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Thursday 12 September 2013
Property Manager and Straw Purchaser Admit Roles in Multimillion-Dollar Mortgage FraudRead the Press Release
CAMDEN, N.J. – A property manager and a straw purchaser have admitted their roles in a scheme to defraud financial institutions as part of a multimillion-dollar mortgage fraud that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood, N.J., area, U.S. Attorney Paul J. Fishman announced today.
Paul Watterson, 53, of Mountainside, N.J., and John Bingaman, 44, of Benton, Ark., pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to separate informations charging each with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Bingaman entered his plea today and Watterson entered his plea on Sept. 11, 2013.
According to documents filed in this case and statements made in court:
Watterson and his conspirators identified homes in Wildwood and Wildwood Crest and recruited straw buyers to purchase those properties at the inflated rates. The straw buyers had good credit scores, but lacked the financial resources to qualify for mortgage loans. Watterson created fraudulent loan applications that contained false information about the straw buyers’ employment, income, assets and intended use of the properties. Watterson also obtained on behalf of his conspirators false documents to support the phony loan applications for certain straw purchasers. Watterson’s actions were designed to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Watterson and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Watterson’s conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. Watterson received $273,600 from five separate real estate transactions.
Bingaman purchased three separate properties in Wildwood and Wildwood Crest. Bingaman and others falsified his loan applications with respect to his employment, income, and assets in order to cause the lenders to make loans to Bingaman for the three properties. Bingaman took a portion of the fraudulent mortgage proceeds by having three separate checks totaling $241,789.98 deposited into an account for Five Stone Development – a company he controlled.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. Watterson’s sentencing is scheduled for March 13, 2014. Bingaman’s sentencing is scheduled for March 14, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel:
Watterson: Thomas R. Ashley Esq., Newark
Bingaman: William H. Buckman Esq., Moorestown, N.J.Bingaman Information
WattersonInformationPrior Sex Offender Sentenced to Fifteen Months in Prison for Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Henderson Burke, Jr., 44, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 15 months in federal prison followed by five years of supervised release for failure to comply with the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, and/or where the offender is a student, and that the sex offender maintain current registrations.
In Sept. 1997, Burke was sentenced to 63 months in prison for his federal conviction for child sex abuse on an Indian reservation. Based on that conviction, Burke was required to renew his registration as a sex offender for twenty years on an annual basis.
Burke, who most recently was located in Bernalillo County, N.M., was arrested by the U.S. Marshals Service on Dec. 5, 2012, based on a criminal complaint alleging that he violated SORNA by failing to update his sex offender registration as required. Burke has been in federal custody since that time. He was indicted and charged with failure to update his sex offender registration on Dec. 19, 2012.
According to court filings, Burke first registered as a sex offender with the Bernalillo County Sheriff’s Office in Jan. 2004 and last registered in May 2010. Subsequently, a review of annual audits of sex offender registrations revealed that Burke did not renew his sex offender registration in 2011 or anytime thereafter. Burke pleaded guilty to the indictment on April 3, 2013.
This case was investigated by the U.S. Marshal Service with assistance from the Bernalillo County Sheriff’s Office and was prosecuted by Supervisory Assistant U.S. Attorney Glynette R. Carson McNabb.Postal Employee, Will R. Bulloch, Sentenced for Theft of MailRead the Press Release
WILL R. BULLOCH, age 27, a resident of Franklinton, Louisiana, was sentenced today to two years of probation by U.S. District Judge Lance M. Africk for the theft of United States mail by a postal employee, announced U.S. Attorney Dana J. Boente. In addition to the term of probation, Judge Africk ordered BULLOCH to pay $11,227.40 in restitution to the United States Postal Service.
According to court documents, BULLOCH admitted that he was employed on March 3, 2007, as a Sales and Service Associate, at the Main Post Office, in Angie, Louisiana. One of the defendant’s jobs was to sell U.S. Postal money orders. Customers would purchase money orders and then place them in an envelope and deposit them to be mailed. BULLOCH confessed that after he sold a money order, he opened the customer’s envelope in the outgoing mail and forged the name on the money order. He admitted that he endorsed them for cash or deposit. He covered up the crime by voiding the money order in the computer system. BULLOCH further admitted that from September 16, 2011, through February 24, 2012, he removed articles from first-class mail presented for delivery. Records reflect that fifty-one money orders sold by BULLOCH had been voided and converted to cash.
This case was investigated by the United States Postal Service, Office of Inspector General and was prosecuted by Assistant United States Attorney Dorothy Manning Taylor.
Pierre Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 11, 2013, by U.S. District Judge Roberto A. Lange.
Adrian Wells, age 37, was sentenced to 18 months of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wells was indicted by a federal grand jury on December 11, 2012, and pled guilty to a charge of Failure to Register as a Sex Offender on June 25, 2013.
On December 6, 1995, Wells was convicted of Aggravated Sexual Abuse. The Court sentenced Wells to 63 months in custody and 5 years of supervised release. Wells was also ordered to register as a sex offender under the Sex Offender Registration and Notification Act.
On May 19, 2009, Wells signed a lease for an apartment, but failed to register the apartment as his residence. Instead, Wells continued to use his previous address, even though he did not reside there. Wells registered the previous address with law enforcement on five occasions, knowing he was not residing at that address.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Marie Ruettgers.
Wells was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Pierce County Man Pleads Guilty to Hiring ‘Hit Man’ to Assassinate People in VietnamRead the Press Release
A 45-year-old University Place, Washington man pleaded guilty today in U.S. District Court in Seattle to Conspiracy to Kill Persons in a Foreign Country and Solicitation to Commit a Crime of Violence, announced U.S. Attorney Jenny A. Durkan. LONG VAN NGUYEN, admits that in 2012 he tried to pay to have various people in Vietnam killed. NGUYEN thought that he was hiring an assassin to carry out the murders when in fact he was dealing with undercover federal law enforcement agents. Prosecutors have agreed to recommend no more than 14 years in prison when NGUYEN is sentenced by U.S. District Judge Robert S. Lasnik on January 10, 2014. However, Judge Lasnik is not bound by the recommendation and can impose any sentence allowed by law.
According to the plea agreement signed today, in March 2012 NGUYEN solicited an undercover Homeland Security Investigations Special Agent to assassinate people in Vietnam. NGUYEN had told others that he had sent $100,000 to a nephew in Vietnam, instructing him to spend only the interest earned by the money. Instead, the nephew spent all the money so NGUYEN wanted him killed. The undercover agent told NGUYEN he had associates in Vietnam who could do the killings. NGUYEN agreed to a plan whereby his nephew ‘Bon’ would show the ‘assassins’ who NGUYEN wanted killed. After identifying two proposed victims, NGUYEN then instructed the undercover agent that he wanted the nephew ‘Bon’ killed as well. A police officer in Vietnam, as well as an undercover FBI agent posed as possible assassins in the scheme. NGUYEN paid the undercover FBI agent additional money for the hit, and added four more people to the list of those he wanted killed. He provided pictures to the undercover Homeland Security special agent of the four he wanted killed. NGUYEN was arrested at his home on July 7, 2012 and has been in custody ever since.
Conspiracy to Kill Persons in a Foreign Country is punishable by up to life in prison and Solicitation to Commit a Crime of Violence is punishable by up to 20 years in prison.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with assistance from the FBI and law enforcement in Vietnam. The case is being prosecuted by Assistant United States Attorneys Jill Otake and Ye-Ting Woo.Physician-Owned Hospital Agrees to Resolve Its Civil and Criminal Liability for Benefiting from Illegal Kickbacks to PhysiciansRead the Press Release
DALLAS - Forest Park Medical Center, LLC (FPMC), a North Texas physician-owned hospital, paid over $258,000 to settle allegations that it violated the civil False Claims Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The United States contends that a FPMC representative paid illegal kickbacks to area physicians to obtain referrals for Tricare patients, a federally funded health care program, in violation of the federal law, between 2008 and 2012. Based on the same allegations, FPMC entered into a Non-Prosecution Agreement with the United States and agreed to certain conditions, as well as a federally imposed monitor for not more than 24 months. FPMC fully cooperated with the investigation, and by settling civilly and criminally, did not admit any wrong-doing or liability.
FPMC, located in Dallas, did not seek reimbursement from any federal sources such as Medicare and Medicaid, but only commercial payors and self-pay. Federal and State law usually limits the amount of compensation paid to physicians and their ability to refer certain patients under federally-insured programs. Because FPMC believed it did not accept federal funds, its representatives, to the benefit of FPMC’s behalf, offered and paid excessive remuneration and other things of value to actual and potential referring physicians or others, including amounts for “marketing” or “advertising.” Payments also were made in the form of cash and giftcards/coupons for luxury items. The United States alleges such payments were made to obtain federal health care program patients, such as TRICARE, a program for military retirees and their dependents. The United States contends such payments were unlawful kickbacks for the referral of federal health care program patients in violation of the federal Anti-Kickback Statute between January 1, 2008, and October 31, 2012. The United States initiated the investigation in response to numerous complaints.
In the Non-Prosecution Agreement, FPMC acknowledged the United States has sufficient evidence to seek an indictment for the offering and payment of illegal kickbacks in violation of federal law. In return for the non-prosecution of the hospital, FPMC selected and retained an independent monitor to address any compliance issues and the United States’ concerns regarding the allegations of illegal conduct. The monitor will be in place for not more than 24 months and will review and evaluate inpatient and outpatient claims submitted to all payors, not just federal programs. FPMC also agreed to cooperate with the United States’ ongoing investigation into certain individuals. No persons were released under the civil and criminal agreements. The United States’ investigation remains ongoing.
U.S. Attorney Saldaña praised the efforts of the investigating agencies, including the Defense Criminal Investigative Services; FBI; Department of Labor, EBSA; Office of Inspector General of the Office of Personnel Management; and FDA-CI.
“This civil and criminal resolution spares the honest employees and investors of FPMC, while holding the hospital accountable for allowing an environment where its representatives paid illegal kickbacks for referrals,” said U.S. Attorney Saldaña. “This outcome imposes well-deserved measures that we expect will ensure FPMC becomes fully compliant with federal and private health care program requirements. Whether physician-owned, not-for-profit or for-profit, the Department of Justice expects, and requires, all providers to be trustworthy and abide by the law,” Saldaña continued.
The case was handled by Assistant U.S. Attorneys Sean McKenna, Errin Martin and Lynette Wilson, and Special Assistant U.S. Attorney Glenn Harrison.
Philadelphia Man Charged in Identity Theft SchemeRead the Press Release
Angel Nathan Melendez, 24, of Philadelphia, PA, was charged today by Indictment with aggravated identity theft and passport fraud, announced United States Attorney Zane David Memeger. According to the indictment, Melendez secured a United States passport using his own photograph but another person’s name, date of birth, and social security number.
If convicted, Melendez faces a mandatory minimum sentence of two years with a maximum possible sentence of 12 years in prison, a three year period of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the State Department’s Diplomatic Security Service and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Palmetto Man Convicted of Tax CrimesRead the Press Release
TAMPA, FL - Acting U.S. Attorney A. Lee Bentley, III announces that a federal jury today found Gregory Albert Darst (71, Palmetto) guilty of one count of attempted interference with the Internal Revenue laws and four counts of willfully failing to file income tax returns. Darst, who was indicted on April 11, 2013, faces a maximum penalty of seven years in federal prison.
According to evidence presented at trial, Darst has not filed a federal income tax return since 1989. During the years charged in the indictment, Darst earned income from his operation of a mobile home park located in Largo, Florida. The income received exceeded the minimum amount requiring him to file annual tax returns. Evidence also showed that Darst engaged in a lengthy and coordinated effort to obstruct and impede the administration of the tax laws. He sent fraudulent documents to the IRS purporting to pay off his tax debt; attempted to retaliate against several IRS employees by making false accusations of misconduct; and he sent threatening correspondence to a private citizen who purchased property from Darst, which was encumbered by valid IRS levies and liens.
"Convictions, like the one returned against Mr. Darst today, send a loud and clear message that regardless of their opinions, people who willfully defy the tax laws will be fully investigated, prosecuted and subjected to the full punishment of the law," said Special Agent-in Charge James D. Robnett of the IRS-Criminal Investigation (Tampa Field Office). "Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't."
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew Mueller.
Owners of Tennessee Trucking Companies Charged in 13-Count Federal IndictmentRead the Press Release
Dorian Ayache, 65, of Lebanon, Tenn. and Theresa Vincent, 53, of Murfreesboro, Tenn. were indicted yesterday by a federal grand jury on charges related to the violation of U.S. Department of Transportation (DOT) regulations, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. The indictment charges Ayache with nine counts of violating DOT regulations, one count of conspiring to defraud the United States, and two counts of obstructing a grand jury investigation. Vincent was charged with conspiring to defraud the United States and with one count of perjury.According to the indictment, Ayache was the owner and operator of Three Angels Farms, an interstate commercial motor carrier based in Lebanon, Tenn., and Vincent was the owner and supposed operator of Terri’s Farm, an interstate commercial motor carrier based in Murfreesboro, Tenn.
In June 2012 DOT deemed that the operations of Three Angels Farms posed an imminent hazard to public safety and issued an order requiring Ayache to cease commercial motor vehicle operations. DOT’s Order was based on Ayache’s unacceptable safety practices, including his failure to adequately maintain his commercial motor vehicles and his failure to ensure that drivers were qualified, and cited 2012 accidents on I-40 and I-24 in Tennessee that resulted in fatal injuries to horses being transported.
The indictment alleges that, in violation of this order, Ayache continued his commercial motor carrier operations under the name and authority of Terri’s Farm, as well as under other names. DOT later categorized Terri’s Farm as a mere continuation of Three Angels Farm.
The indictment also alleges that Ayache concealed and attempted to destroy emails with the intent to impair their availability for use in the grand jury investigation and that Vincent made false statements under oath to a grand jury regarding her communications with Dorian Ayache during the investigation.
If convicted, Ayache faces up to 20 years in prison on each obstruction charge, up to 5 years in prison on the conspiracy charge, and up to 1 year in prison for each charge of violating DOT regulations. Vincent faces up to 5 years in prison on both the conspiracy count and the perjury charges, if convicted.
The case was investigated by the United States Department of Transportation, Office of Inspector General. The United States is represented by Assistant U.S. Attorney William F. Abely.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
Okeechobee Woman Pleads Guilty to Preparation and Presentation of False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Maria Garcia, 33, of Okeechobee County, pled guilty today to charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Sentencing is scheduled for December 16, 2013, before U.S. District Judge Donald Graham in Fort Pierce, Florida. At sentencing, Garcia faces a possible maximum statutory sentence of up to three (3) years in prison.
According to statements made in open court and documents filed in the case, Garcia prepared multiple fraudulent tax returns for customers from January 2008 through May 2013, first while working for other tax preparers and then in her own tax preparation business. She prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Oakland Gang Member Sentenced to 12 Years for Firearm Possession Related to A Shoot-OutRead the Press Release
SAN FRANCISCO – Diandre Cummings, a member of the Oakland “Money Team” gang, was sentenced yesterday to serve a sentence of 144 months of imprisonment, United States Attorney Melinda Haag announced.
Cummings was indicted by federal grand jury on January 10, 2013, and charged with two counts being a Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. § 922(g). Cummings pleaded guilty to both counts in the Indictment on June 5, 2013.
Evidence showed that on October 21, 2012, Cummings engaged in a shoot-out on the street in Oakland with a rival gang member. The rival gang member was in a car with his family while the two men shot at each other. Cummings was not apprehended on the scene. Rather, on November 8, 2012, officers of the Oakland Police Department conducted surveillance on Cummings and caught him with a pistol in his vehicle. Cummings had previously been convicted of at least one felony offense and the ammunition and firearm had previously moved in interstate or foreign commerce. The sentence was imposed for the defendant’s possession of a firearm and ammunition during a shoot-out with a rival gang member and subsequent possession of a different firearm.
The sentence was handed down by The Honorable Phyllis J. Hamilton, U.S. District Judge. In addition to his prison term, Cummings was also sentenced to a 3-year period of supervised release and was also banned from any contact with members of Oakland’s Money Team gang during his period of supervision.
“This substantial sentence should send a strong message that we are dedicated to curbing gang violence, shootings, and the illegal use and possession of firearms in the City of Oakland. This case is a perfect example of the effectiveness of cooperative work between federal and local law enforcement– in this case the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oakland Police Department. My office, and the numerous federal agencies working alongside the Oakland Police Department, will continue these ongoing efforts for maximum impact on violence reduction and making Oakland a safer city for all of its residents,” said United States Attorney Melinda Haag.
The case was prosecuted by Assistant United States Attorney James Mann with the assistance of Vanessa Vargas. The prosecution is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oakland Police Department.
(Cummings indictment )
North Dakota Woman Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota, woman convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on September 11, 2013, by U.S. District Judge Roberto A. Lange.
April Pretends Eagle, age 32, was sentenced to 86 days in custody, a $1,000 fine, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pretends Eagle was indicted for Distribution of a Controlled Substance to a Person Under the Age of 21 and Possession with Intent to Distribute a Controlled Substance by a federal grand jury on October 16, 2012. She pled guilty to Possession with Intent to Distribute a Controlled Substance on June 25, 2013.
The conviction stems from an investigation of burglaries in Eagle Butte, South Dakota. While investigating the burglaries, a criminal investigator for the Cheyenne River Sioux Tribe learned that several juveniles committed a series of the burglaries and that some of the stolen items could be located at co-defendant Philip LaBatte’s residence. The investigator obtained a tribal search warrant for LaBatte’s residence, where Pretends Eagle was staying. When law enforcement executed the search warrant, they found, among other things, at least 250 grams, but less than 1 kilogram, of marijuana along with a scale, rolling papers, and a grinder.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.North Dakota Man Pleads Guilty to False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that Joshua James Martin, age 27, of Bismarck, North Dakota, appeared before U.S. District Judge Charles B. Kornmann on September 9, 2013, and pled guilty to an Amended Superseding Information that charged him with False Statement.
The maximum penalty upon conviction is 5 years of imprisonment and/or $250,000 fine, up to 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Martin, on December 24, 2011, traveled to McLaughlin, South Dakota, to visit his family over the Christmas holiday. Martin spent the majority of the evening socializing with some of his cousins at his aunt’s house. At some point in the evening, Martin and a female person at the gathering engaged in a sexual encounter. Martin went back to Bismarck shortly after the encounter and went to the hospital and reported he had been raped, when he knew it was not true.
Because the encounter happened on the Standing Rock Reservation, a Federal Bureau of Investigation agent was sent to interview Martin. He initially persisted in his claim of rape knowing it was not true, and an investigation was opened by South Dakota authorities. The false statements made by Martin had a material effect on the investigation conducted by the Federal Bureau of Investigation in the District of South Dakota.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Martin was released on bond pending sentencing, which has been set for December 2, 2013.Nine Charged in Federal Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – Several individuals have been taken into custody following the return of two separate, but related federal indictments alleging various drug trafficking and money laundering charges, announced United States Attorney Kenneth Magidson.
The first sealed indictment, returned Aug, 28, 2013, was unsealed this morning upon the arrests of Roberto Ruiz aka “Bobby,” 37, Mario Enrique de la Fuente, 36, Leonel Mendoza Diaz aka “Masacuata,” 39, and Jose Luis Guerrero aka “Pana,” 40, all of Brownsville. They are expected to make their initial appearances before U.S. Magistrate Judge Janice B. Ellington in Corpus Christi tomorrow. Rodolfo Ruiz Jr. aka “Pollo,” 25, also of Brownsville, is charged in the indictment but not as yet in custody.
Two others - Peter Morales aka “Pirucha,” 30, of Houston, and Ricardo Roberto Olivas aka “Bugs,” 41, of Brownsville, are also charged but currently in state custody. They are expected to make an initial appearance before a U.S. magistrate judge in Corpus Christi on the federal charges in the near future.
The defendants are charged with conspiring from Jan. 1, 2005 to Aug. 28, 2013, to possess with intent to distribute more than five kilograms of cocaine. If convicted of this offense, all face a minimum of 10 years and up to life imprisonment and a possible $10 million fine.
In addition, Roberto Ruiz, Rodolfo Ruiz, de la Fuente and Guerrero allegedly conspired during the same time period to launder the proceeds from distributing controlled substances and also face, upon conviction, a maximum 20 years imprisonment and $500,000 fine.
The indictment also includes a notice of forfeiture of a property owned by Roberto Ruiz.
A separate indictment, returned Sept. 11, 2103, and unsealed today, charges Ricardo Estrada aka “Ricky,” 30, and Alfredo Reyes Jr., 32, both of Brownsville, with possessing and conspiring to possess with intent to distribute 11.06 kilograms of cocaine. Estrada was taken into custody while Reyes is currently considered a fugitive. If convicted, they also face up to life in prison and a $10 million fine.
Warrants remain outstanding for the arrests of Reyes and Rodolfo Ruiz. Anyone with information about their whereabouts is asked to contact the U.S. Marshals Service at 1-877-WANTED2 (1-877-926-8332).
The investigation into these indictments are being conducted through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Customs and Border Protection, Texas Department of Public Safety, Cameron County District Attorney’s Office, Cameron and Willacy County Sheriff’s Offices, and the Brownsville, Port Isabel, Harlingen and San Benito Police Departments. The cases will be prosecuted in Corpus Christi by Assistant United States Attorney Michael Hess.
Newark Man Charged in Armed Robberies of New Jersey StoresRead the Press Release
NEWARK, N.J. – FBI special agents arrested a Newark, N.J., man in Newark this morning for alleged offenses in connection with armed robberies of a Krauszers Food Store in West Orange, N.J., and a Subway restaurant in Verona, N.J., U.S. Attorney Paul J. Fishman announced.
Antwon Yarbrough, 27, is charged by complaint with two counts of committing a Hobbs Act robbery and one count of using a firearm during a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark and was detained.
According to the criminal complaint unsealed today:
On April 24, 2013, Yarbrough and another individual entered a Krauszers in West Orange wearing dark hoodies, face masks and gloves. Yarbrough used a plastic zip tie to secure the door from the inside while the other individual pointed a gun at the clerk and pushed the clerk to the floor. Yarbrough bound the hands and feet of two other individuals in the store, striking one in the head with his forearm. The other robber tied up the clerk with zip ties and struck the clerk’s head with the gun. Yarbrough and the other robber then emptied the cash register, stole several cartons of cigarettes and fled.
On May 20, 2013, Yarbrough and two other individuals entered a Subway restaurant in Verona, again wearing dark hoodies, face masks, and gloves. The two robbers accompanying Yarbrough brandished firearms. After entering the restaurant, the robbers restrained a Subway employee with zip ties, emptied the cash register, and fled.
The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange Police Departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
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Defense counsel: Stacy Biancamano Esq., West Orange, N.J.
Yarbrough, Antwon Complaint
New Iberia Man Pleads Guilty to Theft of Government FundsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Buddy Estelle, 52, of New Iberia, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to taking more than $86,000 in Social Security Administration (SSA) benefits to which he was not entitled.
According to evidence presented at the guilty plea, Estelle started receiving SSA disability payments in 1984. While attending a routine meeting concerning his benefit eligibility on Feb. 8, 2011, he told SSA staff members at the New Iberia office that he had not worked since 2000. During the guilty plea, Estelle admitted that he has been self-employed since 2000. He owns a business that buys and crushes cars. The SSA payments that Estelle improperly received totaled $86,261.30.
Estelle faces up to five years in prison, a $250,000 fine, restitution, and three years of supervised release for theft of government funds. A sentencing date of January, 10, 2014 was set.
The Social Security Administration and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Navajo Man Pleads Guilty to Sexually Abusing a Child in San Ildefonso PuebloRead the Press Release
ALBUQUERQUE – Samuel Billy, 49, an enrolled member of the Navajo Nation who resides in El Rancho, N.M., which is located in San Ildefonso Pueblo, pleaded guilty this morning to a child sexual abuse charge. Under the terms of his plea agreement, Billy will be sentenced to 20 years in federal prison followed by a term of supervised release to be determined by the court. Billy will be required to register as a sex offender after he completes his prison sentence.
Billy’s guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Billy was arrested on Jan. 7, 2013, based on a criminal complaint alleging that he sexually abused a child less than 12 years old in early Nov. 2012. According to the complaint, Billy sexually abused the child victim, who was left in his care, in his residence in San Ildefonso Pueblo on at least two occasions. Billy subsequently was charged in a four-count superseding indictment with three counts of aggravated child sexual abuse and one count of abusive sexual contact. The indictment alleged that Billy sexually abused the child victim on four separate occasions between Nov. 1, 2012 and Dec. 31, 2012, in a location within San Ildefonso Pueblo.
This morning, Billy pleaded guilty to a felony information charging him with sexual abuse and admitted touching the child victim’s genitals while the victim was sleeping and incapable of appraising the nature of the conduct.
Billy has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. The charges in the superseding indictment will be dismissed after Billy has been sentenced.
This case was investigated by the Santa Fe office of the FBI and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito 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/.
Multiple Defendants Charged in Fraud Scheme to Obtain Federal Student AidRead the Press Release
OAKLAND – A federal grand jury in Oakland returned an Indictment on August 15, 2013, charging Kyle Edward Moore, Cortio Detrice Wade, Marcel Devon Bridges, and Derricka Lynn Fluker with conspiracy to commit financial aid fraud and multiple counts of wire fraud, announced United States Attorney Melinda Haag and Natalie Forbort, Special Agent in Charge of the United States Department of Education, Office of Inspector General’s Western Regional Office.
According to the Indictment, which was unsealed yesterday, Moore is alleged to have conspired with Wade, Bridges, and Flucker to obtain federal student aid funds offered under the Title IV Federal Student Assistance Program. Moore and his co-defendants obtained the aid, in the form of loans and grants, by preparing and transmitting fraudulent Free Applications for Federal Student Aid (FAFSAs) to the U.S. Department of Education.
In carrying out the fraud scheme, Moore, Wade, Bridges, and Flucker recruited third-parties to serve as “straw students” and then assisted the straw students in preparing, signing, and transmitting fraudulent FAFSAs knowing that many of the straw students were not eligible to obtain Title IV funds. Among other things, the straw students had not obtained high school diplomas or a recognized equivalent, and had no intention of attending school or using the funds for educational purposes. After receiving the fraudulently obtained student loan funds, Moore and his co-defendants would share the funds among themselves and sometimes with the straw students.
Moore, Bridges, and Fluker were arrested on September 11, 2013, in the Northern District of California and made their initial appearances in federal court in Oakland yesterday morning. Wade was arrested in Phoenix, Arizona, and made her initial appearance in the District of Arizona yesterday as well. The three defendants that appeared in federal court in Oakland were each released on bonds. Moore, Bridges, and Fluker are scheduled to appear next on October 18, 2013, at 9:30 a.m. before The Honorable Jon S. Tigar, U.S. District Judge.
The maximum statutory penalty for each count of conspiracy to commit financial aid fraud, in violation of 18 U.S.C. § 371, is five years in prison, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. The maximum penalty for each count of wire fraud, in violation of 18 U.S.C. § 1343, is twenty years in prison, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Department of Education, Office of the Inspector General and the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of the Inspector General.
(Moore indictments )
Mobridge Man Sentenced for Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man convicted of Escape from Custody was sentenced on September 9, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gaylen Paul Sampson, a/k/a Thurman Paul Sampson, age 38, was sentenced to 4 months of imprisonment and ordered to pay $100 to the Federal Crime Victims Fund.
On April 10, 2013, Sampson escaped from custody of the Bureau of Prisons while at the Community Alternatives of the Black Hills facility. He pled guilty to the charge on June 7, 2013.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Sampson was immediately turned over to the custody of the U.S. Marshals Service.Mexican National Pleads Guilty; Sentenced for Illegal Re-entryRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Fernando Cartugano-Sol, 27, a citizen and national of Mexico, pleaded guilty before U.S. Judge William M. Skretny, to illegal re-entry by an already removed alien. The defendant was immediately sentenced to time served.
According to Assistant U.S. Attorney Aaron J. Mango, on June 18, 2013, Cartugano-Sol was found in the United State working on a farm in Mount Morris, N.Y. When confronted by law enforcement officers, the defendant admitted that he was in the United States illegally. It was determined after an immigration record check that Cartugano-Sol did not make a legal entry into the United States and that he had been removed from the United States previously on September 8, 2011.
The plea and sentencing are the result of an investigation by United States Customs and Border Protection Officers, under the direction of James Engleman, Director of Field Operations.Mastermind of $11 Million Detroit Medicare Fraud Scheme Sentenced to 50 Months in PrisonRead the Press Release
Muhammad Shahab, the mastermind of an almost $11 million Medicare fraud scheme in Detroit, was sentenced today to 50 months in prison.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Shahab, 53, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to his prison term, Shahab was sentenced to three years of supervised release and was ordered to pay more than $10.8 million in restitution, jointly and severally with his co-defendants.
Shahab pleaded guilty to one count of health care fraud in February 2010. According to information contained in plea documents, Shahab helped finance and establish two Detroit-area home health agencies, Patient Choice Home Healthcare Inc. (Patient Choice) and All American Home Care Inc. (All American). Shahab admitted that while operating or being associated with both home health agencies, he and his co-conspirators billed Medicare for home health visits that never occurred.
Shahab admitted that he and his co-conspirators recruited and paid cash kickbacks and other inducements to Medicare beneficiaries in exchange for the beneficiaries’ Medicare numbers and signatures on documents falsely indicating that they had visited Patient Choice and All American for the purpose of receiving physical or occupational therapy. Shahab admitted that a large number of the beneficiaries were neither homebound nor in need of any physical therapy services.
Shahab also admitted to securing physician referrals for medically unnecessary home health services through the payment of kickbacks to physicians or individuals associated with physicians. Shahab employed several physical therapists and physical therapy assistants to sign medical documentation needed to begin billing for home health care services, including initial payments and payments for each visit to a Medicare beneficiary. Shahab acknowledged that he knew the physical therapists and physical therapy assistants were not actually conducting a large majority of the visits or treating a large majority of the patients, and confessed to billing and receiving payment from Medicare for services not rendered or medically unnecessary services.
Between approximately August 2007 and October 2009, Shahab and his co-conspirators at Patient Choice and All American submitted approximately $10.8 million in claims to the Medicare program for physical and occupational therapy services that were never rendered or were medically unnecessary.
This case was investigated by the FBI, HHS-OIG and the Internal Revenue Service and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case was prosecuted by Deputy Chief Gejaa Gobena, Assistant Chief Catherine Dick and Trial Attorney Niall O’Donnell of the Criminal Division’s Fraud Section.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Massive Sentences Handed Down for Violent 2010 News Year’s Eve Bank Robbery, Among OthersLeader Gets 90 YearsRead the Press Release
HOUSTON – With the sentencing of six defendants today, 11 of the total 14 charged in a series of armed Houston area bank robberies, including the robbery of the Pearland Chase branch bank on Dec. 31, 2010, have now been ordered to prison, announced United States Attorney Kenneth Magidson. The Pearland Bank Robbery itself resulted in a nearly six-hour standoff with law enforcement.
Larry Smith, 37, and Raymond Tierra Johnson, 32, were convicted by a federal jury in March 2013 after five days of trial, while Jeremy Benton, 22, Glenn Bonner, 41, Gregory Wayne Ferguson, 21, Arlington Davis Wilkes aka AD, 23, Carl Ray Turner Jr. aka CT, 27, Edward Johnson, 29,John Berley Scott aka Fresh, 31, Derrick Lashon Paley aka Crybaby, 35, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 26, Roderick Marshall Beagle, 41, Michael Dushon Duncan aka Mikey, 21, and Kelvin Dewayne Thomas aka Little Kevin, 23, each had previously entered guilty pleas.
Today, U.S. District Judge Gray Miller, who accepted the guilty pleas and presided over the trial, sentenced Raymond Johnson
Benton, Bonner, Scott, Wilson and Wilkes to varying terms of federal imprisonment. Johnson was considered to be the “muscle” of the crew and, on several occasions, assaulted and/or pistol-whipped victims indiscriminately. He received 60 months for conspiracy to commit bank robbery which will run consecutive to two concurrent terms of 300 months on each of two counts of bank robbery. He was further sentenced to 84 and 300 months for each of two counts of using a firearm during the commission of the crime which are to be served consecutively to each other and to other sentences imposed for a total term of 744 months or 62 years in federal prison.Bonner told officers during the standoff that he was going to start to kill victims within minutes if his demands weren’t met. Specifically, he demanded the officers move their vehicles and depart so he could flee the scene. Judge Miller imposed a total sentence for him of 257 months – 137 for the bank robbery charges in addition to 120 months for use of a firearm.
Benton received 151 months for conspiracy to commit and committing bank robbery in addition to a consecutive 84 months for using a firearm, while Scott and Wilson received respective sentences of 151 and 168 months for the conspiracy and bank robberies as well as consecutive 120 months terms for the firearm violations resulting in 271 and 288 months. Wilkes was handed a sentence of 120 months for his role in the conspiracy.
At the hearing today, the court heard testimony from two victims greatly impacted by the defendants’ actions. One specifically mentioned the individual trauma she has experienced and admits suffering from Post-Traumatic Stress Syndrome as a result of the horrific event. Another victim, also a witness at the trial, described the event as a life changing experience. That victim had been beaten in the course of the robbery and was off work for a great deal of time. Both victims also reported they have been unable to return to the banking industry for work and have even been unable to enter a bank since the violent event. The government also provided evidence to the court that during the course of the bank robbery conspiracy, more than 80 victims have been identified.
Yesterday, Smith, determined to be a leader in the overall conspiracy, received a total sentence of 90 years in federal prison. He was ordered to serve 300 months for the varying counts of bank robbery to be served consecutively to 60 months for the conspiracy charge. He further received respective sentences of 300, 300 and 120 months on three convictions of use of a firearm in furtherance of a crime of violence. Those are to be served consecutively to each other and the other sentences imposed for a total of 1080 months in federal prison. At Smith’s hearing yesterday, Assistant United States Attorney (AUSA) Kebharu Smith stated that the sentence imposed should serve as a message to those that have robbed, are robbing or are thinking of robbing banks in the Southern District of Texas, that you will face stiff consequences.
Edward Johnson, Thomas and Duncan had previously received their sentences for their respective bank robbery pleas as well as for using a firearm in furtherance of a crime of violence. Edward Johnson received 60 months plus an additional 24 months and Thomas was ordered to serve 60 months plus 10 months, while Duncan was ordered to serve 87 months and a consecutive 120 months for the use of a firearm. Ferguson received a sentence of 12 months and a day, while Turner, Paley and Beagle have yet to be sentenced.
After trial, Smith was convicted by a jury of committing bank robbery of the Wells Fargo branches on 10978 Grant Road and 13150 Louetta on Aug. 23, 2010, and Nov. 2, 2010, respectively, Wells Fargo locations at 14001 Memorial and 12859 Kimberly Lane in Houston, both on Oct. 7, 2010, the Comerica Bank on Sept. 13, 2010, and the Citibank at 14104 NW Freeway. The jury further found he used a firearm in the offenses on Sept. 14 and Nov. 2, 2010. Smith and Johnson were both convicted of robbing the Chase Bank at 24230 Northwest Freeway in Cypress and for using a firearm in the offense. Johnson was convicted of bank robbery for the Dec. 31, 2010, robbery of the Chase Bank at 1915 North Main in Pearland and for using a firearms in the commission of that crime.
The conspiracy involved “casing” banks for robberies and the selection of banks that did not have security guards or bullet resistant bandit barriers Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as get-a-way vehicles to commit the offenses. The conspirators recruited others to assist them to rob the banks in exchange for a share of the proceeds taken.
Evidence and testimony revealed most bank robberies were effected through the use of demand notes that Smith had written and through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands.
Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance.The charges against these defendants are the result of the efforts of the FBI Bank Robbery Task Force with the substantial assistance and cooperation of police departments in Houston, Pearland and Friendswood, Harris County Sheriff’s Office, Harris County Precinct 5 Constable’s Office, Harris County District Attorney’s Office, Crimestoppers and the Brazoria County District Attorney’s Office. The United States Attorney wishes to recognizes each of these investigative agencies as well as the security departments of Wells Fargo and JP Morgan Chase for their outstanding efforts.
AUSAs Suzanne Elmilady and Kebharu Smith are prosecuting the case.
Massachusetts Businessman Indicted for Tax CrimesRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Richard L. Furnelli, formerly of Holyoke and South Hadley, Mass., was indicted today in Springfield, Mass. Furnelli is charged in a nine-count indictment with one count of obstructing the internal revenue laws, four counts of tax evasion and four counts of failing to file his individual income tax returns.
The indictment alleges that from 1994 to 2009, Furnelli obstructed the IRS’s ability to identify his income and compute the income taxes due and owing by using nominee owners to disguise his ownership interests in a network of businesses and assets, including entities operating an adult entertainment venue called the Gold Club.
The indictment also alleges Furnelli earned over $2 million in total income from 2006 to 2009 and evaded his individual income taxes for that time period by, among other things, directing the payment of his income to the nominee entity, RLF Ventures LLC, utilizing a bank account in the name of a nominee in order to deposit his income and pay his personal expenses, as well as using cash extensively. The indictment further alleges that Furnelli failed to file his individual income tax returns from 2006 to 2009.
Furnelli faces a maximum punishment of three years in prison for the charge of obstructing the internal revenue laws; five years for each count of evading his individual income taxes; and one year for each count of failing to file his individual income tax returns. He faces a maximum fine of $100,000 on each count of failing to file his income tax returns and $250,000 for each of the other counts. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by special agents of the IRS - Criminal Investigation. Tax Division Trial Attorneys Thomas Voracek and Mark McDonald are prosecuting the case.Manager of Metal Recovery Business Sentenced for Environmental ViolationsRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 57-year-old Quinlan, Texas man has been sentenced for environmental violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William “Bill” Lafon Musgrove pleaded guilty on Aug. 7, 2013, to negligent release of an extremely hazardous substance and was sentenced to 36 months of probation today by U.S. Magistrate Judge Don D. Bush. Musgrove was also fined $10,000.
According to information presented in court, in June of 2011, Musgrove was the vice president of and operations manager of Industrial Precious Metals Recovery Incorporated (IPMR), in Royse City, Texas. During that time, he allowed their metal recovery process to release approximately ten pounds of Nitrogen Oxides, or “NOx” within a 24 hour time period into the ambient air at ground level through an open doorway, instead of utilizing the company’s air scrubber which was broken at the time. Musgrove admitted that he should have known that releasing NOx in that manner would place people in imminent danger of death or serious bodily injury. Fortunately, no actual injuries occurred.
Federal environmental regulations characterize Nitrogen Oxides as an “extremely hazardous substance.” At the time, the IPMR facility in Royse City was adjacent to other commercial facilities with employees that were present during the NOx emissions. The facility has since closed.
This case was investigated by the U.S. Environmental Protection Agency, Criminal Investigations Division, Region VI, Dallas, Texas, and the Texas Commission on Environmental Quality (TCEQ) Environmental Crimes Unit and prosecuted by Assistant U.S. Attorney Jim Noble.London Woman Sentenced 30 Years for Child Pornography OffensesRead the Press Release
LONDON, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Stewart Walker, London Police Chief; and Perrye Turner, Special Agent in Charge, FBI, jointly announced today that a London, KY., woman, who photographed two children engaged in sexually explicit conduct, was sentenced to 30 years in federal prison.
On Tuesday, U.S. District Judge Amul Thapar sentenced 37 year-old Corrine Sherman for producing child pornography, possessing child pornography, and conspiracy. Sherman’s husband and co-defendant, Rickey Sherman, died of a heart attack, while in custody, in July.
In February of this year, a jury convicted both at trial. Evidence presented established that, in 2008 and continuing throughout much of 2011, the Shermans conspired to produce child pornography. During this time period, the couple produced at least 40 images of two, prepubescent children engaged in sexually explicit conduct.
The investigation started when state authorities received a tip that Rickey Sherman had violated conditions of his probation from a previous offense. During that investigation, Corrine Sherman attempted to hide a camera from law enforcement. The camera was eventually recovered and contained the child pornography images.
Rickey Sherman had owned Truck Town Repair in Laurel County. He and his wife were indicted in September 2011.
Under federal law, Corrine Sherman will have to serve at least 85 percent of her prison sentence.
The investigation was conducted by Sargent Joe Smith, with the London Police Department, and the FBI. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Jason Parman.
London Woman Sentenced 30 Years for Child Pornography OffensesRead the Press Release
LONDON, KY -
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Stewart Walker, London Police Chief; and Perrye Turner, Special Agent in Charge, FBI, jointly announced today that a London, Ky., woman, who photographed two children engaged in sexually explicit conduct, was sentenced to 30 years in federal prison.
On Tuesday, U.S. District Judge Amul Thapar sentenced 37 year-old Corrine Sherman for producing child pornography, possessing child pornography, and conspiracy. Sherman’s husband and co-defendant, Rickey Sherman, died of a heart attack, while in custody, in July.
In February of this year, a jury convicted both at trial. Evidence presented established that, in 2008 and continuing throughout much of 2011, the Shermans conspired to produce child pornography. During this time period, the couple produced at least 40 images of two, prepubescent children engaged in sexually explicit conduct.
The investigation started when state authorities received a tip that Rickey Sherman had violated conditions of his probation from a previous offense. During that investigation, Corrine Sherman attempted to hide a camera from law enforcement. The camera was eventually recovered and contained the child pornography images.
Rickey Sherman had owned Truck Town Repair in Laurel County. He and his wife were indicted in September 2011.
Under federal law, Corrine Sherman will have to serve at least 85 percent of her prison sentence.
The investigation was conducted by Sargent Joe Smith, with the London Police Department, and the FBI. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Jason Parman.
Local Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – LARRY BRADSHAW was sentenced to 18 months in prison and ordered to pay $89,245 in restitution for his scheme to defraud a local elderly lady by obtaining a reverse mortgage on her home, then using the money for himself, including the purchase of a car and illegal drugs.
According to court documents, in July 2008, Bradshaw met a lady and expressed a need for a temporary residence. She agreed to allow him to live with her and during that time, Bradshaw befriended her and gained her confidence. He told her he was acting in her best interest, instead, he used his ability to access her banking accounts and funds to support his own lifestyle without her knowledge or consent. Bradshaw set up a durable power of attorney and used it to obtain a reverse mortgage on the lady’s residence. He represented to Frontier Mortgage that he intended to use the proceeds from the reverse mortgage for her living expenses and home rehabilitation. Instead, he used the money for himself, including the purchase of an automobile and illegal drugs, totaling over $70,000. Additionally, Bradshaw began receiving federal disability in 2007 and was required to fill out forms verifying his continued disability and financial status. In December 2008, he falsified the verification form by failing to report that he received funds from the victim’s reverse mortgage.
Larry Bradshaw, St. Louis City, pled guilty in May to one felony count of wire fraud and one felony count of theft of government money. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by the Federal Housing Finance Agency-Office of Inspector General, U.S. Postal Inspection Service, HUD-Office of Inspector General and the Social Security Administration-Office of Inspector General. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney's Office.Little Eagle Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 9, 2013, by U.S. District Judge Charles B. Kornmann.
Ira Weasel, age 32, was sentenced to 12 months and 1 day of imprisonment, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Weasel was indicted for the above charge by a federal grand jury on March 13, 2013. He pled guilty on May 20, 2013.
The charge stems from an incident occurring on December 24, 2012, in which Weasel was socializing at his sister’s house along with the victim. At some point during the evening, Weasel and the victim got into a verbal altercation. Weasel pushed and pinned the victim against the wall, placed his hands around the victim’s neck and lifted her off her feet. Others attempted to free the victim from Weasel’s grasp, but he fought them off and continued to strangle the victim who eventually lost consciousness. At that point, Weasel released her, causing her to fall face first on the floor. The victim then began to convulse and remained unconscious for several minutes. Once she regained consciousness, she left and notified the authorities.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Weasel was immediately turned over to the custody of the U.S. Marshals Service.Las Cruces Man Arrested for Making False Bomb ThreatsRead the Press Release
ALBUQUERQUE – This morning, Luis Lucero-Loya, 23, of Las Cruces, N.M., made his initial appearance in federal court on a criminal complaint charging him with making false bomb threats. If convicted of the offenses charged in the complaint, Lucero-Loya faces up to ten years of imprisonment and a $250,000 fine. Lucero-Loya is temporarily detained pending a detention hearing which has yet to be scheduled.
According to the criminal complaint, Lucero-Loya made false bomb threats on five different occasions between Aug. 18, 2013 and Aug. 31, 2013. The complaint alleges that, on each of the five occasions, Lucero-Loya placed “911” calls to Mesilla Valley Dispatch and falsely reported that there were explosives devices or bombs in specific commercial businesses in Las Cruces. As a result of the bomb threats, the businesses were evacuated and allegedly incurred significant losses.
“In a post-9/11 world, we must take bomb threats seriously. False bomb threats drain our already overburdened public safety agencies and prevent them responding to true emergencies. They also create significant stress and disruption to those threatened,” said Acting U.S. Attorney Steven C. Yarbrough. “We therefore must diligently investigate and prosecuted these cases.”
“There can be no tolerance for those who would jeopardize public safety by making false bomb threats,” said Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI. “The FBI is proud of the work of its Special Agents who vigorously investigated this case with the Las Cruces Police Department and the FBI’s Southern New Mexico Safe Streets Gang Task Force.”
Chief Richard S. Williams of the Las Cruces Police Department stated, “This investigation culminated in a prompt arrest because of the outstanding cooperation between the Federal Bureau of Investigation, Las Cruces Police Department and the impacted commercial businesses. We are extremely grateful that this offender is being prosecuted for allegedly committing dangerous offenses and that the employees and customers of the victim businesses can return to a safe environment.”
Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Cruces Police Department and the FBI’s Southern New Mexico Safe Streets Gang Task Force, and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley of the U.S. Attorney’s Las Cruces Branch Office.
Kamiah Man Sentenced in Drunk-Driving Manslaughter CaseRead the Press Release
COEUR D'ALENE – Nicholas P. Allman, 23, of Kamiah, Idaho, was sentenced today in United States District Court to 21 months in prison for involuntary manslaughter, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Robert H. Whaley also ordered Allman to serve three years of supervised release. He pleaded guilty to the charge on June 11, 2013.
According to statements made in court, on October 28, 2011, Allman and two friends attended an outdoor party outside of Kooskia, Idaho. Witnesses at the party recalled that Allman was drinking alcohol and appeared to be intoxicated. In the early morning hours of October 29, 2011, the men left the party with Allman driving the vehicle. Approximately one hour later, Allman failed to negotiate a turn on Harris Ridge Road. His vehicle left the roadway and rolled down a steep embankment onto U.S. Highway 12 below. The three men were ejected from the vehicle. James Oatman Jr. died during the rollover and was pronounced dead at the scene. Allman’s blood was drawn by police later that morning and it was determined that he was intoxicated, having a blood alcohol level above .08.
The case was investigated by the Federal Bureau of Investigation, Idaho State Police, and Nez Perce Tribal Police, with assistance from the Idaho County Sheriff’s Office.
Internet Pharmacy Operator Sentenced to Two Years in PrisonRead the Press Release
United States Attorney Laura E. Duffy announced today that Martin Paul Bean III of Boca Raton, Florida, was sentenced by the Hon. William Q. Hayes to serve 24 months in custody for his role in a scheme to sell unapproved foreign oncology drugs to doctors in the United States. Bean had pled guilty to conspiracy to commit a number of federal offenses, including wire fraud, mail fraud, selling unapproved drugs, selling misbranded drugs, and importing merchandise contrary to law. Bean was further ordered to forfeit the Jaguar XJ he purchased with the proceeds of the scheme, and to pay restitution of $19,270 to one of the victims of his scheme.
In pleading guilty, Bean admitted that between February 24, 2005, and October 30, 2011, he operated a business (GlobalRx Store) from his residence in Florida, and unlawfully sold over $7 million of prescription oncology drugs to doctors throughout the United States. Bean ordered unapproved drugs from foreign sources, including sources in Turkey, India and Pakistan, and sold them to doctors within the United States at substantially discounted prices. Among the misbranded and unapproved drugs sold by Bean were versions of drugs marketed in the United States as Gemzar®, Taxotere®, Eloxatin®, Zometa® and Kytril®.
Bean ordered the unapproved drugs from foreign sources, and directed them to be shipped in bulk to a location in San Diego, California, where a co-conspirator would repackage and ship individual orders to specific doctors throughout the country. Accompanying the shipments to doctors would be invoices from a California wholesale pharmacy (Oberlin Medical Supply) which helped create the false and misleading appearance that the drugs were approved for use in the United States. Bean and his co-conspirators also operated a call center in Winnipeg, Canada, using toll free numbers, where orders from doctors in the United States for oncology drugs were accepted by telephone, facsimile and electronic mail.
According to court papers filed in connection with today's sentencing hearing, the investigation began in early 2010, when the Medicines & Healthcare Regulatory Agency ("MHRA," the equivalent of the FDA in the United Kingdom) advised the FDA that they had intercepted a shipment of an unapproved form of Gemzar sent from a company in Pakistan to Oberlin Medical Supply in San Diego. Gemzar is a prescription oncology drug produced by the pharmaceutical company Eli Lilly. The only FDA-approved manufacturing site for Gemzar to be sold in the United States at that time was in Indianapolis, Indiana. Gemzar is labeled and packaged in Japan, Mexico and Brazil for exclusive use in those countries, and Gemzar is also manufactured in France for all other international markets.
After further investigation, federal agents visited the business location of Oberlin and discovered numerous boxes of oncology drugs, including Eloxatin, Taxotere and Zoldria (a generic form of Zometa not approved for use in the United States), in addition to the Gemzar. The boxes bore labeling indicating that the products had been manufactured outside of the United States, and certain boxes had labels in languages other than English. None of the drugs bore the wording "Rx only," as required by U.S. law. In addition, there were boxes of Abraxane, manufactured in Illinois, which bore a stamp which said, "Imported and Marketed by Biocon Limited, Bangalore, India."
After the visit from federal agents, Oberlin Medical Supply processed no further orders on behalf of Global Rx. The lack of shipments and payments prompted Bean to contact Oberlin repeatedly, during which the owner of Oberlin (Maher Idriss) advised Bean that the sale of the imported prescription pharmaceuticals in the United States was not lawful. Idriss went so far as to forward to Bean an email from the FDA which stated that "the Food, Drug and Cosmetic Act does not permit you to import pharmaceutical drugs manufactured in a foreign country which are not intended for the U.S. market."
In spite of these warnings, Bean continued to press Idriss to return the remaining inventory of unapproved oncology drugs and pay Oberlin's outstanding balances. On May 25, 2011, Bean arrived at Oberlin and picked up 12 boxes containing the inventory of imported pharmaceuticals. Bean then drove the contraband to a hotel in the Mission Valley area, where he was later seen loading the boxes into a vehicle driven by another man.
The individual was later approached by federal agents, and surrendered to them the boxes of unapproved pharmaceuticals and a check for $300 he had received from Bean. Bean later called that individual and offered him another $2,500 to deliver some of the pharmaceuticals to doctors in and around Fremont, California. Although Bean acknowledged that one of the drugs (Zoldria) was not approved for use in the United States (a fact he had verified on the FDA's website), he nonetheless requested that the drug be delivered to several doctors in California.
After the end of their association with Oberlin, Bean and his co-conspirators renamed their company "My Rx Store," and sent promotional material to doctors in the same format as Global Rx, offering the same unapproved drugs as Global Rx, and using the same toll-free number. Bean personally received over $865,000 from the scheme.
"This defendant blithely put the public's health at risk so he could line his own pockets," said Derek Benner, special agent in charge for Homeland Security Investigations San Diego. "This sentence should serve as a stern reminder about the potential consequences facing those who deal in imposter drugs with no regard for the dangers they pose to patients and consumers. HSI will continue to work with its law enforcement partners here and abroad to prevent the distribution of counterfeit and misbranded pharmaceuticals."
The prosecution of Bean is related to United States v. Maher Idriss, Criminal Case No. 12cr1775-WQH, in which Idriss pleaded guilty to conspiring to import merchandise contrary to law. At the time of his plea, Idriss admitted that between 2006 and 2011, he conspired with the owners and operators of Global Rx Store to import and distribute medication (primarily oncology drugs) not intended for sale in the United States. Idriss acknowledged that the owners of Global ordered the foreign oncology drugs intended for sale in countries such as Turkey, Pakistan, India and the United Kingdom and arranged for them to be shipped directly from the foreign source to Oberlin. Idriss admitted that he received the foreign oncology drugs, stored them and later shipped them out to doctors within the United States, as directed by the owners of Global. After receiving payment from the ordering doctors, Idriss wire transferred payments to the source of the drugs abroad and to an account in Canada controlled by Bean and his co-conspirators. Idriss is scheduled to be sentenced before District Judge Hayes on October 21, 2013 at 9:00 a.m.
The Food, Drug & Cosmetic Act ("FDCA") is intended to assure, among other things, that all drugs manufactured and distributed within the United States are safely manufactured, made from appropriate ingredients, and properly labeled. To enforce this law, the FDA regulates the manufacture, processing, labeling, and distribution of all drugs shipped and received in interstate commerce, including the wholesale distribution of prescription drugs. Under the FDCA, anyone manufacturing, preparing, compounding, or processing prescription drugs for sale and use in the United States must annually register with the FDA as a drug establishment, and provide a list to the FDA of the drugs which they manufacture for commercial distribution, and a copy of all labeling. This registration requirement applies equally to drug establishments located outside of the United States that import their drugs into the United States. Under the FDCA, a drug is deemed misbranded if it was manufactured at any domestic or foreign establishment and that drug was not annually listed with the FDA by the establishment as one of the drugs which was manufactured for commercial distribution in the United States at that location.
Under the FDCA, no person may offer for sale in the United States any drug not approved by the FDA. The approval process addresses the chemical composition of the drug, the drug's safety and effectiveness, and elements of the drug's distribution, such as the methods used in, and the facilities and controls used for, the manufacture, processing, and packing of the drug, as well as the labeling to be used for the drug. The approval process is specific to each manufacturer and each product and its labeling. Drugs manufactured outside the United States which are not intended for use in the United States do not go through this approval process and are considered unapproved drugs.
Any prescription drug that does not bear the label "Rx only" is deemed to be misbranded. Moreover, all wording required by the FDCA to appear on drug labels and labeling sold in the continental U.S. must be in the English language. If a drug is manufactured in the United States and exported to other countries, is unlawful for anyone other than the original manufacturer to bring that same drug back into the United States.
DEFENDANT Case Number: 12cr3734-WQH Martin Paul Bean, III SUMMARY OF CHARGESCount 1 - Conspiracy, in violation of Title 18, United States Code, Section 371. Maximum Penalty: 5 years in custody and/or $250,000 fine.
INVESTIGATING AGENCYFood and Drug Administration, Office of Criminal Investigations; Department of Homeland Security, Immigration and Customs Enforcement; Federal Bureau of Investigation; Postal Inspection Service
Indictment Charges Two as Would-Be Home Invasion RobbersRead the Press Release
PHILADELPHIA - Clifton McLean, 31, and Leroy Winston, 31, of Philadelphia, Pennsylvania, were charged today by Indictment with conspiracy to commit a Hobbs Act robbery, drug, gun, and other offenses, announced United States Attorney Zane David Memeger. According to the indictment, between Jun 10, 2013 and August 14, 2013, McLean and Winston sought the help of another person in arranging the home invasion robbery of drug dealers. The defendants allegedly planned to steal, at gunpoint, eight to nine kilograms of cocaine. It is further alleged that on August 14, 2013, the defendants attempted, unsuccessfully, to carry out the armed home invasion robbery. The plan was interrupted by law enforcement.
In addition to the conspiracy, the indictment charges McLean and Winston with attempted commission of a Hobbs Act robbery, aiding and abetting the attempted commission of a Hobbs Act robbery, conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine, attempted possession with intent to distribute 5 kilograms or more of cocaine, using a firearm during the commission of a crime of violence or drug trafficking crime, and being felons in possession of a firearm.If convicted, the defendants face a maximum possible sentence of life imprisonment. All of the defendants face a ten year mandatory minimum sentences for the offenses to be followed by a five year mandatory minimum consecutive sentence on the 924(c) count.
The case was investigated by ATF and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illegal Firearms and Drug Dealer Admits Selling at Least 100 Guns to Criminals in the Camden, N.J., AreaRead the Press Release
Guns Originated From Straw and Gun Show Purchases in Ohio and Virginia
CAMDEN, N.J. – A Woodlynne, N.J., man today admitted – as part of his guilty plea to federal firearms and drug distribution charges – to selling illegally to drug dealers and other criminals in the Camden area at least 100 guns he purchased with cash from other illicit firearms dealers, U.S. Attorney Paul J. Fishman announced.
Terrance Laboo, aka “Terrance Reeves,” 40, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of dealing firearms without a license, conspiracy to deal in firearms without a federal firearms license, possession of firearms by a convicted felon and distribution of PCP.
“Today Terrance Laboo admitted he poisoned the streets of Camden with dangerous drugs and deadly weapons,” said U.S. Attorney Fishman. “Criminals who exploit the laws of other states to bring guns into New Jersey fuel a culture of violence that destroys communities and lives.”
“We will continue to be relentless in the pursuit of anyone who aims to put guns in the hands of criminals,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Thomas J. Cannon.
According to documents filed in this and related cases and statements made in court:
Laboo admitted that between December 2009 and September 2011, he sold or brokered the sale of at least 100 handguns that he purchased with cash from illegal gun distributors with out-of-state connections.
Laboo obtained many of the weapons from Joshua Jackson, aka “Apple,” aka “Trent,” 33, of Willingboro, N.J., and Columbus, Ohio. Jackson obtained most of the firearms through purchases at gun shows from unlicensed gun sellers who were not subject to background checks. Some of the firearms also were purchased at Ohio gun stores by straw purchasers working for Jackson, who then transported the handguns to New Jersey from Ohio and resold them to Laboo and others in the Camden area. Laboo admitted he knew he was buying guns that came illegally from Ohio and Virginia.
At the time of the gun sales, Laboo acknowledged, he was distributing PCP and cocaine from the corner of 4th and Chestnut Streets in Camden. Laboo admitted he sold, directed or brokered the sale of many of the firearms to other drug dealers in southern New Jersey.
The illegal firearms dealing count and the conspiracy count to which Laboo pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. The possession of firearms by a convicted felon count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The distribution of a controlled substance (PCP) count carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Jan. 14, 2014.
Jackson is charged with related charges in a separate complaint, which remains pending.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge Cannon, with the investigation leading to today’s guilty plea. He also thanked the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in New Jersey, and the Camden County Prosecutor’s Office, under the direction of Prosecutor Warren W. Faulk. Fishman additionally credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia; the Camden County Police Department, under the direction of Chief J. Scott Thomson; and the New Jersey State Police, under the direction of Colonel Rick Fuentes, Superintendent, for their support.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
As for Jackson, the charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.13-364
Defense counsel: Tangie Boston Esq., Philadelphia
Laboo, Terrance Information
Hogsett Announces Sentencing of Central Indiana Man on Bank, Wire Fraud ChargesRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Todd Van Natta, of Seymour and Columbus, was sentenced this morning by U.S. District Judge William T. Lawrence to 60 months in federal prison after pleading guilty to ten counts of bank fraud, three counts of wire fraud, and two counts of tax fraud. Van Natta was also ordered to pay $6,977,470 in restitution to his victims. Today’s hearing follows Van Natta’s 2012 indictment for operating a scheme that defrauded local Indiana banks of more than $10 million over two years.
“This criminal scheme was fueled by greed and left behind a trail of victims across the Hoosier State,” Hogsett said. “As Mr. Van Natta learned today, embracing such a culture of corruption doesn’t pay. You will be caught, and you will be brought to justice.”
Van Natta was the president and manager of the Seymour-based Van Natta Asset Management, LLC, along with a variety of related companies. The company was involved in commercial and residential real estate projects, as well as the aviation business.
Beginning in March 2007 and continuing until 2009, Van Natta devised a scheme to defraud financial institutions, obtaining large sums of money under false pretenses. Van Natta accomplished this by preparing and submitting numerous false documents to banks throughout central and southern Indiana, including local financial institutions headquartered in Bartholomew, Decatur, Washington, Morgan and Monroe Counties.
By using these false documents, including fraudulently-created tax returns that hid the true income and financial affairs of Van Natta’s family members, the defendant was able to secure a number of substantial loans from the financial institutions for a variety of purposes. These loans included $3.8 million for a property in Evansville, $2.1 million for multiple properties in Seymour, and $3.1 million for a variety of properties in Fort Wayne. Loans were also taken out to purchase a 1970 Cessna Aircraft ($100,000), and a 2007 Fantasy Yacht ($550,000).
In addition, Van Natta defrauded a resident of Utah by falsely claiming that he was the owner of an aircraft that the defendant had listed for sale. Van Natta then accepted thousands of dollars from the individual, ostensibly for the purchase and upgrade of the aircraft. At no time did Van Natta actually own the aircraft in question, nor was it ever delivered to the individual as per the purchase agreement.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney MaryAnn Mindrum, who prosecuted the case for the government, Van Natta was ordered to pay full restitution to his victims, and must serve 5 years of federally-supervised release at the end of his prison term. The federal government has filed its intention to seize Van Natta’s assets that were attained through criminal activity. This prosecution was the result of a collaborative investigation involving the Federal Bureau of Investigation and the Internal Revenue Service.
Grand Jury Indicts Former Executive at Collin Street BakeryRead the Press Release
Defendant Sandy Jenkins, Who Allegedly Embezzled More Than $16 Million From the
Bakery, is Charged With 10 Counts of Mail FraudDALLAS — A federal grand jury returned an indictment late yesterday charging Sandy Jenkins, 64, of Corsicana, Texas, with 10 counts of mail fraud stemming from his alleged embezzlement of approximately $16 million from his former employer, the Collin Street Bakery (Bakery) in Corsicana. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jenkins served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. On June 21, 2013, Jenkins was terminated after the Bakery discovered the alleged fraud.
In particular, according to documents filed in the case, Jenkins caused Bakery checks to be written to his personal creditors and then manipulated the Bakery’s computerized accounting system to show that the checks had been voided. To keep the Bakery’s books in balance and further disguise his fraudulent activity, Jenkins created checks in the Bakery’s accounting system purporting to go to an approved vendor in the same amounts as the checks to his personal creditors. The checks to Jenkins’s personal creditors were used to bankroll a lavish lifestyle that included a house in Santa Fe, New Mexico, 43 luxury automobiles, frequent travel on private planes and a watch and jewelry collection worth approximately $3 million.
The indictment alleges that between 2005 and 2013, Jenkins caused approximately 888 fraudulent checks to be written on the Bakery’s account and mailed to Jenkins’s personal creditors, resulting in losses to the Bakery of approximately $16,649,786.00.
The investigation regarding assets is ongoing. Restitution to the victim is mandatory upon conviction in this case. The United States has various civil and criminal forfeiture and restitution collection remedies at its disposal, and makes its best efforts to maximize recovery for victims of crime. As a legal and practical matter, the seizure and liquidation of assets may be a lengthy process due to various laws that affect the rights of third parties.
The investigation is being conducted by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.
(Download Factual Basis)
Gavin SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson sentenced JEANNE L. GAVIN, age 62, of Baton Rouge, Louisiana, to 12 months imprisonment, 12 months of supervised release following imprisonment, and a fine of $20,000. The sentence results from the defendant’s convictions for exceeding authorized access to a government computer, in violation of Title 18, United States Code, Section 1030, and engaging in a criminal conflict of interest, in violation of Title 18, United States Code, Section 205.
The defendant’s convictions stem from actions she took while serving as a Supervisory Internal Revenue Agent and Group Manager in the Baton Rouge office of the Internal Revenue Service. In that role, the defendant supervised approximately ten revenue agents responsible for determining federal tax liability and collecting taxes for individual, partnership, and corporate taxpayers.
The defendant admitted that, while working for the IRS, she engaged in a criminal conflict of interest with her IRS employment by owning and operating a private tax and accounting business which generated over $70,000. The defendant further admitted to using her position as an IRS Manager to improperly cause subordinates to access IRS databases on over 2000 occasions for the benefit of her private tax and accounting business.
Acting U.S. Attorney Green stated, “My office, together with our federal, state, and local partners, will continue to aggressively pursue instances of public corruption wherever found. Public confidence in our governmental institutions, particularly those agencies entrusted to tax collection, is vitally important. The criminal acts of a few undermine such confidence, while overshadowing the honest efforts of the vast majority of public servants. My great appreciation to the Office of Treasury Inspector General for Tax Administration (TIGTA) who worked tirelessly with our office and the Federal Bureau of Investigation (FBI) in this important matter.”
Inspector General J. Russell George of TIGTA stated, “As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: TIGTA will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the law.”
This matter was investigated by this office, TIGTA, and the FBI. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Fort Thompson Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Kyle Marks, age 29, of Fort Thompson, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 9, 2013, and pled guilty to the Indictment that charged him with Failure to Register as a Sex Offender.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, a mandatory minimum period of 5 years of supervised release, an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Marks failed to register as a sex offender from May 2013 to June 11, 2013. He had initially been convicted in federal court in 2004 of abusive sexual contact with a child and was sentenced to prison as well as being required to register as a sex offender. After release from prison on his underlying charge, he had violations of his court ordered supervision, and remained under the court’s supervision until this year. While placed at a treatment facility in Rapid City to try and help him successfully re-integrate into society, Marks absconded in May 2013 and failed to properly maintain his updated sex offender registry requirements. Marks fled from authorities until he was apprehended on July 16, 2013.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Marks was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for September 25, 2013.Former State Senator Enters a Plea of Guilty to Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Brenda Council waived Indictment and entered a plea of guilty to a felony Information charging her with Wire Fraud. The plea was entered before the Honorable Lyle E. Strom, Senior United States District Court Judge, in Omaha. The Court ordered a presentence investigation and set sentencing for December 5, 2013.
The Information charged that Council, while a Nebraska State Senator, withdrew campaign funds and used those funds to place wagers at casinos in Kansas, Missouri and Oklahoma. Council misappropriated approximately $63,000 from her campaign funds between January 2010 and July 2012.
Council solicited campaign contributions from individuals and businesses to facilitate her election and re-election to the Unicameral. Periodic campaign statements accounting for contributions and expenses were filed with the Nebraska Accountability and Disclosure Commission. The periodic campaign statements were false in that they failed to account for the electronic transfer of funds at various casinos for the purpose of wagering.
During the calendar years 2010 and 2011 Council placed wagers at casinos in Kansas, Missouri and Oklahoma. Using an ATM card drawing off her election campaign account, she would withdraw campaign funds from her bank account in Nebraska. Withdrawals would be made from ATM machines in or near the casinos in Kansas, Missouri and Oklahoma. The electronically withdrawn funds would then be used to wager at the casinos.
Council entered into a plea agreement with the United States. The plea agreement contains a provision wherein the parties agree that the appropriate sentence is a term of probation. Should the Court accept the plea agreement the Court must impose a sentence of probation. The Court retains the discretion to set the length and terms of probation and impose a fine within the statutory limits. The Court may also order restitution.
United States Attorney Deborah R. Gilg expressed her appreciation to the Federal Bureau of Investigation for their investigation. Ms. Gilg noted that the felony charge is an appropriate disposition that highlights the serious nature of her actions. Ms. Gilg further noted that Council violated the public trust through her misuse of campaign contributions.Former South Pittsburg, Tenn., Mayor and Co-conspirator Plead Guilty to Conducting Illegal Gambling BusinessRead the Press Release
A former mayor of South Pittsburg, Tenn., and a co-conspirator pleaded guilty today in Chattanooga, Tenn., to conducting an illegal gambling business, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Kenneth Moore of the FBI’s Knoxville, Tenn., Field Office.
Former South Pittsburg Mayor James Michael Killian, 56, and Robert Barry Cole, 53, both of South Pittsburg, pleaded guilty today before U.S. District Judge Curtis L. Collier in the Eastern District of Tennessee to criminal informations charging them each with one count of conducting an illegal gambling business.
According to court documents, Killian was mayor of South Pittsburg from 2005 until 2012. During that time, Killian conducted a gambling operation that involved video gambling machines located at a convenience store he owned in South Pittsburg. Killian also managed an “outlaw” lottery, in which bettors placed illegal bets on legal state lotteries.
In addition, Killian ran an illegal sports betting ring in partnership with Cole. Cole received sports bets, collected wagers and paid successful bettors their winnings, and Killian and Cole split the proceeds of the operation.
At sentencing, scheduled for Jan. 9, 2013, Killian and Cole both face up to five years in prison and a $250,000 fine. Killian is subject to criminal forfeiture of $38,475, four computers and 12 video gambling machines. Cole is subject to criminal forfeiture of $19,020, a ring appraised at $17,500 and two computers.This case is being prosecuted by Trial Attorneys Mark Angehr, Barak Cohen and Peter Sprung of the Criminal Division’s Public Integrity Section and is being investigated by the FBI.
Former Head of Boston Fbi Charged with Violating Criminal Ethics LawRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Michael E. Horowitz, Inspector General for the Department of Justice, today announced that a former Assistant Director of the Federal Bureau of Investigation’s Criminal Investigative Division has been charged with violating a federal ethics law that prohibits senior executive branch personnel from making professional contacts with the agency in which they were employed for one year after leaving government service.
In an Information that was filed today in U.S. District Court in Boston, KENNETH W. KAISER, 57, of Hopkinton, Mass., is charged with one count of making prohibited post-employment contacts. KAISER, a 27-year employee of the FBI, served as the Special Agent in Charge of the Boston office of the FBI from April 2003 through December 2006, and then as an Assistant Director at FBI Headquarters in Washington, D.C., until his retirement in July 2009.
According to the Information, on July 3, 2009, the same day that he retired from the FBI, KAISER was hired as a consultant by LocatePlus to handle an internal investigation regarding corporate wrongdoing by the company’s former Chief Executive Officer and Chief Financial Officer, and to help generate government sales for the company’s products and services. In March 2010, KAISER became a full-time employee of LocatePlus, holding the title Director of Government Sales. Beginning just 17 days after his retirement, KAISER had numerous prohibited electronic, telephonic and in-person contacts with FBI employees regarding a then-ongoing FBI investigation involving LocatePlus and the actions of its former executives. During the one-year ban period, KAISER also had prohibited contacts with FBI employees in an effort to gauge the FBI’s interest in LocatePlus’ products and services in an attempt to generate sales to the FBI.
As further alleged in the Information, in August 2009, KAISER was hired by a corporate executive living in Gloucester, Mass., who had received a threatening letter in the mail. Working on behalf of this individual, KAISER had additional improper contacts with the FBI Boston office.
If convicted, KAISER faces a maximum term of imprisonment of one year and a fine of up to $100,000.
This matter is being investigated by the Department of Justice Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Diane C. Freniere.
Acting U.S. Attorney Daly stressed that the details contained in the Information are allegations, and a defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Airline Executive Sentenced to Prison for Schemes to <br /> Defraud Illinois-Based Ryan International AirlinesRead the Press Release
A former executive of Ryan International Airlines, a charter airline company located in Rockford, Ill., was sentenced today to serve 87 months in prison and to pay restitution for participating in kickback schemes to defraud Ryan, the Department of Justice announced.
Wayne E. Kepple, the former vice president of ground operations for Ryan, was sentenced to serve 87 months in prison and to pay $529,998 in restitution. On Nov. 4, 2011, Kepple pleaded guilty in U.S. District Court in West Palm Beach, Fla., to three counts of conspiracy to commit wire fraud and honest services fraud and three counts of wire fraud. The charges against Kepple stem from a kickback scheme involving Robert A. Riddell, the former owner and operator of an airline security and ground service company, as well as separate kickback schemes involving David A. Chaisson, the former owner and operator of an Indiana flight management services company, James E. Murphy, the former owner and operator of a Florida aviation fuel supply company, and others.
Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government – including the U.S. Department of Defense and the U.S. Department of Homeland Security.
“Today’s sentence should serve as a stiff deterrent to executives who might be tempted to solicit a kickback from their supplies in exchange for their honest services,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “The Antitrust Division is committed to ensuring that contracts are won based on competition and not collusion.”According to court documents, Kepple was in charge of contracting with providers of goods and services on behalf of Ryan and approving the invoices submitted by the providers to Ryan for payment. From October 2005 through at least August 2009, Kepple participated in three separate conspiracies in which he received kickback payments of more than $520,000 from Riddell, Murphy, Chaisson and others in exchange for Kepple awarding them Ryan airline services and fuel contracts. According to court documents, the payments from Chaisson and Riddell included the proceeds of fabricated invoices submitted by their companies to Ryan.
As a result of the ongoing investigation, four individuals, including Kepple, have pleaded guilty and been sentenced to prison. On Oct. 28, 2011, Murphy was sentenced to serve 23 months in prison and to pay $42,500 in restitution and Chaisson was sentenced to serve 16 months in prison and to pay $50,742 in restitution. On Jan. 27, 2012, Riddell was sentenced to serve 24 months in prison and to pay $131,540 in restitution. Kepple’s 87-month sentence reflects his central role in multiple kickback schemes.
On Aug. 13, 2013, a fifth individual, Sean E. Wagner, and his company, Aviation Fuel International Inc. (AFI), a Florida-based airline fuel supply company, were indicted for participating in a conspiracy to defraud Ryan by making kickback payments to Kepple in exchange for awarding business to AFI. That case is ongoing.
The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General with assistance from the U.S. Attorney’s Office for the Southern District of Florida. Anyone with information concerning anticompetitive conduct in the airline charter services industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm.
Fifth Defendant Sentenced in Unemployment Insurance Fraud CasesRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana — United States Attorney David Capp announced today that since May 2013, as a result of an investigation conducted by the United States Department of Labor-Office of the Inspector General and the Indiana Department of Workforce Development, the United States Attorney’s Office for the Northern District of Indiana has prosecuted and convicted five (5) individuals who fraudulently collected government funds in the form of unemployment insurance benefit payments from the State of Indiana.Assistant United States Attorney Barbara Brook handled these prosecutions for the United States Attorney’s Office.
Christina Glen, 43, of LaPorte, Indiana, was sentenced today by District Judge Robert Miller, Jr. to two years of probation and $15,210.00 in restitution after pleading guilty to the felony offense of theft of government funds.
According to documents filed in this case, Glen and four (4) other individuals fraudulently collected government funds in the form of unemployment insurance benefit payments from the State of Indiana.These individuals worked for the same company in Michigan City, Indiana and, while they received wages, fraudulently applied for and received these benefit payments to which they were not entitled. The total amount of restitution to be paid to the State of Indiana by each defendant ranged from $15,000 - $25,000, but collectively amounted to $97,523.
Previously convicted in this investigation were:
Keith Galassi, 33, of Michigan City, Indiana was sentenced May 28, 2013 to 2 years of probation and restitution of $15,210 after pleading guilty to theft of government funds.
Deandre Grant, 36, of Michigan City, Indiana was sentenced June 17, 2013 to 3 years of probation with 6 months of home detention and restitution of $19,657 after pleading guilty to theft of government funds.
Terry Smith, 33, of Michigan City, Indiana was sentenced June 21, 2013 to 3 years of probation and restitution of $18,330 after pleading guilty to theft of government funds.
Leon Thomas, 38, of Lynwood, Illinois was sentenced April 4, 2013 to 2 years of imprisonment after pleading guilty to aggravated identity theft.Thomas worked and collected unemployment insurance benefit payments at the same company in Michigan City under a stolen identity.
Fairfield Man Charged with Possessing Stolen FirearmsRead the Press Release
Chance W. Young, 29, of Fairfield, Illinois, has been charged in United States District Court in Benton with possessing stolen firearms knowing or having reasonable cause to believe they were stolen, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on September 4th, alleged that Young possessed two stolen firearms from on or about June 30th to July 1st, in Wayne County. Those firearms had allegedly been taken from a rural Wayne County home during a residential burglary occurring that weekend.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Young faces up to 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Following his initial appearance today in United States District Court in Benton, Young was ordered held without bond and remanded to the custody of the United States Marshal to await further proceedings. Young’s next scheduled court appearance is November 5th at 9:30 a.m. for a final pre-trial conference at the Federal Courthouse in Benton.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Essex County, N.J., Man Charged with Eight Bank Robberies; Girlfriend Charged with Conspiracy to Commit Two Bank RobberiesRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man made his initial court appearance today in connection with his alleged role in eight bank robberies that took place between Nov. 20, 2012, and Sept. 11, 2013, U.S. Attorney Paul J. Fishman announced.
Andrew Thomas, 32, of Newark, is charged by complaint with eight counts of bank robbery. His girlfriend, Jennifer Pinto, 32, also of Newark, is charged with conspiring to commit two of the eight bank robberies. Both made their initial court appearances today before U.S. Judge Joseph A. Dickson in Newark federal court.
According to documents filed in this case and statements made in court:
Thomas is allegedly responsible for a bank robbery spree that spanned several months and four counties in New Jersey and which included seven bank robberies and one attempt. Pinto is charged in the same complaint with two counts of conspiracy to commit bank robbery in connection with two of the eight bank robberies for which Thomas is charged.
Thomas robbed or attempted to rob eight banks on eight separate dates between November 2012 and September 2013. Thomas robbed the following banks on the following dates:Nov. 20, 2012
Wells Fargo Bank
550 Broad Street
NewarkInvestors Savings Bank
946 Amboy Avenue
Edison, N.J.May 3, 2013
Investors Savings Bank
56 Westfield Avenue
Clark, N.J.May 30, 2013
Garden State Community Bank
1162 Green Street
Iselin, N.J.June 6, 2013
JP Morgan Chase Bank
60 Stirling Road
Watchung, N.J.July 30, 2013
Wells Fargo Bank
550 Broad Street
NewarkAugust 10, 2013
Garden State Community Bank
310 North Avenue
Cranford, N.J.Sept.11, 2013
Lusitania Savings Bank
1135 Liberty Avenue
Hillside, N.J.In several of the bank robberies, Thomas allegedly wore similar clothes and used similar tactics in robbing the bank. In all but two of the bank robberies, Thomas allegedly pointed what appeared to be either a silver or black handgun directly at the victim bank tellers and verbally demanded money. Thomas also wore either a black V-neck shirt or blue button down shirt in several of the robberies. Pinto is charged with conspiring to commit the bank robberies in Watchung and Cranford on June 6, 2013, and August 10, 2013, respectively. In each of those bank robberies, Pinto allegedly assisted Thomas by driving him to and from the bank robberies.
Each count of bank robbery with which Thomas is charged carries a maximum penalty of 20 years in prison and a fine of $250,000. He was detained.Each count of conspiracy with which Pinto is charged carries a maximum penalty of five years in prison and a fine of $250,000. She was released on $100,000 bond.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford. He also thanked the Newark, Edison, Clark, Woodbridge, Watchung, Cranford, and Hillside police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel:
Thomas: Linda Foster Esq., Assistant Federal Public Defender, Newark
Pinto: Roy B. Greenman Esq., Union, N.J.Thomas, Andrew Complaint
Englewood Woman Sentenced to 28 Months in Federal Prison for Failure to Pay over $4.7 Million in Employment TaxesRead the Press Release
DENVER – Beth Ann Pettyjohn, age 61, of Englewood, Colorado, was sentenced yesterday by U.S. District Court Judge William J. Martinez to serve 28 months in federal prison for failure to pay over employment tax, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Following her prison sentence, Pettyjohn was ordered to spend 3 years on supervised release. Judge Martinez also ordered her to pay $4,669,532.05 in restitution to the IRS, as well as a $25,000 fine.
Pettyjohn waived her right to be indicted by a federal grand jury on January 17, 2013, and was charged by Information. According to the stipulated facts contained in the plea agreement, as well as the Information, Pettyjohn is the co-owner and vice president of Overhead Door Company of Denver (OHD). From September 2003 to June of 2009, Beth Ann Pettyjohn stopped paying over the payroll taxes (income taxes withheld & FICA) OHD withheld from employee wages as well as the matching portion of FICA totaling almost 4.7 million dollars owed to the IRS. Pettyjohn admitted that she knew she had a duty to pay over the amounts withheld from employee wages, but she told an IRS agent she failed to do so because the IRS was not beating down her door. Pettyjohn managed the accounting department at OHD and determined which bills were paid, and then issued and signed the related checks. Pettyjohn has a bachelor's degree in business with a major in accounting, and she has an inactive CPA license issued by the State of Colorado. During the relevant years, the defendant employed both hourly and salaried employees.
During the period in question and for many prior years, Pettyjohn and her husband lived in a home valued at over $1 million dollars. Between 2005 through 2007, Pettyjohn received wages from OHD averaging approximately $133,000 per year. Also, after Mrs. Pettyjohn stopped paying over the payroll taxes at OHD, she purchased pieces of real estate. In August of 2007, Mr. and Mrs. Pettyjohn purchased a condominium in Gypsum, Colorado for $349,900 with a $100,000 down payment. In 2009, Pettyjohn paid $285,000 in cash to purchase her son's condominium in suburban Denver. The condo was resold to an unrelated party a few months later.
“Tax fraud is not a victimless crime,” said U.S. Attorney John Walsh. “The taxpayers and the employees of the defendant are victims, and when someone commits this crime not only do they have to pay the taxes to the IRS, they also face prison time.”
“Employers who fail to remit employment taxes are victimizing legitimate businesses by creating an unfair competitive advantage over those businesses that lawfully pay their share of employment taxes,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “As this sentence demonstrates, there are real consequences for committing employment tax fraud.”
This case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Matt Kirsch.
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Eleven Defendants Sentenced to Imprisonment for Bristol Crack Cocaine ConspiracyRead the Press Release
ABINGDON, VIRGINIA-- United States Attorney Timothy J. Heaphy announced today that 11 members of a crack cocaine distribution conspiracy have been sentenced to prison in the United States District Court for the Western District of Virginia in Abingdon.
On September 10, 2013, Ashanti Rhan Henry, 36, Knxoville, Tenn., was sentenced thirty years imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
Ten members of the conspiracy have also previously been sentenced to terms of imprisonment:
Summer Shoulders, 21, of Bristol, Va., was sentenced to three years and one month imprisonment following her earlier plea of guilty to one count of possession with the intent to distribute 28 grams or more of cocaine base.
Marcus Stines, 21, of Bristol, Va., was sentenced to ten years imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
Orrett Ordine Anderson, 37, of Mt. Vernon, N.Y., was sentenced to ten years imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
Karen Jade Nicole Miller, 27, of Bristol, Va., was sentenced to five years imprisonment following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
Kedrick Jamel Harris, 26, of Bristol, Tenn., was sentenced to ten years imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
Bredgette Dewan Shaw, 24, of Bristol, Va., was sentenced to three years and six months imprisonment following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
Jason Troy Pritchard, 36, of Bristol, Va., was sentenced to three years and six months imprisonment following his earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
James Carl Almaroad, 32, of Bristol, Va., was sentenced to three years and six months imprisonment following his plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
Jamie Lynn Stover, 36, of Bristol, Va., was sentenced to three years imprisonment following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
Brittany Nicole Finch, 24, of Bristol, Va., was sentenced to three years and six months imprisonment following her earlier plea of guilty to one count of conspiracy to distribute 280 grams or more of cocaine base.
According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary Lee, Ashanti Rhan Henry, a previously convicted drug trafficker, supplied the Bristol, Virginia and Tennessee areas with large quantities of crack cocaine from sources in Knoxville, Tennessee and New York which was then distributed by other members of the conspiracy. More than 30 controlled purchases of crack cocaine were made from Henry and other members of the conspiracy and five search warrants were executed during the multi-year investigation by local, state and federal law enforcement. On March 25, 2012, a search warrant was executed by law enforcement at an apartment in the Rice Terrace apartment complex in Bristol, Virginia and Henry, Shoulders, and Finch were found to be in possession of more than two ounces of crack cocaine.
The investigation of this case was conducted by the Bristol, Virginia Police Department, Washington County, Virginia Sheriff’s Office, Bristol, Tennessee Police Department, Virginia State Police, Sullivan County Sheriff’s Department, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshals Service. The Washington County, Virginia Commonwealth’s Attorney’s Office, City of Bristol, Virginia Commonwealth’s Attorney’s Office, and the Sullivan County District Attorney’s Office also assisted in the investigation. Assistant United States Attorney’s Zachary T. Lee of the United States Attorney’s Office in Abingdon is prosecuting the case.
Eagle Butte Man Charged with Second Degree MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury.
Jared Slader, age 30, was indicted on September 10, 2013, for Second Degree Murder. Slader appeared before U.S. Magistrate Judge Mark A. Moreno on September 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years up to life of imprisonment and/or a $250,000 fine, 5 years of supervised release, an additional 5 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Slader is presumed innocent until and unless proven guilty.
The Indictment alleges that on August 31, 2013, Slader did unlawfully, and with malice aforethought, kill Lester Peneaux by stabbing him with a knife.
The investigation is being conducted by the Federal Bureau of Investigation and Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Slader was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Dos Arrestados En Esquema De Rescates De Ejecucion Hipotecaria Que Continuo Despues Del Arresto Y Encarcelacion De Su LiderRead the Press Release
SACRAMENTO, California — Tamara Teresa Tikal, de 43 años de edad, de Brentwood en el Contado de Contra Costa y Ray Jan Kornfeld, de 57 años de edad, de Las Vegas, fueron arrestados hoy por su participación en una estafa que ha defraudado a propietarios de viviendas por todo California y en otros lugares, anunciaron el Abogado de los Estados Unidos, Benjamin B. Wagner, y el Abogado Genral de California, Kamala D. Harris.
El miércoles, un gran jurado federal emitió un pliego acusatorio contra Alan David Tikal, de 45 años de edad, para añadir cargos contra él y acusar a su esposa, Tamara Tikal y Kornfeld, quienes alegadamente continuaron la estafa mientras él estaba en arrestado esperando por un juicio. El pliego acusatorio fue abierto hoy después de los arrestos.
Conforme a los documentos del tribunal, a principios de enero de 2010 Alan Tikal operó un esquema de estafa a gran escala de rescate de hipotecas al ofrecer eliminar las hipotecas de los dueños de propiedades y reemplazarlas con una deuda nueva con su compañía, KATN Trust. Él afirmaba que el préstamo nuevo sólo sería por el 25% del principal original. Las víctimas pagaron miles de dólares en cuotas por adelantado y luego le hicieron pagos regulares a él por sus nuevos préstamos. Tikal y sus subordinados les ordenaron a las víctimas no pagar sus hipotecas originales y que hicieran caso omiso de toda la correspondencia de los prestamistas originales. Esto tuvo como resultado que muchas de las víctimas perdieran sus casas mediante ejecución hipotecaria. Alan Tikal fue arrestado el 28 de septiembre de 2012 y acusado mediante pliego acusatorio por cargos de fraude de correo.
Luego de su arresto, las autoridades federales del orden público continuaron investigando el caso. En noviembre de 2012, la policía se enteró de que el esquema continuaba y registraron la oficina de KATN en Las Vegas, incautando múltiples computadoras y miles de documentos. Màs tarde este año, la policía se enteró que a pesar de estos esfuerzos, el esquema continuó con las víctimas propietarios de vivienda que siguieron haciendo pagos a la compañía de los acusados. Conforme al pliego acusatorio anterior, Tamara Tikal y Kornfeld habían tenido una función central en continuar operando el esquema. Un elemento significativo del esquema que continuó fue un caso de bancarrota en el Distrito de Nevada, presentado a nombre de Alan Tikal. Tikal ha nombrado la propiedad de muchos de sus clientes víctimas como su propiedad personal, evitando así que las instituciones financieras que tenían intereses en esas propiedades pudieran ejecutar las hipotecas. En total, el esquema de Tikal victimizó a màs de mil propietarios de viviendas, quienes habían pagado màs de $3.4 millones. De los propietarios de vivienda identificados, aproximadamente el 95 por ciento reside en California y por lo menos 185 residían dentro del Distrito del Este de California.
El Fiscal de los EE.UU., Wagner, dijo: “Procesar los casos de fraude hipotecario continúa siendo una de las prioridades màs importantes de esta oficina. Los que victimizan a los propietarios de viviendas cuando màs vulnerables estàn, cuando tienen el temor de que van a perder sus casas, son los estafadores hipotecarios màs deplorables. Continuaremos procesando sin descansar a los que participen en ese tipo de estafa.”
“A través de su alegado esquema fraudulento de alivio hipotecario, Tikal, su esposa y su co-conspirador Kornfeld se metieron al bolsillo màs de $3.4 millones en cuotas iniciales y pagos de ‘préstamo’ que hicieron los propietarios de vivienda que estaban teniendo dificultades para mantener un techo donde vivir”, dijo Christy Romero, Inspectora General Especial para TARP (SIGTARP). La petulancia de su alegada estafa que engañó a màs de 1,000 víctimas quedó demostrada por el mismo nombre de la entidad comercial, KATN Trust, que supuestamente es una abreviatura, por sus siglas en inglés, para “Pateando Traseros, Tumbando Cabezas”. Se alega que la estafa explotaba la ley de bancarrota como una manera de detener los procesos de ejecución hipotecaria por parte de los prestamistas hipotecarios, incluyendo a participantes de TARP. Muchos de los propietarios de vivienda que fueron engañados no hablaban inglés como su primer idioma. SIGTARP y nuestros socios del orden público investigaràn a fondo los alegatos de fraude relacionados con TARP y se aseguraràn de que los que lo cometen sean juzgados por sus delitos.”
“Mientras continúa la crisis de las ejecuciones hipotecarias, estamos viendo un alza en las estafas que se dirigen a los propietarios de vivienda que tienen dificultades”, dijo el Abogado General de California, Harris. “Estos depredadores les roban los ahorros de toda la vida y su porción del sueño americano a familias inocentes. Agradezco el buen trabajo que ha hecho el Grupo de Fuerza Operativa contra el Fraude Hipotecario de California y de nuestros colegas en el Departamento de Justicia de los EE.UU por resolver este caso.”
“Las estafas de rescates hipotecarios se aprovechan de los dueños de viviendas que estàn teniendo dificultades y se confían. El impacto de este tipo e delito es de extrema importancia”, dijo José M. Martínez, Agente Especial a Cargo de Investigaciones Criminales del IRS (IRS-CI, por sus siglas en inglés). “El fraude en la industria hipotecaria ha tenido una función importante en casi destruir la economía de esta nación. IRS-CI està comprometida con procesar a los que se llenan los bolsillos con ganancias producto de estos esquemas.”
Este caso es una acusación conjunta por la Oficina del Abogado General de los Estados Unidos para el Distrito del Este de California y la Oficina del Abogado General de California. Es producto de una investigación extensa por la Inspectora General Especial para el Programa de Alivio para los Activos en Dificultad (SIGTARP), el Servicio de Rentas Internas - Investigaciones Criminales, el Departamento de Justicia de California la Oficina del Abogado de Distrito del Condado de Stanislaus. El Abogado Asistente de los Estados Unidos, Philip Ferrari, y la Abogada General Auxiliar, Maggy Krel, son los fiscales del caso.
Tamara Tikal comparecerà al Tribunal hoy para leerle sus cargos y derechos. Se espera que traigan a Kornfeld a Sacramento en el futuro cercano. Alan Tikal tiene fecha de juicio programada para el 3 de febrero de 2014. Si se determina que son culpables, enfrentan una sentencia de hasta 30 años en prisión. Sin embargo, cualquier sentencia impuesta se determinarà a discreción del tribunal después de considera cualesquiera factores de sentencia mandados por estatuto y las Guías Federales de Sentencia, que toman en cuenta ciertas variables. Los cargos solamente son alegados pues se presume que los acusados son inocentes a menos que se les pruebe culpables màs allà de duda razonable.
Este caso se hizo en relación con el Grupo Operativo de Detección de Fraude Financiero que estableció el presidente de los EE.UU. El grupo operativo se estableció para poner en pràctica un esfuerzo enérgico para investigar y procesar los delitos financieros. Con màs de 20 agencias federales, 94 oficinas del abogado de los EE.UU. y los socios estatales y locales, es la coalición policíaca màs amplia que nunca hayan formado las agencias de investigación y regulación para combatir el fraude. Desde que se formó, el grupo operativo ha logrado avanzar mucho en facilitar las investigaciones y acusaciones de delitos financieros; mejorar la coordinación y cooperación entre las autoridades federales, estatales y locales; atender el discrimen en los mercados de crédito y financieros y establecer contacto con el público, las víctimas, las instituciones financieras y otras organizaciones. Para màs información, visite www.StopFraud.gov.
District Pediatrician Pleads Guilty to Possession of Child Pornography-Doctor Arrested After Search of His Office in May 2013-Read the Press Release
WASHINGTON – Robert Paul Dickey, 74, a pediatrician from Washington, D.C., pled guilty today to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dickey entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Robert L. Wilkins is to sentence him on Dec. 17, 2013. Dickey faces a maximum of 20 years of imprisonment, as well as a fine of $250,000. He also will be required to register as a sex offender for 15 years following his release from prison. Also, Dickey must forfeit a computer hard-drive that was seized by law enforcement during the investigation.
According to the government's evidence, on April 10, 2013, law enforcement received a “cyber tip” from the National Center for Missing and Exploited Children. That “cyber-tip” contained information that Dickey uploaded 14 images of child pornography using a Microsoft account.
Based on that “cyber-tip,” on May 8, 2013, law enforcement executed a search warrant on Dickey’s home office in Southeast Washington. Pursuant to that search warrant, law enforcement recovered various electronic devices. After a forensic review of those items, law enforcement recovered approximately 132 images of child pornography. Dickey was arrested on May 8, 2013, and has remained in custody ever since.
“Dr. Dickey was entrusted to care for the well-being of children, but he instead chose to collect images of their sexual exploitation,” said U.S. Attorney Machen. “Victims of child pornography are harmed when images of their abuse are swapped over the Internet for years, haunting the victims long after their initial abuse. We thank the National Center for Missing and Exploited Children and our law enforcement partners from the FBI and MPD for their vigilance on behalf of those victims.”
“Dr. Dickey was entrusted to care for our most precious resource, our children, but today he admitted to violating that trust by uploading child pornography to a shared website,” said Assistant Director Parlave. “The FBI will continue to actively investigate crimes against children and pursue those who victimize innocent children.”
“It is unthinkable that someone whose profession involved caring for children, would exploit children,” said Police Chief Lanier. “The Metropolitan Police Department and our local law enforcement partners are committed to bringing criminals who exploit the vulnerable to justice.”
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari
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Redbord, who is prosecuting the case.Director of Cleveland Non-Profit Sentenced to A Year in Prison for Tax ViolationsRead the Press Release
The director of a Cleveland non-profit organization was sentenced today to a year in prison and ordered to pay more than $237,000 in restitution for withholding taxes from employees but not paying them over to the government, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Edward G. Kramer, 62, pleaded guilty to a 10-count criminal information in U.S. District Court in June. In addition to not paying over taxes withheld from employees, Kramer admitted that he also evaded his personal income tax obligations when he falsified his income tax returns for two years and did not file a file return in two other years, according to court documents.
“Today’s sentence is a reminder that we all have an obligation to truthfully report our income and pay taxes,” Dettelbach said. “It is especially incumbent on those who work in our legal system to follow the law themselves.”
Kramer was director and chief counsel of Housing Advocates, Inc., a non-profit organization in Cleveland that received federal funding from the U.S. Department of Housing and Urban Development. Kramer also maintained a private law practice and owned a property leasing business called Remark, according to the information.
Kramer underreported his income for calendar years 2007 (underreported by $79,262) and 2008 (underreported by $101,571), the understatement consisting of unreported payments from Housing Advocates accounts for his benefit as well as unreported income from his private law practice, according to the information.
Kramer also failed to file income tax returns for 2009 and 2010, despite the fact that he had taxable income of approximately $149,884 in 2009 and $270,687 in 2010, according to the information.
Collectively, Kramer sought to avoid paying taxes on approximately $500,000 in income between 2007 and 2010, according to the information.
Kramer was responsible for collecting, accounting for and paying over quarterly to the Internal Revenue Service income and FICA taxes on behalf of Housing Advocates, Inc. The organization deducted and collected the required taxes from the wages of its employees but Kramer willfully failed to pay over the taxes, according to the information.
The taxes collected but not paid over from January 2009 until September 2010 total nearly $80,000, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Housing and Urban Development – Office of Inspector General.