigan, pled guilty yesterday in federal District Court in Key West for conspiring with others to transport, sell, receive, acquire, and purchase fish and wildlife, Sea Fans (Gorgonia flabellum and Gorgonia ventalina), ornamental tropical fish, sharks, and alligators (Alligator mississippiensis), with a fair market value in excess of $350.00, knowing the wildlife was taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4), and 3373(d)(1) and (2), all in violation of Title 18,United States Code, Section 371.
United States District Court Judge Jose E. Martinez, who accepted Perrin’s plea, set sentencing in the matter for March 25, 2014 at 2:00 p.m. in Key West. Perrin faces a maximum sentence of five years in prison, three years of supervised release, and a criminal fine of up to $250,000. He also faces forfeiture of the vehicle used in the commission of the Lacey Act Violations. Perrin’s co-defendant, Joseph Franko, 35, also of Romulus, entered a guilty plea to the same charge on November 25, 2013 and faces the same possible sentence and fine.
According to the Indictment and Joint Factual Statements submitted to the Court, from approximately December 2008 through December 2011, Perrin and Franko engaged in a conspiracy to purchase, harvest, and transport marine life and reptiles from Florida to Michigan for sale through a business known as Tropicorium, Inc. Perrin was the owner Tropicorium, engaged in the day-to-day management and operation of the corporation, while Franko was an employee. Tropicorium was organized in 1993 under the laws of Michigan with its principal place of business in Romulus. Tropicorium was engaged in the purchase and retail sale of marine life and reptiles, including sharks, marine invertebrates, Sea Fans, ornamental tropical fish, and alligators.
The defendants admitted that they failed to acquire or possess the licenses required by Florida Statute for the marine life they harvested during multiple trips to the Florida Keys. Additionally, the Sea Fans taken by the defendants and sold in Michigan are prohibited from being harvested from the waters of the State or the Florida Keys National Marine Sanctuary, where they plied their trade. Richard Perrin and Franko also made stops while en route to the Keys in the area of Big Cypress National Preserve, where they illegally poached juvenile alligators to sell through Tropicorium. Unknown to the defendants, on one occasion they actually sold a baby alligator and illegal Sea Fans from a Florida harvesting trip to an undercover Special Agent of the Fish & Wildlife Service. They also utilized a facility on Grassy Key as maintenance base for their harvested marine life until they were ready to ship or transport the specimens to Michigan for sale.
Mr. Ferrer commended the joint investigative efforts of the Special Agents of the NOAA Office of Law Enforcement and the Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom, and the assistance of the Officers of the Michigan Department of Natural Resources. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section and Antonia Barnes of the Asset Forfeiture Division.
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.
Massachusetts Man Pleads Guilty to Tax Fraud and Mail FraudRead the Press Release
Michael Edwards pleaded guilty today to one count of corruptly endeavoring to obstruct the Internal Revenue Service (IRS) and one count of mail fraud, t he Justice Department and IRS announced. Both charges arise from Edwards’ operation of his tax return preparation business Boston Financial Associates (BFA) and Edwards’ misappropriation of income tax refunds from two of his clients in 2009.
According to court documents, Edwards admitted that he misled an IRS auditor reviewing one of his client’s 2007 and 2008 income tax returns by giving her false documentation that claimed to support the false entries on the returns. Edwards misappropriated federal income tax refunds of $573,518 from one client and $202,143 from a second client.
Sentencing for Edwards has been scheduled for Feb. 25, 2014. The statutory maximum penalty for corruptly endeavoring to obstruct the IRS is three years in prison and a $250,000 fine. The statutory maximum penalty for mail fraud is 20 years in prison and a $250,000 fine.
This case was investigated by IRS – Criminal Investigation and prosecuted by Tax Division Senior Litigation Counsel Corey J. Smith.
Man Sentenced to 3 Years in Federal Prison in Connection with A Huntington Heroin Distribution SchemeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced yesterday to three years in federal prison for his role in a heroin distribution scheme in Huntington, announced U.S. Attorney Booth Goodwin. Rodney Lee Flowers, also known as “Anthony Phillip Hollis,” 48, previously pleaded guilty in September to possession of heroin with the intent to distribute. Flowers was charged in a one-count indictment in April.
In early March 2013, agents with the Drug Enforcement Administration (DEA) received information that Flowers and several of his associates were distributing heroin from a residence located on Washington Avenue in Huntington. During an investigation, agents discovered that Flowers and his associates were expecting a package containing heroin by mail from Michigan. On April 3, 2013, an undercover agent delivered the package to 2200 ½ Washington Avenue in Huntington. Rodney Flowers answered the front door at the residence and accepted the package. A short time later, Flowers and an associate exited the residence and got inside of a vehicle. Police later conducted a traffic stop on the vehicle. Flowers was arrested and taken to the Huntington Police Department for processing. The defendant provided a Mirandized statement to police regarding his involvement in the heroin distribution scheme. Flowers told police that he was expecting a package by mail from Michigan that contained approximately 225 grams of heroin.
Agents executed a search warrant on the defendant’s Washington Avenue residence and recovered the package that contained 226.8 grams of heroin.
The DEA, the United States Postal Inspection Service and the Huntington Police Department conducted the investigation. Assistant U.S. Attorney Gregory McVey handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
Man Indicted for Illegal ReentryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury returned a one-count indictment charging Oscar Mejia Gomez, age 29, of Honduras, with illegal re-entry into the United States after deportation.
The indictment charges that or about November 7, 2013, Gomez , an alien, was found in the United States after having been deported on or about August 11, 2011, at or near the Phoenix Mesa Gateway Airport, Mesa, Arizona, and not having obtained the express consent of the Secretary of Homeland Security to reapply for admission to the United States.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
Major Cocaine and Heroin Trafficker Sentenced on Drug Charges, Ordered to Forfeit AssetsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Ronald Walker, 43, of Corona, N.Y., who was convicted of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and one kilogram or more of heroin and conspiracy to commit money laundering, was sentenced to 10 years in prison by U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to assets totaling $2,500,000 to the United States, which represented the amount of proceeds from the drug trafficking conspiracy.
Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that between 2005 and August 2012, the defendant was part of a conspiracy to distribute cocaine and heroin. During the time period of the conspiracy, Walker was in New York City and arranged for the distribution of quantities of cocaine and heroin through others to individuals who were transporting the drugs to Rochester and distributing them. The conspiracy involved at least 40 kilograms of cocaine and one kilogram of heroin. In addition, Walker laundered drug proceeds by placing at least $911,000 in cash in safe deposit boxes opened by other individuals to conceal the proceeds. In August 2012, authorities seized the cash from these safe deposit boxes, as well as approximately $615,000 in cash from two residences connected to the defendant. Walker agreed to forfeit all of that cash, as well as a 2012 Range Rover vehicle, articles of jewelry and two properties located in Corona, N.Y., and Union City, Georgia, as proceeds of his illegal activities.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, investigators with the Rochester Police Department, under the direction of Chief James M. Sheppard, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.Maine Man Sentenced for Newington Bank RobberyRead the Press Release
CONCORD, N.H. – Derek Kucinski, 27, formerly of Cape Neddick, Maine, was sentenced yesterday in United States District Court for the District of New Hampshire to serve a minimum mandatory 22 years in federal prison following his conviction for armed bank robbery, announced United States Attorney John P. Kacavas.
On Saturday, January 12, 2012, Kucinski entered the TD Bank on Woodbury Avenue in Newington, New Hampshire wearing a black ski mask, gloves and armed with a loaded .32 caliber revolver. He ordered several customers to the ground as he repeatedly pointed the handgun at tellers and demanded money. After spending several minutes in the bank, Kucinski fled with approximately $5000.00 and was apprehended by Newington and Portsmouth police following a brief car and foot chase.
At the time of his arrest, Kucinski was on supervised release after having served five years in federal prison for nine prior bank robberies committed in 2006. He was not armed in the commission of those robberies.
The case was investigated by the Federal Bureau of Investigation, and the Newington and Portsmouth Police Departments, with invaluable assistance provided by the Somersworth Police Department. The case was prosecuted by United States Attorney John P. Kacavas.Lockport man sentenced on drug chargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Torano Spencer, 37, of Lockport, N.Y., who was convicted of conspiracy to possess with intent to distribute, and to distribute, cocaine and cocaine base, was sentenced to three years probation with three months electronic monitoring by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between June 2009 and August 2010, Spencer distributed cocaine and cocaine base in the Lockport area which was supplied to him by co-defendant Eric Williams. Spencer is one of the 22 defendants convicted as a result of this drug investigation.
The conviction is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Lawrence, Pa., Man Charged with Embezzling from Clients, Failing to Report IncomeRead the Press Release
PITTSBURGH - A resident of Lawrence, Pa., has been indicted by a federal grand jury in Pittsburgh, on charges of wire fraud and filing false income tax returns, United States Attorney David J. Hickton announced today.
The seven-count indictment named James Grimes, a resident of Lawrence, Pennsylvania.
According to the indictment presented to the court, Grimes embezzled funds belonging to clients of his brokerage firm. He also allegedly failed to report the income realized on his tax return for the years 2007-2009.
The law provides for a maximum total sentence of 89 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James Y. Garrett is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lakeland Man Pleads Guilty to Production of Child PornographyRead the Press Release
Tampa, FL– Acting United States Attorney A. Lee Bentley, III announces that Lawrence H. Dorman a/k/a “Howie” (42, Lakeland) today pleaded guilty to production of child pornography. Dorman faces a mandatory minimum of 15 years’ imprisonment, up to a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
Dorman was indicted on July 31, 2013.
According to the plea agreement, following an anonymous tip from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Tipline, law enforcement determined that from approximately December 2012 until April 2013, Dorman a/k/a "Howie" engaged in a sexual relationship with a sixteen year-old minor female. Throughout the course of that relationship Dorman produced videos of himself engaged in sexual acts with the minor.
On April 3, 2013, agents from ICE-HSI, the Lakeland Police Department, and Polk County Sheriff's Office conducted a search warrant at Dorman’s residence. During the search of the residence, law enforcement seized and previewed several electronic media items, including a video file on Dorman's desktop computer. The video depicted Dorman engaged in sexual contact with a minor female victim. When interviewed by law enforcement, Dorman admitted to having sex with the minor victim and creating video recordings of the sex acts.
A subsequent interview with the minor victim corroborated the seized evidence. Additionally, the minor victim advised that Dorman provided her with marijuana and methamphetamine, while she was at his residence.
This case was investigated by ICE-HSI and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ketchikan Man arraigned in Federal Court for assault on a Federal OfficerRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Ketchikan man was arraigned yesterday in Juneau on one charge of assault on a federal officer.
Jon William Munhoven, 55, of Ketchikan, Alaska, also known as “John William Mundhoven,” appeared in court yesterday and pled not guilty to the charge.
According to the information presented to the court, Munhoven was contacted by the United States Coast Guard in response to a disturbance on a private vessel outside of Ketchikan, Alaska. Once contacted, USCG officers removed Munhoven from the vessel and onto a USCG patrol vessel. Munhoven was subsequently placed in restraints. The USCG secured the other vessel in order to tow the vessel into safe harbor. The indictment alleges that Munhoven was hostile and aggressive during the tow operation and was placed on the deck of the USCG boat for his safety and the safety of other personnel on the patrol vessel. Munhoven is charged with kicking a USCG officer in the face with a shod foot causing bodily injury to the officer.
Assistant U.S Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
The United States Coast Guard Investigative Service and the Ketchikan Police Department conducted the investigation leading to the indictment in this case. Munhoven remains incarcerated pending trial in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Kent Woman Faces Tax ChargesRead the Press Release
A Kent, Ohio, woman is accused of underreporting her taxable income by more than $240,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Youlanda Banks, age 57, was charged via criminal information with two counts of making or subscribing a false tax return.
Banks filed a tax return for 2007 stating her total income was $54,059 when, in fact, it was approximately $157,238. She filed a tax return for 2008 stating her total income was $3,169 when, in fact, it was $143,765, according to the information.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton following an investigation by the Internal Revenue Service.
A charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Justice Department Files Lawsuit to Stop Tennessee Woman from Preparing Tax ReturnsRead the Press Release
The Department of Justice filed a civil lawsuit in a federal court in Memphis today to stop Stephanie Edmond and her businesses, the Tax Factory and Tax Factory Enterprise Inc., from preparing federal income tax returns. According to the complaint, Edmond and her businesses have prepared more than 9,000 tax returns since 2011.
The complaint filed with the U.S. District Court for the Western District of Tennessee alleges that Edmond understates her customers’ federal tax liabilities by creating fake businesses, then listing those phony businesses on returns and fabricating expenses for them. Edmond also improperly claims the earned income tax credit on the income tax returns that she prepares for her customers. In one case, according to the complaint, two returns prepared for a customer by The Tax Factory claimed bogus business losses of approximately $30,000 for each of the two years, and as a result, the customer improperly received tax refunds of approximately $7,000 both years. In total, the complaint alleges that Edmond’s activities over the last three years have cost the Treasury $9.7 million or more in lost income tax revenue.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2013 which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013. The Internal Revenue Service has some tips for choosing a tax preparer: http://www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional. In the past decade, the department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.g ov/tax/taxpress2013.htm.
Related Materials:
United States v. Stephanie Edmond
Complaint for Permanent InjunctionJustice Department Files Lawsuit Alleging Disability-Based Discrimination at Hartville, Ohio, Condominium ComplexRead the Press Release
The Justice Department filed a lawsuit late yesterday against the owners, builders and designers of a 54-unit condominium complex in Hartville, Ohio, for violations of the Fair Housing Act (FHA). The lawsuit alleges that the defendants violated the law when they designed and constructed the complex with barriers that make it inaccessible to persons with disabilities.
“Since 1991, the Fair Housing Act has required that when new multifamily housing is built, it be accessible to persons with disabilities,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “When condominium complexes are built with steps and other barriers, those with disabilities are denied that equal housing opportunity.”
“We will continue to work to make sure people with disabilities are free to live where they choose, as is their legal right,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
The suit, filed in U.S. District Court in Cleveland alleges that various barriers at the Windham Bridge property in Hartville deny persons with disabilities equal access to 52 condominiums and the associated public and common-use areas at the property that are covered by the FHA. Such barriers include inaccessible building entrances; no accessible parking spaces; insufficient accessible routes into and through the units; and kitchens and bathrooms that are inaccessible to persons in wheelchairs.
The lawsuit arises from a complaint filed with the Department of Housing and Urban Development (HUD) by the Fair Housing Advocates Association (FHAA), a private nonprofit corporation whose mission is to provide education regarding fair housing laws and to ensure compliance with those laws in Ohio. FHAA inspected the Windham Bridge property and observed accessibility barriers. After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.
“The Fair Housing Act's accessibility requirements have been on the books for over two decades. So, today, when a person with a disability cannot enter the front door of a condominium complex, or find accessible parking there, it sends the message: 'You are not welcome here,'" said HUD's Acting Assistant Secretary Bryan Greene for Fair Housing and Equal Opportunity. “HUD and DOJ are committed to enforcing the nation’s fair housing laws to make certain persons with disabilities have the same access to multifamily housing as anyone else."
Named in the suit are the prior owners and builders of the property, Noble Homes Inc., Guardian Property Management Inc., Dean Windham, Hersh Construction Inc., and John Hershberger, as well as the designer of the property, Milton Studer, and his firm, Studer Architects LLC. The suit seeks a court order requiring the defendants to retrofit the Windham Bridge property to bring it into compliance with the FHA, as well as monetary damages for FHAA and for persons harmed by the lack of accessibility at the complex.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, the Act requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] , or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Justice Department Files Lawsuit Alleging Disability-Based Discrimination at Hartville Condominium ComplexRead the Press Release
The Justice Department filed a lawsuit late yesterday against the owners, builders and designers of a 54-unit condominium complex in Hartville, Ohio, for violations of the Fair Housing Act (FHA). The lawsuit alleges that the defendants violated the law when they designed and constructed the complex with barriers that make it inaccessible to persons with disabilities.
“Since 1991, the Fair Housing Act has required that when new multifamily housing is built, it be accessible to persons with disabilities,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “When condominium complexes are built with steps and other barriers, those with disabilities are denied that equal housing opportunity.”
“We will continue to work to make sure people with disabilities are free to live where they choose, as is their legal right,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.
The suit, filed in U.S. District Court in Cleveland alleges that various barriers at the Windham Bridge property in Hartville deny persons with disabilities equal access to 52 condominiums and the associated public and common-use areas at the property that are covered by the FHA. Such barriers include inaccessible building entrances; no accessible parking spaces; insufficient accessible routes into and through the units; and kitchens and bathrooms that are inaccessible to persons in wheelchairs.
The lawsuit arises from a complaint filed with the Department of Housing and Urban Development (HUD) by the Fair Housing Advocates Association (FHAA), a private nonprofit corporation whose mission is to provide education regarding fair housing laws and to ensure compliance with those laws in Ohio. FHAA inspected the Windham Bridge property and observed accessibility barriers. After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.
“The Fair Housing Act's accessibility requirements have been on the books for over two decades. So, today, when a person with a disability cannot enter the front door of a condominium complex, or find accessible parking there, it sends the message: 'You are not welcome here,'" said HUD's Acting Assistant Secretary Bryan Greene for Fair Housing and Equal Opportunity. “HUD and DOJ are committed to enforcing the nation’s fair housing laws to make certain persons with disabilities have the same access to multifamily housing as anyone else."
Named in the suit are the prior owners and builders of the property, Noble Homes Inc., Guardian Property Management Inc., Dean Windham, Hersh Construction Inc., and John Hershberger, as well as the designer of the property, Milton Studer, and his firm, Studer Architects LLC. The suit seeks a court order requiring the defendants to retrofit the Windham Bridge property to bring it into compliance with the FHA, as well as monetary damages for FHAA and for persons harmed by the lack of accessibility at the complex.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, the Act requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Jury Finds Felon with Prior Convictions Guilty of Illegally Possessing A RevolverRead the Press Release
PITTSBURGH - After deliberating for less than an hour, a federal jury of four men and eight women found James H. Anthony guilty of one count of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g), United States Attorney David J. Hickton announced today.
Anthony was tried before Senior United States District Judge Donetta Ambrose in Pittsburgh, Pa.
According to Assistant United States Attorney Barbara K. Doolittle, who prosecuted the case, the evidence presented at trial established that, on Sept. 25, 2011, Anthony possessed a Rossi .38 special revolver with an obliterated serial number. The firearm had been reported stolen years earlier by the Ligonier Township Police Department in Westmoreland County. Anthony was found to be in possession of the gun at his home in Fawn Township, Allegheny County, despite his inability to lawfully possess any firearm as a result of a prior felony conviction.
Judge Ambrose scheduled sentencing for March 27, 2014. Because the defendant has three previous convictions for a violent felony or a serious drug offense, or both, the law provides for a mandatory minimum sentence of 15 years in prison up to a maximum of life imprisonment, and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history of the defendant, but cannot be less than 15 years in this instance.
Pending sentencing, the court continued the defendant’s house arrest.
The Fawn Township Police Department, the Allegheny County Police Department, and the ATF conducted the investigation that led to the prosecution of James Anthony.
Judge Sentences Heroin Dealer to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 120 months imprisonment followed by eight years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Donald Lyles a/k/a Chief, 39.
According to information presented to the court, on or about April 25, 2013, Lyles possessed with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Lyles.
Grand Junction Man Is Sentenced to 38 Months in Federal Prison for Income Tax EvasionRead the Press Release
DENVER – James G. Kreutzer, age 52, of Grand Junction, Colorado, was sentenced yesterday by U.S. District Court Judge William J. Martinez to serve 38 months in federal prison for income tax evasion, United States Attorney John Walsh, IRS Criminal Investigation Special Agent in Charge Stephen Boyd and FBI Special Agent in Charge Thomas P. Ravenelle announced. Following his prison sentence, Kreutzer was ordered to spend 3 years on supervised release. Judge Martinez also ordered him to pay $186,473 in restitution, as well as a $10,000 fine.
Kreutzer waived his right to be indicted by a federal grand jury on May 7, 2013, and was charged by Information. According to the stipulated facts contained in the plea agreement, as well as the Information, Kreutzer through Village Nursery, Inc (his solely owned company) and various related entities he owned and/or controlled, engaged in real estate development and construction activities in Southwest Colorado. During the period of 2001 through 2008, Kreutzer devised a scheme to defraud, lenders, which included financial institutions, companies, and other persons. Personally and through his companies Kreutzer repeatedly sought and obtained new loans to service his prior loans, to pay his personal obligations and expenses, and to pay for his real estate purchases and construction activities. To obtain these loans, he routinely made materially false and fraudulent pretenses, representations and promises to financial institutions.
By mid-2008, Kreutzer was no longer able to obtain money through new loans or otherwise to pay previous lenders and others. In 2007 and 2008, Kreutzer’s personal expenses were reflected by the accountant he hired in the company's general ledger as accounts receivable which showed he took $1,132,917.46 from his company in 2007, none of which was reported as income on his 2007 tax return. In 2008 he took an additional $248,627.35, none of which was reported as income on his 2008 tax return. The personal expenses paid by the company in 2007 and 2008 included Kreutzer’s home mortgage payments for his two homes, his utility payments, his Mercedes Benz payments, his gambling expenses in Las Vegas, Nevada, and his jewelry purchases.
The accountant, over a number of years, told Kreutzer the money he took out of the company was income and he should report it on his personal income tax returns. Kreutzer stated to the accountant, in essence, don't put it on the return, I can't pay it. Kreutzer paid no income tax to the IRS in 2007 and 2008 while the actual calculated amount due to the IRS was $186,473.
This case was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Todd Norvell and Tim Neff.
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Four Louisville Men Charged in String of Armed RobberiesRead the Press Release
– Federal Charges Result From “Project Recoil”
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky announced the indictment by federal grand jury today, of four Louisville men charged with the armed robbery, and attempted robbery, of five businesses located in Jefferson County, Kentucky, and discharging a firearm during the course of a robbery. These federal charges stem from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by U.S. Attorney Hale, Jefferson County Commonwealth’s Attorney Tom Wine, Jefferson County Attorney Mike O’Connell, LMPD Chief Steve Conrad, ATF Special Agent in Charge Stuart Lowrey, FBI Special Agent in Charge Perrye Turner, and United States Marshal James Clark to maximize penalties for the most violent offenders and to reduce violent crime in our community.
The ten-count indictment charges, Jescell Whittle, age 22, Tony Trumbo, Jr., age 23, with four counts of obstructing interstate commerce through robbery, one count attempted robbery and four counts of brandishing a firearm during a robbery. Dahntel Newsome, age 18, is charged with two counts of obstructing interstate commerce through aiding and abetting a robbery, one count attempted robbery and three counts of brandishing a firearm during a robbery. James Gore, Jr., age 23, is charged with two counts of obstructing interstate commerce through aiding and abetting a robbery and one count brandishing a firearm during a robbery. All defendants, except Newsome, face an additional count of brandishing and discharging a firearm, during a robbery.
Defendants Whittle, Trumbo and Newsome are charged with robbing the Cricket Wireless located at 4442 Cane Run Road on October 22, 2012, attempted robbery of the Cricket Wireless located at 3125 West Broadway on October 23, 2012, and robbery of the JC Cigarette Outlet located at 2714 Crums Lane on October 29, 2012. Defendants Whittle, Trumbo and Gore are charged with robbing the Thorntons located at 4516 Poplar Level Road on October 30, 2012, and the Speedway, located at 3030 Taylor Boulevard on October 31, 2012. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce.
If convicted at trial, Whittle and Trumbo face a mandatory 100 year prison sentence for robbery and attempted robbery, a 107 year sentence for use of a firearm in a crime of violence, and a $2.5 million fine. Newsome faces a 60 year sentence for robbery and attempted robbery, a 57 year sentence for use of a firearm in a crime of violence, and a $1.75 million fine. Gore faces a 40 year sentence for robbery, a 32 year sentence for use of a firearm in a crime of violence, and a $1 million fine.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKinness and is being investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Philadelphia Police Officer Convicted of CorruptionRead the Press Release
PHILADELPHIA – A federal jury, yesterday, found 52-year old Rafael Cordero, a 23-year veteran of the Philadelphia Police force, guilty of interfering with the federal drug investigation of the Christian Serrano/Edwin Medina Drug Trafficking Organizations (“DTOs”). Cordero provided sensitive law enforcement information about drug investigations to his half-brother, David Garcia, a member of the Serrano/Medina DTOs. Cordero told his half-brother about a surveillance camera put up by the DEA to monitor activities occurring at a garage, located at 538 East Indiana Street in Philadelphia, used by the Medina DTO. When the FBI and DEA executed search warrants at several locations associated with the Serrano/Medina DTOs, including the garage, Cordero, after being informed about the searches by his half-brother and without having any official reason to do so, went to the search location on East Indiana Street and began looking in the windows of the garage. When confronted by law enforcement and brought inside the location, Cordero misrepresented his reason for being at the location and offered to assist with the search. At no time did Cordero provide his name to law enforcement.
Immediately after leaving the search location, Cordero placed a call to David Garcia and shared with him, among other things, how many law enforcement officers were conducting the search and what areas of the garage they were searching. Garcia removed a DVR tape that law enforcement had inadvertently failed to seize during the search and viewed it to see if Cordero was recorded at the garage at the time of the search, which he was. At no time did Cordero inform law enforcement that David Garcia had possession of the video tape.
When questioned by federal agents, Cordero denied giving information to Garcia regarding the surveillance camera, denied knowing of anyone associated with the Indiana Street garage, denied having spoken to David Garcia about the search at the garage, and denied passing on information regarding cooperating witnesses to Garcia, all of which were false statements.
Cordero faces a maximum possible sentence of 20 years imprisonment. A sentencing date has not yet been set.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorneys Maureen McCartney and Kevin Brenner.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525