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13 November 2013
Two Indicted for Assault of A Border Patrol AgentRead the Press Release
LAREDO, Texas - Mexican National Jose Luis Zavala-Rodriguez aka Jose Juan Zavala-Rodriguez or Jose Juan Rodriguez-Rosa, 22, and Johnny Jose Redrovan-Pesantez, 23, of Ecuador, have been charged with assault of a federal officer causing bodily injury, announced United States Attorney Kenneth Magidson. Zavala-Rodriguez is also charged with conspiracy to transport aliens and transporting an alien for personal financial gain.
Currently in custody, both men are expected to make an initial appearance before U.S. Magistrate Judge Scott Hacker tomorrow, at which time the government expects to request their continued detention pending further criminal proceedings.
The indictment, returned today, alleges that on or about Oct. 23, 2013, the men did knowingly forcibly assault, resist, oppose, impede, intimidate, and interfere with a U.S. Border Patrol agent while he was performing his official duties. The agent required medical attention but survived.
The three-count indictment also alleges that Zavala-Rodriguez conspired to transport as well as transporting an alien who had entered and remained in the United States illegally for the purpose of commercial advantage and private financial gain.
If convicted of the assault on the officer, each faces up to 20 years in prison and a possible $250,000 fine. Zavala-Rodriguez further faces an additional 10-year possible sentence on each of the remaining two charges, upon conviction, as well as a $250,000 fine.
The case was investigated by FBI and the Laredo Police Department and is being prosecuted by Assistant United States Attorney Homero Ramirez.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Defendants Admit Guilt in Insider Trading SchemeRead the Press Release
NEWARK, N.J. –The two primary traders in an extensive insider trading network admitted today to repeatedly using information divulged by insiders at pharmaceutical/medical technology firms operating in New Jersey, U.S. Attorney Paul J. Fishman announced.
Lawrence Grum, 49, of Livingston, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with two counts of conspiracy to commit securities fraud and four counts of securities fraud.
Michael Castelli, 49, of Morris Plains, N.J., pleaded guilty before Judge Hayden to an information charging him with two counts of conspiracy to commit securities fraud and five counts of securities fraud.
According to documents filed in this case and statements made in court: From 2007 to 2012 Grum and Castelli executed numerous, profitable trades based on inside information fed to them by their friend, Mark Cupo, 52, of Morris Plains, N.J., who was an executive at Sanofi-Aventis, a global pharmaceutical company with United States operations based in New Jersey. Cupo, in turn, obtained much of the inside information from his friend and former employee, John Lazorchak, 43, of Long Valley, N.J., who was director of financial reporting at Celgene Corp., another global pharmaceutical company based in New Jersey. Lazorchak also obtained certain inside information from Mark Foldy, 43, of Morris Plains, a friend and former high school classmate of Lazorchak, who was a marketing executive at Stryker Corp., a leading medical technology business with a major division located in New Jersey.
During the course of the multi-year insider trading operation, Grum and Castelli regularly received from Lazorchak, via Cupo, material, nonpublic information about Celgene’s anticipated corporate acquisitions, numerous quarterly earnings results, and regulatory news, with the understanding that Grum and Castelli would trade based on the inside information and share their profits with Lazorchak and Cupo. Grum and Castelli also received inside information directly from Cupo regarding a corporate acquisition planned by Cupo’s employer, Sanofi, as well as inside information regarding a Stryker acquisition, which inside information Cupo had obtained from Lazorchak. Lazorchak, in turn, had obtained the Stryker inside information from his friend, Foldy.
Grum and Castelli made efforts to conceal their involvement in insider trading by, for example, compiling binders of market research to try to provide an independent basis for their knowledge of confidential, material nonpublic information.
The material, nonpublic information available to Grum and Castelli enabled them to reap substantial profits by engaging in lucrative securities trading ahead of the public announcement of several corporate acquisitions, numerous quarterly earnings results, and regulatory news. In addition, they shared a portion of their profits with Lazorchak and Cupo, for their respective role in providing Grum and Castelli inside information.
Grum and Castelli each face a maximum potential penalty of five years in prison and a fine of $250,000 on the conspiracy counts; and a maximum potential penalty of 20 years in prison and a fine of $5 million on the securities fraud counts. Grum and Castelli are both scheduled to be sentenced on Feb. 20, 2014.
Grum and Castelli are the last of the six defendants charged with participating in this insider trading network to plead guilty. The other four defendants: Lazorchak, Cupo, Foldy, and Michael Pendolino, 44, of Nashua, N.H., entered their guilty pleas before Judge Hayden on Oct. 7, 2013, and are scheduled to be sentenced on Jan. 20, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special
Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty pleas. He also thanked the U.S. Securities and Exchange Commission=s Market Abuse Unit and Philadelphia Regional Office, under the direction of Daniel M. Hawke.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Lawrence Grum: Scott A. Resnik Esq., New York
Michael Castelli: Daniel Zinman Esq. and Daniel Stein Esq., New York
John Lazorchak: Lawrence S. Lustberg Esq., Newark
Mark Cupo: Joseph J. Bell Jr. Esq. and Joseph J. Bell, IV Esq., Rockaway, N.J.
Mark Foldy: Jonathan Marks Esq., New York
Michael Pendolino: James S. Friedman Esq., NewarkGrum, Lawrence Information
Castelli, Michael InformationThree Arrested and Detained in Central Falls Police, FBI Investigation into Alleged Crack Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Three men arrested by Central Falls Police, the FBI and officers and agents assigned to the FBI RI Safe Streets Task Force were ordered detained in federal custody on Tuesday on charges of allegedly participating in a conspiracy to distribute crack cocaine, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI, and Central Falls Police Chief James J. Mendonca.
Angel Vigo, 20, of Central Falls, Adalberto Negron, 30, of Woonsocket, and Edwin Nieves, 24, with a last known address in Pawtucket, were ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond during their initial appearance in federal court, charged with conspiracy to distribute cocaine base. The three men were arrested on Friday.
According to an affidavit in support of criminal complaints against Vigo, Negron and Nieves and filed with the court, it is alleged that on at least ten occasions an individual operating at the direction of law enforcement allegedly arranged for the purchase and accepted delivery of varying amounts of crack cocaine from Vigo, Negron and Nieves. According to the affidavit, telephone calls to arrange the alleged purchases of crack cocaine and the alleged deliveries of the drugs were monitored by law enforcement. The alleged deliveries took place in Central Falls and Pawtucket.
A criminal complaint is merely an allegation 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.
Conspiracy to distribute cocaine base is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000.The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the FBI, FBI RI Safe Streets Task Force and the Central Falls Police Department with the assistance of officers from the Cranston, Providence and Norton, Mass., Police Departments and the Massachusetts State Police.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Third Carbon County Woman Pleads Guilty to Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a third woman from Carbon County pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Ceres Lozada, age 27, of Nesquehoning, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2010 and December 2012.
Previously, Bonnie Vosburgh, age 22, of Nesquehoning, and Victoria Argott, age 34, of Lansford, entered guilty pleas and admitted to participating in the same cocaine trafficking conspiracy.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Stratford Man Convicted of Operating Tax Refund SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found BENJAMIN GREEN, III, 45, of Stratford, guilty of engaging in a corrupt tax refund scheme. The trial before U.S. District Judge Vanessa L. Bryant began on November 7 and the jury returned its verdict yesterday afternoon following a three-day trial before U.S. District Judge Vanessa L. Bryant.
According to the evidence presented during the trial, in March 2009, GREEN filed a federal Individual Income Tax Return for the 2008 tax year. On the return, GREEN asserted the fraudulent “Original Issue Discount” (“OID”) tax scheme, in which taxpayers falsely claim significant amounts of OID interest income and federal tax withholding on their federal tax returns. The object of the OID tax scheme is to obtain large tax refunds from the U.S. Treasury by fraudulently claiming significant federal tax withholdings that exceed the smaller amount of tax due on the falsely claimed income.
On his federal tax return, GREEN falsely claimed to have received $920,063 in taxable interest income, and to have $929,702 of federal income tax withholdings for the 2008 tax year. Based on this false information, GREEN claimed a refund from the IRS in the amount of $616,434, and the IRS erroneously issued a refund in that amount to GREEN. Shortly after receiving the refund, GREEN disbursed the majority of the fraudulently-obtained funds through wire-transfers, withdrawals and checks to third parties. He also used more than half of the refund to pay off his mortgage.
When the IRS tried to collect the refund, GREEN undertook a course of conduct to inhibit the IRS’s efforts to recover the money, including sending frivolous correspondence to the IRS, hiding real property in the name of a nominee entity to impede the IRS’s collection efforts, and falsely complaining that the IRS had commenced unauthorized collection and enforcement actions against him.
GREEN was convicted of one count of making a false claim against the United States, which carries a maximum term of imprisonment of five years, and one count of attempting to obstruct the due administration of the internal revenue laws, which carries a maximum term of imprisonment of three years.
Judge Bryant has scheduled sentencing for February 3, 2014.
This matter was investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Trial Attorney Sean Beaty of the Justice Department’s Tax Division, and Assistant U.S. Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Shreveport Man Sentenced for Conspiracy to Possess and Distribute CocaineRead the Press Release
SHREVEPORT, La – United States Attorney Stephanie A. Finley announced that David Lamone Moten, 34, of Shreveport, was sentenced Tuesday by U.S. District Court Judge S. Maurice Hicks Jr. to 105 months in prison and four years of supervised release for conspiracy to possess with intent to distribute cocaine. He pleaded guilty January 31, 2013.
According to evidence presented at the guilty plea, in December of 2012, Moten conspired with Michael Williams, Robin Lynette Gaddis and others to possess with intent to distribute more than 500 grams of powder cocaine. In 2011 and 2012, Williams caused cocaine to be transported from Dallas to his hometown of Shreveport for redistribution by others, including Moten. Specifically, on December 1, 2012, Moten received a shipment of powder cocaine from Williams and distributed the cocaine in the Shreveport area.Williams pleaded guilty to drug conspiracy charges on January 31, 2013 and was sentenced on May 30, 2013 to 151 months in federal prison. Gaddis pleaded guilty to conspiracy January 22, 2013 and was sentenced June 10, 2013 to 24 months in federal prison.
Williams, Gaddis and Moten were prosecuted as part of OCDETF Operation Dry Cedar, which targeted cocaine distributors in Shreveport’s Cedar Grove neighborhood. The FBI’s Northwest Louisiana Violent Crimes Task Force investigated the case. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Members of the Task Force include the FBI, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier City Police Department, Bossier Parish Sheriff’s Office, Desoto Parish Sheriff’s Office and the Louisiana State Police. The investigation spanned two states, multiple jurisdictions, and involved the FBI offices in both Shreveport and Dallas. To date, the investigation has produced eight federal indictments and 14 state arrests.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Ringleader of El Paso and Baltimore-based Federal Human Trafficking Investigation Sentenced to 17 1/2 Years in Federal PrisonRead the Press Release
In El Paso, 45-year-old Alarcon Allen Wiggins (aka “Alarcon Tha Don”), the C.E.O. of 424 Records, 1 Team 1 Family Entertainment, DBD TV and DBD Productions in Baltimore, MD, was sentenced yesterday to 212 months in federal prison for his leadership role in a forced prostitution scheme based in El Paso and Baltimore announced United States Attorney Robert Pitman and FBI Special Agent in Charge FBI Special Agent in Charge Douglas E. Lindquist.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Wiggins pay $24,879.83 restitution and be placed under supervised release for a period of ten years after completing his prison term. On August 8, 2013, Wiggins pleaded guilty to conspiracy to commit human trafficking and conspiracy to transport women for purposes of prostitution.
Alarcon and nine other Baltimore residents have been convicted and sentenced as part of this investigation. Sentences for the other defendants ranged from probation to 186 months incarceration.
According to court records, the defendants were involved in a scheme from January 2009 until their arrests in October 2011 which included human trafficking; transport via interstate commerce for prostitution; coercing and enticing for prostitution; and, the concealing, removing or confiscating identification documents—all for financial benefit. Wiggins and other defendants used their ties to the music industry to recruit young women then force them to work as strippers and prostitutes while confiscating all means of communication from the victims, namely cell phones and laptop computers; confiscating all identification documents from victims; prohibiting any communication by the victims and personal interaction with anyone outside the group without the defendants’ permission or in their presence; and, collecting all victims’ earnings for the benefit of the defendants.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys J. Brandy Gardes and Daniel Crumby prosecuted this case on behalf of the government.
Plummer Woman Sentenced for Conspiring to Distribute MethRead the Press Release
COEUR D’ALENE – Vanessa Louise Wagner, 30, of Plummer, Idaho, was sentenced today to 90 months in prison followed by five years of supervised release for conspiracy to distribute 50 grams or more of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Wagner to forfeit $5,600. She pleaded guilty to the charge on July 22, 2013.
According to court documents, Wagner admitted that between December 4, 2012, and January 8, 2013, she conspired with Gibson to distribute 50 grams or more of actual methamphetamine. Wagner admitted that she knew the substance was methamphetamine and she knowingly distributed it.
Charles Edward Gibson, 43, of Spokane, Washington, was sentenced on October 22 to 20 years in prison for conspiracy to distribute 50 grams or more of methamphetamine. According to the plea agreement, Gibson admitted that between December 4, 2012, and January 8, 2013, he distributed to an undercover officer and received payment for at least 50 grams or more of actual methamphetamine. It was later determined the street value of the methamphetamine was at least $35,000. Gibson was ordered to forfeit $35,000, which represents the proceeds derived from the criminal conduct.
“Vanessa Wagner and Charles Gibson will each serve lengthy federal prison sentences as punishment for bringing methamphetamine into our communities,” said Olson. “Methamphetamine is highly addictive and brings great tragedy to those who use it. We will continue to aggressively prosecute those who seek to profit from his horrific and illegal substance. I commend the cooperative law enforcement effort that brought this case to a successful conclusion.”
“Methamphetamine is an insidious, addictive drug that ruins lives and threatens our communities,” said DEA Special Agent in Charge Matthew G. Barnes. “This investigation is another fine example of the outstanding partnerships that have been forged between agencies who are committed to the keeping our communities safe.”
The case was jointly investigated by the Bureau of Indian Affairs (BIA), Drug Enforcement Administration (DEA), Idaho State Police, Coeur d’Alene Tribal Police and Plummer Police Department.
Pearland Septuagenarian Heads to Prison for Nearly 14 Years in Child Pornography CaseRead the Press Release
GALVESTON, Texas – David Paul Roetcisoender, 73, of Pearland, has been ordered to federal prison following his convictions of distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. Roetcisoender was convicted by a federal jury on Aug. 28, 2103, following a two-day trial and approximately two hours of deliberation.
In handing down the sentence, U.S. District Judge Gregg Costa, who presided over the trial, took into consideration his age as well as the large number of images involved and the length of time he was engaged in the activity. Roetcisoender was then ordered to serve respective terms of 120 and 163 months for the possession and distribution convictions, which will served concurrently for a total of 163 months in federal prison. He will then serve eight years of supervised release following completion of his prison term and will also be ordered to register as a sex offender.
During the trial, the jury testimony from a detective with the Pearland Police Department who explained how he discovered several videos of child pornography over the Internet which were later traced to a computer used by Roetcisoender.
Evidence proved that on June 4, 2012, officers executed a search warrant at Roetcisoender’s residence in Pearland. At that time, an officer conducted a computer forensic preview which resulted in the discovery of thousands of images and videos of child pornography on a computer Roetcisoender used.
At the time of the search, testimony further revealed Roetcisoender admitted to downloading and viewing child pornography since the 1990s.
The jury also heard that more than 2000 videos and more than 100,000 images of child pornography were found on computers, hard drives and other storage devices seized by officers and used by Roetcisoender.
Further, the government proved that he not only possessed the child pornography but distributed it on at least two separate occasions. A Pearland computer forensic officer testified that the file sharing program used by Roetcisoender contained data that specified which specific files had been downloaded by others over the Internet from Roetcisoender’s computer.
Roetcisoender attempted to convince the jury that he did not knowingly distribute child pornography.
The jury disagreed and found him guilty on two counts of distribution of child pornography and one count of possession of child pornography.
Roetcisoender was arrested on the federal charges on Nov. 14, 2012. He has and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Pearland Police Department investigated the case as part of the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Paintsville Doctor Agrees to Pay U.S. Government $200,000 to Settle Civil AllegationsRead the Press Release
Doctor has surrendered medical license
LEXINGTON, KY - A former Paintsville, KY., physician has agreed to pay the U.S. Government $200,000 to settle civil allegations that he improperly billed federal health care programs and failed to maintain documentation required to support reimbursement payments.
Under federal law, the Medicare and Medicaid programs reimburse physicians for procedures that are deemed medically necessary. The U.S. Attorney’s Office, on behalf of the Government, contends that, from January 2008 through December 2011, Dr. Don V. Bryson failed to keep documentation that supported the medical necessity of procedures for which he had billed Medicare and Medicaid for reimbursement.
The Government further contends that Bryson had submitted claims seeking reimbursement for services to patients that he failed to properly authorize or oversee.
Under the terms of the settlement agreement, Bryson will return $152,000 to repay the Kentucky Department for Medicaid Services and $48,000 to repay the Medicare program.
Previously, in June 2012, Bryson also agreed with the Kentucky Board of Medical Licensure to surrender his medical license.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky announced the settlement agreement today.
The investigation was conducted by the U.S. Attorney’s Office and the Kentucky Department for Medicaid Services. Assistant U.S. Attorney Valorie D. Smith represented the Government in this case.
Ojo Amarillo Woman Pleads Guilty to Using a Firearm During an AssaultRead the Press Release
ALBUQUERQUE – Perfinna King, 34, an enrolled member of the Navajo Nation who resides in Ojo Amarillo, N.M., pleaded guilty to using a firearm during a crime of violence. Under the terms of her plea agreement, King will be sentenced to six years in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
King was arrested in April 2012, based on a criminal complaint charging her with assaulting her domestic partner, another Navajo woman, with a knife and a pistol on April 6, 2012. King subsequently was indicted and charged with assault with a dangerous weapon, assault resulting in serious bodily injury, and using and carrying a firearm during a crime of violence. Prosecution of this case was delayed by competency proceedings.
According to court filings, in the early hours of April 6, 2012, King had an argument with the victim during which King stabbed the victim in the leg in a residence located in the Navajo Indian Reservation. Although the victim tried to get away from King by hiding in a bathroom, King dragged the victim out of the bathroom and stabbed her again. Thereafter, King shot the victim in the leg as the victim ran out of the residence in an effort to get away from King. The victim was treated for multiple stab wounds and a gunshot wound on her leg.
During today’s proceedings, King entered a guilty plea to Count 3 of the indictment and admitted using a firearm during an assault she committed on April 6, 2012. King has been in federal custody and remains detained pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Ohio Man with Loaded Pistol and Prescription Pain Pills Gets 5 Years in Federal PrisonRead the Press Release
BECKLEY, W.Va. – An Ohio man who possessed a loaded pistol and powerful prescription pain pills in January 2013 was sentenced today to five years in federal prison, announced U.S. Attorney Booth Goodwin. Thomas William Dyer, Jr., 58, of Columbus, previously pleaded guilty in July to carrying a loaded firearm during and in relation to a drug trafficking crime. Dyer’s sentence was handed down today by U.S. District Judge Irene C. Berger in Beckley. On January 20, Dyer possessed a loaded .380 caliber pistol and oxycodone pills at a residence located near New Richmond, Wyoming County, W.Va.
Dyer was arrested following a controlled drug buy that took place in and around New Richmond. During a search, police also found a total of six firearms and 130 oxycodone pills at a residence located near New Richmond.The Southern Regional Drug and Violent Crimes Task Force, the Wyoming County Sheriff’s Department and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Nampa Man Sentenced for Federal Firearms ViolationRead the Press Release
BOISE – Keanta M. Lathrop, 35, of Nampa, Idaho, was sentenced today in United States District Court to 47 months in prison followed by three years of supervised release for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Lathrop to forfeit the firearm he unlawfully possessed. He pleaded guilty to the charge on August 22, 2013.
According to the plea agreement, court records show that Lathrop pleaded guilty to trafficking cocaine in Ada County and was sentenced on May 23, 2007, to six years in prison. Lathrop was later granted parole and released from prison. As a condition of release, Lathrop agreed to searches of his person or property. In October 2012, a search was conducted of Lathrop’s Nampa residence by Nampa police and Lathrop’s parole officer. The officers discovered a Jimenez Arms .380 semiautomatic pistol inside a backpack at the residence. Lathrop was present during the search and subsequently admitted that his fingerprints were on the weapon and he knowingly possessed the firearm. Because Lathrop was previously convicted of the felony offense of trafficking cocaine, he is prohibited from possessing firearms.
The case was investigated by the Nampa Police Department, Idaho Department of Probation and Parole, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Lathrop is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Nacogdoches Traffic Stop Results in Federal Prison Sentence for Mexican NationalRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 27-year-old Tamaulipas, Mexico man has been sentenced to federal prison for credit card fraud related charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Samuel Rivera Compean pleaded guilty on Apr. 16, 2013, to possession of 15 or more unauthorized access devices and was sentenced to 37 months in federal prison today by U.S. District Judge Ron Clark. Compean was ordered to pay restitution in the amount of $58,754 to Discover Financial Services, a credit card issuer.
According to information presented in court, on Mar. 16, 2012, Compean was stopped by a State trooper for a traffic violation in Nacogdoches, Texas. During the traffic stop, 146 fraudulent credit cards were discovered in different names with matching false identification cards bearing Compean’s picture. The cards were secreted in various compartments in the car. Compean also had numerous electronic items purchased with the cards including I-pads, I-pods, Xboxes, and laptop computers. Compean attempted to flee on foot but was apprehended after a short foot chase. He was released later on bond by a local judge. Compean was indicted by a federal grand jury on Feb. 6, 2013, and charged with federal credit card fraud charges. Compean will be deported following his prison sentence.
This case was investigated by the Texas Department of Public Safety and the Houston Police Department and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Moxee Man Sentenced to 31 Months in Federal Prison for Selling Counterfiet Airbags on e-BayRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jason Jordan, age 34, of Moxee, Washington, was sentenced after having pleaded guilty in June, 2013 to Conspiracy to Traffic in Counterfeit Airbags. United States District Court Chief Judge Rosanna M. Peterson sentenced Jordan to a 31month term of imprisonment to be followed by a 36 month term of court supervision upon release from Federal prison. Chief Judge Peterson also ordered Jordan to pay approximately $600,000 in restitution and forfeitures.
According to information disclosed during the court proceedings, Jordan owned two businesses -- Auto Pros and Sickspeed Inc. -- located in Moxee, Washington. He sold retail automobile parts via the Internet from these businesses. Jordan used these businesses to facilitate the importation of counterfeit airbags from China, which airbags were falsely labeled as being manufactured by reputable automobile manufacturers, such Honda, Toyota, Ford, and General Motors. Jordan advertised these counterfeit airbags as genuine products and sold them via e-Bay. Jordan admitted that he actually sold approximately 1980 counterfeit airbags from June of 2011 to August of 2012, earnings proceeds in the amount of $444,180.
This investigation began when officers with the United States Customs and Border Protection (CBP), intercepted shipments from China which contained counterfeit airbags and which were destined to Jordan's business for sale to the public. Over the course of several months, CBP officers seized numerous shipments containing an aggregate of 194 counterfeit airbags with a value of approximately $51,010. CBP authorities issued Jordan notices that the airbags had been seized because they were counterfeit. Despite these notices and seizures, Jordan continued to import counterfeit airbags into the United States and continued selling them to the public. Investigators believe that many airbags had been sold to unwitting independent garages where, without the knowledge of the automobile owners, the counterfeit airbags were installed in numerous vehicles. Agents with the Department of Homeland Security Investigations executed a search warrant at his business in August 2012 and seized over 5,300 counterfeit items, including counterfeit airbags and other counterfeit automotive parts.
As part of the agreed resolution in this case, Jordan agreed to forfeit $57,063 that the United States previously seized from his bank accounts and an additional $100,000 in cash and assets. Jordan was also ordered to pay restitution in the amount of $444,180 to the automobile manufactures whose trademarks were infringed.
Michael C. Ormsby said, "The National Highway Transportation Safety Administration has tested some counterfeit airbags from China, resulting in alarming failures, including catching fire and exploding shrapnel. While law enforcement officers have identified some of these airbags, identifying vehicles that are equipped with the counterfeit airbags in the used, and often salvage, car market is extremely difficult. The counterfeit airbags that entered the stream of commerce continue to present a risk of injury to unwary used car buyers. This investigation puts an end to Jordan's illegal activities that put innocent victims at risk of potential serious injury. This successful investigation was the result of the tireless efforts by law enforcement officers with the Department of Homeland Security Investigations, United States Customs and Border Protection and the Moxee Police Department, together with assistance from representatives of Honda Motors and Ford Motor Company. I commend their superb effort in this important case."
Information for consumers regarding counterfeit airbags is available at: http://www.safercar.gov.
The case was investigated by Homeland Security Investigations, United States Customs and Border Protection, with the assistance of the Moxee Police Department, Honda Motors, and Ford Motor Company. The case was prosecuted by Mary K. Dimke, an Assistant United States Attorney for the Eastern District of Washington.
CR-12-2079-RMP
Milpitas Man Sentenced to Five Months Custody, Ordered to Pay A $10,000 Fine, and Restitution for Illegal Shark SalesRead the Press Release
SAN FRANCISCO – Dean Tuan Trinh was sentenced yesterday to 5 months home detention, and ordered to pay a $10,000 fine to the Lacey Act Reward Fund, along with $14,400 in restitution for his involvement in the illegal take and sale of California leopard sharks from the San Francisco Bay and nurse sharks from Florida State waters, United States Attorney Melinda Haag announced.
Trinh, 44, of Milpitas, Calif., pleaded guilty on August 8, 2013, to violations of Wire Fraud, the Lacey Act, and Conspiracy to violate the Lacey Act. According to the plea agreement, Trinh admitted that he ran a wholesale fish business known as Aquatop USA in Milpitas, from 2009 through 2012. Trinh stated that he knew there was a lucrative market for undersized (less than 36”) California leopard sharks and used his fishing vessel, the “Shark Hunter,” to fish for the sharks in the San Francisco Bay. Trinh offered the sharks for sale on his website and sold them to customers throughout the United States and abroad. To facilitate the sale of these illegal sharks, Trinh caused wires to be sent, including emails to customers, and electronic filings with the U.S. Fish & Wildlife Service.
During the same time period, Trinh admitted that he had advertised undersized nurse shark pups for sale on eBay and Craigslist, knowing that these sharks were taken in violation of Florida State law – the shark pups were harvested from Florida state waters without the required licenses and permits and out of the lawful season. Trinh conspired with an individual in Florida to obtain these sharks.
Trinh was indicted by a federal grand jury in Florida on November 1, 2012, and charged with Conspiracy to violate the Lacey Act. On May 23, 2013, Trinh was indicted by a federal grand jury in California, and charged with Wire Fraud and Lacey Act violations.
The sentence was handed down by The Honorable Richard Seeborg, United States District Court Judge, following a guilty plea on three counts of violating the Lacey Act, in violation of 16 U.S.C. § 3372(a)(2)(A), six counts of Wire Fraud, in violation of 18 U.S.C. § 1343, and Conspiracy, in violation of 18 U.S.C. § 371. Judge Seeborg sentenced the defendant to three years of probation with 5 months home detention, and ordered him to pay a $10,000 fine to the Lacey Act Reward Fund, which provides money to those who provide information leading to an arrest or criminal conviction for a violation of the Lacey Act. Judge Seeborg also ordered the defendant to pay $14,400 in restitution: $5,400 to be paid to the California Academy of Sciences, and $9,000 to be paid to the National Fish and Wildlife Foundation, created by Congress to protect and restore fish and wildlife and their habitats. Trinh was also ordered to forfeit his truck and fishing vessel, and ordered to relinquish all rights he has to any state fishing, hunting or other wildlife collecting licenses.
Northern District of California AUSA Maureen Bessette and Southern District of Florida AUSA Thomas A. Watts-Fitzgerald prosecuted the case with the assistance of Janice Pagsanjan. The prosecution is the result of a two year investigation by the U.S. Fish & Wildlife Service and the National Oceanic and Atmospheric Administration Office of Law Enforcement.
(Trinh indictment 5/15/2013 )
(Trinh indictment leopard shark )
Massachusetts Woman Pleads GuiltyIn Wichita Massage Parlor Sex Trafficking CaseRead the Press Release
WICHITA, KAN. - A Massachusetts woman has pleaded guilty to aiding and abetting the harboring of undocumented workers as part of a human trafficking scheme, U.S. Attorney Barry Grissom said today.
Xiuqing Tian, 44, Framingham, Mass., pleaded guilty to one count of harboring undocumented aliens. In her plea, Tian admitted she entered the United States in September 2009 and came to Wichita with an agreement to work for co-defendants Yan Zhang and Gary Kidgell in their Sun Chi Spa massage business. After she arrived, Tian was encouraged and expected by Zhang and Kidgell to perform sexual acts with patrons of the spa. Kidgell and Zhang later opened AG Spa, where Tian was similarly employed.
While working for Kidgell, Tian helped recruit other Chinese women to work in his massage businesses. She provided translation services and conducted interviews of Chinese females. In January 2011, at Kidgell’s direction, she used the telephone to recruit a woman by telling her she would make a lot of money in Wichita. After the woman arrived in Wichita, she was met by Tian and Kidgell, who transported her to Kidgell’s residence. The woman was made to stay there and to pay rent. Both Tian and Kidgell knew the woman was not a United States citizen.
Sentencing is set for Jan. 29. Tian faces a maximum penalty of five years in federal prison and a fine up to $250,000.
Co-defendants Kidgell and Zhang are awaiting trial.
The Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Maryland Man Pleads Guilty to “Black Money” Conspiracy and Admits Engaging in A Series of Similar Schemes in Massachusetts, Rhode Island, and ConnecticutRead the Press Release
BOSTON – A Maryland man was convicted yesterday in United States District Court in Springfield on a number of charges related to the altering of U.S. currency in connection with a “black money” scheme.
Cole Williams, 32, of Frederick, Md., pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiracy, wire fraud, and possession of altered U.S. currency with intent to defraud.
During the plea hearing, Williams agreed to repay $329,000 to the victims of five separate “black money” schemes that he perpetrated in 2011. Williams admitted that he perpetrated similar “black money” schemes in Billerica, Leominster, Groton, Conn., and Woonsocket, RI.
In the charged scheme, Williams and another co-conspirator defrauded two businessmen who operated Village Pizza in Indian Orchard, Mass. Williams and his partner first offered to purchase Village Pizza with $150,000 of what they called “black money,” which they represented to be genuine U.S. currency that had been altered to appear completely black, and they said, could be converted back into genuine currency through a chemical process. They claimed the currency had been colored black as part of a plan to smuggle it back to the U.S. from Africa.
In July 2011 at Village Pizza, Williams and the co-conspirator presented the two businessmen with genuine United States currency that they had previously coated black, and then used chemicals and powder to remove the black coating, thereby convincing the two businessmen into believing that they really possessed hundreds of thousands of dollars in “black money.” Williams and the co-conspirator then induced the businessmen to provide them with $50,000 in cash, which they said they would use to convert more “black money” into genuine U.S. currency that they promised to give to the businessman in exchange for the pizza restaurant. Williams and the co-conspirator then pretended to use the businessmen’s $50,000 to convert their “black money,” which was simply black paper cut to the size and shape of U.S currency, and then they took the $50,000 and left the businessmen with a large amount of black paper.
Williams faces a maximum sentence of 20 years in prison on the wire fraud count and possession of altered U.S. currency count and a maximum of five years in prison on the conspiracy count. Each count carries a maximum of three years of supervised release and a $250,000 fine. The co-conspirator was indicted for a similar scheme in RI, but fled prior to trial, and is a fugitive from justice.
United States Attorney Carmen M. Ortiz and Steven Ricciardi, Special Agent in Charge of the United States Secret Service, Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Maryland Man Pleads Guilty to Traveling to Engage in Illicit Sexual Conduct with A MinorAnd Possession of Child PornographyRead the Press Release
WASHINGTON – Thomas DeGrange, 27, formerly of Frederick, Md., pled guilty today to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
DeGrange pled guilty in the U.S. District Court for the District of Columbia. The Honorable Beryl A. Howell scheduled sentencing for Feb. 13, 2014. DeGrange faces a statutory maximum of 30 years in prison for traveling interstate to engage in illicit sexual conduct and a maximum of 20 years for possession of child pornography, as well as potential fines.
According to the government's evidence, on May 3, 2013, DeGrange began a series of online communications with a man who he believed had a sexual interest in children. The man was actually an undercover officer with the FBI's Child Exploitation Task Force, posing as the father of an under-aged girl. Over the next several days, DeGrange expressed interest in engaging in sexual acts with the undercover officer’s purported daughter. DeGrange also sent the undercover officer several images depicting child pornography. On May 7, 2013, DeGrange traveled from Maryland to a pre-arranged meeting place in Washington, D.C., for the purpose of engaging in sexual activity with the girl. When he arrived, he was arrested.
A search by law enforcement of the defendant’s home led to the discovery of a computer containing two videos depicting child pornography, 23 images depicting child pornography and other evidence of child pornography.
The defendant’s plea agreement resolved other potential federal charges in the District of Columbia and the District of Maryland.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agent of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance provided by the U.S. Attorney’s Office for the District of Maryland. Finally, they commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
13-389Man Sentenced for Selling Counterfeit GoodsAt Store in Kansas City, Kan.Read the Press Release
KANSAS CITY, KAN. – A Missouri man has been sentenced to 18 months in federal prison for selling counterfeit designer goods at a store in Kansas City, Kan., including shoes labeled as Nike Air Force 1 and shirts labeled as Polo Ralph Lauren, U.S. Attorney Barry Grissom said today.
Jehad Shalabi, 45, Blue Springs, Mo., pleaded guilty to one count of conspiracy to traffic in counterfeit trademark goods. During his plea hearing, prosecutors told the judge that Shalabi sold counterfeit goods at a retail store called Joe Black, Inc., at 3201 State Avenue in Kansas City, Kan.Agents of the FBI made undercover purchases at the store including a counterfeit trademark pair of Nike Air Force 1 shoes on Feb. 22, 2011, and a counterfeit trademark Polo Ralph Lauren knit shirt on June 9, 2011. On June 30, 2011, Shalabi sold a counterfeit trademark NBA Chicago Bulls hat.
On June 28, 2011, agents served a search warrant at the store and seized approximately 588 counterfeit items with trademarks including Polo Ralph Lauren, Nike, Major League Baseball, Nervous Tattoo (Ed Hardy and Christian Audigier), Luxirie, Rocawear and Coogi.
Investigators learned that counterfeit goods made up approximately 20 percent of the store=s weekly sales of $4,000 to $6,000.
Grissom commended the FBI, ICE-HSI, and the Kansas City, Kan., Police Department for their work on the case.Leader of Mexican Narcotics Trafficking Organization Extradited to the United States to Face International Narcotics Importation and Distribution Conspiracy ChargesRead the Press Release
Juan Juarez Orosco, also known as “El Abuelo,” the alleged leader of a Mexican narcotics trafficking organization responsible for trafficking multi-ton quantities of cocaine, was extradited to the United States from Panama on November 8, 2013, and was arraigned on November 10, 2013, before United States Magistrate Judge Lois Bloom at the federal courthouse in Brooklyn, New York.
The extradition was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Mythili Raman, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice; New York Division; and James T. Hayes, Jr., Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations (HSI); Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA).
According to charges in an indictment returned in the Eastern District of New York, from the early 1990’s until his arrest in March 2012, Juarez led a large-scale maritime and land transportation operation responsible for trafficking multi-ton quantities of cocaine from Central America, through the waters of the Atlantic Ocean to the coast of Mexico. Once the cocaine arrived in Mexico, Juarez and his co-conspirators transported the tons of cocaine from the coast of Mexico to Mexico City, where they were shipped to the United States for distribution. Throughout the 2000s, Juarez worked with major narcotics traffickers based in Colombia and Mexico, including the Norte Valle Cartel, the Beltran-Leyva Cartel, and the Sinaloa Cartel. According to court filings, through the mid-2000’s, Juarez’s organization was responsible for transporting over 35,000 kilograms of cocaine for the Beltran-Leyva organization alone. At the height of its activity, Juarez’s organization was allegedly responsible for transporting approximately eight tons of cocaine a month in conjunction with the Sinaloa Cartel.
“There is no escape from the reach of the law, no matter where drug kingpins operate their poisonous trade. Juan Juarez Orosco may have operated an international drug trafficking network that stretched across the Western Hemisphere, but today he faces justice in a courtroom in Brooklyn,” stated United States Attorney Lynch. “Thanks to our law enforcement partners in Panama, today’s extradition also shows that there is no safe haven for drug traffickers on the run.” Ms. Lynch extended her appreciation to the DEA, HSI, and the Office of International Affairs of the U.S. Department of Justice.
“As alleged in the indictment, Juarez’s trafficking organization was responsible for the importation of massive quantities of cocaine, across oceans and continents, into the United States,” said Acting Assistant Attorney General Raman. “Juarez’s arrest and extradition are a testament to the tenacity of law enforcement officers across the world, and show that what we can accomplish when we work together with our partners around the globe to capture major drug traffickers and bring them to justice.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a mandatory minimum sentence of ten years and a maximum penalty of life imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Gina M. Parlovecchio and Tiana Demas, and Trial Attorney Adrian Rosales of the Narcotics and Dangerous Drugs Section of the U.S. Department of Justice.
The Defendant
JUAN JUAREZ OROSCO
Age: 64
Mexico City, MexicoE.D.N.Y. Docket No. 12-CR-197
Leader of Massive Tax Refund Fraud Scheme Sentenced in Manhattan Federal Court to 10 Years in Prison for Orchestrating $50 Million Tax Refund FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELVIN DUARTE was sentenced today in Manhattan federal court to 10 years in prison for his role in a scheme to fraudulently generate and then steal more than $50 million in federal tax refund checks. DUARTE was originally arrested in 2008 and subsequently fled the U.S. He was extradited from the Dominican Republic and arrived in the U.S. in January 2013. DUARTE pled guilty in June 2013 to one count of conspiracy to defraud the United States, one count of conspiracy to steal mail, and one count of mail theft, and he was sentenced today by U.S. Circuit Court Judge Denny Chin, sitting by designation.
Manhattan U.S. Attorney Preet Bharara said: “Melvin Duarte stole Puerto Rican identities and used those identities fraudulently to obtain more than $50 million in federal tax refund checks to which he was not entitled. In doing so, he contributed to the millions of dollars in losses to the IRS resulting from this case. Duarte’s integral role in one of the largest known tax refund fraud schemes has now earned him a prolonged stay in prison.”
According to the Indictment and other documents filed in Manhattan federal court:
DUARTE was charged as part of an investigation into a massive tax and mail theft scheme. As part of the scheme, co-conspirators operating out of the Dominican Republic and other places electronically filed thousands of fraudulent federal tax returns, seeking tens of millions of dollars in tax refunds. The fraudulent returns were filed using Social Security numbers and other identifying information stolen from residents of Puerto Rico. Participants in the scheme targeted Social Security numbers assigned to residents of Puerto Rico because they are generally not required to file federal tax returns with the Internal Revenue Service (“IRS”), as long as their income is derived solely from Puerto Rican sources. In so doing, the co-conspirators minimized the risk that legitimate federal tax returns were already filed by the holders of the Social Security numbers that they were using in the scheme.
Each of the tax returns at issue falsely represented that the taxpayer resided at an address in the Bronx, New York, where the refund check requested in the return was to be sent. The checks were then stolen by letter carriers assigned to the mail routes where the checks were sent who had been recruited beforehand to participate in the scheme. The letter carriers participating in the scheme were paid a kickback for each check they stole. The letter carriers passed the checks on to other co-conspirators, who cashed them at various banks and check-cashing businesses located in the U.S. and the Dominican Republic.
Over the course of the scheme, thousands of false and fraudulent federal tax returns were filed seeking more than $50 million of fraudulent tax refunds from the IRS.
DUARTE was previously convicted in 2002 for conspiracy to steal federal funds, based on substantially similar conduct, and was sentenced to three years of probation.
In addition to the prison term, Judge Chin ordered DUARTE, 38, to pay forfeiture of $15 million and to serve a term of three years of supervised release to follow his prison sentence.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Postal Service Office of Inspector General, and thanked them for their work in this case. He also thanked the Dominican National Police for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Serrin Turner is in charge of the prosecution.
KC Man Sentenced to 31 Years in Prison for Attempted Armed Bank Robbery After Shoot-out with Bank Guard, Federal AgentRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to rob Blue Ridge Bank and Trust at gunpoint, after being foiled by a bank guard and a federal agent who was a customer at the bank.
Eric L. Smith, 34, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 31 years and 10 months in federal prison without parole.
Smith was found guilty at trial of attempted armed bank robbery, using a firearm during a violent crime and being a felon in possession of a firearm on Aug. 14, 2013.
Smith attempted to rob Blue Ridge Bank and Trust, 6202 Raytown Trafficway, Raytown, Mo., on June 23, 2012. Smith entered the bank and pointed a firearm at a security guard who was seated in the lobby. Smith walked straight to the guard, still pointing the firearm at him, and demanded that the guard give him his weapon. Smith fled from the bank without taking any money when the guard fired three rounds from his 9mm Glock handgun in Smith’s direction. A bullet fired from the guard’s gun shattered the glass in one of the doors through which Smith exited the bank.
The only customer in the bank, a federal agent who was dressed in plain clothes, drew his weapon, pointed it at Smith and pursued Smith out of the bank along with the guard. Smith stopped in the parking lot and turned and fired one shot toward the bank, guard and federal agent. Smith continued running through the parking lot and around the western corner of the strip mall. Smith ran to a red four-door sedan he had parked behind the mall and sped away.
An anonymous tipster saw a surveillance photo of Smith and called the Crime Stoppers TIP Hotline on June 26, 2012. The caller reported that Smith had a bandaged right hand since Saturday but no hand injury on Friday night. The tip led law enforcement officers to the home of Smith’s mother, where he was staying. Smith was at home and was arrested on outstanding warrants.
When agents searched the house, they found a loaded .40-caliber Ruger under a cushion of the couch. The Ruger matched the firearm used by Smith in the attempted bank robbery. The brand of ammunition found in the firearm matched the live round and the shell casing found in the parking lot of Blue Ridge Bank and Trust. Additionally, a forensic expert determined that the .40-caliber shell casing recovered from the parking lot was fired from the Ruger found under the couch cushion. The Ruger contained live rounds of ammunition that matched the shell casing and bullet recovered from the crime scene. Law enforcement officers also identified a Ford four-door sedan parked at the residence that matches the vehicle in which the robber fled.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has two prior felony convictions for aggravated robbery.
This case was prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.
KC Man Sentenced to 10 Years for Distributing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for distributing child pornography over the Internet.
Joseph Frank Sliepka IV, 31, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, Nov. 12, 2013, to 10 years in federal prison without parole followed by 20 years of supervised release.
On May 21, 2013, Sliepka pleaded guilty to distributing child pornography over the Internet. Sliepka admitted that he sent an email to an undercover federal agent in which he expressed a desire to trade images of child pornography. The e-mail included an attached image of child pornography that depicted a 6- or 7-year-old child. Sliepka asked the undercover agent to “Show me what you like and I’ll send more of it…Lets have some fun….”
Law enforcement agents executed a search warrant at Sliepka’s residence and seized his laptop computer. Investigators determined that there were 24 more e-mails from March 25 to April 6, 2013, that contained approximately 63 images and 27 movies of child pornography. These images and videos depict children ages one to 12.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Officials Raise Awareness of Disaster Fraud Hotline Following Typhoon HaiyanRead the Press Release
The Department of Justice, the FBI, and the National Center for Disaster Fraud (NCDF) remind the public that there is a potential for disaster fraud in the aftermath of a natural disaster. Suspected fraudulent activity pertaining to relief efforts associated with Typhoon Haiyan should be reported to the toll-free NCDF hotline at 866-720-5721. The hotline is staffed by a live operator 24 hours a day, seven days a week, for the purpose of reporting suspected scams being perpetrated by criminals in the aftermath of disasters.
NCDF was originally established in 2005 by the Department of Justice to investigate, prosecute and deter fraud associated with federal disaster relief programs following Hurricanes Katrina, Rita and Wilma. Its mission has expanded to include suspected fraud related to any natural or man-made disaster. More than 20 federal agencies – including the Justice Department’s Criminal Division, U.S. Attorney’s Offices, Department of Homeland Security Office of Inspector General, FBI, U.S. Postal Inspection Service and the U.S. Secret Service – participate in the NCDF, allowing the center to act as a centralized clearinghouse of information related to disaster relief fraud.
In the wake of natural disasters, many individuals feel moved to contribute to victim assistance programs and organizations across the country. The Department of Justice and the FBI remind the public to apply a critical eye and conduct due diligence before giving to anyone soliciting donations on behalf of hurricane victims. Solicitations can originate as emails, websites, door-to-door collections, mailings, telephone calls and similar methods.
Before making a donation of any kind, consumers should adhere to certain guidelines, including the following:
• Do not respond to any unsolicited (spam) incoming emails, including by clicking links contained within those messages, because they may contain computer viruses.
• Be cautious of individuals representing themselves as victims or officials asking for donations via email or social networking sites.
• Beware of organizations with copycat names similar to but not exactly the same as those of reputable charities.
• Rather than following a purported link to a website, verify the existence and legitimacy of non-profit organizations by using Internet-based resources.
• Be cautious of emails that claim to show pictures of the disaster areas in attached files, because those files may contain viruses. Only open attachments from known senders.
• To ensure that contributions are received and used for intended purposes, make donations directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions; reputable charities do not use coercive tactics.
• Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.
• Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals.
• Legitimate charities do not normally solicit donations via money transfer services. • Most legitimate charities maintain websites ending in .org rather than .com.
If you believe that you have been a victim of fraud by a person or organization soliciting relief funds on behalf of disaster victims, contact the NCDF by phone at (866) 720-5721, fax at (225) 334-4707 or email at [email protected].You can also report suspicious e-mail solicitations or fraudulent websites to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Justice Department Officials Raise Awareness of Disaster Fraud Hotline Following Typhoon HaiyanRead the Press Release
WASHINGTON – The Department of Justice, the FBI, and the National Center for Disaster Fraud (NCDF) remind the public that there is a potential for disaster fraud in the aftermath of a natural disaster. Suspected fraudulent activity pertaining to relief efforts associated with Typhoon Haiyan should be reported to the toll-free NCDF hotline at 866-720-5721. The hotline is staffed by a live operator 24 hours a day, seven days a week, for the purpose of reporting suspected scams being perpetrated by criminals in the aftermath of disasters.
NCDF was originally established in 2005 by the Department of Justice to investigate, prosecute and deter fraud associated with federal disaster relief programs following Hurricanes Katrina, Rita and Wilma. Its mission has expanded to include suspected fraud related to any natural or man-made disaster. More than 20 federal agencies – including the Justice Department’s Criminal Division, U.S. Attorney’s Offices, Department of Homeland Security Office of Inspector General, FBI, U.S. Postal Inspection Service and the U.S. Secret Service – participate in the NCDF, allowing the center to act as a centralized clearinghouse of information related to disaster relief fraud.
In the wake of natural disasters, many individuals feel moved to contribute to victim assistance programs and organizations across the country. The Department of Justice and the FBI remind the public to apply a critical eye and conduct due diligence before giving to anyone soliciting donations on behalf of hurricane victims. Solicitations can originate as emails, websites, door-to-door collections, mailings, telephone calls and similar methods.
Before making a donation of any kind, consumers should adhere to certain guidelines, including the following:
- Do not respond to any unsolicited (spam) incoming emails, including by clicking links contained within those messages, because they may contain computer viruses.
- Be cautious of individuals representing themselves as victims or officials asking for donations via email or social networking sites.
- Beware of organizations with copycat names similar to but not exactly the same as those of reputable charities.
- Rather than following a purported link to a website, verify the existence and legitimacy of non-profit organizations by using Internet-based resources.
- Be cautious of emails that claim to show pictures of the disaster areas in attached files, because those files may contain viruses. Only open attachments from known senders.
- To ensure that contributions are received and used for intended purposes, make donations directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions; reputable charities do not use coercive tactics.
- Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.
- Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals.
- Legitimate charities do not normally solicit donations via money transfer services.
- Most legitimate charities maintain websites ending in .org rather than .com.
If you believe that you have been a victim of fraud by a person or organization soliciting relief funds on behalf of disaster victims, contact the NCDF by phone at (866) 720-5721, fax at (225) 334-4707 or email at [email protected].
You can also report suspicious e-mail solicitations or fraudulent websites to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Justice Department Officials Raise Awareness of Disaster Fraud Hotline Following Typhoon HaiyanRead the Press Release
WASHINGTON – The Department of Justice, the FBI, and the National Center for Disaster Fraud (NCDF) remind the public that there is a potential for disaster fraud in the aftermath of a natural disaster. Suspected fraudulent activity pertaining to relief efforts associated with Typhoon Haiyan should be reported to the toll-free NCDF hotline at 866-720-5721. The hotline is staffed by a live operator 24 hours a day, seven days a week, for the purpose of reporting suspected scams being perpetrated by criminals in the aftermath of disasters.
NCDF was originally established in 2005 by the Department of Justice to investigate, prosecute and deter fraud associated with federal disaster relief programs following Hurricanes Katrina, Rita and Wilma. Its mission has expanded to include suspected fraud related to any natural or man-made disaster. More than 20 federal agencies – including the Justice Department’s Criminal Division, U.S. Attorney’s Offices, Department of Homeland Security Office of Inspector General, FBI, U.S. Postal Inspection Service and the U.S. Secret Service – participate in the NCDF, allowing the center to act as a centralized clearinghouse of information related to disaster relief fraud.
In the wake of natural disasters, many individuals feel moved to contribute to victim assistance programs and organizations across the country. The Department of Justice and the FBI remind the public to apply a critical eye and conduct due diligence before giving to anyone soliciting donations on behalf of hurricane victims. Solicitations can originate as emails, websites, door-to-door collections, mailings, telephone calls and similar methods.
Before making a donation of any kind, consumers should adhere to certain guidelines, including the following:
- Do not respond to any unsolicited (spam) incoming emails, including by clicking links contained within those messages, because they may contain computer viruses.
- Be cautious of individuals representing themselves as victims or officials asking for donations via email or social networking sites.
- Beware of organizations with copycat names similar to but not exactly the same as those of reputable charities.
- Rather than following a purported link to a website, verify the existence and legitimacy of non-profit organizations by using Internet-based resources.
- Be cautious of emails that claim to show pictures of the disaster areas in attached files, because those files may contain viruses. Only open attachments from known senders.
- To ensure that contributions are received and used for intended purposes, make donations directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions; reputable charities do not use coercive tactics.
- Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.
- Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals.
- Legitimate charities do not normally solicit donations via money transfer services.
- Most legitimate charities maintain websites ending in .org rather than .com.
If you believe that you have been a victim of fraud by a person or organization soliciting relief funds on behalf of disaster victims, contact the NCDF by phone at (866) 720-5721, fax at (225) 334-4707 or email at [email protected].
You can also report suspicious e-mail solicitations or fraudulent websites to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Jury Convicts Miami-Dade Resident in Tax Preparation Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that a federal jury convicted Rigoberto Cabrera, 37, of Miami-Dade County, on charges relating to his participation in a tax preparation fraud scheme.
Specifically, the jury convicted Rigoberto Cabrera on 29-counts, including one count of conspiracy to defraud the government with respect to claims, one count of conspiracy to commit wire fraud, 18 counts of making false claims to the IRS, four counts of wire fraud, one count of conspiracy to commit money laundering, and four counts of money laundering.
According to the indictment and evidence presented during the trial, defendant Cabrera and co-conspirator Carlos Perez, 34, also of Miami-Dade County, recruited individuals and offered to prepare their individual income tax returns with the promise that the defendants could obtain substantial tax refunds for the taxpayers. The recruited taxpayers agreed to pay Cabrera and Perez a percentage of the refunds they received. The defendants then prepared fraudulent 2008 and 2009 federal income tax returns on behalf of the recruited taxpayers, claiming tax credits or deductions to which the taxpayers were not entitled. After the taxpayers received the fraudulent refunds from the IRS, Cabrera and Perez collected a percentage of the funds from the taxpayers through checks payable to companies that the defendants controlled and shell companies.
Through this scheme, the defendants claimed approximately $1,458,905 in tax refunds from the IRS.
Defendant Carlos Perez pled guilty on September 19, 2013 to Counts 1 and 21 of the superseding indictment, which charges the defendant with conspiracy to defraud the government with respect to claims, and to conspiracy to commit wire fraud.
Sentencing for Rigoberto Cabrera has been scheduled for January 24, 2014 at 9:00 a.m. Sentencing for Carlos Perez has been scheduled for December 6, 2013 at 9:00 a.m. Both sentencing hearings are scheduled to take place before U.S. District Judge James I. Cohn in Ft. Lauderdale, Florida. At sentencing the defendants face up to ten years in prison for each count of conspiracy to defraud the government, making false claims, and conspiracy to commit money laundering; and up to twenty years in prison for each count of conspiracy to commit wire fraud, wire fraud, and money laundering.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Daniel Bernstein and Alejandro O. Soto.
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.
Judge Sentenced Philadelphia Man for Sex Trafficking ChildrenRead the Press Release
PHILADELPHIA - Craig Johnson, 42, a/k/a AGeez,@ of Philadelphia, PA, was sentenced today to 288 months (24 years) in prison for two counts of sex trafficking of minors. Johnson operated a prostitution venture in Philadelphia, Pennsylvania. As part of that venture, in June 2012, Johnson recruited young females, ages 15 and 16, respectively, to work as prostitutes. He also created Internet advertisements in which he advertised various females as available for purchase for purposes of prostitution. These advertisements featured pictures of the prostitutes, either scantily clad or partially nude, the price for an encounter, and a phone number to call to arrange a meeting with a prostitute. Johnson pleaded guilty to the charges on June 13, 2013.
In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered 10 years of supervised release and ordered Johnson to pay $10,400, per victim, in restitution.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department Special Victims Unit, with assistance from the Philadelphia District Attorney=s Office and the Bucks County District Attorney=s Office. It was prosecuted by Assistant United States Attorney Michelle L. Morgan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Jamaican National Indicted for Fraudulently Receiving Medicaid BenefitsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a four-count indictment charging Georgia Bowen, a/k/a Georgia Bennett, 38, of Lackawanna, N.Y., with health care fraud and aggravated identity theft. The charges carry a maximum sentence of 10 years in prison, a $250,000 fine or both.
Assistant United States Attorney John E. Rogowski, who is handling this case, stated that according to the indictment, Bowen, a native and citizen of Jamaica, applied for Medicaid benefits through the Erie County Department of Social Services on three separate occasions in December 2010, November 2011, and June 2013. The defendant claimed to be a United States citizen and utilized social security numbers assigned to other persons. In August of this year, the defendant was charged in a criminal complaint in connection with the 2010 and 2011 applications which resulted in Medicaid paying over $19,000 in benefits to health care providers for services provided to Bowen, benefits for which the defendant was not entitled to receive.
In August 2010, Bowen was sentenced in federal court to two years in prison after being convicted of identity theft in connection with her fraudulent use of the name and social security number of another person which caused over $13,000 in Medicaid benefits to be paid through the Erie County Department of Social Services for medical services she had received. As a result of that conviction, removal proceedings against Bowen were initiated by the Department of Homeland Security.
The indictment is the result of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Social Security Administration - Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Iowa Man Sentenced to 10-Year Prison Term for Possession of Child Pornography-Defendant Was A Registered Sex Offender at Time of Offense-Read the Press Release
WASHINGTON – Nicholas Michael Jackson, 36, of Boone, Iowa, was sentenced today to 10 years in prison for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Jackson pled guilty in March 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Emmet G. Sullivan. Upon completion of his prison term, Jackson will be placed on 20 years of supervised release, with conditions including restrictions on Internet and computer use and contact with minors. Jackson also will be required to register as a sex offender for 25 years.
According to the government’s evidence, on July 7, 2011, Jackson communicated with a man he believed to have access to child pornography. That man turned out to be an undercover officer with the FBI’s Child Exploitation Task Force. That day, Jackson shared about 20 images of child pornography with the undercover officer in exchange for a promise that the undercover officer would share pornographic images in return, via a live webcam, of an adolescent girl. No such webcam session occurred and law enforcement arrested Jackson the following day.
Upon execution of a search warrant on Jackson’s residence, law enforcement recovered a computer and external storage device containing nearly 100 images of child pornography.
At the time of his arrest, Jackson was a registered sex offender in Iowa. He was convicted in Iowa in 2002 of three counts of assault with intent to commit sexual abuse.
The defendant’s plea agreement resolved other potential federal charges in the District of Columbia and the Southern District of Iowa.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier praised the MPD Detectives and the Special Agents of the FBI Child Exploitation Task Force, who investigated the case. They also expressed appreciation for the assistance of the FBI’s Omaha Field Office, the Iowa Department of Criminal Investigations, the Boone, Iowa Police Department, and the U.S. Attorney’s Office for the Southern District of Iowa. Finally, they commended the work of Assistant U.S. Attorneys Cassidy Kesler Pinegar, David Last, and Amy Zubrensky, who prosecuted the case.
13-390Internet Pharmacy Website Affiliate Pleads Guilty to Filing False Tax ReturnRead the Press Release
Pamela B. Reid pleaded guilty last night to one count of filing a false individual income tax return for the 2006 tax year, the Justice Department and Internal Revenue Service (IRS) announced. Reid was charged in the District of Minnesota by an information filed on Sept. 27, 2013.
According to the plea agreement, Reid worked as a website affiliate for an internet pharmacy organization from 2006 through 2012. As a website affiliate, Reid maintained websites based on templates provided from the internet pharmacy organization. These websites allowed U.S. customers to purchase prescription drugs from their personal computer. Reid was paid a percentage of the profit on each prescription sold through one of her websites and received her compensation by international wire from non-U.S. bank accounts under the control of the internet pharmacy organization.
Reid pleaded guilty to filing a false individual income tax return that failed to report any business income for the year 2006. According to the plea agreement, Reid admitted that in 2006 she had unreported gross receipts of at least $306,081.88 and additional federal income tax due and owing of at least $100,908. As part of her guilty plea, Reid also admitted that she failed to report business income from her internet pharmacy organization affiliated websites on her individual income tax returns from 2007 through 2010. The total federal income tax Reid did not report or pay for 2006 through 2010 was $270,397.
“In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said Kelly R. Jackson, IRS - Criminal Investigation Special Agent in Charge of the St. Paul Field Office. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t. The IRS Criminal Investigation Division, together with the Department of Justice, will investigate and prosecute those who violate our tax system.”
Reid faces a potential maximum penalty of three years in prison and a potential maximum fine of $250,000 or twice the gross gain of the offense. Reid has also agreed to pay restitution to the IRS in the amount of $376,438.87. Sentencing will be scheduled at a later date.
Kathryn Keneally, Assistant Attorney General for the Department’s Tax Division, thanked Special Agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorney Dennis R. Kihm, who prosecuted the case.
Indictment: Kansas City, Kan., Woman Sold Counterfeit Identity DocumentsRead the Press Release
TOPEKA, KAN. - A Kansas City, Kan., woman has been indicted on charges of producing and selling counterfeit identity documents, U.S. Attorney Barry Grissom said today.
Lluvia Fernanda Salinas-Rodriguez, 29, Kansas City, Kan., is charged with one count of trafficking in a means of identification and one count of fraudulent use of an identification document. The crimes are alleged to have occurred prior to Oct. 28, 2013, in Wyandotte County, Kan.
Salinas-Rodriguez initially was charged in a criminal complaint filed Nov. 4 in U.S. District Court in Kansas City, Kan. An investigator’s affidavit filed in support of the complaint alleges she produced counterfeit identity documents including Resident Alien cards, Social Security cards and Mexican and U.S. driver’s licenses over a period of approximately three years. The affidavit alleges she used a computer and printer to scan photos and manipulate them onto a template to produce counterfeit identity documents. She charged $80 to $100 for a set of documents, which included a counterfeit Social Security card and a counterfeit Resident Alien card. According to the affidavit, she sold two sets of identity documents a week for roughly three years.
If convicted, she faces a maximum penalty of 15 years in federal prison and a fine up to $250,000 on the trafficking charge, and a maximum penalty of 10 years and a fine up to $250,000 on the other charge. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.OTHER INDICTMENTS
Rodney Heinen, 37, Dawson, Neb., is charged with two counts of violating the Clean Water Act. One count is alleged to have occurred starting in January 2012 and the other count is alleged to have occurred starting in April 2013 in Jackson County, Kan.
In the first count, Heinen is alleged to have introduced earthen fill and wood debris into a stream flowing through 160 acres of agricultural property he owned. The indictment alleges the stream was covered by the Clean water Act and subject to the supervision of the U.S. Army Corps of Engineers, the Natural Resources Conversation Service and the Environmental Protection Agency. The second count alleges that in April 2013 the defendant purchased more than 72 acres of agricultural land in Jackson County. The U.S. Army Corps of Engineers later found dredge and fill material placed in two streams on the property.
If convicted, he faces a maximum penalty of three years in federal prison and a fine up to $50,000 per day of violation. The Environmental Protection Agency investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.
Joel Christian-Ashton Tindall, 25, who is being held in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Oct. 9, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hungarian National Charged in Internet Car Sales ScamRead the Press Release
Istvan Zoltan Foris, 44, of Szarvas, Hungary, was charged on November 8, 2013, by Information, with conspiracy to commit wire fraud and possession of a fraudulent passport, announced United States Attorney Zane David Memeger. Foris conspired with others to defraud persons who sought to purchase used vehicles on the internet. Foris used false passports supplied by other conspirators to open bank accounts in the United States for the purpose of receiving funds obtained by fraud from the prospective buyers. These buyers would wire money to the bank accounts opened by Foris and Foris would immediately withdraw the funds and then wire most of the money to conspirators outside the United States. The buyers were not able to recover the funds they sent after they discovered that the offers to sell the vehicles were fraudulent.
If convicted the defendant faces a maximum possible sentence of 30 years in prison, three years of supervised release, possible fines, restitution, and forfeiture, and a $200 special assessment.
The case was investigated by Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houston Woman Convicted of Using Brother’s Social Security Number to Cash Deceased Woman’s Benefit ChecksRead the Press Release
HOUSTON – Doris Hayes, 36, of Houston, has entered a guilty plea to two counts of making false statements involving a Social Security number, announced United States Attorney Kenneth Magidson.
Hayes admitted she opened bank accounts at International Bank of Commerce and University Federal Credit Union using false Social Security numbers, including that of her brother, in order to facilitate a check cashing scheme.
A previous related indictment charged Sandra Carrier, 57, of Houston, with taking part in the scheme in which she caused her deceased mother’s treasury checks from the Department of Veterans Affairs and Social Security Administration to be cashed after her mother had passed away. Some of those checks were cashed using the same bank accounts Hayes had opened with false Social Security numbers. Carrier and Hayes continued to negotiate the checks up to eight years after Carrier’s mother’s death.
The United States suffered $177,642 in damages as a result of the scheme.
U.S. District Judge David Hittner, who accepted the guilty plea today, has set sentencing for Feb. 13, 2014, at 9:45 a.m., at which time Hayes faces up to five years in prison and a possible $250,000 fine.
Carrier has already pleaded guilty to related charges and received a sentence of 12 months and one day in prison.
This case is the result of a joint investigation involving multiple federal agencies including the Social Security Administration – Office of Inspector General and the Department of Veterans Affairs. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting this case.Hogsett Announces the Third Straight Year of Spending Cuts in the U.s. Attorney’s OfficeRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that for the third straight year, total office spending has fallen in the U.S. Attorney’s Office, reversing what had been a multi-year trend of rising expenditures. In fiscal year 2013, which ended on September 30, office spending was down 1.6% compared to the prior year, and is now down 5% over the last three years.“Over the last three years, the employees of this office have embraced a desire to do more with less,” Hogsett said. “In challenging economic times, I am proud that we have dramatically increased our prosecutions and convictions, all while turning back the clock on a trend of increased spending. We are now operating our office at levels not seen since 2008.”
Hogsett noted that a number of milestones have been achieved during the three year period of reduced spending. In 2011, 442 defendants were federally charged by the Office, an all-time record that represented a 204% increase over 2009 figures. In 2012, 421 defendants were convicted and sentenced, another all-time record for the Office.
Under the U.S. Attorney’s Violent Crime Initiative, there has been a dramatic increase in the number of gun-related prosecutions filed by the Office. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged. There have also been a number of successful public corruption and white collar prosecutions over the same period of time, as dozens of elected and appointed public officials have faced federal charges.
The chart below indicates the actual costs and the percentage changes that the Office of the United States Attorney has incurred from FY 2006 through FY 2013. Figures are in thousands.
Annual Spending and Corresponding Percentages from FY 2007 through FY 2013
Year
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Annual Spending Costs
$6,581.5 - $6,859.0
$6,859.0 - $7,235.0
$7,235.0 - $7,746.1
$7,746.1 - $7,928.1
$7,928.1 - $7,850.1
$7,850.1 - $7,648.2
$7,648.2 - $7,527.8
+4.2%
+5.5%
+7.1%
+2.3%
-1.0%
-2.6%
-1.6%
Hogsett Announces Sentencing of Indianapolis Woman After Bank Fraud, Tax Evasion ConvictionRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced today that U.S. District Judge Jane Magnus-Stinson has sentenced Michele Spurgeon to 60 months (5 years) in federal prison, and has ordered the defendant to pay more than $1.7 million in restitution to a victim company and the government. Spurgeon, age 58, of Indianapolis was charged in July 2013 with defrauding an area business out of nearly $1.5 million using a bank fraud scheme, and was also charged with hiding those assets from the Internal Revenue Service through a tax fraud scheme.
“When Hoosiers steal from Hoosiers, we all lose – no matter if the theft takes place in a back alley or a back office,” Hogsett said. “That is why, together with our law enforcement partners, we are committed to doing all we can to hold accountable those who embrace a culture of corruption in our business community.”
Spurgeon admitted that from 1996 until 2011, she used her position at a Hamilton County business to orchestrate a sophisticated fraud scheme. The defendant would process all checks made payable to the company, but would withhold some of these checks, not depositing them into the company's bank accounts. Instead, she would deposit these checks into a business account for a fraudulent company that Spurgeon created as a vehicle for her fraud.
Court documents describe a number of ways that Spurgeon hid this criminal activity. In some situations, she would alter some of the checks payable to her employer, making them appear as if they were payable to her shell company. She also would make adjustments to her employer's accounting records to conceal these fraudulent deposits. All told, Spurgeon deposited at least $1,429,326 in checks intended for her employer into this fraudulent account.
Over the course of the scheme, Spurgeon spent this money on a number of personal items. These included casino gambling, credit card payments, mortgage and home equity loan payments, utility payments, as well as cash withdrawals. In addition, Spurgeon failed to report this additional money to the Internal Revenue Service. In 2007 alone, it is alleged that this failure to report resulted in a loss to taxpayers of $67,378.
According to Assistant U.S. Attorneys Zachary A. Myers and MaryAnn T. Mindrum, who prosecuted the case for the government, Spurgeon petitioned the U.S. District Court to enter a plea to the charges against her. Under federal law, the defendant must serve a minimum of 85% of her prison term in a federal correctional facility, and she was ordered to serve 3 years of federally-supervised release at the end of her prison term. In addition, the federal government may seek to forfeit some of the defendant’s property, including real estate, bank accounts, and retirement accounts.
This prosecution was the result of a collaborative investigation involving the Federal Bureau of Investigation, the Internal Revenue Service B Criminal Investigation, as well as the Hamilton County Sheriff's Department.
Harrisburg Man Classified as “Armed Career Criminal” and Sentenced to 224 Months in Federal Firearms CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eric Chambers, age 44, of Harrisburg, was sentenced today by Senior U.S. District Court Judge William W. Caldwell, following Chambers’ conviction at a jury trial for possession of a firearm by a convicted felon.
On June 12, 2013, a federal jury convicted Chambers of possessing a loaded firearm in a motel in Swatara Township on January 9, 2012.
According to United States Attorney Peter J. Smith, Judge Caldwell classified Eric Chambers as an “Armed Career Criminal,” a determination that allows for additional penalties to be imposed once an individual has previously been convicted of three violent crimes or serious drug offenses. Judge Caldwell sentenced Chambers to 200 months’ incarceration to be followed by five years of supervised release and a fine of $2,100 for the firearms conviction. Judge Caldwell also sentenced Chambers to a consecutive 24 month sentence for violating the terms of his supervised release.Judge Caldwell ordered that this 224-month sentence be served consecutively to a 25-50 year sentence Chambers received in July 2013 after he was convicted by a jury in Dauphin County Court of Common Pleas of Attempted Homicide for his involvement in a shooting that occurred in September 2011.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Harrisburg Police Bureau; and Swatara Township Police Department and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Guilty Plea Entered for False Claims Against the Government in Connection with Fraudulent Tax ReturnsRead the Press Release
HOUSTON – Alisa Grisson has pleaded guilty to one count of making a false claim against the government, announced United States Attorney Kenneth Magidson.
According to the plea agreement filed in the record of the case, Grisson acknowledged she prepared tax returns in her name and in the names of others. She acknowledged she knew the returns were false and fraudulent when she prepared them and caused them to be filed with the Internal Revenue Service (IRS).
Grisson admitted in the plea agreement that these returns reported income that had not been earned and/or expenses that had not been incurred, thus claiming monies from the government in the form of tax refunds to which she and the other taxpayers were not entitled. Specifically, she admitted to falsely claiming a refund of more than $7.4 million for the 2009 tax year.
Grisson stipulated that the tax losses to the government is $674,284.62 and has agreed to pay that in restitution to the United States. Grisson further agreed never again to aid or assist in preparing or presenting tax returns for any taxpayer except herself and not to oppose any civil action brought by the United States seeking to enjoin her from preparing income tax returns for others.
U.S. District Judge Sim Lake, who accepted the guilty plea today, has set sentencing for Jan. 28, 2014. At that time, she faces up to five years in federal prison and a possible $250,000 fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Stephen L. Corso is prosecuting.
Glenwood, Iowa, Resident Sentenced for Theft of Social Security FundsRead the Press Release
COUNCIL BLUFFS, IA - On November 12, 2013, Marlene Lucille Moore, a 61 year-old resident of Glenwood, Iowa, was sentenced by United States District Court Judge John Jarvey to six months in prison followed by six months of home confinement for theft of funds from the Social Security Administration, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Moore to serve three years of supervised release when she completes her imprisonment, and ordered Moore to pay restitution to the Social Security Administration in the amount of $164,852.
On July 3, 2013, Moore pled guilty to theft of funds of the United States. The charge was the result of an investigation into the payment of funds by the Social Security Administration to a bank account set up to receive funds for an eligible recipient. The Social Security Administration had learned that the recipient had died in 2001. The investigation revealed that Moore removed money from the account from 2001 until August of 2012, taking $164,852 from the account without authority.
The investigation was conducted by the Social Security Administration-Office of the Inspector General, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Gautier Man Pleads Guilty to Oil Spill FraudRead the Press Release
Gulfport, Miss. – Joseph Anthony Clements, 51, of Gautier, pled guilty to three counts of mail fraud in connection with the Deepwater Horizon Oil Spill, announced U.S. Attorney Gregory K. Davis.
Clements admitted that he carried out a scheme to defraud the BP Gulf Coast Claims Facility by making a false claim for damages as a result of the Deepwater Horizon Oil Spill. Clements claimed he lost earnings and profits from his commercial shrimp and fishing business and shrimping vessel when, in fact, Clements was not a commercial shrimper and suffered no lost earning or profits as a result of the oil spill.
As a result of his fraudulent claim, Clements received an emergency advance payment of $36,300.00 of the $273.000.00 claim he sought from the oil spill Gulf Coast Claims Facility.
Clements will be sentenced on Thursday, January 30, 2014, at 9:30 a.m. by U. S. District Judge Sul Ozerden. He faces a maximum sentence of 20 years in prison and a $250,000 fine for each count of mail fraud. This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Andrea Jones.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Former State Correctional Inmate Sentenced to 7 More Years in Prison for Threatening to Kill Federal JudgesRead the Press Release
ERIE, Pa. - A former inmate of the Fayette State Correctional Institution in LaBelle, Pennsylvania, has been sentenced in federal court to 84 months in jail on his conviction of mailing a threatening communication, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Gregory Garrett Brown, 49. The sentence was imposed to run consecutively to the sentence Brown is currently serving.
According to information presented to the court, Brown mailed a letter to a United States Magistrate Judge which contained a threat to kill the Magistrate Judge and a United States District Judge.
Prior to imposing sentence, Judge Cohill noted Brown's lengthy history of violence and the fact that Brown was incarcerated for threatening an Erie Court of Common Pleas judge when he threatened the Magistrate Judge and District Judge.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal's Service for the investigation leading to the successful prosecution of Brown.
Former St. Louis Executive of Chicago Area Company Sentenced to Four Years in Prison for $3.9 Million Invoicing Fraud SchemeRead the Press Release
CHICAGO – A former vice president of a company that was based in west suburban Downers Grove was sentenced today to four years in federal prison for a fraudulent invoicing scheme in which he obtained more than 100 company checks totaling more than $3.9 million and stole the money for himself. The defendant, STEVEN M. BRAZILE, used a portion of the stolen funds to operate a classic car business. He had pleaded guilty to interstate transportation of fraudulently obtained securities last July in U.S. District Court.
Brazile, 52, of St. Louis, was a vice president in the victim company’s St. Louis office where he managed the information technology functions in that office. Brazile was also ordered to pay $3,902,880 in restitution and forfeiture and to begin serving his 48-month sentence on Jan. 7, 2014, by U.S. District Judge Elaine Bucklo.
Brazile also agreed to forfeiture of approximately $375,000 in funds that were seized or will be turned over from various bank and brokerage accounts, as well as 24 automobiles including classic cars, approximately $180,000 in proceeds from the sale of several classic automobiles, and a commercial property he owned in St. Louis.
Brazile, who had authority to approve company payments to vendors up to $100,000, admitted that between December 2006 and December 2009 he approved false invoices purporting to be from vendors for goods and services that were never provided to the corporation. He caused the company to issue approximately 104 checks totaling slightly more than $3.9 million. Brazile took those checks and stole the proceeds by depositing them into a bank account he controlled in the name Steve’s Classic Cars, a business he owned to buy and restore classic automobiles.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation. The government was represented by Assistant U.S. Attorney Sarah E. Streicker.
The case falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement, who working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov.
Former NFL Player Sam Hurd Sentenced to 15 Years in Federal Prison for Role in Cocaine and Marijuana Distribution ConspiracyRead the Press Release
DALLAS — Samuel George Hurd, III, 28, was sentenced late this afternoon, by U.S. District Judge Jorge A. Solis, to 15 years in federal prison for his role in a cocaine and marijuana distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hurd, who is in custody, pleaded guilty in April 2013 to a superseding indictment that charged conspiracy to possess with intent to distribute a controlled substance. That superseding indictment, which was returned by a federal grand jury on March 19, 2013, alleged that from July 2011, to on or about June 6, 2012, Hurd conspired to possess with the intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana. It also included a sentencing notice stating that on or about June 6, 2012, Hurd, while on pretrial release, attempted to possess with intent to distribute five kilograms or more of cocaine and at least 50 kilograms, but less than 100 kilograms, of marijuana.
Two co-defendants, Toby Lujan, 28, and Jesse Tyrone Chavful, 46, have pleaded guilty to their roles in the drug conspiracy. Chavful was sentenced on October 23, 2013, to serve a total of 127 months in federal prison. Lujan is scheduled to be sentenced on January 8, 2014.
The investigation was led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Denton Police Department. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Errin Martin prosecuted.
Former Manager of Gloucester Store SentencedRead the Press Release
NEWPORT NEWS, Va. – Jose Nicholas Alvarado, 35, of Gloucester, Va., was sentenced today to 84 months in prison for his role in a conspiracy to possess with intent to distribute, and distribution of, synthetic drugs also known as “Bath Salts” and “Spice.” The synthetic drugs were being sold out of a store called “A Lil Of This N That,” located in Gloucester County, Virginia.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Alvarado pled guilty on August 13, 2013. According to court documents, Alvarado was employed as store manager at “A Lil Of This N That,” for approximately nine months in 2012. During execution of a search warrant at the store, law enforcement officers recovered a large quantity of synthetic drugs. Alvarado admitted to selling “Bath Salts” and “Spice” to make money and that the drugs were intended for human consumption.
This case was investigated by Homeland Security Investigations, DEA, the Virginia State Police and the Gloucester Sheriff’s Dept. Assistant United States Attorney Eric M. Hurt is prosecuting this case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Loan Processor Indicted with Husband and Brother in Conspiracy to Defraud California BankRead the Press Release
HOUSTON - An 11-count sealed indictment charging conspiracy and bank fraud has been unsealed following the arrests of area residents Rita “Jessica” Martinez, her husband Gilbert Martinez and her brother Felix Martinez, announced United States Attorney Kenneth Magidson.
The three were arrested this morning without incident at their residences. They made their initial appearances before U.S. Magistrate Judge Mary Malloy today, at which time they were permitted release upon posting bond. They are set for arraignment on Monday, Nov. 18, at 9:45 a.m.
Rita “Jessica” Martinez, 31, Gilbert Martinez, 35, both of Houston, and Felix Martinez, 37, of New Caney, are charged for their alleged involvement in a scheme to defraud Farmers and Merchants Bank of Long Beach, Calif., out of bank loans for themselves and others.
According to allegations in the indictment, Jessica Martinez worked as a loan processor at a Houston area business known variously as Globan Mortgage Company, Casa Milagro and First Milagro. She allegedly submitted falsified loan applications for Gilbert and Felix Martinez and others to Farmers and Merchants Bank. The indictment alleges the defendants completed loan applications containing falsified income information and provided false information about borrowers’ employment, income and assets.
The Indictment also provides notice of the government’s intent to forfeit their interest in the loan proceeds they allegedly obtained as a result of the bank fraud scheme, including a house in New Caney, which was allegedly purchased with loan proceeds from the purported fraud.The maximum penalty, upon conviction, for conspiracy and bank fraud is 30 years in prison and a $1 million fine.
This case is being investigated by the FBI, United States Postal Inspection Service and the Federal Deposit Insurance Corporation. Assistant United States Attorney Belinda Beek is prosecuting.
Former Executive Director of Public Charter School Pleads Guilty to Stealing $29,000 in Funds-Defendant Wrote Series of Checks for Personal Benefit-Read the Press Release
WASHINGTON – Monique S. Murdock, 44, the former executive director of Nia Community Public Charter School, pled guilty today to a federal theft charge stemming from the embezzlement of $29,000 in funds meant for the school.
As part of her guilty plea, Murdock also admitted making unauthorized purchases with a government-issued purchase card while she worked for another employer in Virginia.
The guilty plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Dana J. Boente, Acting U.S. Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Charles J. Willoughby, Inspector General for the District of Columbia; Steven Anderson, Special Agent in Charge, Mid-Atlantic Regional Office, Office of Inspector General, U.S. Department of Education, and Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS).
Murdock, of Fort Washington, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of theft from a program receiving federal funds. The Honorable Richard J. Leon scheduled sentencing for Feb. 26, 2014. Under the plea agreement, Murdock must pay criminal forfeiture and restitution. Under the voluntary federal sentencing guidelines, she faces six to 12 months of incarceration.
According to a statement of offense, signed by the defendant as well as the government, Murdock was a co-founder of Nia Community Public Charter School and its executive director from June 2006 through October 2008. As the executive director of the Northeast Washington school, she had the primary responsibility of overseeing its fiscal management.
Public charter schools are independently-operated public schools that are open to all District of Columbia residents. Enrollment is on a space-available basis. Public charter schools receive public funds based on the number of students they enroll. Nia Community Public Charter School, for example, received funding through the District of Columbia Public Charter School Board as well as through the U.S. Department of Education.
Between July 2006 and August 2008, the school received more than $3.3 million from the District of Columbia Public Charter School Board. The school also received more than $548,000 from the U.S. Department of Education during the 2007 and 2008 fiscal years.
From March 2008 through August 2008, Murdock signed five checks on the school’s account, totaling $29,000, and converted them to her own personal use and benefit.
The theft charge involved the money stolen from the charter school.
The guilty plea also resolves a criminal investigation in Virginia. After separating from the school, Murdock was hired in August 2009 as a Child Youth and School Services Assistant Director by the Cody Development Center in Fort Myer, Va. In this position, she was provided with a government purchase card that was to be used for buying work-related items.
As part of her plea, Murdock admitted that from February 2012 through December 2012 while employed by the Cody Development Center, she used her government purchase card to make $11,773 in unauthorized gift card purchases.
Murdock has agreed to pay $29,000 in restitution to the U.S. Department of Education and another $11,773 to the U.S. Department of Defense.
The theft from Nia Community Public Charter School was investigated by the FBI’s Washington Field Office, the District of Columbia Office of the Inspector General, and the U.S. Department of Education’s Office of Inspector General. The activities at the Cody Development Center were investigated by the Office of the Inspector General for the Department of Defense.
U.S. Attorney Machen, Acting U.S. Attorney Boente, Assistant Director in Charge Parlave, Inspector General Willoughby, and Special Agent in Charge Anderson, and Special Agent in Charge Craig commended the work of those who investigated the matters. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Krishawn Graham and Diane Hayes and Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues. Finally, they thanked Assistant U.S. Attorney Lionel André, who is prosecuting the case.
13-391Former Correctional Officer Pleads Guilty to Murder-for-hire SchemeRead the Press Release
SPRINGFIELD, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former correctional officer at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., pleaded guilty in federal court today to hiring someone to kill his wife’s ex-husband.
Robert W. Jones, 43, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to using a telephone with the intent that a murder be committed for payment.
According to court documents, Jones contacted an inmate at the federal medical center while he was employed as a correctional officer. Jones asked him to assist in hiring a hit man to murder his wife’s ex-husband (referred to as “John Doe” in public court documents). Jones was aware that the inmate had been in a leadership position in a drug-trafficking organization, an affidavit says, and had connections to individuals who could carry out such a request.
The inmate, who was cooperating with investigators, met with Jones for 10 to 15 private conversations in March and April 2012. Jones offered to give the inmate a cell phone to call a hit man, avoiding the possibility of the conversation being recorded if the call were placed on a landline at the prison.
As a part of a routine quarterly personnel shift at the medical center, Jones was moved to a different unit and was therefore unable to meet with the inmate for a period of time. The inmate later reestablished contact with Jones after being moved to a cell in the same unit that Jones was assigned. They met again on June 21, 2012, the first day they were in the unit at the same time. They had multiple meetings during July 2012, with Jones standing outside the inmate’s jail cell and speaking to him through an opening in the door. All the meetings were captured on the unit’s surveillance system. During one of those meetings, Jones told the inmate that his wife had left him and took all their belongings except the couch, television and bills, and he blamed John Doe for his wife’s departure.
An undercover FBI agent posed as a hit man named Chuey, and the inmate gave Jones a telephone number to contact Chuey. Jones contacted Chuey and made arrangements to meet in the food court located inside the Battlefield Mall in Springfield. At that meeting, Jones told the undercover agent he would pay him $1,500 to murder John Doe and provided the undercover agent with a photograph of John Doe, his home address, and $1,500 in cash. At the conclusion of the meeting, Jones was arrested.
Under federal statutes, Jones is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the U.S. Medical Center for Federal Prisoners Special Investigative Support, the FBI and the Department of Justice, Office of the Inspector General.Former Bucks County Company VP Charged in Immigration FraudRead the Press Release
Steven A. Cohen, 53, of Virginia, was charged today by Information with one count of visa fraud, announced United States Attorney Zane David Memeger. Cohen had been the Vice-President of Operations at Land Tech, Enterprises, a landscaping company in Bucks County. He made a material misstatement on immigration documents so that the company could improperly obtain visas for workers from Mexico to do landscaping work for the company.
If convicted, the defendant faces a maximum possible sentence of 10 years of imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by United States Department of Labor Office of Inspector General, the Department of State, and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Laurie Magid.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Banker Pleads Guilty to Fraud SchemeRead the Press Release
Daniel Mumbower, 35, a former banker, of Glassboro, NJ, pleaded guilty today to two counts of bank fraud and one count of receiving bribes by a bank employee for his role in a scheme that defrauded lenders of nearly $3 million. A sentencing hearing is scheduled for February 11, 2014. Mumbower worked as a financial specialist at Wachovia Bank in Sicklerville, New Jersey, from April 2005 through April 2008. In mid-2006, Mumbower met a corrupt loan broker, Gerald Cathie (charged elsewhere), who began bringing clients’ applications for lines of credit to Mumbower for submission to Wachovia. Through Cathie, Mumbower met Simon Aouad (charged elsewhere). Aouad also brought others’ loan applications to Mumbower. Mumbower realized that the applications Cathie and Aouad brought him contained false income and employment information and were supported by false documentation, such as false tax returns, but he processed the applications anyway. Mumbower earned a commission from Wachovia Bank for each loan that closed. Mumbower paid Cathie and Aouad a commission out of the proceeds of the loan, which was against bank policy, and Cathie paid Mumbower a cash kickback of approximately $200 per approved loan. Aouad, also, paid Mumbower kickbacks totaling approximately $10,000. The defendant processed a regular, weekly stream of fraudulent loan applications brought to him by Cathie and Aouad. Most applications were for lines of credit totaling between $50,000 and $100,000.
Mumbower received several thousand dollars in kickbacks from both Cathie and Aouad for assisting them in obtaining lines of credit for others. Most of the loans were unsecured business lines of credit. The borrowers defaulted. The total intended loss for the fraudulent lines of credit was approximately $765,000. During the same time frame, Mumbower met John Lucidi, charged elsewhere, a corrupt mortgage broker working in West Chester and Newtown Square. Lucidi was orchestrating a mortgage fraud scheme in which he and others, including Aouad, found buyers to apply for mortgages to purchase real estate located mostly in North Wildwood, New Jersey. With the knowledge of Lucidi, Aouad, and others, but unbeknownst to the lenders, the buyers applied for the mortgages using false and fraudulent income and asset information and received tens of thousands of dollars in undisclosed kickback payments for purchasing the properties. At the request of Aouad and Lucidi, Mumbower provided false verifications of deposit (VODs) purporting to show that the mortgage applicants had tens of thousands of dollars in Wachovia Bank accounts. These false VODs were provided to the mortgage lenders, including Wells Fargo Bank, PNC Bank, and others, in support of mortgage applications to purchase real estate located in West Chester, Pennsylvania; North Wildwood, New Jersey; and Boston, Massachusetts. In exchange for providing the false VODs, Aouad paid Mumbower $5,000 cash. Many of the properties purchased using the false verifications of deposits supplied by Mumbower went into default, and the lenders lost approximately $2 million.
The defendant faces a maximum possible sentence of 90 years of imprisonment, five years of supervised release, a $3 million fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Nancy E. Potts.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525