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Friday 13 September 2013
Virginia Beach Man Pleads Guilty to Six Armed Bank RobberiesRead the Press Release
RICHMOND, Va. – Jaquan C. Douglas, 20, of Virginia Beach, Va., pleaded guilty today to conspiracy to obstruct, delay and affect commerce by robbery, aiding and abetting credit union robbery, discharging a firearm in furtherance of a crime of violence, and brandishing a firearm in furtherance of a crime of violence for his role in six separate armed bank robberies occurring in multiple Virginia jurisdictions.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Nancy G. Parr, City of Chesapeake Commonwealth Attorney; Wiliam W. Davenport, Chesterfield County Commonwealth; Lyndia P. Ramsey, Sussex County Commonwealth Attorney; and Harvey L. Bryant, City of Virginia Beach Commonwealth Attorney, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Douglas was charged on August 26, 2013, in a Criminal Information with conspiracy to obstruct, delay and affect commerce by robbery, aiding and abetting credit union robbery; discharging a firearm in furtherance of a crime of violence; and brandishing a firearm in furtherance of a crime of violence. Douglas faces a maximum penalty of life imprisonment when he is sentenced on December 13, 2013.
In a statement of facts filed with his plea agreement, Douglas admitted to participating in six armed bank robberies in Virginia, including the April 19, 2012 robbery of the BB&T Bank located in Wakefield, Virginia; the April 23, 2012 robbery of the Bank of Southside Virginia located in Stony Creek, Virginia; the June 1 and July 10, 2012 robberies of the Chartway Federal Credit Union located in Virginia Beach, Virginia; the August 22, 2012 robbery of the Central Virginia Bank located in Midlothian, Virginia; and October 2, 2012 robbery of the ABNB Federal Credit Union located in Chesapeake, Virginia. During the April 23, 2012 robbery of the Bank of Southside Virginia in Stony Creek, Douglas discharged his firearm while fleeing the scene of the bank.
This case was investigated by the Federal Bureau of Investigation, the City of Chesapeake Police Department, the Chesterfield County Police Department, the Sussex County Sheriff’s Office, and the City of Virginia Beach Police Department. Assistant United States Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.U.S. Attorney Durkan Joins Tribal and DOJ Leaders for Conference on Indian Country IssuesRead the Press Release
U.S. Attorney Jenny A. Durkan will join other Department of Justice leaders and U.S. Attorneys from the Pacific Northwest for a conference devoted to Native American Issues. The U.S. Attorneys from the Attorney General’s Advisory Council (AGAC) Native American Issues Subcommittee (NAIS) will meet in Hood River, Oregon next week, Sept. 17-19, 2013. Washington State Tribal leaders will meet with DOJ leaders to discuss strengthening offender reentry efforts, white collar crime, juvenile justice issues, defending Indian hunting and fishing rights, and support for the implementation of the 2013 Violence Against Women Reauthorization Act (VAWA 2013).
“With twenty-five recognized Tribes in the Western District of Washington, the safety and security of our Native Communities is one of our top priorities,” said U.S. Attorney Jenny A. Durkan. “These meetings with Tribal leaders can help tailor federal programs to meet the diverse needs of our Tribal partners – from large urban reservations to smaller rural tribes. I look forward to the opportunity to work on these issues with other U.S. Attorneys and Tribal leaders.”
On Sept. 18, U.S. Associate Attorney General Tony West and Assistant Attorney General for the Office of Justice Programs Karol Mason will join the U.S. Attorneys for a special joint session with Tribal leaders from Oregon, Washington and Idaho to be held in Celilo Village, Oregon.
“While we are mindful of the great progress that is being made by U.S. Attorneys and tribal justice systems across Indian country, I look forward to exploring with the NAIS and tribal leaders ways that we can strengthen our government-to-government relationships even more, work ever closer with tribal nations, and advance our shared goal of building safe, sustainable, and healthy communities,” said Associate Attorney General West.
Thirty U.S. Attorneys from districts with Indian country or one or more federally recognized tribes serve on the NAIS. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
VAWA 2013 was signed into law by President Obama on March 7, 2013. This law contains provisions that significantly improve the safety of native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for legislation to combat violence against native women. The Department is exploring with tribal leaders how the Department can help support the new law’s implementation. This law generally takes effect on March 7, 2015, but also authorizes a voluntary pilot project to allow certain tribes to begin prosecuting additional cases sooner.
In June 2009, Attorney General Eric Holder launched a Department-wide initiative to enhance public safety in Indian country. Significant progress has been made since then, and the U.S. Attorney’s Offices with Indian country jurisdiction have had a major role in this success.
In May 2013, the Justice Department released its first report to Congress, required under the Tribal Law and Order Act, entitled Indian Country Investigations and Prosecutions (ICIP). The ICIP report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAOs) with Indian country jurisdiction shows, among other things, a 54 percent increase in Indian country criminal prosecutions since Fiscal Year 2009.
The information contained in the report shows, among other things, the following:• The Justice Department’s prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country. Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012. This represents a nearly 54 percent increase in the Indian country crime caseload.
• The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors, and other personnel in both federal and tribal criminal justice systems. As a result, tribal communities will be safer places to live, work and raise families.
Read more about the Justice Department’s efforts to support implementation of VAWA 2013: http://www.justice.gov/tribal/vawa-tribal.html
Read the entire ICIP report at www.justice.gov/tribal/tloa-report-cy-2011-2012.pdf
Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html
Two More Carlsbad Men Plead Guilty to Committing Hobbs Act Robberies in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – The last two of six men from Carlsbad, N.M., who perpetuated a string of commercial robberies in southeastern New Mexico between Nov. 2012 and Jan. 2013 have pleaded guilty, announced Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, Chief Daniel Fierro of the Carlsbad Police Department, Chief Don Raley of the Artesia Police Department, and Chief Chris McCall of the Hobbs Police Department.
Tyler Williams, 19, and Mario Muro, 23, pleaded guilty this morning in federal court in Las Cruces to violating the Hobbs Act by robbing businesses engaged in interstate commerce. They were charged, together with four other Carlsbad residents, Bennie Juarez, 27, Logan Magby, 19, Rance Williams, 23, and Maurice Williams, 35, in a criminal complaint filed on May 29, 2013. The criminal complaint charged the six men, acting in groups, with robbing the following five commercial businesses in southeastern New Mexico between Nov. 2012 and Jan. 2013:
- The Family Dollar located at 403 W. Quay Street in Artesia, N.M., by Bennie Juarez and Maurice Williams on Nov. 15, 2012.
- The Shop-N-Go located at 22212 W. Lea Street in Carlsbad by Bennie Juarez and Rance Williams on Nov. 28, 2012.
- The Family Dollar located at 901 W. Mermod Street in Carlsbad by Bennie Juarez and Maurice Williams on Dec. 2, 2012.
- The Dollar General located at 730 N. Dal Paso in Hobbs, N.M., by Bennie Juarez, Rance Williams and Tyler Williams on Dec. 9, 2012.
- The Domino’s Pizza located at 302 S. 1st Street in Artesia by Bennie Juarez, Mario Muro, Logan Magby and Tyler Williams on Jan. 6, 2013.
According to the criminal complaint, the perpetrators wore masks or covered their faces with bandanas and brandished firearms at the store employees when they committed the aforementioned robberies.
During today’s proceedings, Tyler Williams entered a guilty plea to a two-count felony information charging him with conspiracy to rob the Dollar General in Hobbs on Dec. 9, 2012, and conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Muro entered a guilty plea to a felony information charging him with conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Both men entered their guilty pleas under plea agreements with the U.S. Attorney’s Office. At sentencing, Tyler Williams and Muro each face a maximum penalty of 20 years in prison on each count of conviction.
The other four men charged in the criminal complaint also have pleaded guilty:
- Juarez entered a guilty plea on Aug. 20, 2013, to a felony information charging him with five counts of conspiracy to violate the Hobbs Act by robbing each of the five businesses numerated above.
- Magby entered a guilty plea on Sept. 3, 2013, to a one-count felony information charging him with conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013.
- Rance Williams entered a guilty plea on Sept. 10, 2013, to a two-count felony information charging him with conspiracy to rob the Shop-N-Go in Carlsbad on Nov. 28, 2012, and conspiracy to rob the Dollar General in Carlsbad on Dec. 2, 2012.
- Maurice Williams entered a guilty plea to a two-count felony information charging him with conspiracy to rob the Family Dollar in Artesia on Nov. 15, 2012, and conspiracy to rob the Family Dollar in Carlsbad on Dec. 2, 2012.
Juarez, Magy and Rance Williams entered their guilty pleas under plea agreements with the U.S. Attorney’s Office, while Maurice Williams pleaded guilty without the benefit of a plea agreement. At sentencing, each man faces a maximum penalty of 20 years in prison on each count of conviction.
These cases were brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The cases were investigated by the Roswell office of the FBI, Carlsbad Police Department, Artesia Police Department and Hobbs Police Department, with assistance from the 5th Judicial District Attorney’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
Triadelphia Resident Convicted on Federal Firearms Charge Defendant Faces up to Ten Years in PrisonRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - A 44-year old Triadelphia, West Virginia, man was convicted this week by a federal jury of being a felon in possession of a firearm.
According to United States Attorney William J. Ihlenfeld, II, BRIAN BEHRENS was convicted of the felony offense of “Prohibited Person in Possession of a Firearm” after a two-day jury trial. Evidence was offered at trial showed that BEHRENS possessed a loaded Remington Model 700 7MM Caliber Magnum Hunting Rifle in a vehicle on McCutcheon Road in Ohio County while hunting for deer last November. BEHRENS was approached by a West Virginia Department of Natural Resources officer and initially provided a false name before acknowledging his true identity.
BEHRENS was prohibited from possessing a firearm due to a prior felony conviction in federal court in West Virginia for “Possession of a Firearm and Ammunition after Conviction for Domestic Violence.”
BEHRENS, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia DNR Law Enforcement Section.
Topeka Man Pleads Guilty to Bank Fraud in Junction City Apartment DealRead the Press Release
TOPEKA, KAN. - A Topeka man has pleaded guilty to federal bank fraud charges in connection with a plan to build an apartment complex in Junction City, U.S. Attorney Barry Grissom said today.
John Wyatt Duncan, Jr., 52, Topeka, Kan., pleaded guilty to two counts of bank fraud, one count of money laundering and one count of making false statements in documents required by the Employee Retirement Income Security Act (ERISA).
In court documents, Duncan was alleged to have obtained a $15.2 million construction loan for the purpose of constructing Quinton Pointe Apartments in Junction City. He was required to provide $1,225,000 in collateral. He signed a letter to the lender, University National Bank of Lawrence, Kan., falsely stating that lumber for the construction of the apartment complex, representing collateral for the loan, was prepaid in full and being held by Schmidt Builders, a company for which he was chief executive officer. He instructed employees of Schmidt Builders to create a false invoice in an amount of more than $1.3 million to a company he owned called Blue Jay Properties LLC in order to create the false appearance that Blue Jay Properties had prepaid Schmidt Builders for the lumber.
In another count, Schmidt Builders acquired a $12 million line of credit loan from Kaw Valley National Bank of Topeka and agreed to provide the bank with monthly financial reports. Duncan submitted reports to the bank containing false information about the age of certain accounts receivable and the amount of inventory on hand.
Sentencing is set for Dec. 16. He faces a maximum penalty of 30 years and a fine up to $1 million on each of the bank fraud counts, a maximum penalty of 10 years and a fine up to $250,000 on the money laundering and a maximum penalty of five years and a fine up to $250,000 on the count of making false statements. Grissom commended the Internal Revenue Service, Criminal Investigations Division; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Reserve Board, Office of Inspector General; the U.S. Department of Labor and Assistant U.S. Attorney Duston Slinkard for their work on the case.Third City of Buffalo Employee Charged with Stealing Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Franklin Lopez, 33, of Buffalo, New York, was charged by criminal complaint with stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that the defendant was employed part time as a coin collector for in the City of Buffalo Department of Parking Enforcement between 2003 and 2011. In this capacity, Lopez was responsible collecting coins deposited into parking meters.
According to the complaint, on August 16, 2011, Buffalo Police found over $1,300 in coins inside the defendant's work vehicle, money that was supposed to be deposited into the city treasury. Further investigation, including a review of Lopez's banking records, revealed a substantial amount of cash deposits. In addition, the defendant made significant cash payments, including a $10,000 down payment on a car and the purchase of two boats, a jet ski and a moped. The complaint further stated that other employees of the department were aware of the defendant's actions.
Lopez will have an initial appearance this afternoon at 1:00 p.m. before U.S Magistrate Judge Jeremiah J. McCarthy.
Lopez is the third employee of the Department of Parking Enforcement to be charged in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison on August 16, 2013. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and is awaiting sentencing.
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.
The arrests are the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.South Bend Man Sentenced to Three Years Imprisonment and Ordered to Pay over A Quarter of A Million in Restitution in Tax Evasion CaseRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Robert E. Miller, 60, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to 37 months of imprisonment, 2 years of supervised release and $264,951.70 in restitution after being found guilty of the felony offense of tax evasion.According to documents filed in this case, Miller committed tax fraud, specifically, eight years of tax payment evasion, during the ten-year period from 1999 through 2009.Miller did so despite being employed and having substantial assets and funds, including more than $2.1 million in adjusted gross income and more than $1.1 million in taxable income.Miller tried to hide his assets and income from the IRS by discontinuing his use of bank accounts in May 2007 and conducting all of his transactions in cash and pre-paid debit cards.
Miller attempted to obstruct justice when he made false statements during questioning by IRS agents when they interviewed him and also when he intentionally lied on material points during his testimony at trial.
This case was the result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Seven East Tennessee Residents Sentenced to A Total of 603 Months in Prison for Methamphetamine Conspiracy Operating in Washington CountyRead the Press Release
GREENEVILLE, Tenn. – On Tuesday, Sept. 10, 2013, the Honorable Leon Jordan, U.S. District Judge, sentenced the last of seven defendants for their roles in a methamphetamine manufacturing conspiracy. The individuals were indicted in March 2013 for conspiring to manufacture methamphetamine (meth).
Between January 28 and February 7, 2013 law enforcement agents found meth labs or meth equipment and residue at four sites in Johnson City, including a room at the Fox Motel located on Highway 11E. The conspiracy was active when the indictment was returned on Mar. 12, 2013.
The seven individuals include: Thomas Bugg, 52, of Johnson City, who was sentenced to 92 months in prison; James Brandon Kimes, 27, of Gray, who was sentenced to 200 months in prison; Stephen Eric Burgner, 32, of Johnson City, who was sentenced to 96 months in prison; Monroe Eugene Lowe, 27, of Jonesborough, who was sentenced to 72 months in prison; Allen Casey Story, 28, of Johnson City, who was sentenced to 60 months in prison; Carla Nicole Lowe, 23, of Elizabethton, who was sentenced to 46 months in prison; and Terra Beth Bugg, 41, of Watauga, who was sentenced to 37 months in prison.
U.S. Attorney William C. Killian stated, “Tennessee continues to have one of the highest rates of meth addiction in the United States. Meth has no legitimate uses and it destroys lives, families, and communities. We will continue to devote resources to rid our communities of the scourge of meth by vigorous prosecution and meaningful prison terms.”
Law enforcement agencies participating in the investigation which led to the indictment and subsequent convictions include the Washington County Tennessee Sheriff’s Office, Drug Enforcement Administration, Johnson City Police Department, Elizabethton Police Department, Tennessee Highway Patrol, Tennessee National Guard Counter-Drug Intel, and the Kingsport Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
Rodney Royce Miller Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 12, 2013, before U.S. District Judge Donald W. Molloy, RODNEY ROYCE MILLER, a 60-year-old resident of Kalispell, was sentenced to a term of:
- Prison: 120 months, consecutive to sentence in CR-08-103-GF-SEH
- Special Assessment: $100
- Supervised Release: life
MILLER was sentenced in connection with his guilty plea to accessing with the intent to view child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
On September 21, 2012, a federal probation officer made contact with MILLER in MILLER's van in Flathead County. The probation officer observed MILLER looking at images of child pornography on his notebook computer.
Detectives from the Flathead County Sheriff's Office subsequently obtained a search warrant for the notebook computer. When interviewed, MILLER admitted he used the computer to view child pornography on the Internet.
When the notebook was forensically examined Image files, which included cache and non-cache files depicting child pornography, were located. The examiner also located cache records which were indicative of a user seeking child pornography.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MILLER will likely serve all of the time imposed by the court. In the federal system, MILLER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Flathead County Sheriff's Office, the Montana Internet Crimes Against Children (ICAC) Task Force, the U.S. Probation, and the Montana Division of Criminal Investigation.
Pine Ridge Woman Sentenced for Assaulting A Tribal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Assault on a Federal Officer was sentenced on September 12, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Pamela Belt, age 49, was sentenced to 3 years’ probation and was ordered to pay $100 to the Federal Crime Victims Fund and a $250 fine.
On June 10, 2012, near Oglala, Belt physically resisted an Oglala Sioux Tribal officer as he was attempting to arrest her, and she also hit and kicked his car windows in an attempt to get out of the police vehicle. She pled guilty on May 8, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.Pine Ridge Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man was indicted by a federal grand jury for allegedly slapping, punching, and kicking his girlfriend at Pine Ridge.
Tobacco was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Michael Tobacco, age 21, was indicted on August 27, 2013, for Assault with a Dangerous Weapon and Assault Resulting in Substantial Bodily Injury to an Intimate Partner or Dating Partner. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charges are merely an accusation and Tobacco is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Perpetrators of Nationwide Foreclosure Rescue Scam “Walkawaytoday.Org” Sentenced to Prison TermsRead the Press Release
ALEXANDRIA, Va. – Mark S. Farhood, 49, formerly of San Diego, Cal., and Jason S. Sant, 38, of Lecanto, Fla., were sentenced today for their roles in operating a nationwide online foreclosure rescue scam that went by various names, including Home Advocate Trustees and Walk Away Today, and used various web sites, including walkawaytoday.org and sellfastusa.com, to deceive hundreds of vulnerable, distressed homeowners into surrendering their properties to the company.
Farhood was sentenced to 11 years in prison, followed by 3 years of supervised release. Sant was sentenced to 6 years in prison, followed by 2 years of supervised release. Each was also ordered to forfeit approximately $2.0 million in fraud proceeds to the government, along with various bank accounts and other assets.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Christy L. Romero, Special Inspector General for the U.S. Treasury Department’s Troubled Asset Relief Program, or SIGTARP; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Anthony J. Trenga. Farhood and Sant each pleaded guilty to conspiracy charges on May 10, 2013.
According to court records, Farhood and Sant co-owned Home Advocate Trustees, which also went by the names Walk Away Today, First Equity Trustees, Home Security Consultants, Sell Fast USA, Short Sale Buyer, USA Sell House Fast, and USA Rental Housing. They marketed the businesses nationwide as purchasers of distressed real estate and a means by which vulnerable homeowners could avoid foreclosure and the accompanying negative effects on their credit. The companies told homeowners they were in the business of negotiating with lenders to purchase mortgage notes at a discount and falsely claimed to have been in business for seventeen years, to have experienced a 90% success rate in purchasing such notes, and to be the nation’s largest volume buyer of short sale and over-leveraged real estate.
As Sant and Farhood admitted in connection with their pleas, the businesses were a fraud, no such negotiations with lenders ever took place, and the scheme was merely a way for them to take possession of hundreds of residential properties, including homes within the Eastern District of Virginia, at virtually no cost and then reap millions of dollars in profits by renting the homes to unsuspecting tenants.
Farhood and Sant further admitted that as part of the scheme, they submitted fraudulent loan modification applications to mortgage lenders under the Treasury Department’s Making Home Affordable Program in the name of homeowners, without the homeowners’ knowledge or consent. Farhood and Sant used the fraudulent applications to stall foreclosures on the properties under their control and for which no mortgage payments were being made and to maximize the time period during which they could collect rental income.
The homes purportedly sold to Home Advocate Trustees and its related entities ended in foreclosure, harming the participating homeowners and commonly resulting in eviction of the tenants.
This case was investigated by SIGTARP and the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Patient Recruiter Convicted in Massive Social Security and Immigration Fraud SchemeRead the Press Release
United States Attorney Laura E. Duffy announced that Nawal Talia of Spring Valley pled guilty today and admitted recruiting patients as part of a multi-year fraud scheme to falsify medical certifications to the federal government.
As revealed in her guilty plea, Talia recruited patients for the mastermind of the health care fraud scheme, Dr. Roberto Velasquez. Earlier this year, Velasquez was sentenced to 21 months in prison, and ordered to pay more than $1.5 million in restitution to the Social Security Administration — the largest single restitution order in Social Security’s history.
For the past several years, Talia served as a paid advocate for immigrants seeking assistance in obtaining U.S. citizenship or Social Security benefits. In this role, Talia submitted documents to federal agencies on behalf of her clients, certifying that her clients were mentally disabled. Rather than obtaining benefits legitimately, Talia and Velasquez worked together to falsify medical certifications and fabricate patient histories. In her plea, Talia admitted that she helped Velasquez falsify two different types of disability reports: (1) Medical Certification for Disability Exception Forms (Forms N-648), which are used by the Department of Homeland Security during the naturalization process; and (2) Medical Letters, which are used by the Social Security Administration to award Supplemental Security Income and disability payments. On each of these forms, Talia lied about the length of time her clients had been under the care of Velasquez. In one case, Talia certified that a patient had been treated by Dr. Velasquez for a year, when the patient had actually only met Velasquez once. In another, she filed a Social Security appeal, falsely certifying that the patient had been treated by Dr. Velasquez for 11 months. In reality, Talia simply made up that number so that her client appeared to be eligible for disability benefits, when in fact Talia knew he was not.
The fraud was uncovered through an undercover operation conducted jointly by the Department of Homeland Security, Immigration and Customs Enforcement/Homeland Security Investigations, and the Office of Inspector General, Social Security Administration. Although Talia held herself out as a legitimate patient advocate, the investigation revealed her blatant disregard for federal disability requirements. Investigators established that Talia repeatedly lied about the duration of the treatment in order to create a “track record” that would satisfy reviewers at the Social Security Administration and Citizen and Immigration Services (“CIS”).
This prosecution is a part of the United States Attorney’s ongoing Health Care Fraud initiative. United States Attorney Duffy noted, “Combating health care fraud is a top priority of the Department of Justice. Patient recruiters like Talia help perpetuate fraud when they falsify documents and corrupt the integrity of the system.” The United States Attorney noted that this type of fraud is particularly egregious as it improperly helps undeserving individuals obtain citizenship and other benefits that may then not be available to the truly deserving.
Sentencing was set for December 16, 2013, at 9 a.m. before U.S. District Judge Marilyn L. Huff
DEFENDANT CRIMINAL CASE NO. 13cr3393-H Nawal Talia SUMMARY OF CHARGESCount One - Title 18, United States Code, Section 1546 – False Statements in Immigration Documents
INVESTIGATING AGENCIES
Count Two - Title 42, United States Code, Section 1383a(a)(2) - False Statements in Applications for SSI Disability BenefitsUnited States Immigration and Customs Enforcement’s Homeland Security Investigations
Office of Inspector General, Social Security AdministrationOlathe Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
KANSAS CITY, KAN. - An Olathe man who trafficked in Mexican methamphetamine in the Kansas City, Kan., area faces a potential sentence of 18 years in federal prison, U.S. Attorney Barry Grissom said today.
Lorenzo Sepulveda, 34, Olathe, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In the plea agreement, both parties agreed to recommend a sentence of 18 years in federal prison.
In his plea, Sepulveda admitted he was identified during an investigation initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives into a methamphetamine distribution ring based in Kansas City, Kan. From May through October 2009 Sepulveda was involved in several transactions in which undercover agents bought methamphetamine from members of the conspiracy. In July 2009, for instance, undercover agents met conspirators in a parking lot of a McDonald’s restaurant and bought $6,750 worth of methamphetamine. Sepulveda told them the methamphetamine had come directly from Mexico.
Sentencing is set for Dec. 16. In addition to agreeing to a recommended 216-month sentence, Sepulveda consented to a money judgment against him of $125,000.
Grissom commended the Drug Enforcement Administration and Special Assistant U.S. Attorney Trent Krug for their work on the case.North Carolina Woman Sentenced for Preparing False Tax Returns and Identity FraudRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that yesterday Leslie Louise Brewster of Durham, N.C. was sentenced to serve 70 months in federal prison for crimes related to preparing false tax returns and identity fraud. She was also ordered to pay restitution to the IRS of $92,910. Brewster was sentenced by Chief U.S. District Judge for the Middle District of North Carolina William Osteen Jr., in Greensboro, N.C.
On Feb. 20, 2013, Brewster pleaded guilty to three felonies relating to her preparation of false tax returns: one count of aiding and assisting the preparation of a false tax return; one count of wire fraud; and one count of aggravated identity theft.
According to court documents, Brewster was the manager of the Burlington, N.C. branch of Nothing But Taxes, a tax return preparation franchise with locations throughout North Carolina. Brewster falsified federal income tax returns for hundreds of Nothing But Taxes clients in order to obtain larger tax refunds for the clients than they were actually entitled to receive. The returns Brewster prepared for clients reported, among other items, false dependents, fictitious businesses and bogus education credits.
Brewster also purchased personal identifying information, including names and Social Security numbers, from members of the community. Brewster used this personal identifying information to claim false dependents on tax returns she prepared for clients, and provided some of the identities she purchased to other return preparers at Nothing But Taxes’ Burlington location for their use in a similar fashion. Brewster typically charged Nothing But Taxes clients a cash fee, above Nothing But Taxes’ normal flat fee for preparation of a return, to prepare a return containing false dependent information.
Recently, two defendants in related cases were also sentenced to prison for tax crimes arising out of the Nothing But Taxes scheme. Saichelle McNeill, a return preparer at the Greensboro branch of Nothing But Taxes, was sentenced to serve 27 months in prison on Aug. 20, 2013. McNeill previously pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of a false tax return. Tiffany Rogers, a return preparer at the Burlington branch of Nothing But Taxes, was sentenced to serve 48 months incarceration on Aug. 14, 2013. Rogers previously pleaded guilty to wire fraud, aggravated identity theft, willfully filing a false personal income tax return and aiding and assisting the preparation of a false tax return.
Two other Nothing But Taxes employees, Nikki Brewster and Dawn Williams, are currently awaiting sentencing in the U.S. District Court for the Middle District of North Carolina. Each of them pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns. Court documents associated with their respective guilty pleas allege that Nikki Brewster was the manager of a Nothing But Taxes branch in Durham, N.C., while Dawn Williams was a return preparer at the Burlington branch.
Court documents in the cases of Nikki Brewster, Dawn Williams, Tiffany Rogers, and Saichelle McNeill stated that those defendants, like Leslie Brewster, also prepared false tax returns for Nothing But Taxes clients, and committed identity theft by claiming false dependents on clients’ tax returns.
“The Justice Department will investigate and prosecute fraudulent tax return preparers and those who steal identities to use in their tax fraud, whether the crime is committed by a single thief or a ring of thieves,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The prison sentence handed down today demonstrates that such invasions of personal privacy and theft of public monies will not be tolerated.”
Ripley Rand, U.S. Attorney for the Middle District of North Carolina, said, “We thank the Criminal Investigative Division of the IRS for their hard work in dismantling this tax fraud syndicate. We will continue to hold those accountable who attempt to cheat the government and place the burden of their fraud on lawful taxpayers.”
This case and the related Nothing But Taxes cases are being investigated by special agents of the IRS- Criminal Investigation Division, and are being prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
North Carolina Woman Sentenced for Preparing False Tax Returns and Identity FraudRead the Press Release
WASHINGTON – The Justice Department and the Internal Revenue Service (IRS) announced that yesterday Leslie Louise Brewster of Durham, N.C. was sentenced to serve 70 months in federal prison for crimes related to preparing false tax returns and identity fraud. She was also ordered to pay restitution to the IRS of $92,910. Brewster was sentenced by Chief U.S. District Judge for the Middle District of North Carolina William Osteen Jr., in Greensboro, N.C.
On Feb. 20, 2013, Brewster pleaded guilty to three felonies relating to her preparation of false tax returns: one count of aiding and assisting the preparation of a false tax return; one count of wire fraud; and one count of aggravated identity theft.
According to court documents, Brewster was the manager of the Burlington, N.C. branch of Nothing But Taxes, a tax return preparation franchise with locations throughout North Carolina. Brewster falsified federal income tax returns for hundreds of Nothing But Taxes clients in order to obtain larger tax refunds for the clients than they were actually entitled to receive. The returns Brewster prepared for clients reported, among other items, false dependents, fictitious businesses and bogus education credits.
Brewster also purchased personal identifying information, including names and Social Security numbers, from members of the community. Brewster used this personal identifying information to claim false dependents on tax returns she prepared for clients, and provided some of the identities she purchased to other return preparers at Nothing But Taxes’ Burlington location for their use in a similar fashion. Brewster typically charged Nothing But Taxes clients a cash fee, above Nothing But Taxes’ normal flat fee for preparation of a return, to prepare a return containing false dependent information.
Recently, two defendants in related cases were also sentenced to prison for tax crimes arising out of the Nothing But Taxes scheme. Saichelle McNeill, a return preparer at the Greensboro branch of Nothing But Taxes, was sentenced to serve 27 months in prison on Aug. 20, 2013. McNeill previously pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of a false tax return. Tiffany Rogers, a return preparer at the Burlington branch of Nothing But Taxes, was sentenced to serve 48 months incarceration on Aug. 14, 2013. Rogers previously pleaded guilty to wire fraud, aggravated identity theft, willfully filing a false personal income tax return and aiding and assisting the preparation of a false tax return.
Two other Nothing But Taxes employees, Nikki Brewster and Dawn Williams, are currently awaiting sentencing in the U.S. District Court for the Middle District of North Carolina. Each of them pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns. Court documents associated with their respective guilty pleas allege that Nikki Brewster was the manager of a Nothing But Taxes branch in Durham, N.C., while Dawn Williams was a return preparer at the Burlington branch.
Court documents in the cases of Nikki Brewster, Dawn Williams, Tiffany Rogers, and Saichelle McNeill stated that those defendants, like Leslie Brewster, also prepared false tax returns for Nothing But Taxes clients, and committed identity theft by claiming false dependents on clients’ tax returns.
“The Justice Department will investigate and prosecute fraudulent tax return preparers and those who steal identities to use in their tax fraud, whether the crime is committed by a single thief or a ring of thieves,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The prison sentence handed down today demonstrates that such invasions of personal privacy and theft of public monies will not be tolerated.”
Ripley Rand, U.S. Attorney for the Middle District of North Carolina, said, “We thank the Criminal Investigative Division of the IRS for their hard work in dismantling this tax fraud syndicate. We will continue to hold those accountable who attempt to cheat the government and place the burden of their fraud on lawful taxpayers.”
This case and the related Nothing But Taxes cases are being investigated by special agents of the IRS- Criminal Investigation Division, and are being prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
Nasser Qayed Sentenced for Knoxville-Detroit Scheme Involving Contraband CigarettesRead the Press Release
KNOXVILLE, Tenn. B On Friday, Sept. 13, 2013, Nasser Qayed, 41, of Detroit, Mich., was sentenced by the Honorable Leon Jordan, Senior U.S. District Court Judge, to serve 21 months in federal prison for his convictions of receiving and concealing stolen goods traveling in interstate commerce. Additionally, the court ordered him to pay $121,000 in restitution.
Qayed was a former convenience store operator in Detroit, who participated in a Knoxville to Detroit contraband cigarette smuggling ring. He pleaded guilty in May 2012 to two counts of receiving and concealing stolen goods in interstate commerce.
The conviction of Qayed and others involved in this contraband cigarette smuggling ring was the result of a long-term undercover investigation by the FBI Joint Terrorism Task Force. Assistant U.S. Attorney Jeff Theodore represented the United States.
Multi-State Takedown Targeted National Cocaine Trafficking OrganizationRead the Press Release
ATLANTA – Twelve members of a national cocaine trafficking organization have been charged in a large-scale investigation conducted by the Federal Bureau of Investigation code-named “Operation Holy Trap.”
“Today’s takedown is another chapter in this Office’s ongoing commitment to hold significant narco-traffickers to account and to dismantle their operations and infrastructure,” said United States Attorney Sally Quillian Yates. “Our streets are safer with these serious offenders off them. The arrests also serve as a valuable reminder to those who might use their seemingly legitimate businesses to support narco-traffickers. You are not above the law. You will be prosecuted.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the import and distribution of dangerous drugs such as methamphetamines, cocaine, and heroin continue to be carried out by highly organized criminal enterprises covering large territories within the U.S., law enforcement continues to go after these groups in an equally organized manner as demonstrated by the David G. Wilhelm Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, based in Atlanta. The FBI, as part of this federally led group of local, state, and other federal investigators and analytical staff, brings forward its expertise in helping dismantle these criminal enterprises and seizing their assets. The indictments and arrests resulting from Operation Holy Trap are a result of many months of hard work by this dedicated Strike Force and required much coordination with other law enforcement entities in other states. The cocaine distribution in this case was extensive and the money generated by this group is an indicator as to how active and established this group was in the U.S. The fight to keep our communities safe from this corrosive criminal influence continues and the FBI remains a committed and steadfast partner in this effort.”
According to United States Attorney Yates, the charges, and other information presented in court: For over 18 months, the FBI has been investigating a drug trafficking organization with ties to Georgia, Florida, Massachusetts, Texas, and Louisiana.
The organization is alleged to have been overseen by Edwin Rivera, a/k/a Neno, a/k/a Nano (“Rivera”), a Boston-based drug dealer, who used vehicles outfitted with hydraulic concealed compartment (or traps) to smuggle multiple kilograms of cocaine and hundreds of thousands of dollars throughout the United States. Rivera employed Hector Ramon DeJesus, who operated a seemingly legitimate auto shop in Atlanta, to install the traps in the load vehicles. Juan Manuel Santana Baez, a/k/a “Robin,” worked with and for DeJesus in the trap business, including on vehicles used by Rivera.
Rivera is alleged to have used a syndicate of couriers to transport the organization’s drugs and drug proceeds, including Pedro Angel Morales, a/k/a “Tito;” Glenny Difo; Militza Negron; Jose Ramon Medina Bravo, a/k/a “Lynx;” Jose M. Vellon Rios, a/k/a Javier Luis R Mercado; Jennifer Medina; and Alex Jonathan Tejada Avelino, a/k/a “Jonathan.” Maximo Stiven Bernabel Pena, a/k/a “Pablo,” and Freddy Pena also were members of Rivera’s cocaine trafficking organization.
To date, investigators have seized over 70 kilograms of cocaine and approximately $1,000,000 in drug proceeds.
On July 9, 2013, a federal grand jury in Atlanta returned a five-count indictment charging the following individuals with various drug offenses, including conspiring to traffick over five kilograms of cocaine and substantive drug trafficking charges:Edwin Rivera, a/k/a “Neno,” a/k/a “Nano,” 43, of Hyde Park, Mass.;
- Maximo Stiven Bernabel Pena, a/k/a “Pablo,” 23, of Roxbury, Mass.;
- Juan Manuel Santana Baez, a/k/a “Robin,” 38, of Duluth, Ga.;
- Glenny Difo, 37, of Orlando, Fla.;
- Militza Negron, 41, of Orlando, Fla.;
- Jose Ramon Medina Bravo, a/k/a “Lynx,” 28, of Tamarac, Fla.;
- Jose M. Vellon Rios, a/k/a Javier Luis R Mercado, 32, of Hazelton, Pa.;
- Jennifer Medina, 31, of Gretna, La.;
- Alex Jonathan Tejada Avelino, a/k/a “Jonathan,” 30, of Jamaica Plain, Mass.;
- Freddy Pena, 24, of Jamaica Plain, Mass.; and
- Pedro Angel Morales, a/k/a “Tito,” 49, of Springfield, Mass.
In addition, a criminal complaint was issued against Hector Ramon DeJesus, 67, of Lawrenceville, Ga., charging him with conspiring to traffic over five kilograms of cocaine.
On September 12, 2013, initial searches and arrests were conducted in connection with an unsealed indictment and criminal complaint. Federal, state, and local law enforcement officers fanned out across Atlanta, Ga., Boston, Mass., Scranton, Pa., Orlando and Tamarac, Fla., to seek to arrest the charged defendants. The takedown, which is ongoing, so far has ensnared nine defendants. Over the next two days, initial appearances are scheduled to occur in this District, as well as in the Middle District of Florida and District of Massachusetts.
The investigation of the case was led by FBI agents from the David G. Wilhelm OCDETF-Atlanta Strike Force, which consists of federal, state, and local drug officers and focuses on dismantling international drug organizations operating in the United States. The investigation also included participation from the Strike Force members: the Drug Enforcement Administration (DEA), the United States Marshals Service, the Department of Homeland Security, the Internal Revenue Service-Criminal Investigation (IRS), the Georgia Bureau of Investigation (GBI), Lawrenceville Police, Gwinnett County Sheriff’s Office, Clayton County Police, and Barrow County Sheriff’s Office.
If convicted, the charged defendants face a maximum sentence of up to life imprisonment, as well as fines of over $10 million dollars.
Members of the public are reminded that the indictment and criminal compliant contain only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Assistant United States Attorneys Ryan Scott Ferber and C. Brock Brockington are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Mount Airy Man Sentenced for Filing False Tax ReturnsRead the Press Release
GREENSBORO, N.C. – A Mount Airy man was sentenced to 30 months of imprisonment for filing false tax returns, announced United States Attorney Ripley Rand.
JEFFREY LEE JOHNSON, 45, of Mount Airy, North Carolina, had pleaded guilty to two counts of filing false tax returns. Johnson was sentenced on September 13, 2013, by United States District Judge Catherine C. Eagles to 30 months in prison followed by one year of supervised release. Judge Eagles also ordered JOHNSON to pay restitution of $2,495,721 to the Internal Revenue Service.
From January 2005 through February 2010, JOHNSON owned and operated Mayberry Auto Parts and Recycling, Inc. (“MAPR”). MAPR was in the business of purchasing scrap metal from individuals and reselling it to larger scrap metal companies. JOHNSON filed tax returns for 2006 and 2007 with gross receipts of $799,228 and $820,000, respectively. JOHNSON knew at that time he filed those returns that he had received hundreds of thousands of dollars in excess of those amounts in both years. The investigation of the Internal Revenue Service confirmed that MAPR earned gross receipts of $4 million in 2006 and $5 million in 2007.
Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service – Criminal Investigative Division, stated that “the successful prosecution of individuals who intentionally conceal income and evade taxes helps instill confidence in the American tax system. Mr. Johnson admitted he deliberately underreported his income, thereby placing an additional burden on the honest taxpayer.” United States Attorney Rand added, “Our office will continue to work effectively in partnership with the Internal Revenue Service to root out fraud and hold accountable those who flout our tax laws.”
JThe case was investigated by the Internal Revenue Service -- Criminal Investigation Division, and prosecuted by Assistant United States Attorney Stephen Inman.
Mitchell Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mitchell, South Dakota, man charged with assault was sentenced on September 11, 2013, by U.S. District Judge Karen E. Schreier.
Horned Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Vincent Michael Horned Eagle, age 23, was sentenced to 12 months in custody.
Horned Eagle was indicted on February 5, 2013, by a federal grand jury for Assaulting, Resisting or Impeding a Federal Officer. He pled guilty on June 18, 2013.
The charge stems from an incident in August of 2012 when Horned Eagle assaulted an officer by head-butting her while she attempted to place him under arrest.
This case was investigated by U.S. Department of Interior, Bureau of Indian Affairs Law Enforcement Services. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.Missouri Man Ordered Detained on Federal Human Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Stephen Ardrey, 30, of Springfield, Mo., was ordered detained today by U.S District Court Magistrate Judge Patricia A. Sullivan during his initial appearance in federal court on charges of sex trafficking children and transportation of a minor with intent to engage in criminal sexual activity.
Ardrey was taken into federal custody on Thursday as a result of information developed during an investigation by the Coventry and West Greenwich, R.I., Police Departments, Medfield, Mass., Police Department, and agents from Homeland Security Investigations into the disappearance of a 17-year-old female who was reported missing on September 9, 2013, from the town of Medfield and who was located on Thursday in Coventry, R.I.
United States Attorney Peter F. Neronha acknowledged the outstanding efforts of local, state and federal law enforcement agencies in Rhode Island and Massachusetts working collaboratively to ensure the safe return of the victim to her family and for their efforts which led to the arrest and detention of Stephen Ardrey.
In addition, U.S. Attorney Neronha acknowledged and thanked the individual who alerted Coventry Police when he happened upon the victim and the defendant as they walked along a Coventry roadway. “This individual’s quick response by notifying law enforcement was paramount to putting an end to the anguish the victim’s family was experiencing not knowing their daughter’s whereabouts. By smartly alerting law enforcement, he furthered the investigation which led to the arrest and detention of the defendant.”
If convicted of sex trafficking children and transportation of a minor with intent to engage in criminal sexual activity, Ardrey faces statutory penalties of a minimum mandatory 10 years up to life in federal prison; 5 years to lifetime supervised release following imprisonment; and up to a fine of $250,000.
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.
The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.
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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]Mike Yassine Receives Three Years in Federal Prison in Austin Tax CaseRead the Press Release
In Austin this morning, U.S. District Judge Sam Sparks sentenced 41-year-old Hussein Ali “Mike” Yassine, to three years in federal prison and ordered him to pay over $2.5 million restitution to the Internal Revenue Service for engaging in a tax fraud scheme using his Austin nightclubs. Judge Sparks ordered that the three year term of imprisonment run consecutive to the 151–month prison term Yassine is currently serving for money laundering.
On February 6, 2013,Yassine pleaded guilty to one count of procuring the preparation of a false Income Tax Return. By pleading guilty, Yassine admitted that in October 2010, he provided a professional tax preparer with false information to be included in Yassine’s 2009 federal Income Tax Return. According to court documents, figures provided by Yassine understated by hundreds of thousands of dollars the actual gross receipts generated by his downtown Austin night clubs--Spill, Qua, Kiss & Fly, Pure and Malaia—in 2009.
In January, Yassine was sentenced to 151 months in federal prison after a jury convicted him on money laundering charges. The jury found that in 2008 and 2009, Yassine used several business establishments, including the above mentioned night clubs, to launder over $200,000 in cash, which he believed to be the proceeds of narcotics trafficking.
This investigation was conducted by agents and investigators with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Austin Police Department together with the Drug Enforcement Administration, Texas Attorney General’s Office, Texas Alcoholic Beverage Commission and the Texas Comptroller’s Office. Assistant United States Attorneys Gregg Sofer and Alan Buie prosecuted this case on behalf of the Government.
Maryland Man Convicted of Alien SmugglingRead the Press Release
ALBANY, NEW YORK – A federal jury in Albany returned its verdict following the two-day trial of GUILLERMO ANTONIO SUAREZ, 48, of Gaithersburg, Maryland, announced United States Attorney Richard S. Hartunian and Customs and Border Protection Director of Field Operations James T. Engleman. The jury found SUAREZ guilty of all three felony counts charged in the indictment: (1) alien smuggling, (2) attempting to transport an illegal alien, and (3) inducing an alien to illegally enter the United States. He faces up to 10 years in prison on the first count, up to 5 years in prison on the other two counts, a $250,000 fine on each count, and up to three years of supervised release. SUAREZ is scheduled to be sentenced on January 6, 2014, before the Honorable Thomas J. McAvoy, United States District Judge, in Albany, New York.
SUAREZ, a lawful permanent resident, was arrested on November 19, 2012, in Fort Covington, New York, after he helped his nephew, an alien, enter the United States from Canada outside a designated port of entry. SUAREZ dropped his nephew off on the Canadian side of the border and entered the United States through the Fort Covington port of entry by car while his nephew crossed the border through the woods, on foot, approximately three miles east of the port of entry. During inspection, Customs and Border Protection Officers found maps of the border and luggage belonging to SUAREZ’S nephew inside SUAREZ’S car.
This case was investigated by U.S. Customs and Border Protection and the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorneys Jeffrey C. Coffman and Edward P. Grogan. Further questions may be directed to Assistant U.S. Attorney Elizabeth C. Coombe at (518) 431-0247.
Liverpool Woman Pleads to 11 Counts of Fraud and Identity TheftRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that Patricia Harrington, 50, of Liverpool, New York, entered guilty pleas in U.S. District Court, in Syracuse, to multiple counts of filing false federal tax returns, wire fraud and aggravated identity theft. Harrington faces a maximum sentence of 20 years and a fine of $250,000. Sentencing has been scheduled for January 29, 2014 in U.S. District Court. She has been ordered detained in the custody of the U.S. Marshal pending sentencing.
In entering her guilty pleas before the Hon. Glenn T. Suddaby, Harrington admitted that she filed six false federal tax returns under her own name and names of relatives, without their knowledge, for tax years 2010 and 2011. She wrongfully received almost $24,000 in tax refunds from the Internal Revenue Service over a two year period.
She also pled guilty to four counts of federal wire fraud in connection with another scheme she devised to obtain Unemployment Insurance benefits from the New York State Department of Labor. In implementing this scheme, she opened four separate accounts at various local banks, via the internet, using personal identification information taken from other individuals without their knowledge. She thereafter filed false unemployment benefits claims, via the internet, causing unemployment benefits to be deposited into the fraudulent bank accounts. Under this scheme, she netted almost $15,000 in New York State unemployment benefits.
Harrington also pled guilty to a single count of Aggravated Identity Theft admitting that she knowingly and wrongfully used the personal identification information of another person to carry out her wire fraud scheme. The aggravated identity theft conviction carries a mandatory sentence of two years incarceration consecutive to any other sentences imposed in the case.
At the time the current offenses were committed, Harrington was on federal supervised release following her 2008 conviction in Pennsylvania for Identity Theft that resulted from a scheme where she wrongfully obtained more than $100,000 in student loans from the Pennsylvania Higher Education Assistance Program.
This prosecution resulted from an investigation conducted by the Onondaga County Sheriff’s Department, the New York State Department of Labor, the Syracuse U.S. Probation Office, the Internal Revenue Service, Criminal Investigations, Syracuse Office, and the Onondaga County District Attorney’s Office. The case was prosecuted by Executive Assistant U.S. Attorney John G. Duncan. For further information contact Mr. Duncan at 315-448-0672.
Lee County Man Pleads Guilty to Distributing Child PornographyRead the Press Release
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces that Charles Allen Nave, III (39, Fort Myers) today pleaded guilty to distributing child pornography. Nave faces a mandatory minimum term of 5 years, up to a maximum of 20 years in federal prison.
According to the plea agreement, on January 31, 2013, Nave knowingly distributed child pornography over the Internet to an undercover agent that he met in an online chat room. Nave sent the undercover agent four emails with attachments depicting images of child pornography. Following the execution of a search warrant, a forensic analysis of Nave’s computer revealed more than 300 images and 20 videos of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), along with the Sanibel Police Department, the Fort Myers Police Department, the Florida Department of Law Enforcement, and the Lee County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Leading Member of Drug and Weapons Trafficking Ring Sentenced to 20 Year Prison TermRead the Press Release
One of the leaders of a Mexican cartel connected to a drug and gun trafficking ring was sentenced today in U.S. District Court in Seattle to 20 years in prison, announced U.S. Attorney Jenny A. Durkan. VICTOR BERRELLEZA-VERDUZCO, 24, of Everett, Washington, pleaded guilty in April 2013 to Conspiracy to Distribute Controlled Substances; Conspiracy to Commit Money Laundering; Conspiracy to Interfere with Commerce by Robbery; and Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime. BERRELLEZA-VERDUZCO and his brother Cristian were the leaders of a large Mexico based drug and gun trafficking ring with ties to the violent Beltran-Leyva drug cartel. At sentencing U.S. District Judge Robert S. Lasnik said BERRELLEZA-VERDUZCO participated in “dangerous and serious crimes.”
“This case shows how much our community is impacted by the crime and violence spread by international drug cartels,” said U.S. Attorney Jenny A. Durkan. “I congratulate the dedicated agents and officers who not only intercepted the weapons destined for the cartel leaders, but also moved in to stop drug related violence being planned in our region.”
According to records filed in the case, VICTOR BERRELLEZA-VERDUZCO was involved in both the smuggling of meth and heroin from Mexico into the United States and in efforts to smuggle guns back to Mexico. In one phone call, monitored by law enforcement, VICTOR BERRELLEZA-VERDUZCO discusses obtaining a rifle with a grenade launcher, similar to the weapon in the movie “Scarface.” VICTOR BERRELLEZA-VERDUZCO was involved not only in gun and drug trafficking, but in efforts to use violence to collect drug debts or rip off rival drug trafficking organizations. Timely intervention by law enforcement stopped one home invasion robbery.
“This sentencing illustrates that violent drug smugglers will ultimately pay a high price for their crimes,” said Brad Bench, Special Agent in Charge of ICE HSI in Seattle. “These illegal drugs destroy lives and ruin our communities at home, and illegal weapons smuggled to Mexico add to the cartels’ reign of violence. This defendant seriously compromised the public’s safety and well-being in both countries. By sharing information and resources, HSI and its law enforcement partners have sent a strong message that this type of activity will not be tolerated.”
VICTOR BERRELLEZA-VERDUZCO was arrested at a Utah stash house in April 2012 with more than a kilo of heroin.
In asking for a long prison sentence prosecutors wrote to the court that VICTOR BERRELLEZA-VERDUZCO “was a leading member of a violent drug and weapons trafficking conspiracy, with direct ties to a violent Mexican cartel… during the wire, Defendant’s father was intercepted discussing having just met the leader of the cartel, and Defendant’s brother Cristian was intercepted speaking with another very-highly placed cartel figure…. Victor and his family sent large amounts of cash back to cartel figures in Mexico, and at least attempted to move military-style firearms back to those same figures. Threats of violence were a frequent feature of this organization’s activities.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the ICE’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), the Lake Stevens Police Department, the Snohomish Police Department, Washington State Patrol, the Snohomish Regional Drug Task Force and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
Lancaster Man Sentenced for Running Armed Drug OrganizationRead the Press Release
ALLENTOWN – Keith Martin Thompson, 33, of Lancaster, PA, was sentenced today to 270 months in prison in a drug conspiracy case. Thompson, a/k/a “Keefer,” was the leader of a large-scale cocaine and crack cocaine distribution organization in Lancaster from between at least 2005 and his arrest in January of 2011 on local charges. In addition to the prison term, Thompson must pay a fine of $2,400, a special assessment of $1,400, and complete 10 years of supervised release.
Thompson was federally indicted on February 15, 2011 along with 11 co-defendants, also from Lancaster. The drug organization run by Thompson would routinely purchase wholesale quantities of illegal drugs, including cocaine and cocaine base (“crack”) from suppliers in Philadelphia, New York, and elsewhere. They distributed the drugs to customers on the streets of Lancaster and Harrisburg, PA, and the areas surrounding those cities. Thompson’s co-defendants sold the drugs for Thompson and also sold some of the drugs to their own customers. At least three of the drug dealers routinely carried guns to protect their drugs and the money they made from selling the drugs.
Part of the drug organization’s business model included renting dozens of vehicles for members of the organization to use for travel to New York and Philadelphia to pick up multi-kilogram quantities of drugs. Some of the drugs were stored at a residence in the 2000 block of Swarr Run Road, Lancaster, Pennsylvania. Cocaine deals were also conducted in the parking lots of retail businesses, including a baby goods store, an apartment complex, and a bar in Lancaster.
Thompson pleaded guilty on April 6, 2013 to 12 counts including conspiracy to distribute 50 grams or more of cocaine, admitting that 20 kilograms of crack cocaine and 50 kilograms of cocaine were distributed in furtherance of the criminal activity jointly undertaken by him and his associates. Thompson also pleaded guilty to two counts of distribution of cocaine, five counts of distribution of cocaine base (“crack”), one count of distribution of 28 grams or more of cocaine base (“crack”), one count of possession with intent to distribute cocaine, one count of possession with intent to distribute 500 grams or more of cocaine, and one count of possession of a firearm by a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (Reading), the Federal Bureau of Investigation (Harrisburg), the Lancaster County Drug Task Force, the City of Lancaster Police Department, and the Manheim Township Police Department. It is being prosecuted by Assistant United States Attorney Mark S. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lake Ariel Man Sentenced ForRead the Press Release
Receipt And Distribution Of Child Pornography
The United States Attorney's Office for the Middle District of Pennsylvania, announced that a Lake Ariel man was sentenced today in federal court on a charge of receipt and distribution of child pornography.
According to United States Attorney Peter J. Smith, United States District Court Senior Judge A. Richard Caputo sentenced Keith Wandel, age 42, of Lake Ariel, Lackawanna County, to 210 months of imprisonment and a lifetime of supervised release. Wandel is also ordered to comply with the registration requirements of the Sexual Offender Registration Act (Adam Walsh Act).
Wandel was arrested on March 12, 2013 and charged with the receipt and distribution of child pornography. The criminal Information sets the time period for the offenses at various times between January 2007 and March 2013.
The case against Wandel stems from an investigation by the Federal Bureau of Investigation and the Lackawanna County District Attorney’s Office – Internet Crimes Against Children Task Force. Wandel received and shared child pornography images and videos. A forensic examination of Wandel’s computer revealed thousands of the images and videos.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Prosecution was assigned to Assistant United States Attorney Michelle Olshefski.
Kyle Lee Fulmer Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 11, 2013, before U.S. District Judge Sam E. Haddon, KYLE LEE FULMER, a 29-year-old resident of Colstrip, was sentenced to a term of:
- Prison: 30 months
- Special Assessment: $100
- Supervised Release: 3 years
FULMER was sentenced in connection with his guilty plea to involuntary manslaughter.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On September 19, 2012, at approximately 2:30 a.m., law enforcement received a call about a one-vehicle rollover crash on South Tongue River road, near Ashland, on the Northern Cheyenne Indian Reservation. The first officer on scene, a deputy from Rosebud County, identified FULMER as the driver of the Chevy pickup involved in the crash. FULMER, who was ejected from the truck, admitted that he was the driver and that he had been drinking. The deceased passenger was found in the passenger seat inside of the pickup wearing a seat belt. The passenger died of multiple acute blunt traumatic injuries to the upper body.
FULMER was interviewed and admitted that he was driving his pickup on South Tongue River road. He lost control of the pickup, drove through a barbed wire fence, rolled down an embankment, and ended up upright in a field. There were beer cans and bottles near the truck. He had been drinking alcohol prior to the crash. His BAC was .137. This analysis was performed on a sample of FULMER's blood taken some hours after the crash.
FULMER is a non-Indian, but the victim was an enrolled member of the Northern Cheyenne Tribe.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FULMER will likely serve all of the time imposed by the court. In the federal system, FULMER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Indian Affairs.
Kingston Man Sentenced for Illegally Cutting TimberRead the Press Release
COEUR D’ALENE – Norman Leroy Bogart, 51, of Kingston, Idaho, was sentenced in federal court yesterday to three years of probation for illegally cutting timber on national forest lands, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Robert H. Whaley also ordered Bogart to pay $1,700 in restitution. He pleaded guilty to one felony count of willful injury or depredation of property of the United States on June 24, 2013.
According to the plea agreement, Bogart admitted that between April and October 2012, he illegally cut and hauled timber from an area within the Idaho Panhandle National Forests, near his home in Kingston, Idaho. The U.S. Forest Service initiated an investigation after discovering that 40 green trees had been cut within the one area. U.S. Forest Service investigators used a deer camera to capture Bogart’s vehicle traveling to and from the cut site.
On October 3, 2012, the U.S. Forest Service executed a search warrant at Bogart’s residence and seized more than 58 cords of timber cut into firewood. One pile was estimated to be 40 feet long, 10 feet wide and 10 feet tall, according to the plea agreement. Investigators determined that most of the timber was green when cut. Investigators matched some of the larger timber seized from Bogart’s property to several stumps at the cut location within the Idaho Panhandle National Forests.
The case was investigated by the U.S. Forest Service, with the assistance of the Idaho State Police, the North Idaho Violent Crimes Task Force, and the Shoshone County Sheriff’s Office.
Kewa Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Lester Nieto, 28, a member and resident of Kewa Pueblo, pleaded guilty this morning to a child sexual abuse charge under a plea agreement with the U.S. Attorney’s Office.
Nieto was arrested by the BIA on March 5, 2013, based on an indictment charging him with sexual abuse of a minor or ward between the ages of 12 and 16 years. According to the indictment, Nieto committed the offense on Jan. 1, 2012, in a location within Kewa Pueblo. During today’s hearing, Nieto pleaded guilty to the indictment and admitting engaging in a sexual act with a child who had attained the age of 12 years but had not attained the age of 16 years.
[Nieto was remanded into federal custody after entering his guilty plea and remains detained pending his sentencing hearing, which has yet to be scheduled.] At sentencing, Nieto faces a maximum penalty of 15 years in prison and five years of supervised release. He will be required to register as a sex offender after he completes his prison sentence.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Kenneth Mark Enge Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 9, 2013, before U.S. District Judge Sam E. Haddon, KENNETH MARK ENGE, a 36-year-old resident of Billings, was sentenced to a term of:
- Prison: 37 months
- Special Assessment: $100
- Supervised Release: 3 years
ENGE was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
In 2004, ENGE was convicted of felony assault with a weapon in the Montana Thirteenth Judicial District Court and was therefore prohibited from possessing firearms or ammunition.
On August 27, 2012, Billing Police Department officers responded to a report of a disturbance involving a firearm in the area of the 600 block of South 35th Street in Billings. Upon their arrival, they found ENGE and another individual in the yard of home on South 35th Street. ENGE failed to show his hands to the officers and fled on foot towards the alley. Officers saw ENGE throw a dark object, believed to be a firearm, into some bushes on the east side of the front yard. After he threw the gun, ENGE then came back to the officers and was arrested. A Hi-Point, 9mm semi-automatic pistol containing seven rounds of ammunition in the magazine and one round in the chamber was found in the bushes.
ENGE first denied that he had a gun, then claimed that he had a pellet gun. The other individual that was in the yard admitted that ENGE did have the gun, and that he threatened to shoot her father while the two were arguing at that location. ENGE and the other individual talked on recorded jail calls about setting up a story about the gun being a pellet gun and possibly contacting the other individual's dad to get him to say that he did not see a gun. In the jail call, they also spoke about how ENGE did possess the firearm and how the officers did observe ENGE throw the firearm in the bushes. During a different phone conversation between ENGE and a different individual, ENGE described how someone else acquired the firearm and gave it to ENGE.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ENGE will likely serve all of the time imposed by the court. In the federal system, ENGE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Files Lawsuit Alleging Disability-based Discrimination at Helena, Mont., Apartment ComplexRead the Press Release
The Justice Department filed a lawsuit yesterday against the owners, builders and designers of an eight unit apartment complex at 175 and 195 Silsbee Avenue in Helena, Mont. for violations of the Fair Housing Act. The lawsuit alleges that the defendants violated the law when they designed and constructed the complex with barriers that make it inaccessible to persons with disabilities.
“Since 1991, the Fair Housing Act has required that when new multifamily housing is built, it must be accessible to persons with disabilities,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “When apartment complexes are built with steps and other barriers, those with disabilities are denied that equal housing opportunity.”
The suit, filed in U.S. District Court in Helena, alleges that various barriers at the Silsbee Avenue property deny persons with disabilities equal access to four ground floor units and the associated public and common use areas. Such barriers include inaccessible building entrances; no accessible parking; insufficient accessible routes into and through the units; light switches, electrical outlets, thermostats and other environmental controls inside the units in inaccessible locations; and kitchens that are inaccessible to persons in wheelchairs.
“Congress has recognized that it is important that individuals with disabilities have equal access to multiple family housing. This case serves as a reminder that persons with disabilities, including the elderly, veterans, and those with a disability from birth or from an accident, should enjoy as much as possible the same access to multiple family housing as persons without such disabilities” said Michael Cotter, U.S. Attorney for the District of Montana.
The lawsuit arises out of a complaint filed with the Department of Housing and Urban Development (HUD) by the Montana Fair Housing Council Inc. (MFH), a private nonprofit corporation whose mission it is to ensure compliance with fair housing laws for all persons in Montana. MFH inspected the Silsbee Avenue property and observed accessibility barriers there. After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.
“The Fair Housing Act's modest design and construction requirements allow people with disabilities to live independently and to fully use and enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity. “These requirements have been law for more than 20 years. HUD is committed to enforcing the nation’s fair housing laws and working to create equal housing opportunities for people with disabilities.”
Named in the suit are the owners and builders of the property, Gabriel and Sommer Nistler and Nistler Electric LLC, and the designer of the property, Derek Brown, and his firm, Derek Brown Consulting Inc. The suit seeks a court order requiring the defendants to retrofit the Silsbee Avenue property to bring it into compliance with the Fair Housing Act, as well as monetary damages for MFH and for persons harmed by the lack of accessibility at the complex.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, the Act requires all multifamily housing constructed after March 12, 1991 to have basic accessibility features, including accessible routes without steps to all ground floor units. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] , or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Joshua James Mccormick Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 11, 2013, before U.S. District Judge Dana L. Christensen, JOSHUA JAMES McCORMICK, a 19-year-old resident of Flathead County, was sentenced to a term of:
- Probation: 5 years, with 6 months home arrest
- Special Assessment: $100
- Restitution: $7,319
- Community Service: 200 hours
McCORMICK was sentenced in connection with his guilty plea to possession of stolen firearms.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On May 20, 2012, the Wooden Nickel Pawn Shop in Flathead County was burglarized and eight firearms were stolen.
On June 22, 2012, the Anything Pawn Shop in Flathead County was burglarized and 16 firearms were stolen.
McCORMICK and his co-defendants took 16 firearms and various firearm accessories. McCORMICK ended up with four of stolen firearms - three from Anything Pawn Shop and one from Wooden Nickel Pawn.
On July 26 and 27, 2012, law enforcement purchased a firearm from McCORMICK. During their interaction with McCORMICK, they seized two firearms stolen from Anything Pawn Shop. McCORMICK also admitted his role in the Anything Pawn Shop burglary.
The investigation was a cooperative effort between the Flathead County Sheriff's Office, the Kalispell Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Joseph Allen Lesmeister, Jr., Virgil Duane Matt, and Larry Charles McCormick, Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 11, 2013, before U.S. District Judge Donald W. Molloy, JOSEPH ALLEN LESMEISTER, JR., a 23-year-old resident of Kalispell, VIRGIL DUANE MATT, age 21, and LARRY CHARLES McCORMICK, age 21, residents of Columbia Falls, were each sentenced to a term of:
- Probation: 5 years, with 6 months home arrest
- Special Assessment: $100
- Restitution: $7,319
- Community Service: 400 hours
They were sentenced in connection with their guilty pleas to possession of stolen firearms.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On May 20, 2012, the Wooden Nickel Pawn Shop in Flathead County was burglarized and eight firearms were stolen.
On June 22, 2012, the Anything Pawn Shop in Flathead County was burglarized and 16 firearms were stolen.
MATT, LESMEISTER, LARRY MCCORMICK, and JOSHUA MCCORMICK took 16 firearms and various firearm accessories. MATT and LESMEISTER ended up with 10 stolen firearms from Anything Pawn. Joshua McCormick ended up with four of stolen firearms - three from Anything Pawn Shop and one from Wooden Nickel Pawn. The disposition of two of the firearms stolen from Anything Pawn remains unknown.
On July 16 and 17, 2012, law enforcement seized 11 firearms stolen from Anything Pawn Shop from MATT and LESMEISTER. MATT admitted that he, LESMEISTER, Joshua McCormick, and LARRY McCORMICK burglarized Anything Pawn Shop in May 2012. Two stolen firearms from the Wooden Nickel were also recovered from MATT and LESMEISTER.
On July 26 and 27, 2012, law enforcement purchased a firearm from Joshua McCormick. During their interaction with Joshua McCormick and LARRY McCORMICK, law enforcement seized two firearms stolen from the Anything Pawn Shop. Both McCORMICK brothers admitted their roles in the Anything Pawn Shop burglary.
Joshua McCormick pled guilty to federal charges.
- e investigation was a cooperative effort between the Flathead County Sheriff's Office, the Kalispell Police Department, the Montana Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jerard David Jo Threefingers Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 11, 2013, before U.S. District Judge Sam E. Haddon, JERARD DAVID JO THREEFINGERS, a 23-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
- Prison: 37 months
- Special Assessment: $100
- Restitution: $1,300
- Supervised Release: 3 years
THREEFINGERS was sentenced in connection with his guilty plea to involuntary manslaughter.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 2, 2012, at approximately 12:30 p.m., law enforcement was advised of a one vehicle rollover crash on Crazy Head Springs Road near Lame Deer on the Northern Cheyenne Indian Reservation. The caller reported that one passenger was unconscious and another passenger was injured and needed medical help. Law enforcement arrived on the scene and found both a male and female lying on the ground. The female was deceased; the male was alive but injured. Law enforcement took photographs and collected evidence, including an empty Budweiser 30-pack container and 2 unopened cans of Budweiser.
After additional investigation, law enforcement learned that the vehicle, a Ford Explorer, was owned by the deceased female but they were unsure whether she had been driving the vehicle at the time of the crash. There were clear shoe impressions on the brake pedal and the driver's side door panel, but the deceased female was barefoot. Also, the driver's side seat was adjusted for someone much taller than the deceased female.
After some additional investigation, law enforcement learned that THREE FINGERS and another female had been in the car at the time of the crash but had walked away from the scene. Approximately two hours after the crash, THREE FINGERS was located by law enforcement and arrested on tribal charges of intoxication, DUI, and criminal homicide. THREE FINGERS was not interviewed until the next day because of his level of intoxication.
At first, THREE FINGERS identified the deceased female as the driver but, after further questioning, THREE FINGERS admitted that he was the driver. He admitted that he had been drinking prior to the crash and he explained that he hit a bump, lost control of the car, and caused the death of female and the injuries to the other passenger.
A toxicology screen of a blood sample taken from THREE FINGERS about three hours after the crash contained a blood alcohol content of .09.
The passenger that walked away from the scene with THREE FINGERS was interviewed and also admitted that THREE FINGERS was driving the vehicle at the time of the crash.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that THREEFINGERS will likely serve all of the time imposed by the court. In the federal system, THREEFINGERS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Jasper County Man Charged with Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jasper County, Mo., man who sexually exploited children whom he contacted on Facebook has been charged in federal court with producing child pornography.
Ian Holman, 32, of Jasper County, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., on Thursday, Sept. 12, 2013.
According to an affidavit filed in support of the federal criminal complaint, law enforcement authorities received reports from two child victims, identified as 14-year-old Jane Doe #1 in Webb City, Mo., and 13-year-old Jane Doe #2 in Carthage, Mo., after Holman contacted them via Facebook.
Holman, using the screen name “Lucky Holman,” allegedly offered to pay Jane Doe #2 $75,000 to $100,000 in exchange for various sexual acts. He also asked her to send him sexually explicit pictures of herself, which she did.
Holman allegedly contacted Jane Doe #1 last month and offered to pay her $65,000. She knew several 12-to-14-year-old girls whom Holman had listed as friends on his Facebook page, the affidavit says, but Jane Doe #1 did not know him and ended the conversation. She reported the contact to her father, who notified the police.
On Wednesday, Sept. 11, 2013, after receiving the report from Jane Doe #2, a sheriff’s deputy was dispatched to Holman’s residence. Holman attempted to elude the deputy by running out the back of the house and into the woods. The deputy, along with two other officers and a K9 unit, pursued Holman into the woods. The officers searched for Holman for approximately 45 minutes. The deputy was able to contact Holman by phone and persuade him to turn himself in.
According to the affidavit, Holman told law enforcement that he friended numerous 12-to-14-year-old girls in the Carthage and Webb City area and used Facebook instant messaging to contact the girls.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and Homeland Security Investigations.
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."Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 12, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
CHARLES CROSBY, a 42-year-old resident of Trenton, New Jersey, appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. He is currently detained. If convicted of these charges, CROSBY faces possible penalties of a mandatory minimum of 20 years to life imprisonment, a $250,000 fine, and 5 years to life supervised release for the child exploitation count; and possible penalties of a mandatory minimum of 15 to 30 years imprisonment, a $250,000 fine, and 5 years to life supervised release for the conspiracy to advertise child pornography count. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Hogsett Announces Arrest, Charging of Eighteen Defendants in Large Identity Theft RingRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the arrest of eighteen defendants for their alleged involvement in a scheme that involved the use of stolen Social Security Numbers (SSNs) surreptitiously marketed as Credit Profile Numbers (CPNs) to fraudulently apply for dozens of car loans.
"This alleged scheme victimized not just dozens of local businesses, but also innocent individuals across the country whose identities were stolen," Hogsett said. "The threat posed by identity theft is real and growing, but the U.S. Attorney's Office and our federal partners have redoubled efforts to combat this dangerous trend."
"Identity theft wreaks havoc on the lives of innocent victims nationwide," said Federal Bureau of Investigation Special Agent in Charge Robert Jones. "It bilks billions of dollars from the U.S. economy, and can cause long and painful credit repair work for the victims affected. This investigation highlights the FBI's commitment to work with our law enforcement partners to continue an aggressive fight against the criminal groups that carry out these schemes."
According to a federal indictment unsealed this afternoon, defendants David Day, age 36, of Indianapolis, and Kimberly Taylor, age 47, of California, were charged with conspiring to commit wire fraud, as well as making false loan and credit applications in an identity theft scheme. Beginning in or around September 2010, Taylor would allegedly obtain SSNs belonging to victims, many of whom were minors, and would market her services as a legitimate way to enhance poor credit through the sale of “Credit Profile Numbers”, “profiles”, or “CPNs” to Day. Day would then sell the SSNs, purported to be “CPNs or profiles” to individuals seeking to inflate their credit scores while applying for credit applications to purchase high dollar vehicles and other property.
It is alleged that in addition to selling these SSNs to individuals, sixteen of whom were also charged today, Day would in many cases provide instructions to the individuals as to how they could present themselves to creditors in a way that would fraudulently establish their creditworthiness to include making fraudulent representations to the Bureau of Motor Vehicles and by supplying “novelty items,” to include fraudulent SSN cards, mortgage documents, and other identifying material. Day allegedly assisted some of his customers by creating fraudulent credit histories for them that would be relied upon by banks during a credit check.
Gerald Adams, age 33
Janine Howard, age 46
DeJuan Alexander, age 41
Joe Snow, age 36
Ashley Fox, age 27
Lashonda Collier, age 36
Joshua Day, age 28
Jeremy Gilbert, age 28
Ryan Thompson, age 45
Ernest Jones, age 39
Marshall Lindsay, age 34
Nashamba Floyd, age 31
Keyona Berry, age 33
Sylvester Ragland, age 36
The indictment lists at least eight local financial institutions that were victimized through this scheme. In addition, six local automotive dealerships were allegedly victimized by defendants who utilized the stolen SSNs to purchase or attempt to purchase vehicles.
According to Assistant U.S. Attorney Cynthia Ridgeway, who is prosecuting the case for the government, if convicted the defendants face up to twenty years in federal prison on the conspiracy count, thirty years in prison for making false statements in loan and credit applications, and five years in prison for using a false SSN. The government has also filed notice that property found to have been gained through the criminal scheme may be forfeited if the defendants are found guilty.
This case is the result of a collaborative investigation involving the Federal Bureau of Investigation, the Social Security Administration OIG, the National Insurance Crime Bureau, the Carmel Police Department, the Lawrence Police Department, as well as the United States Marshals Service.
Informations, indictments, and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Fort Myers Woman Pleads Guilty to Conspiracy to Commit Identity Theft and Theft of Government FundsRead the Press Release
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces that Ebony Edwards today pleaded guilty to conspiracy to commit aggravated identity theft, to file false claims against the government, and to theft of government money or property. She faces a maximum penalty of 5 years in federal prison.
According to the plea agreement, Edwards was employed with a health care provider and obtained the personal identifying information of at least 11 patients, including names, social security numbers, and dates of birth. Edwards transmitted the information to a conspirator via text messages using her cell phone. The co-conspirator then used that information to file false income tax returns.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
Former Tulsan to Serve 9 Years for $7 Million Investment Fraud SchemeRead the Press Release
TULSA, Okla. — A former Tulsa-based promoter of fraudulent oil and gas investments was sentenced on Thursday to serve nine years in federal prison for perpetrating a $7 million dollar fraud, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
Jimmy E. Morrisett, 53, of Burnet, Texas, once chief executive officer of now-defunct Red Earth Resources, Inc., and Alpine Petroleum, LLC, pleaded guilty to an unlawful monetary transaction with the funds he obtained from the massive four-year investor fraud scheme victimizing 238 investors in Oklahoma and 37 other states and Canada. Morrisett promoted a Ponzi scheme in which investors supposedly received returns from oil and gas properties. Actually, however, most of the returns came from monies provided by investors themselves. Many of the investors were elderly and lost their life savings.
United States District Court Chief Judge Gregory K. Frizzell imposed the maximum sentence allowed under the United States Sentencing Guidelines and ordered Morrisett to pay restitution to the victims in the amount of $6,874,135.44.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations. Assistant United States Attorneys Kevin C. Leitch and Charles M. McLoughlin prosecuted the case on behalf of the United States.
Former Reserve Deputy Sheriff of Imperial County Sentenced to 30 Months in Prison for Smuggling Illegal Aliens in the Trunk of Her CarRead the Press Release
San Diego – A former reserve Imperial County Sheriff’s Deputy was sentenced today to serve a term of 30 months in prison for smuggling illegal aliens, including a minor, in the trunk of her car as she drove through a Border Patrol checkpoint wearing her uniform and department-issued firearm.
While serving as a reserve Deputy Sheriff of Imperial County, Elizabeth Hernandez and her co-defendant, Edna Yanie Calderon, were arrested on April 17, 2013 for transporting illegal aliens. On June 25, 2013, Hernandez and Calderon pled guilty to transporting illegal aliens, and consented to the forfeiture of proceeds and assets associated with their crimes.
According to her plea agreement, Hernandez abused her position of public trust by using her Imperial County Sheriff Department’s uniform and loaded firearm to facilitate the transportation of illegal aliens through the Highway 86 checkpoint operated by Border Patrol. From at least October 2012 through April 17, 2013, Hernandez earned at least $90,000 from transporting illegal aliens in the United States, the court records said.
In addition, Hernandez admitted that she used proceeds from alien smuggling to purchase several vehicles, including a 2013 Dodge Charger, a 2012 Polaris off-road recreational vehicle, and a 2008 GMC Sierra pickup truck. In addition, Hernandez consented to the forfeiture of approximately $20,000 in cash that was found on her at the time of arrest and at her residence following a search warrant, which were proceeds from her alien smuggling.
U.S. District Court Judge Janis L. Sammartino found that Hernandez’s use of her uniform and firearm made her conduct more egregious and distinguished her from Calderon. Judge Sammartino agreed that Hernandez’s abuse of her position of public trust provided the smuggling organization with a “guaranteed method” to transport illegal aliens through the Border Patrol checkpoint. In addition to imposing a 30-month prison sentence, Judge Sammartino ordered forfeiture of several vehicles and $20,000 in proceeds from alien smuggling. Following her prison sentence, Judge Sammartino placed Hernandez on three years of supervised release.
Hernandez was ordered to self-surrender to her designated prison facility by no later than November 5, 2013 at 12:00 p.m. A status hearing regarding Hernandez’s self-surrender is scheduled for November 8, 2013 at 9:00 a.m, before Judge Sammartino. Hernandez’s co-defendant, Calderon, is scheduled to be sentenced by Judge Sammartino on October 4, 2013 at 10:30 a.m.
DEFENDANTS Criminal Case No. 13CR1794-JLS Elizabeth Hernandez
Edna Yanie Calderon SUMMARY OF CHARGESTitle 8, United States Code, Section 1324(a)(1)(A)(ii) B Transportation of Illegal Aliens
AGENCY
Maximum Penalties: 10 years of imprisonment and $250,000 fineUnited States Border Patrol-El Centro Sector
Former Navy Reservist Sentenced to 25 Years in Prison for Sexual Exploitation of Multiple Minors to Produce Child PornographyRead the Press Release
Anthony K. Mastrogiovanni, 30, of Crofton, Md., was sentenced today to serve 25 years in prison for sexually exploiting more than 30 male juveniles – ranging from 9 to 16 years of age – in Maryland and Louisiana to produce child pornography.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service’s Washington Division.
Mastrogiovanni was sentenced today by U.S. District Judge J. Frederick Motz in the District of Maryland. In additional to his prison term, Mastrogiovanni was sentenced to serve lifetime supervised release.
On May 29, 2013, Mastrogiovanni pleaded guilty to one count of the sexual exploitation of minors to produce child pornography.According to court documents and proceedings, between 2006 and 2012, Mastrogiovanni, a U.S. Navy reservist, met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by inspectors of the U.S. Postal Inspection Service in Las Vegas on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
As part of his plea agreement, Mastrogiovanni will be required to register as a sex offender in the place where he resides, where he is an employee and where he is a student, under the Sex Offender Registration and Notification Act.
The investigation was conducted by the U.S. Postal Inspection Service, with the assistance of the Air Force Office of Special Investigations, Naval Criminal Investigative Service and FBI’s Maryland Child Exploitation Task Force. The case was prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham of the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Navy Reservist Sentenced to 25 Years in Prison for the Sexual Exploitation of Minors to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Anthony K. Mastrogiovanni, 30, of Crofton, MD, today to 25 years in prison, followed by lifetime supervised release, for the sexual exploitation of minors to produce child pornography. Judge Motz also ordered that upon his release from prison, Mastrogiovanni must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana in order to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by Inspectors of the United States Postal Inspection Service in Las Vegas, Nevada, on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton, MD, where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service for its work in the investigation and thanked the Air Force Office of Special Investigations, Naval Criminal Investigative Service, and FBI's Maryland Child Exploitation Taskforce for their assistance. Mr. Rosenstein thanked Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.
Former Marketing Agency Executives and Phoenix-Based Businessman Charged in Manhattan Federal Court for Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, the Assistant Attorney General for the Tax Division of the Department of Justice, and Richard Weber, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the filing of federal criminal charges against MICHAEL J. MITROW and MATTHEW J. MITROW, former executives of a New Jersey-based marketing agency, and ROBERT T. MADISON, a Phoenix-based businessman, for their roles in a kickback scheme in which MICHAEL and MATTHEW MITROW received more than $1 million in kickbacks for steering the marketing agency’s business to a company owned by MADISON. MADISON, who was originally charged by complaint in November 2012, is also charged with defrauding the marketing agency by submitting false invoices. MICHAEL MITROW is also charged with a separate scheme to submit false invoices to the marketing agency, as well as tax evasion and obstructing the IRS. MICHAEL and MATTHEW MITROW surrendered to the IRS-CI today. The case is assigned to U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, in exchange for steering business to his company, Robert Madison footed the bill for more than $1 million in personal expenses of Michael and Matthew Mitrow, including private jet travel, home renovation, and even a $19,000 tab at a New York City club. The indictment further charges that to fund the kickbacks, Madison fraudulently billed the marketing agency for more than $7 million in services he never, or barely, provided, and defrauded another company that had legitimately purchased the services. Michael Mitrow also allegedly conducted overlapping, separate schemes in which he defrauded his own marketing agency and failed to report income to the IRS. These defendants allegedly perpetrated fraud at every turn, and with today’s superseding indictment, this Office and our law enforcement partners begin to hold them to account.”
IRS-CI Chief Richard Weber said: “This indictment underscores the importance of holding accountable those who allegedly participate in kickback schemes that subvert the competitive process and hide their illicit proceeds from the IRS. The defendants are high-level executives who allegedly abused their positions of trust to fraudulently obtain more than $1 million in undisclosed kickbacks from a vendor. Together with our partners at the U.S. Attorney’s Office and the Department of Justice Tax Division, we will continue to pursue business executives who abuse and corrupt their positions to steal corporate funds and conceal their corrupt income from the IRS.”
According to the allegations in the Superseding Indictment filed in Manhattan federal court:
In approximately 1998, MICHAEL MITROW started a marketing agency that provided marketing services to pharmaceutical companies by targeting labor unions and their members with direct mail services that touted the benefits of the pharmaceutical companies’ products. In 2007, MICHAEL MITROW and his partners, including MATTHEW MITROW, sold a controlling interest in the marketing agency to a private equity firm. As part of the sale, MICHAEL MITROW and his brother, MATTHEW MITROW, stayed on at the agency as CEO and Executive Vice President, respectively.
The marketing agency used a Phoenix-based printing and direct-mailing company owned by MADISON for printing and mailing services related to various pharmaceutical marketing campaigns. From February 2007 through January 2009, MICHAEL MITROW, MATTHEW MITROW, and MADISON engaged in a scheme in which MADISON paid more than $1 million in undisclosed kickbacks to MICHAEL and MATTHEW MITROW in exchange for MICHAEL and MATTHEW MITROW steering business from the marketing agency to MADISON’s company. As part of the kickback scheme, MADISON paid more than $1 million in personal expenses of MICHAEL MITROW, including more than $750,000 for private jet travel. MADISON also paid MATTHEW MITROW’s personal expenses, including home renovation expenses, credit card bills, and a $19,000 bill at a New York City club. The defendants also took various steps to conceal the kickbacks from the marketing agency.
MADISON obtained the money used to pay the kickbacks by fraudulently billing the marketing agency for more than $7 million in services that he either failed to perform or substantially underperformed. In doing so, MADISON defrauded a large New York City-based pharmaceutical company out of tens of millions of dollars for services it had purchased from the marketing agency.
MICHAEL MITROW also engaged in another scheme to defraud the marketing agency. Specifically, from approximately June 2008 through May 2009, in order to generate funds to pay for private jet travel for himself and others, MICHAEL MITROW conspired with the owner of a private jet charter business to fraudulently bill the marketing agency for bogus consulting services that were never rendered. On eight separate occasions, he directed the owner of the private jet charter business to submit bogus invoices to the marketing agency, ranging from $66,000 to $85,000, in the name of fake pharmaceutical consultants for purported consulting services. After MICHAEL MITROW personally approved these invoices, the money was funneled through a Florida-based collection agency and then diverted to pay outstanding and ongoing debts arising from his and others’ personal use of private jets.
Finally, in addition to concealing from the IRS the income he derived from the above schemes, MICHAEL MITROW misused his corporate credit card to pay for personal expenses, including airfare, lodging, dining and retail purchases. He concealed the personal nature of these expenses by falsely labeling them as business expenses and billing the expenses to his employer. As a result, MICHAEL MITROW concealed his true income from the IRS, and failed to pay a substantial amount of income taxes in 2008.
MICHAEL MITROW, 46, of Whitehouse Station, New Jersey, is charged with two counts of conspiracy to commit wire fraud, which each carry a maximum sentence of 20 years in prison, one count of tax evasion, which carries a maximum sentence of five years in prison, and one count of obstructing and impeding the IRS, which carries a maximum sentence of three years in prison.
MATTHEW MITROW, 40, of Westfield, New Jersey, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
MADISON, 42, of Henderson, Nevada, is charged with two counts of conspiracy to commit wire fraud, which each carry a maximum sentence of 20 years in prison.
Mr. Bharara praised the work of IRS-CI for its outstanding work in the investigation. He also thanked the U.S. Department of Justice’s Tax Division for their significant assistance in the investigation, and the U.S. Postal Inspection Service.
This case is being handled by the Office’s Complex Frauds Unit. Nanette Davis and Andrew Young, Trial Attorneys with the Tax Division and Special Assistant U.S. Attorneys in the Southern District of New York, are in charge of the prosecution.
The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Mitrow, et al Indictment
Former Griffin Grocery Store Owner Sentenced for Wic FraudRead the Press Release
NEWNAN, Ga. - Herbert Dix has been sentenced in federal district court for defrauding the U.S. Department of Agriculture (USDA) and possessing forged “WIC” vouchers.
“Families most in need rely on government funds for basic subsistence,” United States Attorney Sally Quillian Yates. “This defendant stole from the USDA and tax payers, depriving some of the neediest families of funds meant to help them survive.”“It is unfortunate that people continue to defraud nutritional programs that have been created to provide assistance in times of need. USDA-OIG remains committed to working with DOJ and its law enforcement partners in ensuring that those who steal from nutritional programs, such as the WIC program, and the taxpayers are prosecuted to the fullest extent of the law. People who defraud these programs foolishly think they will never be caught, but USDA is assiduous in investigating program fraud and bringing the perpetrators of such fraud to justice”, stated Karen Citizen-Wilcox, Special Agent-in-Charge.
"The enduring cooperation between the Georgia Department of Public Health (DPH), local law enforcement and the U.S. Attorney’s Office should send a clear signal to those contemplating WIC fraud,” said Brenda Fitzgerald, M.D., DPH’s commissioner, who commended a conviction three years in the making. “We are committed to working together to detect and eliminate fraud, and to preserve precious funds for those who need it most.”
According to United States Attorney Yates, the charges and other information presented in court: Dix owned and operated Spanks Quick Stop, a store front grocery store in Griffin, Ga. Spank’s Quick Stop was authorized by the State of Georgia to redeem Woman, Infant, and Children (WIC) vouchers for specified food items, such as infant formula, milk, and cheese, etc. The Georgia Department of Public Health (DPH) issues WIC vouchers to low income, at risk families, who can use the vouchers to purchase specified food items from authorized grocers. Contrary to federal law and state regulations, Dix and his employees paid cash for the WIC vouchers instead of accepting them as payment for the food items listed on the vouchers.
On 18 separate occasions, an undercover law enforcement officer entered Spank’s Quick Stop, where Dix and his employees illegally redeemed blank WIC vouchers for cash. Dix then filled in an amount on the vouchers significantly greater than what he paid for the vouchers and deposited the vouchers into his bank account. In December 2010, federal, state and local law enforcement officers executed a search warrant at Spank’s and seized over 100 forged blank WIC vouchers. An analysis of Dix’s bank records revealed that between 2010 and 2011 he had defrauded the USDA out of more than $150,000.
Dix, 49, of Riverdale, Ga., has been sentenced to one year and ten months in prison, followed by three years of supervised release, 100 hours of community service, $14,100 restitution, and a special assessment of $10,100. Dix was indicted in July 2012 on 18 counts of WIC fraud and 83 counts of possession of forged securities. In May, he pleaded guilty to the entire indictment.
This case was investigated by Special Agents of the United States Department of Agriculture, Office of Inspector General, Georgia Department of Public Health, Office of Inspector General, and the Griffin Police Department.
Assistant United States Attorney David Leta prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former General Manager Sentenced for Taxi Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – Arthur A. Boulette, 64, of Dunedin, Fl., was sentenced today to 12 months and a day in prison, followed by one year of supervised release, for accepting more than $100,000 in cash bribe payments from taxicab drivers in exchange for giving them priority on a list of prospective drivers to operate a Washington Flyer Taxi cab at Washington Dulles International Airport. Boulette was also ordered to forfeit approximately $106,000 in bribery proceeds to the government.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Boulette pleaded guilty on June 20, 2013. According to court documents, Boulette was employed by Dulles Taxi Systems, Inc (“DTS”) as the General Manager at its Dulles Airport location within the Eastern District of Virginia. DTS was one of the three contractors that entered into a taxicab concession contract with the Metropolitan Washington Airports Authority (“MWAA”) to perform a taxicab dispatch service at the airport. As the General Manager, Defendant Boulette’s duties and responsibilities included the management and oversight of taxi cabs and drivers who contracted with DTS to operate Washington Flyer taxicabs. Instead of establishing and following a fair selection and hiring process for drivers to operate Washington Flyer taxicabs assigned to DTS, Boulette accepted cash payments ranging from $2,000 to $7,000 from a number of taxicab drivers in exchange for giving them priority of prospective drivers. The total amount of money Boulette received was approximately $106,000.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Jasmine Yoon prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Columbus Urban League Official Pleads Guilty to Fraud and Identity TheftRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO– Ovell Harrison, 55, of Columbus, Ohio pleaded guilty in U.S. District Court to one count of bank fraud and one count of aggravated identity theft in connection with his position as Director of Education Services at the Columbus Urban League between 2004 and 2010.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor – Office of the Inspector General Labor Racketeering and Fraud Investigations, Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General (HUD), and Columbus Police Chief Kim Jacobs announced the pleas entered today before U.S. District Judge Algenon L. Marbley.
According to testimony by an investigator with the Department of Labor, Harrison used his computers at the Columbus Urban League to prepare and submit false invoices to the Urban League. Harrison made it appear that invoices were payment for services contractors had provided to the Urban League. The contractors were unwitting persons Harrison knew personally. The Urban League processed the invoices, generated checks and either left the checks for hand pick-up by Harrison or mailed the checks to a mailbox Harrison rented. Harrison deposited the checks into one of three bank accounts he controlled. Harrison obtained $85,181.25 through the scheme.
“Today’s guilty plea underscores the Office of Inspector General’s commitment to uncover fraud involving Department of Labor grant funds intended to help those in need. The OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate crimes of this nature,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Bank fraud is punishable by up to 30 years in prison. The penalty for aggravated identity theft is a mandatory term of imprisonment of two years, which must be served after any time he serves for the bank fraud.
The court will conduct a pre-sentence investigation before determining the sentence and schedule a date for sentencing.
U.S. Attorney Stewart commended the investigation by Department of Labor, HUD and the Columbus Police, as well as Financial Crimes Chief Brenda S. Shoemaker, who is representing the United States in this case.
Former Bank Branch Manager Pleads Guilty to Bank Fraud, False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former bank branch manager has pleaded guilty in federal court to stealing more than $316,000 from several elderly customers’ accounts and failing to report the embezzled income on her taxes.
Jennifer A. Gunter, 33, of Republic, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, Sept. 12, 2013, to bank fraud and filing a false tax return.
Gunter was the branch manager at the Guaranty Bank at 291 Highway CC in Nixa, Mo., (and earlier at the Guaranty Bank at 1341 W. Battlefield, Springfield, Mo.) from August 2005 until her termination in November 2012. Gunter admitted that, from December 2006 until November 2012, she repeatedly accessed the bank accounts of four elderly bank customers. Gunter fraudulently embezzled a total of $316,598 from those accounts.
Gunter submitted transaction tickets, withdrawal slips, and cashier’s checks on which she forged the names of the account holders in order to withdraw money from the bank accounts. She used the money for personal matters and expenses. Gunter set the customer accounts to “do not mail” status in order to keep the customers from receiving their bank statements and detecting the theft from their bank accounts.
Gunter failed to report this embezzled income on her Form 1040, U.S. Individual Income Tax Return. Gunter did not report the additional income of $45,002 for 2009, $70,481 for 2010, $107,119 for 2011, and $35,000 for 2012. Gunter’s actions resulted in an additional tax due and owing of $7,642 in 2009, $13,305 in 2010, $22,935 in 2011, and $6,258 in 2012. The total tax loss is $50,140.
Under federal statutes Gunter is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $1.1 million and an order of restitution. 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 Patrick Carney. It was investigated by the U.S. Secret Service, FDIC – Office of Inspector General, IRS-Criminal Investigation and the Christian County, Mo., Sheriff’s Department.
Former Agriculture Commissioner Admits to Misappropriating Department FundsRead the Press Release
FRANKFORT, KY - Former Kentucky Department of Agriculture Commissioner, Richard Dwight Farmer, Jr., admitted in federal court today that he misappropriated public resources during his tenure in office.
Farmer pleaded guilty to two counts of theft from a program receiving federal funds. Farmer entered into an agreement with the U.S. Attorney’s office which, if approved by the Court, will require him to serve a prison sentence of 21 to 27 months. Additionally, Farmer agreed to pay $120,500 in restitution to the Commonwealth of Kentucky. Judge Gregory Van Tatenhove released Farmer on his own recognizance until his sentencing hearing on January 14, 2014.
Farmer admitted that he misappropriated a total of $120,500 by hiring friends who didn’t perform work to justify their salaries, and purchasing a number of items for his personal use with KDA funds.
Specifically, Farmer admitted that in 2008 he used approximately $19,500 in KDA money to buy excessive gifts for a KDA sponsored conference. Farmer purchased rifles, rifle cases, knives, and gift cards, purportedly for use at the conference that he actually appropriated to his own use. Farmer further acknowledged that in both 2008 and 2011 he misappropriated thousands of dollars in labor cost by putting friends on the public payroll, knowing they would perform little or no actual work for the KDA.
“Mr. Farmer admitted today that he engaged in a course of criminal conduct which constitutes an egregious abuse of the public trust,” said United States Attorney Kerry B. Harvey. “The people of Kentucky deserved better from Mr. Farmer. I hope that his acknowledgement of guilt will, in some small way, begin to repair the inevitable damage done when an elected official uses his public office to enrich himself through a criminal scheme. I appreciate the excellent work of the prosecutors and law enforcement officers who did the work necessary to bring this matter to a successful conclusion.”
Farmer was elected to two terms as Commissioner of Agriculture and was responsible for the supervision and administration of the KDA from January 2004 until January 2012.
A federal grand jury indicted Farmer in April of this year.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Jack Conway, Kentucky Attorney General, jointly announced the plea today.
The investigation was conducted by the Kentucky Attorney General’s Office and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Kenneth R. Taylor and Andrew T. Boone, and trial attorney Sean Mulryne with the Public Integrity Section of the United States Department of Justice.