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12 November 2013
Former School Counselor Sentenced to Prison for 30 Years for Sexually Exploiting MinorsRead the Press Release
BOISE — U.S. Attorney Wendy J. Olson announced that Mark Alan Saltzer, 46, of Boise, Idaho, was sentenced today in United States District Court to 360 months in prison, with credit for time served. Saltzer pleaded guilty in July 2013 to sexual exploitation of children by producing sexually explicit images of minors. In his plea agreement, Saltzer admitted producing sexually explicit videos of 11 different minors between April 2006 and April 2012. Chief U.S. District Judge B. Lynn Winmill also ordered Saltzer to be on supervised release for 20 years and pay a $10,000 fine. Prior to sentencing, Saltzer paid $50,000 in lieu of forfeiting his home, where the offense occurred.
Saltzer was arrested on August 17, 2012, at his home after federal investigators served a search warrant. Two minor boys, who were not related to Saltzer, were at the residence at the time. According to the plea agreement, Saltzer admitted to repeatedly sexually molesting one of the youths at his home beginning in the summer of 2012. It was disclosed during the sentencing proceedings that Saltzer was aware that the youth was a previous victim of sexual abuse and was at high risk to become victimized again. Saltzer was a counselor at Meridian Middle School when he met the youth. During the hearing it was also disclosed that Saltzer admitted to having five previous hands-on victims with ages ranging from 13 to 17 years, the first occurring when Saltzer was 21. Saltzer previously worked as a counselor in the Marsing and Caldwell school districts, and also as a counselor for sex offenders and victims of abuse at the Idaho Youth Ranch and at a treatment program in Ontario, Oregon.
According to court documents, the investigation into Saltzer’s activities began in October 2010, when the U.S. Postal Inspection Service, in conjunction with Toronto Police Services in Canada, initiated an investigation into a private Internet group established by members to communicate with one another about their shared sexual interest in young boys, and to exchange child pornography. Members of the group regularly traded child pornography files with other group members.
The group existed under various names for approximately 15 years. According to court documents, Saltzer had been a member of the group for more than a decade. Participants in the group resided in Idaho, New York, Virginia, Florida, Texas, Indiana, California, Pennsylvania, Canada, Lebanon, and Mexico, among other places.
According to the plea agreement, Saltzer admitted meeting boys between the ages of 10 and 17 in Internet chat rooms and engaging them in webcam sessions during which he encouraged them to masturbate. Saltzer used Skype and recorded webcam footage of the teenage boys performing sexual acts. He further admitted to using special software that allowed him to import a video of a child about 14 years old masturbating, and showing the video to the boy so it appeared that he was chatting with another teenager, instead of an adult.
According to the plea agreement, Saltzer also admitted that between 2006 and 2012, he produced sexually explicit videos of numerous boys between the ages of 11 and 17. Some of the videos he produced were distributed worldwide, according to the National Center for Missing and Exploited Children.
“Those who victimize children by producing and distributing images of children being sexually abused will be identified, investigated and prosecuted to the fullest extent of the law,” said Olson. “When it comes to crimes that target society’s most vulnerable members, we will not let boundaries or agency affiliation interfere with the work that must be done. Mr. Saltzer’s prison sentence sends the strong message that local, state, federal and international law enforcement agencies will work together in an efficient and coordinated manner to bring these predators to justice.”
The case was investigated by U.S. Postal Inspection Service inspectors from Boise, Seattle and Washington, D.C., and the Indiana State Police. The Boise Police Department, Meridian Police Department, and Idaho State Police assisted locally. Saltzer was originally charged by the Ada County Prosecuting Attorney; those charges were dismissed in August after Saltzer pleaded guilty in federal court.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Former Resident of Orange, CA Convicted of Scheme to Defraud Religious Order of Roman Catholic SistersRead the Press Release
SANTA ANA - Linda Rose Gagnon, also known as Linda Gualtieri-Gagnon, age 59, a former resident of Orange, CA, was convicted today by a jury on three counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343. Ms. Gagnon’s trial occurred before the Hon. Andrew J. Guilford in the Ronald Reagan Courthouse of the Central District of California.
The jury found that Ms. Gagnon executed a scheme to defraud the U.S. Province of the Religious of Jesus and Mary (“RJM”), an order of Roman Catholic Sisters devoted to educational and charitable work, out of $285,000, which the RJM had set aside for the care of elderly and infirm Sisters. According to the evidence, Gagnon represented that she was an expert in handling short sale and foreclosure transactions and offered to assist RJM buy a small home in San Diego for use by retired and infirm Sisters.
The evidence presented at trial demonstrated that, contrary to her promises, Gagnon did not use the RJM’s funds to purchase the retirement home for the Sisters. Instead, Gagnon used the funds to pay for her personal expenses and to fund the unprofitable operations of her real estate finance company, Rose Enterprise, Inc. After only 64 days, Gagnon spent the entire sum of the RJM’s $285,000. The evidence showed that Gagnon used the RJM’s funds for Gagnon’s personal expenses, including travel, lingerie, groceries, manicures, hair dressing, restaurants, lease payments for an Audi TT sports car, and valet pet-sitting services for her dog. The RJM monies were also used to pay salaries, office rent, and supplies for Rose Enterprise, Inc.
After stringing out RJM for months and not disclosing her fraudulent misappropriation of RJM’s funds, Gagnon asked RJM for another $285,000 to buy the San Diego residence, falsely representing that she needed the additional funds because RJM’s original $285,000 was tied up in a “triple escrow” on another property.
Ms. Gagnon’s sentencing date is scheduled for February 24, 2014, at 3:00 p.m. The maximum penalty for Ms. Gagnon is 60 years in prison, 20 years for each count charged.
The case was investigated by the Federal Bureau of Investigation.
Release No. 13-128
Former NSA Subcontractor Pleads Guilty to Making False StatementsRead the Press Release
AUGUSTA, GA: Allison Michelle Waddell, 33, of Beech Island, South Carolina pled guilty last week to information charging her with making false statements, in violation of 18 U.S.C. § 1001. The false statements concerned the number of hours she worked for a National Security Agency (“NSA”) subcontractor. In total, Waddell claimed she worked almost 750 more hours than she actually did, which caused the government to pay out $60,000 more than was actually owed.
According to the evidence presented during the guilty plea hearing, Waddell worked as an analytic reporter for an NSA subcontractor from August 2009 through October 2010 and again from October 2011 to September 2012. During those time periods, Waddell submitted numerous timesheets falsely stating the number of hours she had worked.
United States Attorney Edward J. Tarver said, “False claims submitted to our United States Government for payments not owed is theft and should be punished to the full extent of the law. Americans cannot afford, and can no longer turn a blind eye to, this type of corruption. The number one priority of the United States Attorney’s Office is the protection of the American people.”
Waddell faces a maximum penalty of 5 years in prison and a $250,000.00 fine. In addition, the Court can order Waddell to pay full restitution. As part of her plea agreement with the government, Waddell has already paid $10,000.00 toward restitution.
NSA Office of Inspector General Investigators Kristen M. McGrath and Robert L. Gaskill and Paul A. Tarnuzzer, an agent with the Defense Criminal Investigative Service, conducted the investigation which led to the information and plea. Assistant United States Attorney C. Troy Clark is the prosecutor in this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Employee of Defense Contractor and Wife Plead Guilty to Conspiring to Defraud Millions in Scheme Involving Supplies to Afghan National ArmyRead the Press Release
ALEXANDRIA, Va. – Keith Johnson, 46, and his wife, Angela Johnson, 44, of Maryville, Tennessee, pleaded guilty today to conspiracy to commit wire fraud.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office; John Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement after the pleas were accepted by United States District Judge Leonie M. Brinkema.
The Johnsons were indicted on July 16, 2013, by a federal grand jury on conspiracy to commit wire fraud and wire fraud charges. Keith Johnson faces a maximum penalty of 20 years imprisonment and Angela Johnson faces a maximum penalty of 5 years imprisonment when they are sentenced on February 14, 2014.
In a statement of facts filed with the plea agreement, Keith Johnson admitted to serving as the Program Manager for a Department of Defense contractor that operated a Central Maintenance Facility (CMF) in Kabul, Afghanistan and other facilities in that country to maintain and repair vehicles used by the Afghan National Army. In his position during 2007-2008, Keith Johnson was involved in purchasing vehicle parts from vendors. The Johnsons formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed. Angela Johnson operated the company. When Keith Johnson’s company solicited quotes for different vehicle parts that were needed, Angela Johnson, using her maiden name of “Angela Gregory” to conceal her relationship to Keith Johnson, responded with quotes based on parts that she was able to purchase from other vendors of vehicle parts. Keith Johnson used his position as Program Manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotes, and in instances in which there had been competitive quotes, approving recommendations that the awards be made to MLS.
The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to Keith Johnson’s company to have Keith Johnson similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings. Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor. Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons, so that MLS could win competitions for certain purchase orders. Eisner and Kieffer previously pleaded guilty to conspiracy and will be sentenced on December 18, 2013.
As a result of the scheme, Keith Johnson’s company awarded MLS at least $9.7 million worth of purchase orders for vehicle parts by Keith Johnson’s company.
This case was investigated by DCIS, the FBI, SIGAR, and Army MPFU. Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section, who is also a Special Assistant U.S. Attorney for the Eastern District of Virginia, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Employee at Ft. Meade Youth Center Charged with Sexually Abusing A MinorRead the Press Release
U.S. Attorney Warns that “Parents Must Be Relentless About Reading Children’s Text Messages and Checking Their Social Media Accounts”
Baltimore, Maryland - Anthony Dennis Williams II, age 27, of Severn, Maryland, a former employee at the Fort Meade Youth Center, was arrested today, on charges of sexually abusing a minor.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the U.S. Army Criminal Investigation Command.“Parents must to be relentless about reading children’s text messages and checking their social media accounts,” said U.S. Attorney Rod J. Rosenstein. “Keep your children’s passwords, read all of their incoming and outgoing messages, and take immediate action if they send or receive inappropriate messages.”
According to the affidavit filed in support of the criminal complaint, Williams worked at the Fort Meade Youth Center where he was a Child Youth and School-aged Services (CYSS) employee. Williams also taught a program at CYS called Passport to Manhood (P2M) which was a life course for juvenile males attending CYS. The criminal complaint alleges that in 2010 and 2011, while working at CYS, Williams sexually abused two minor males. According to the complaint, Williams communicated with the males through social media sites and text messages. Williams engaged in sexually explicit conversations with the victims and exchanged sexually explicit photographs and videos with the minor males.
The investigation is continuing.
Williams faces a maximum sentence of 15 years in prison for sexual abuse of a minor. An initial appearance is expected to be scheduled for tomorrow in U.S. District Court in Baltimore. Williams is detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and Army CID for their work in the investigation and thanked the Citrus County, Florida Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who is prosecuting the case.
Former El Paso County Assistant District Attorney Indicted by Federal Grand Jury in Connection with Bribery SchemeRead the Press Release
In El Paso, FBI agents arrested a former El Paso County Assistant District Attorney Antonio Reyes based on a federal grand jury indictment charging with conspiracy to commit wire fraud and the deprivation of honest services announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
The indictment, returned on Wednesday and unsealed today, alleges that from March 30, 2011, until April 15, 2011, Reyes conspired with others through text messaging to accept cash bribes in exchange for dismissing pending criminal cases.
Upon conviction, Reyes faces up to 20 years imprisonment.
“The arrest of Mr. Reyes demonstrates the FBI’s unwavering commitment to the citizens of El Paso that we will vigorously investigate allegations of public corruption in our community and bring those responsible to justice. The citizens of this community deserve to have a sense of confidence that their tax dollars are being spent efficiently for the public good and not for the private enrichment of those in a position of trust,” stated FBI Special Agent in Charge Douglas E. Lindquist.
This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation. Assistant United States Attorney William F. Lewis is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former Defense Contractor Employee and Wife Plead Guilty to Conspiring to Defraud Millions in Scheme Involving Supplies to Afghan National ArmyRead the Press Release
Keith Johnson, 46, and his wife, Angela Johnson, 44, of Maryville, Tenn., pleaded guilty today to their roles in a $9.7 million procurement fraud scheme.
Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office; John Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement after the pleas were accepted by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia.
The Johnsons were indicted on July 16, 2013, by a federal grand jury on conspiracy to commit wire fraud and wire fraud charges. Keith Johnson faces a maximum penalty of 20 years in prison, and Angela Johnson faces a maximum penalty of five years in prison when they are sentenced on Feb. 14, 2014.
In a statement of facts filed with the plea agreement, Keith Johnson admitted to serving as the program manager for a Department of Defense contractor that operated a central maintenance facility (CMF) in Kabul, Afghanistan, and other facilities in that country to maintain and repair vehicles used by the Afghan National Army. In his position during 2007 to 2008, Keith Johnson was involved in purchasing vehicle parts from vendors. The Johnsons formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed. Angela Johnson operated the company. When Keith Johnson’s company solicited quotes for different vehicle parts that were needed, Angela Johnson, using her maiden name of “Angela Gregory” to conceal her relationship to Keith Johnson, responded with quotes based on parts that she was able to purchase from other vendors of vehicle parts. Keith Johnson used his position as program manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotes, and in instances in which there had been competitive quotes, approving recommendations that the awards be made to MLS.
The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to Keith Johnson’s company, to have Keith Johnson similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings. Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor. Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons so that MLS could win competitions for certain purchase orders. Eisner and Kieffer previously pleaded guilty to conspiracy and will be sentenced on Dec. 18, 2013.
As a result of the scheme, Keith Johnson’s company awarded MLS at least $9.7 million worth of purchase orders for vehicle parts by Keith Johnson’s company.
This case was investigated by DCIS, FBI, SIGAR and Army MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the Eastern District of Virginia are prosecuting the case on behalf of the United States.
Former Children’s Minister Sentenced to Ninety-Seven Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Derek M. Schwartzrock, 35, of Albuquerque, N.M., was sentenced this morning to 97 months in federal prison followed by a lifetime of supervised release for his child pornography conviction. Schwartzrock will be required to register as a sex offender after he completes his prison sentence.
Schwartzrock’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Pete N. Kassetas of the New Mexico State Police (NMSP).
Schwartzrock was arrested by HSI and the NMSP on April 3, 2013, on a criminal complaint alleging that he received and possessed child pornography in Bernalillo County, N.M. At the time, Schwartzrock was a children’s minister in an Albuquerque-area church. He has been in federal custody since his arrest. On April 24, 2013, Schwartzrock was indicted and charged with three counts of receipt of child pornography and two counts of possession of child pornography.
On July 9, 2013, Schwartzrock entered a guilty plea to Count 2 of the indictment charging him with receipt of child pornography. Schwartzrock acknowledged that HSI and NMSP executed a search warrant at his residence on April 3, 2013 and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by HSI in Philadelphia that began in Oct. 2012, and targeted individuals who used a photo-sharing website to possess, receive and distribute child pornography. HSI in Albuquerque began investigating Schwartzrock in mid-March 2013 after HSI in Philadelphia determined that an individual in Albuquerque was accessing the targeted website and learned that Schwartzrock was the subscriber for the IP Address that allegedly was used to download sexually explicit images of children.
Schwartzrock admitted voluntarily participating in a recorded interview on April 3, 2013. During the interview, he admitted that he began looking for images of naked boys, with a preference for elementary school aged children, several months earlier and that he downloaded child pornography images from the Internet. Schwartzrock also acknowledged that a forensic preview of his computers and computer-related media have uncovered over 12,000 images consistent with child pornography and child erotica.
“Child pornography offenses are terrible crimes that involve the sexual abuse and exploitation of the most innocent members of our communities,” said Acting U.S. Attorney Steven C. Yarbrough. “It is particularly distressing when those who work with children commit these crimes. Thanks to the vigilance of our law enforcement partners, Derek Schwartzrock will no longer be around children but instead will be going to federal prison.”“It is always disturbing to see a person who through their employment has been entrusted with our children is found guilty of these types of charges,” said NMSP Chief Kassetas. “The New Mexico State Police is fully committed to investigating those who would participate in the exploitation of our children through these types of images. This case is another example of how Homeland Security Investigations (HSI) and New Mexico State Police in cooperation with the United State Attorney’s Office are leveraging their resources to protect our children. Though I take great pride in NMSP’s involvement in this case, the citizens of New Mexico should understand that there is much more work to be done in combating the exploitation of children through the internet and NMSP is committed to continue these efforts.”
This case was investigated by the Albuquerque office of HSI, the NMSP and the New Mexico Regional Forensic Lab. It was prosecuted by former Assistant U.S. Attorney Charlyn E. Rees and Assistant U.S. Attorney Marisa A. Lizarraga 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/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Austin Area Woman Sentenced to Federal Prison for Identity Theft and Wire Fraud SchemeRead the Press Release
In Sherman, TX, this morning, Lynetta Mae Washington, formerly of the Austin area and current Denton, TX, resident, was sentenced to 63 months in federal prison for her role in an identity theft and wire fraud scheme announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCullough in San Antonio.
In addition to the prison term, United States District Judge Thad Heartfield ordered that Washington pay $407,448.62 restitution and be placed under supervised release for a period of five years after completing her prison term.
On November 28, 2012, Washington pleaded guilty to two counts of making false claims, one count of misuse of a Social Security Number and one count of wire fraud. By pleading guilty, Washington admitted that in January 2007, she fraudulently assumed the identities of her father-in-law and deceased mother to present the Internal Revenue Service with two falsified 2006 Income Tax Returns in which she claimed entitlement to a total of $5,730.00 in tax refunds. According to court records, Washington also knowingly submitted a written Renewal Application for Loan Officer License with the Texas Department of Savings and Mortgage Lending in which she fraudulently claimed her mother’s Social Security Number as hers in order for her license to be renewed. Furthermore, Washington admitted that while working as a loan officer on behalf of one or more mortgage companies from 2006 to 2009, she collected a fee for providing fictitious employment and income information on a mortgage application in order to secure the loan
This prosecution resulted from an investigation conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Texas Department of Public Safety. The matter was prosecuted by Assistant United States Attorney Ashley Hoff.
The case was transferred to the Eastern District of Texas from the Austin Division of the Western District of Texas for plea and sentencing due to the defendant’s residency. United States Attorney Robert Pitman is grateful for the valuable assistance provided by the United States Attorney’s Office for the Eastern District of Texas.
Five Columbia Men Indicted for Heroin TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five Columbia, Mo., men have been indicted, in three separate cases, on charges related to distributing heroin.
All of the defendants were charged in a series of indictments returned by a federal grand jury in Jefferson City on Thursday, Nov. 7, 2013.
USA v. Smith
Ravid Donald Smith, 49, Lemont Michael Livingston, 26, and Clifford Andrew Lake, 53, all of Columbia, were charged with one count of participating in a conspiracy to distribute 100 grams or more of heroin from Sept. 24 to Oct. 28, 2013.
The indictment replaces a federal criminal complaint that was filed against the defendants on Oct. 29, 2013. According to an affidavit filed in support of the complaint, police officers received information that Livingston acquired large quantities of heroin in St. Louis, Mo., and, along with Lake and Smith, distributed the heroin in the Columbia area.
On Oct. 28, 2013, the affidavit says, law enforcement officers received information that Livingston was returning from Chicago with a shipment of heroin. When Livingston arrived at his residence, where officers had conducted a controlled buy of $150 worth of heroin about a month earlier, he was immediately detained. A bag containing 200 grams of heroin was recovered from a backpack inside the BMW X5 driven by Livingston. Officers executed a search warrant at Livingston’s residence and found a stolen handgun, products known to be cutting agents for heroin and a drug ledger. Lake was present in the residence when officers served the warrant, and was also arrested.
After learning that Smith had returned to Columbia with a heroin shipment, the affidavit says, law enforcement officers used a cooperating source to make a controlled buy of heroin from him on the same day, and Smith was arrested.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.
USA v. Anderson
Markielle Avion Anderson, 26, of Columbia, was charged with one count of possessing heroin with the intent to distribute and one count of being a felon in possession of a firearm.
The indictment replaces a federal criminal complaint that was filed against Anderson on Oct. 8, 2013. According to an affidavit filed in support of the complaint, law enforcement officers used a cooperating source to conduct a controlled drug transaction on Oct. 7, 2013. When Anderson arrived, the affidavit says, he was arrested. Approximately 10 grams of heroin and a loaded Davis .380-caliber handgun were seized from Anderson’s vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Anderson has two prior felony convictions for driving with a revoked license.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mid-Missouri Drug Task Force, the Columbia, Mo., Police Department and the Jefferson City, Mo., Police Department.
USA v. Nesbitt
Laron Christopher Nesbitt, Jr., 19, of Calumet City, Ill., was charged with one count of possessing heroin with the intent to distribute.
The indictment replaces a federal criminal complaint that was filed against Nesbitt on Oct. 8, 2013. According to an affidavit filed in support of the complaint, law enforcement officers used a cooperating source to conduct a controlled drug transaction on Oct. 7, 2013. Officers arrested Nesbitt, whom the affidavit says had 12 grams of heroin in his pocket.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force, the Columbia, Mo., Police Department and the Jefferson City, Mo., Police Department.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.Federal Arrest and Search Warrants Served in Albany and Dawson, GeorgiaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that law enforcement officials with the Georgia Bureau of Investigation (GBI), Alcohol, Tobacco, Firearms and Explosives (ATF), Georgia State Patrol (GSP) Post 40, Albany Probation, and Albany Police Department served federal arrest warrants in Albany and Dawson, Georgia. In conjunction with the arrests, federal search warrants were also executed in Albany.These warrants stem from a two year narcotics investigation initiated by the ATF and GBI Sylvester with the assistance of the United States Attorney’s Office for the Middle District of Georgia. The investigation uncovered a major drug trafficking organization responsible for transporting multi kilograms of powder cocaine, crack cocaine, and firearms throughout the southwest Georgia area.
The following were arrested on federal arrest warrants and are in federal custody awaiting bond hearings scheduled on November 13, 2013:Toney Ricardo Mosley, age 44, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute;
Montravis Montez Luke, age 29, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute, Possession of a Firearm by a Convicted Felon;
Joe Lewis Guest III, age 26, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute; Timothy Lemond Johnson, age 41, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute;
Ontario Deshone Watson, age 40, of Dawson, GA, charged with Conspiracy to Possess with Intent to Distribute;
Darian Jay Gillison, age 36, of Albany, GA, charged with Conspiracy to Possess with Intent to Distribute;
Kenneth Fairbanks, age 39, of Dawson, GA, charged with Conspiracy to Possess with Intent to Distribute.
This investigation is an example of state and federal law enforcement agencies working together to make a positive impact in the local communities of southwest Georgia.
The case was investigated by the Georgia Bureau of Investigation (GBI), Alcohol, Tobacco, Firearms and Explosives (ATF), Georgia State Patrol (GSP) Post 40, Albany Probation, and Albany Police Department and is being prosecuted by Assistant United States Attorney Leah McEwenInquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Eleventh Circuit Affirms Convictions of White Supremacist Murderer of Two Homeless MenRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that the United States Court of Appeals for the Eleventh Circuit today affirmed the convictions of James L. Robertson on charges that he had murdered two homeless men to further his position in the white-supremacist hate group known as “Blood and Honor.” The bodies of Alfred Williams and Richard Arseneau were found in 1998, in Tampa, after both had been severely beaten and died from head trauma. Although authorities were unable to identify the perpetrators of the crimes at the time, newly discovered evidence, in early 2005, revealed that, on the night of the murders, Robertson and three others had sought out the victims, beaten them severely, and left them for dead.
All three of the other participants in the assaults pleaded guilty to related charges and testified at Robertson’s trial. They all identified Robertson as the primary instigator of the attacks and that Robertson had bludgeoned the men with a tire iron or similar instrument, inflicting multiple blows to the victims’ heads and bodies.
On appeal, Robertson argued that the district court had erred by refusing to permit him to strike one of only three African-American members from the jury pool, that his prosecution should have been barred by an alleged immunity agreement with the United States, and that the government had failed to present sufficient evidence of his participation in the murders or of the connection with his membership in the Blood and Honor organization. The United States Court of Appeals for the Eleventh Circuit rejected each of these arguments, finding sufficient evidence that Robertson had attempted to strike the African-American jury pool member for an unconstitutionally discriminatory reason, approving of the district court’s finding that Robertson had not been promised immunity from prosecution, and finding ample trial evidence proving both Robertson’s participation in the murders and the murders’ connection to his membership in the Blood and Honor organization.
Robertson is currently serving a sentence of life imprisonment.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Tampa Police Department, the Hillsborough County Sheriff's Office, and the Hillsborough County State Attorney's Office. The case was prosecuted in the district court by A. Lee Bentley, Acting United States Attorney, and former Assistant United States Attorney Laurel Moore Lee. The appeal was handled by Assistant United States Attorneys Linda Julin McNamara and David P. Rhodes.
Detroit Man Who Mailed More Than $38k Worth of Heroin to Dealers in Huntington Enters Federal Guilty PleaRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who mailed more than $38,000 worth of heroin to associates located in Huntington pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Zachery Jose Merritt, 30, pleaded guilty to conspiracy to distribute 100 grams or more of heroin before Chief United States District Judge Robert C. Chambers in Huntington.
Between September 2012 and June 2013, Merritt, also known as “Zane,” mailed quantities of heroin to associates located in Huntington. The heroin was later sold in Huntington for $125 per gram. Drug proceeds totaling $38,250 were deposited in Merritt’s bank account. Police said that the bank deposits were made to the defendant’s account in Huntington, though withdrawals, from the same account, were completed by Merritt in Detroit.During the conspiracy, Merritt also provided heroin to co-conspirator and Huntington resident, Lindsey Alyn Thacker. Thacker, also known as “Lindsey Webb,” 29, made approximately seven trips to Detroit between the summer of 2012 through June 20, 2013 to obtain heroin and crack cocaine from Merritt.
Also during the conspiracy, Thacker and her associate, Keith Eric Wood, 28, made their Huntington residence available to acquaintances for the purpose of storing and distributing heroin. Law enforcement officers conducted a search of the residence on June 20, 2013 and found approximately .3 grams of heroin and more than $1000 in cash.Thacker and Wood each pleaded guilty on Nov. 5 to maintaining a residence for the purpose of distributing heroin. Both defendants face up to 20 years in federal prison when they are sentenced on Feb. 18, 2014.
Merritt faces up to 40 years in prison when he is sentenced on Feb. 18, 2014.
The Huntington Violent Crimes and Drug Task Force conducted the investigations. Assistant United States Attorney Gregory McVey is in charge of the prosecutions.
Defendant Pleads Guilty in Manhattan Federal Court to Being an Organizer and Leader of an Illegal Sports Gambling BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HILLEL NAHMAD, a/k/a “Helly,” pled guilty today in Manhattan federal court in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. NAHMAD was charged in April 2013 in a 34-defendant indictment charging members and associates of two Russian-American organized crime enterprises with various crimes including racketeering, money laundering, extortion, and gambling offenses. He pled guilty before U.S. District Court Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Helly Nahmad headed an illegal sports gambling business with ties to a Russian-American organized crime ring. Nahmad bet that he would never get caught and he lost. His guilty plea today has dealt a substantial blow to this international enterprise.”
According to the Indictment, other documents filed in this case and statements made at various conferences in this case, including today’s guilty plea:
NAHMAD is the son of a billionaire art dealer from Europe, and he operates the Helly Nahmad Gallery out of the Carlyle Hotel in New York, New York. NAHMAD and defendant Illya Trincher ran a high-stakes illegal gambling business that catered primarily to millionaire and billionaire clients. Their business utilized several online gambling websites that operated illegally in the United States to generate tens of millions of dollars of sports bets each year. The gambling operation was financed through a host of American and international bank accounts, including accounts associated with NAHMAD, defendants John Hanson and Noah Siegel, a/k/a “The Oracle,” and a plumbing company in the Bronx that was acquired in repayment of a $2 million gambling debt. As part of his guilty plea, NAHMAD acknowledged that he was a leader and organizer of the illegal sports gambling business, that he was the primary source of financing for that business, and that he was entitled to a substantial share of its profits.
NAHMAD, 35, of New York, New York, faces a maximum sentence of five years in prison and three years of supervised release. As part of his plea agreement, NAHMAD agreed to forfeit $6,427,000.00 and all right, title and interest of the defendant in the painting Carnaval à Nice, 1937 by Raoul Dufy to the United States. NAHMAD is scheduled to be sentenced by Judge Furman on March 19, 2014 at 3:00 p.m.
NAHMAD is the 14th defendant in this case to plead guilty. The following defendants previously pled guilty and await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013; and
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office=s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office=s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Criminal Complaints Charge Matthew Schweitzer and Derek Wurth with Pair of Bank RobberiesRead the Press Release
Memphis, TNMatthew Schweitzer, 26, of Memphis and Derek Wurth, 25, were each charged in separate criminal complaints with one count of bank robbery, announced U.S. Attorney Edward L. Stanton III.
According to the facts alleged in the criminal complaints, on November 4, 2013, at approximately 1:43 p.m., a lone male entered the Kroger Store located at 676 N. Germantown Parkway in Cordova. He approached one of the bank tellers at Suntrust Bank located within Kroger, demanded money, and fled with the money.
On November 5, 2013, a Crime Stopper tip identified Schweitzer as the individual responsible for the bank robbery. That same day, members of the Federal Bureau of Investigation’s Safe Streets Task Force arrested Schweitzer without incident.
While in custody, Schweitzer confessed to the robbery of the Suntrust Bank and further confessed to being present during the October 11, 2013 robbery of the First Tennessee Bank located inside the Kroger Store at 9025 U.S. Highway 64. He identified Wurth as the individual responsible for the robbery of the First Tennessee Bank. Wurth was arrested on November 6, 2013 in Oxford, MS.
This case was investigated by the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Lorraine Craig is representing the government.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Court Authorizes Irs to Issue Summonses for Records Relating to U.S Taxpayers with Offshore Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, the Assistant Attorney General for the Justice Department’s Tax Division, and Danny Werfel, the Acting Commissioner of the Internal Revenue Service (“IRS”), announced today that U.S. District Judge Kimba M. Wood entered an order on November 7, 2013, authorizing the IRS to issue summonses requiring Bank of New York Mellon (“Mellon”) and Citibank, NA (“Citibank”), to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by holding interests in undisclosed accounts at Zurcher Kantonalbank and its affiliates (collectively, “ZKB”) in Switzerland; and U.S. District Judge Richard M. Berman entered an order today authorizing the IRS to issue summonses requiring Mellon, Citibank, JPMorgan Chase Bank, NA (“JPMorgan”), HSBC Bank USA, NA (“HSBC”), and Bank of America, NA (“Bank of America”), to produce similar information in connection with undisclosed accounts at The Bank of N.T. Butterfield & Son Limited and its affiliates (collectively, “Butterfield”) in the Bahamas, Barbados, Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland, and the United Kingdom.
In these actions, the Court granted the IRS permission to serve what are known as “John Doe” summonses on Mellon, Citibank, JPMorgan, HSBC, and Bank of America. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses direct these five banks to produce records identifying U.S. taxpayers with accounts at ZKB, Butterfield, and their affiliates, including other foreign banks that used ZKB and Butterfield’s U.S. correspondent accounts at Mellon, Citibank, JPMorgan, HSBC, and Bank of America to service U.S. clients.
Manhattan U.S. Attorney Preet Bharara said: “These actions show that the use of foreign banks for tax evasion remains a high investigative priority of this Office and U.S. citizens should understand that loud and clear. By issuing these John Doe summonses, we continue our joint efforts with the IRS to identify and hold accountable those who try to evade their legal responsibility to pay taxes.”
Assistant Attorney General Kathryn Keneally said: “These cases once again demonstrate the Department’s resolve to uncover and identify taxpayers who tried to hide money overseas as a way to avoid federal taxes. These John Doe Summonses will provide information about individuals using financial institutions from Switzerland to the Cayman Islands to Hong Kong to avoid their U.S. tax obligations. U.S. taxpayers still holding accounts who have not come clean should come forward and do the right thing before it’s too late.”
IRS Acting Commissioner Danny Werfel said: “International issues remain a major focus for the IRS, and we are continuing our efforts to fight tax evaders who use offshore accounts to skirt the law. These John Doe summonses for correspondent account records show our determination to pursue evaders using offshore accounts even if the person hiding money overseas chooses a bank that has no offices on U.S. soil.”
IRS Offshore Voluntary Disclosure programs and initiatives enable U.S. taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution by voluntarily disclosing previously undisclosed foreign accounts and income. To date, U.S. taxpayers have identified 371 previously undisclosed accounts at ZKB and 81 such accounts at Butterfield. In addition, a number of U.S. taxpayers with beneficial ownership and control over funds held in accounts at ZKB and Butterfield have admitted failure to report income earned from their offshore accounts on their federal tax returns. The IRS has reason to believe that other U.S. taxpayers who held or presently hold similar accounts at ZKB, Butterfield, and their affiliates have done the same, in violation of federal tax law. In December 2012, three employees of ZKB were indicted for conspiring with U.S. taxpayers and others to hide at least $423 million from the IRS in secret Swiss bank accounts.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
These cases are being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Tomoko Onozawa is in charge of the Butterfield case and Assistant U.S. Attorney Christopher B. Harwood is in charge of the ZKB case.
Court Authorizes IRS to Issue Summonses for Records Relating to U.S. Taxpayers with Offshore Bank AccountsRead the Press Release
Five Banks Directed to Produce Records for Accounts at Zurcher Kantonalbank, The Bank of N.T. Butterfield & Son Limited and Affiliates
U.S. District Judge Kimba M. Wood of the Southern District of New York entered an order on Nov. 7, 2013, authorizing the IRS to issue summonses requiring Bank of New York Mellon (Mellon) and Citibank NA (Citibank) to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by holding interests in undisclosed accounts at Zurcher Kantonalbank and its affiliates (collectively, ZKB) in Switzerland; and U.S. District Judge Richard M. Berman of the Southern District of New York entered an order today authorizing the IRS to issue summonses requiring Mellon, Citibank, JPMorgan Chase Bank NA (JPMorgan), HSBC Bank USA NA (HSBC), and Bank of America NA (Bank of America) to produce similar information in connection with undisclosed accounts at The Bank of N.T. Butterfield & Son Limited and its affiliates (collectively, Butterfield) in the Bahamas, Barbados, Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland, and the United Kingdom. U.S. Attorney for the Southern District of New York Preet Bharara, Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, and Acting Commissioner of the Internal Revenue Service (IRS) Danny Werfel made the announcement today.
In these actions, the Court granted the IRS permission to serve what are known as “John Doe” summonses on Mellon, Citibank, JPMorgan, HSBC, and Bank of America. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses approved today direct these five banks to produce records identifying U.S. taxpayers with accounts at ZKB, Butterfield and their affiliates, including other foreign banks that used ZKB and Butterfield’s U.S. correspondent accounts at Mellon, Citibank, JPMorgan, HSBC, and Bank of America to service U.S. clients.
“These cases once again demonstrate the department’s resolve to uncover and identify taxpayers who tried to hide money overseas as a way to avoid federal taxes,” said Assistant Attorney General Keneally. “These John Doe summonses will provide information about individuals using financial institutions from Switzerland to the Cayman Islands to Hong Kong to avoid their U.S. tax obligations. U.S. taxpayers still holding accounts who have not come clean should come forward and do the right thing before it’s too late.”
“Today’s action show that the use of foreign banks for tax evasion remains a high investigative priority of this office and U.S. citizens should understand that loud and clear,” said U.S. Attorney Bharara. “By issuing these John Doe summonses, we continue our joint efforts with the IRS to identify and hold accountable those who try to evade their legal responsibility to pay taxes.”
“International issues remain a major focus for the IRS, and we are continuing our efforts to fight tax evaders who use offshore accounts to skirt the law,” said IRS Acting Commissioner Werfel. “These John Doe summonses for correspondent account records show our determination to pursue evaders using offshore accounts, even if the person hiding money overseas chooses a bank that has no offices on U.S. soil.”
IRS Offshore Voluntary Disclosure programs and initiatives enable U.S. taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution by voluntarily disclosing previously undisclosed foreign accounts and income. To date, U.S. taxpayers have identified 371 previously undisclosed accounts at ZKB and 81 such accounts at Butterfield. In addition, a number of U.S. taxpayers with beneficial ownership and control over funds held in accounts at ZKB and Butterfield have admitted failing to report income earned from their offshore accounts on their federal tax returns. The IRS has reason to believe that other U.S. taxpayers who held or presently hold similar accounts at ZKB, Butterfield, and their affiliates have done the same in violation of federal tax law. In December 2012, three employees of ZKB were indicted for conspiring with U.S. taxpayers and others to hide at least $423 million from the IRS in secret Swiss bank accounts.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
These cases are being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Tomoko Onozawa is in charge of the Butterfield case and Assistant U.S. Attorney Christopher B. Harwood is in charge of the ZKB case.
Related Materials:
Five Banks Directed to Produced Records for Accounts
Butterfield and ZKB John Doe Summonses
Court Authorizes IRS to Issue Summonses for Records Relating to U.S Taxpayers with Offshore Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, the Assistant Attorney General for the Justice Department’s Tax Division, and Danny Werfel, the Acting Commissioner of the Internal Revenue Service (“IRS”), announced today that U.S. District Judge Kimba M. Wood entered an order on November 7, 2013, authorizing the IRS to issue summonses requiring Bank of New York Mellon (“Mellon”) and Citibank, NA (“Citibank”), to produce information about U.S. taxpayers who may be evading or have evaded federal taxes by holding interests in undisclosed accounts at Zurcher Kantonalbank and its affiliates (collectively, “ZKB”) in Switzerland; and U.S. District Judge Richard M. Berman entered an order today authorizing the IRS to issue summonses requiring Mellon, Citibank, JPMorgan Chase Bank, NA (“JPMorgan”), HSBC Bank USA, NA (“HSBC”), and Bank of America, NA (“Bank of America”), to produce similar information in connection with undisclosed accounts at The Bank of N.T. Butterfield & Son Limited and its affiliates (collectively, “Butterfield”) in the Bahamas, Barbados, Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland, and the United Kingdom.
In these actions, the Court granted the IRS permission to serve what are known as “John Doe” summonses on Mellon, Citibank, JPMorgan, HSBC, and Bank of America. The IRS uses John Doe summonses to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses direct these five banks to produce records identifying U.S. taxpayers with accounts at ZKB, Butterfield, and their affiliates, including other foreign banks that used ZKB and Butterfield’s U.S. correspondent accounts at Mellon, Citibank, JPMorgan, HSBC, and Bank of America to service U.S. clients.
Manhattan U.S. Attorney Preet Bharara said: “These actions show that the use of foreign banks for tax evasion remains a high investigative priority of this Office and U.S. citizens should understand that loud and clear. By issuing these John Doe summonses, we continue our joint efforts with the IRS to identify and hold accountable those who try to evade their legal responsibility to pay taxes.”
Assistant Attorney General Kathryn Keneally said: “These cases once again demonstrate the Department’s resolve to uncover and identify taxpayers who tried to hide money overseas as a way to avoid federal taxes. These John Doe Summonses will provide information about individuals using financial institutions from Switzerland to the Cayman Islands to Hong Kong to avoid their U.S. tax obligations. U.S. taxpayers still holding accounts who have not come clean should come forward and do the right thing before it’s too late.”
IRS Acting Commissioner Danny Werfel said: “International issues remain a major focus for the IRS, and we are continuing our efforts to fight tax evaders who use offshore accounts to skirt the law. These John Doe summonses for correspondent account records show our determination to pursue evaders using offshore accounts even if the person hiding money overseas chooses a bank that has no offices on U.S. soil.”
IRS Offshore Voluntary Disclosure programs and initiatives enable U.S. taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution by voluntarily disclosing previously undisclosed foreign accounts and income. To date, U.S. taxpayers have identified 371 previously undisclosed accounts at ZKB and 81 such accounts at Butterfield. In addition, a number of U.S. taxpayers with beneficial ownership and control over funds held in accounts at ZKB and Butterfield have admitted failure to report income earned from their offshore accounts on their federal tax returns. The IRS has reason to believe that other U.S. taxpayers who held or presently hold similar accounts at ZKB, Butterfield, and their affiliates have done the same, in violation of federal tax law. In December 2012, three employees of ZKB were indicted for conspiring with U.S. taxpayers and others to hide at least $423 million from the IRS in secret Swiss bank accounts.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation.
These cases are being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Tomoko Onozawa is in charge of the Butterfield case and Assistant U.S. Attorney Christopher B. Harwood is in charge of the ZKB case.
ZKB Order
Butterfield OrderChurch Credit Union Manager Sentenced to 10 Months in Prison for Embezzling FundsRead the Press Release
PITTSBURGH - A resident of Lawrence County has been sentenced in federal court to 10 months imprisonment and three years supervised release on her conviction of embezzlement from a credit union, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Victoria Rozanski, 60, as the sole defendant.
According to information presented to the court, Rozanski, who was the manager of the Holy Redeemer Parish Federal Credit Union in Ellwood City embezzled approximately $110,000 from the credit union from in and around January 2003 until in or around May of 2009. Rozanski's sentence also ordered her to make full restitution.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government. U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Rozanski.
Business Owner Pleads Guilty to Scheme to Embezzle $1.3 Million from State FundRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Missouri business owner pleaded guilty in federal court today to charges related to his scheme to embezzle more than $1.3 million from the Missouri Petroleum Storage Tank Insurance Fund.
Robert L. Fine, II, 52, of Lenexa, Kan., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to a federal information that charges him with one count of mail fraud and one count of money laundering.
Under the terms of today’s plea agreement, Fine must pay $1,505,514 in restitution to the Petroleum Storage Tank Insurance Fund, which includes the total amount of the fraud and related costs. Fine paid $350,000 in restitution to the fund today, and must pay the balance owed within approximately 60 days.
Fine was the owner and sole employee of FINEnvironmental, Inc., a Missouri corporation that he operated from an office in his residence. FINEnvironmental performed environmental services for property owners who used or operated a petroleum storage tank.
In 1989, the Missouri General Assembly created the Petroleum Storage Tank Insurance Fund (PSTIF) in response to federal legislation requiring owners and operators of underground storage tanks to have the financial resources available to pay for cleanup of spills or leaks from their tanks. The PSTIF was funded by a fee assessed to petroleum companies on each load of petroleum that is transported into Missouri and by annual fees charged to the owners and operators for insurance coverage.
Fine utilized subcontractors to perform his environmental services, and those subcontractors submitted invoices to Fine for the work they performed. From August 2002 to February 2012, Fine created false invoices purporting to be from one of his subcontractors and inflated the amount of the invoices. Fine mailed the fraudulent invoices to the PSTIF for payment and, over a nearly 10-year period, obtained $924,236 in excess payments from the PSTIF.
Fine also admitted that he obtained additional funds from the PSTIF by fraudulently submitting invoices for an additional groundwater monitoring trip when only one was made, totaling $326,978. The plea agreement cites an additional $66,243 in losses that resulted from Fine’s fraudulent activity.
The total amount of the fraud committed by Fine on the PSTIF is $1,317,469.
Under federal statutes, Fine is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri State Highway Patrol and the Cole County, Mo., Prosecuting Attorney’s Office and the Missouri Petroleum Storage Tank Insurance Fund.Brooklyn Clinic Owner Sentenced for Role in $77 Million Medicare Fraud SchemeRead the Press Release
The owner of a Brooklyn medical clinic was sentenced today to serve 15 years in prison for her leading role in a $77 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of New York Loretta E. Lynch, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office, and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Irina Shelikhova, 50, of Brooklyn, was sentenced by U.S. District Judge Nina Gershon of the Eastern District of New York. In addition to her prison term, Shelikhova was sentenced to serve three years of supervised release with a concurrent exclusion from Medicare, Medicaid and all Federal health programs, ordered to forfeit $36,241,545 and ordered to pay $50,943,386 in restitution. Shelikhova has been in custody since her arrest at the John F. Kennedy International Airport on June 15, 2012, after living as a fugitive in Ukraine for nearly two years. After serving her sentence, Shelikhova faces deportation from the United States.
Shelikhova pleaded guilty on Dec. 18, 2012, to one count of conspiracy to commit money laundering. Including Shelikhova, 13 individuals have been convicted in this case.
Court documents state that from 2005 to 2010, Shelikhova owned and operated a clinic in Brooklyn that billed Medicare under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC (collectively, Bay Medical clinic). Shelikhova and her employees at the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary or never provided. The defendants billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
According to trial testimony, Shelikhova masterminded the health care fraud at the Bay Medical clinic, which included hiring a medically unlicensed co-defendant to impersonate the clinic’s doctor and render medical care to patients. Shelikhova also directed employees to create phony medical notes in an attempt to back up the false billing and to forge doctors’ names on prescriptions and charts.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, which showed conspirators paying cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
To generate the large amounts of cash needed to pay the patients, Shelikhova directed the recruitment and operations of a network of external money launderers who cashed checks for the clinic. Shelikhova wrote clinic checks payable to various shell companies controlled by the money launderers. These checks did not represent payment for any legitimate service at or for the Bay Medical clinic, but rather were written to launder the clinic’s fraudulently obtained health care proceeds. The money launderers cashed these checks and provided the cash back to the clinic. Shelikhova used the cash to pay illegal cash kickbacks to the Bay Medical clinic’s purported patients.
The case was investigated by the FBI and HHS-OIG 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 New York. This case is being prosecuted by Trial Attorney Sarah M. Hall of the Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.
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 & 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.
Bend Drug Dealer Sentenced to 140 Months in Federal PrisonRead the Press Release
EUGENE, Ore. – On November 12, 2013, Matthew Collins, 49 years old, was sentenced by U.S. District Judge Michael McShane to 140 months in federal prison for possessing with the intent to distribute methamphetamine. Upon his release from prison, Collins will be on supervised release for five years.
On May 6, 2013, deputies with the Deschutes County Sheriff’s Office stopped a vehicle driven by Collins in Redmond, Oregon. Collins thereafter fled on foot and jumped into a nearby canal before he was taken into custody by Redmond Police officers. A search of the vehicle unearthed a large amount of methamphetamine that Collins was transporting from Portland to distribute in the Bend area.
Collins has a lengthy and violent criminal history and has been the subject of several recent investigations by the Central Oregon Drug Enforcement Team (CODE), which also investigated and handled the May 6, 2013 case. The CODE team is a multi-jurisdictional narcotics task force supported by the following Central Oregon law enforcement agencies: Bend Police Department, Deschutes County Sheriff’s Office, Redmond Police Department, Prineville Police Department, Crook County Sheriff’s Office, Jefferson County Sheriff’s Office, Madras Police Department, Oregon State Police, Sunriver Police Department, Black Butte Police Department, United States Drug Enforcement Administration (DEA), Warm Springs Tribal Police Department, Deschutes, Crook, and Jefferson County District Attorney’s Offices, and the Oregon National Guard.
U.S. Attorney Amanda Marshall praised the sentence imposed on Collins: “Bend and Central Oregon are better places with Mr. Collins off the streets. This case is the result of the excellent collaboration between the CODE team, the Deschutes County District Attorney’s Office, and my office. Coordination between federal and state law enforcement is key to prosecuting the most dangerous criminals and keeping our communities safe. My office is committed to working with our local and federal law enforcement partners to achieve results such as this one.”
This case was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Attorney General Eric Holder Selects Ronald Davis to <br /> Lead Office of Community Oriented Policing ServicesRead the Press Release
Attorney General Eric Holder today announced Ronald L. Davis as the director of the Office of Community Oriented Policing Services (COPS). Davis comes to COPS from the East Palo Alto Police Department, where he served as Chief of Police since 2005. Davis also worked with the Oakland Police Department for 19 years, where he rose to the rank of Captain and served in assignments including Police Academy Director, Criminal Investigations Commander, Patrol Commander and Inspector General of the Police Department.
“Ronald Davis is an experienced leader, a proven innovator, and an accomplished and highly-respected law enforcement officer. I am proud to welcome him to the Justice Department as Director of the COPS Office, where he will bring his considerable skills to bear in advancing our efforts to become smarter on crime,” said Attorney General Eric Holder. “Chief Davis’ leadership has been instrumental in reducing crime in each of the communities he has served. I look forward to working closely with Director Davis to keep building on the outstanding work of the COPS Office, and to support our law enforcement allies across the country.”
In East Palo Alto, Davis led an organizational reform and community-policing effort that increased public trust and confidence and achieved dramatic crime and violence reductions in a city once dubbed the murder capital of the United States. Davis also partnered with the California Department of Corrections and Rehabilitation to implement a pilot parole-reentry program that provided programming and enforcement services and a job program with the California Department of Transportation. The East Palo Alto Police Department was the first police agency in the state to operate a state-funded reentry program. Return-to-custody rates dropped from more than 60 percent to less than 20 percent during this program.
Davis is the co-author of the Harvard University and National Institute of Justice (NIJ) publication, “Exploring the Role of the Police in Prisoner Reentry,” and the Department of Justice publication, “How to Correctly Collect and Analyze Racial Profiling Data: Your Reputation Depends on It.” He is a contributing author to the Police Executive Research Forum (PERF) publications, “Chief Concerns: The Use of Force,” and “Early Release of Prisoners and Its Impact on Police Agencies and Communities in California.”
Davis earned a Bachelor of Science degree from Southern Illinois University (SIU) and completed the Senior Executives in State and Local Government Program at Harvard University’s John F. Kennedy School of Government.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For more information on COPS, please visit: www.cops.usdoj.gov.
Assistant Church Pastor Arrested for Sexually Enticing A MinorRead the Press Release
The Vega Baja resident faces a sentence of up to life in prison
SAN JUAN, Puerto Rico — On Friday evening, November 8, 2013, Dolores Pagàn-Lozada, 54, was arrested at his place of residence after an HSI investigation, which stemmed from a referral by the Puerto Rico Police Department, revealed that he engaged in sexually explicit conversations with a 16-year-old female minor identified as Jane Doe, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
A criminal complaint was authorized by US Magistrate Judge Sylvia Carreño-Coll charging Pagàn-Lozada sexually enticing a minor. According to the criminal complaint, HSI special agents reviewed an Oct. 9 Facebook chat between Pagàn-Lozada and the minor. During the conversation, Pagàn-Lozada wrote that he was out of place for touching Jane Doe but that he wanted to touch her more. He added that he was excited when Jane Doe arrived to his residence where he kissed and touched her. The complaint also alleges that Pagàn-Lozada constantly reminded Jane Doe to delete their conversations and to be smart.
Pagàn-Lozada had his initial hearing before magistrate judge Camille Vélez-Rivé today and was transferred to the Metropolitan Detention Center in Guaynabo awaiting the outcome of his case. The case is being prosecuted by Assistant U.S. Attorney Mariana Bauzà.
“The USAO for the District of Puerto Rico is committed to investigating and prosecuting individuals who feel they can take advantage of their positions of trust and abuse our children,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
“Sexually exploiting children is despicable,” said Ángel M. Meléndez, special agent in charge of HSI San Juan. “ICE HSI will go the extra mile to catch those individuals who prey on these innocent victims. Identifying and investigating those who victimize children, especially those who hold positions of public trust as in the case of Mr. Pagàn-Lozada, is one of the most important responsibilities ICE HSI has.”
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.
Armed Career Criminal Sentenced to 15 Years in PrisonRead the Press Release
PHILADELPHIA - Curtis Crawford, 40, of Philadelphia, was sentenced today to 15 years in prison for illegally possessing a firearm. Due to his extensive criminal record of drug trafficking, Crawford qualified under the law as an Armed Career Criminal at sentencing which requires a mandatory minimum 15 years in prison. Crawford was convicted at trial on July 11, 2013. In addition to the prison term, U.S. District Court Judge Timothy J. Savage ordered a $1,000 fine, a $100 special assessment, and five years of supervised release.
On August 22, 2012, shortly after midnight, Philadelphia police officers approached Crawford near the intersection of 9th and Butler Streets to ask him some questions about criminal activity which had occurred in that neighborhood. When the officers approached, Crawford ran and discarded a loaded Walther P22 firearm with a laser sight into a nearby sewer inlet. The police officers apprehended Crawford after a short chase and, with the assistance of the Philadelphia Streets Department, fished the firearm out of the sewer inlet.
The case was investigated by the FBI and Philadelphia Police and was prosecuted by Assistant United States Attorney Robert J. Livermore.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Appleton Man Sentenced for Bank FraudRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on November 12, 2013, Travis A. Zielinski (age: 28) of Appleton was sentenced to 16 months in federal prison by Chief United States District Judge William C. Griesbach. Zielinski had previously entered a guilty plea to a single count of Bank Fraud.
According to the plea agreement and other documents filed with the court, Zielinski while employed as a manager at Citizen’s Bank in Green Bay, fraudulently used the bank’s computerized operating system to withdraw over $68,000 from forty-eight (48) customer accounts over a fifteen (15) month period. Zielinski admitted to bank security officials and others that he would review obituaries in order to target the accounts of recently deceased account holders. Many of the accounts targeted by Zielinski belonged to deceased, incapacitated, or otherwise vulnerable account holders.
In addition to the term of imprisonment, Zielinski was ordered to serve three years of supervised release. As one of the conditions of supervision he was ordered to pay restitution to Citizen’s Bank (now known as FirstMerit Bank) in the amount of $68,118.12.
While sentencing the defendant, Judge Griesbach noted the serious abuse of trust by Zielinski, as well as the number and nature of the accounts targeted and the amount of loss suffered by the bank.
The case was investigated by Special Agents from the Federal Bureau of Investigation along with Citizen Bank’s Fraud Protection Unit. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
Alleged Dominican Drug Supplier Extradited to the United States to Face Narcotics Trafficking ChargesRead the Press Release
Angel Gregorio Liriano Cruz will be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann, at the federal courthouse in Brooklyn, New York, on heroin and cocaine trafficking charges. Liriano Cruz is alleged to be the leader of an international drug organization responsible for shipping more than 200 kilograms of heroin and 35 kilograms of cocaine to the United States between 2002 and 2007. Liriano Cruz was arrested on an extradition request issued from the Eastern District of New York and extradited from Spain to the United States on November 8, 2013.
The extradition and charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Brian Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York. The investigation was conducted by the DEA, with assistance provided by law enforcement authorities in Spain and the Dominican Republic.
As detailed in the indictment and other court filings by the government, Liriano Cruz’s regular heroin and cocaine supply route during part of the course of the conspiracy originated in the Dominican Republic, continued to Puerto Rico, and concluded in the New York City metropolitan area.
“As alleged, Angel Liriano Cruz ran a pipeline of poison, flooding the U.S. with millions of dollars’ worth of heroin and cocaine sent through Caribbean locales. His alleged drug distribution organization was not limited by international boundaries, but neither is the reach of U.S. law enforcement with the assistance of its partners abroad,” stated United States Attorney Lynch. “We are steadfast in our commitment to bringing drug sources to justice and stemming the flow of illegal narcotics into this country and the streets of our communities.” Ms. Lynch extended her grateful appreciation to the agencies that conducted the government’s investigation, including the DEA JFK Airport Office, comprising the New York City Police Department, Port Authority of New York and New Jersey, and Nassau County Sheriff’s Office, and thanked the Department of Justice, Office of International Affairs, for its significant assistance in this case.
“ Liriano Cruz, is the alleged leader of a drug distribution organization responsible for shipping more than 200 kilograms of heroin and 35 kilograms of cocaine into our neighborhoods. This organization fueled the ongoing heroin threat our communities face, and we estimate this international drug network earned $13 million selling this poison. On Friday, November 8th, Liriano Cruz arrived in New York to face federal narcotics charges based on the diligent work of the DEA, NYPD investigators, and the U.S. Attorney’s Office Eastern District of New York. I commend their dogged pursuit of this key heroin trafficker,” stated DEA Special Agent-in-Charge Crowell.
As part of the investigation, in May 2007, DEA agents seized approximately 36 kilograms of heroin hidden in furniture that was allegedly modified for the organization to transport the narcotics. That furniture was en route to be forwarded by common carrier to the Bronx, New York, with a return address in Puerto Rico. Several days later, law enforcement agents, disguised as shipping company personnel, delivered in New York the furniture that had contained the heroin and arrested three members of the organization. Further investigation revealed that the seized shipment was the last of approximately 10 narcotics shipments that were sent in a similar fashion. The narcotics from this and other sources were allegedly distributed in the New York City area by members of the defendant’s organization and are valued by the DEA at more than 13 million dollars. Liriano Cruz also allegedly supplied heroin for internal couriers to bring kilo-quantities from the Dominican Republic to the United States. The couriers often smuggled the narcotics through JFK International Airport.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of life imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Sylvia Shweder and Douglas Pravda.
The Defendant
ANGEL GREGORIO LIRIANO CRUZ
Age: 53
Dominican RepublicE.D.N.Y. Docket No. O9-CR-057 (SJ)
Alexis Amador-Huggins Sentenced to Life in Prison for Carjacking-Murder of Stefano StenbakkersRead the Press Release
SAN JUAN, P.R. – Today, Alexis Amador-Huggins was sentenced to life in prison for his participation in the attempted carjacking and murder of Stefano Steenbakkers, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Defendant Alexis Amador-Huggins was found guilty of all charges pending against him after a two week trial.
On or about June 24, 2012, Amador-Huggins and John Anthony Morales-López, aiding and abetting each other, with the intent to cause death and serious bodily harm, attempted to take a motor vehicle, that is, a Lexus SUV, that had been transported, shipped, and received in interstate commerce, from 17 year-old Stefano Steenbakkers, by force, violence and intimidation, resulting in his death. In addition to the carjacking charge, the defendants were charged with knowingly possessing a firearm, that is, a black pistol of unknown model and caliber, in furtherance of a carjacking.
Amador-Huggins was driving a 2009 white Jeep Compass, followed Steenbakkers and started rear-ending his vehicle to force him to stop. The victim refused to stop and called his mother and informed her of the situation, vehicle description and license plate. Steenbakkers was found shot inside his vehicle by his mother.
“Federal and local law enforcement officers will continue working together to fight violent crime in Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The teamwork between state and federal law enforcement agencies in the investigation of this case was instrumental in the prompt filing of charges against these two individuals for this vicious crime.”
The case was prosecuted by First Assistant United States Attorney María Dominguez and Assistant United States Attorney Jacqueline D. Novas.
Albuquerque Construction Company Owner Pleads Guilty to Defrauding Federal Program for Service-Disabled VeteransRead the Press Release
ALBUQUERQUE – Max R. Tafoya, 63, the owner of an Albuquerque-area construction company, pleaded guilty this morning to defrauding a federal program that sets aside federal contracts for businesses owned by service-disabled veterans. Tafoya's son-in-law, Tyler Cole, 41, of Los Ranchos de Albuquerque, N.M., also pleaded guilty to participating in the fraudulent scheme. The guilty pleas were entered under plea agreements that require a 57 month prison sentence for Tafoya and a 37 month prison sentence for Cole. The court will determine whether Tafoya and Cole will be required to pay restitution and fines or forfeit assets derived from their criminal activity.
Tafoya and Cole were charged in Feb. 2012, in an indictment alleging that the two men obtained almost $11 million in federal contracts by falsely claiming that Tafoya’s company, M.R. Tafoya Construction, Incorporated (Tafoya Construction), was qualified to participate in the U.S. Department of Veterans Affairs’ (VA) Service-Disabled Veteran Owned Small Business (SDVOSB) Program. A superseding indictment filed in March 2013, added charges of witness tampering and obstruction of justice against Tafoya.
The SDVOSB Program was established pursuant to the Veterans Entrepreneurship and Small Business Development Act of 1999, to achieve a government-wide goal to increase the number of government contracts awarded to small businesses owned and operated by service-disabled veterans. The Veterans Benefits, Health Care, and Information Technology Act of 2006 gave SDVOSBs the highest priority in contracting preferences for VA contracts awarded to small businesses. A small business must be both owned and controlled by one or more service-disabled veterans to qualify as an SDVOSB. Generally, a small business is owned and controlled by a service-disabled veteran when the veteran directly owns at least 51% of the business, holds the highest officer position in the business, and manages and administers the business’s day-to-day operations.
Today, Tafoya and Cole each entered guilty pleas to Counts 1 and 2 of the superseding indictment charging them with conspiracy and committing a major fraud against the United States.
In his plea agreement, Tafoya admitted that between 2009 and 2010, Tafoya Construction was awarded five contracts valued at an aggregate amount of $10,984,189 that required the company to hold SDVOSB status. During that period, Tafoya, a veteran without any service-connected disability, owned 100% of Tafoya Construction stock. Tafoya admitted that he obtained the lucrative contracts by paying his step-brother Andrew Castillo, a service-disabled veteran who works and resides in Florida, a $600 weekly fee to allow Tafoya Construction to use Castillo’s name and service-disabled status in its bids for SDVOSB contracts. Tafoya acknowledged asking Cole to complete certifications stating that Tafoya Construction was a SDVOSB and submit them to the VA so that Tafoya Construction could obtain SDVOSB contracts. Tafoya also admitted that he drew up a number of false documents designed to create the appearance that Castillo was the majority owner and controller of Tafoya Construction, when in fact he did not own or operate the company, and that Cole forged Castillo’s signature on the documents.
According to Tafoya’s plea agreement, in Feb. 2011, Tafoya lied to a VA investigator to support the fraudulent claim that Tafoya Construction was a SDVOSB. Tafoya admitted making the following false statements to the investigator: (1) that Castillo paid $100,000 to purchase 51% of Tafoya Construction; (2) that Castillo worked in Tafoya Construction’s Albuquerque office; (3) that Castillo was working at a VA construction site in Santa Fe that day; and (4) that Castillo personally signed the VA contracts and bonding paperwork on the SDVOSB contracts awarded to Tafoya Construction. Tafoya also admitted traveling to Florida later in Feb. 2011, to meet with Castillo for the purpose of creating fraudulent documents in an attempt to cover up their fraudulent scheme. Tafoya subsequently submitted these fraudulent documents to a federal grand jury in July 2011.
In his plea agreement, Cole admitted serving as manager of Tafoya Construction from 2008 to 2011, and participating in Tafoya’s illegal scheme to defraud the United States by falsely claiming that Tafoya Construction was a SDVOSB. Cole admitted to filling out and submitting certifications to the VA that falsely claimed that Tafoya Construction was owned by Castillo, a service-disabled veteran. Cole further admitted forging Castillo’s signature on bids and other paper work submitted to the VA and on documents created to make it appear that Castillo was the 51% owner of Tafoya Construction.
As a result of Tafoya’s and Cole’s fraudulent scheme, from 2009 to 2010, the VA awarded Tafoya Construction five contracts in the aggregate amount of $10,984,189 for work at the Fort Bliss National Cemetery, the Santa Fe National Cemetery, the Fort Logan National Cemetery, and the Jefferson Barracks National Cemetery.
Tafoya and Cole remain on conditions of release pending their sentencing hearings, which have yet to be scheduled.
Castillo entered a guilty plea in Oct. 2011, to a conspiracy charge. He remains on conditions of release pending his sentencing hearing, which has yet to be scheduled.
Acting U.S. Attorney Steven C. Yarbrough said, “Contracts under the SDVOSB Program are supposed to go to small businesses that are actually owned by service-disabled veterans, and not to imposters who break the rules and scheme to beat the system. This prosecution is part of a nationwide effort to protect service-disabled veterans who own small businesses by tightening controls to prevent fraud and abuse. Today, Max Tafoya and Tyler Cole are being held accountable for abusing a program that seeks to fulfill our moral obligation to provide disabled veterans with benefits designed to ease the losses and disadvantages they have incurred as a consequence of disabilities they sustained while serving our country.”
The case was investigated by the Office of Inspector General of the U.S. Department of Veterans Affairs and is being prosecuted by Assistant U.S. Attorneys C. Paige Messec and Tara C. Neda.
11 November 2013
Two Convenience Store Owners Indicted in Synthetic Cannabinoid "XLR11" Drug ConspiracyRead the Press Release
TULSA, Okla. — A federal grand jury indicted two convenience store owners for conspiring to distribute and distributing XLR11, a synthetic cannabinoid more commonly known as “K2” or “Spice,” a controlled substance analogue, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Iqbal Makkar, 36, of Bentonville, Arkansas, and Gaurav Sehgal, 36, of Grove, Oklahoma are charged with a drug analogue conspiracy, possession of Schedule 1 controlled substance analogue with intent to distribute, maintaining drug-involved premises, and money laundering.
According to court documents, beginning in November 2011 to January 2013, Makkar and Sehgal maintained a convenience store located in Oklahoma, for the purpose of storing and distributing the controlled substance 1-(5-fluoro-pentyl)-1H-indol-3-yl (2,2,3,3-tetramethylcyclopropyl) methanone (5-fluoro-UR-144, XLR11), commonly known as XLR11. The charges include distributing 22 kilograms of XLR11 and depositing funds from the illegal sales and distributions of controlled substance analogues into a checking account at the Corner Stone Bank in Southwest City, Missouri.
Herbal incense is a mixture of herbs and spices that is typically sprayed with a synthetic compound chemically similar to THC, the psychoactive ingredient in marijuana. Herbal incense, composed of synthetic cannabinoids, is marketed as “fake marijuana,” and often by its popular brand names “Spice” or “K2.” The side effects of herbal incense are similar to those of naturally grown marijuana.
If convicted, Makkar and Sehgal face the maximum statutory penalty for Counts 1 and 2 of not more than 20 years imprisonment, a fine of not more than $1,000,000; Count 3 penalty is not less than 20 years imprisonment up to life, a fine of not more than $2,000,000; and Counts 4 and 5 penalty is not more than 20 years imprisonment, a fine of not more than $500,000. The defendants would also forfeit property in Arkansas, Oklahoma, and Missouri, and a money judgment in an amount more than $1,344,000, and a Range Rover and Ford F-150 truck.
The charges resulted from an investigation by the Drug Enforcement Administration. Assistant United States Attorneys Clinton J. Johnson, R. Trent Shores, and Catherine Depew are prosecuting the case on behalf of the United States.
A Grand Jury Indictment is one method of charging a defendant with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendants’ presumption of innocence.
Shannon James Augare Pleads Guilty and Sentenced in U.S. Federal CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Great Falls on November 7, 2013, before U.S. Magistrate Judge Keith Strong, SHANNON JAMES AUGARE, a 34-year-old resident of Browning, pleaded guilty and was sentenced on charges of obstructing a peace officer, driving under the influence of alcohol, and reckless driving.
AUGARE was fined $1,250 and charged a $30 special assessment fee.
Assistant U.S. Attorney Ryan G. Weldon stated that the government would have proved at trial the following:
On May 26, 2013, AUGARE drank at the Pioneer Bar with his family. After spending hours in the bar, AUGARE drove home toward Browning. The Glacier County Sheriff's Office received reports of an intoxicated driver, and AUGARE was ultimately pulled over. When stopped, a Glacier County Deputy asked AUGARE, "Do you know why I stopped you?" AUGARE responded, "I am Shannon Augare. Why did you stop me?" AUGARE then stated, "Well, you have no jurisdiction. So, I am going to go." The Glacier County Deputy directed AUGARE to turn off his vehicle, but AUGARE sped off into the night.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Glacier County Sheriff's Office.
Leonard LaVerne Ewalt, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Butte, on November 8, 2013, before U.S. District Judge Sam E. Haddon, LEONARD LAVERNE EWALT, JR., a 42-year-old resident of Butte, was sentenced to a term of:
Prison: 160 months
Special Assessment: $100
Supervised Release: 5 years
EWALT was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
From approximately February 2008 until approximately July 2012, EWALT and numerous others possessed with the intent to distribute methamphetamine in Butte and other places in Montana. The methamphetamine came from Las Vegas and other places from outside the state of Montana for distribution by EWALT and others.
EWALT admitted to this conduct when interviewed by law enforcement. EWALT admitted that the full scope of his criminal conduct included possessing with the intent to distribute approximately 24 pounds of methamphetamine with other people.
This information was confirmed through the interview of other witnesses. Money Gram records also confirmed EWALT's admissions.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that EWALT will likely serve all of the time imposed by the court. In the federal system, EWALT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations, the Butte-Silver Bow Law Enforcement Services, and the Drug Enforcement Administration Lab.
Joseph Michele Derius Peasley Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on November 8, 2013, before Chief U.S. District Judge Dana L. Christensen, JOSEPH MICHELE DERIUS PEASLEY, a 21-year-old resident of Missoula, was sentenced to a term of:
Prison: 40 months
Special Assessment: $100
Forfeiture: gun and ammunition
Supervised Release: 3 years
PEASLEY was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On October 31, 2012, in Missoula County, PEASLEY was convicted of assault with a weapon and thereby prohibited from possessing firearms.
On November 11, 2012, the Missoula Police Department received a call that PEASLEY was headed from the north side of Missoula with a firearm. PEASLEY was described as a white male, 6'11" tall, wearing a beanie or hat with a black backpack riding a red mongoose bike. A MPD officer located PEASLEY who would not stop. As PEASLEY continued to ride away from the officer, PEASLEY grabbed at his right-side waistband a couple of times. PEASLEY eventually got off of his bike and ran from the officer. PEASLEY ran into the canal before he finally stopped running. The officer had to keep his firearm trained on PEASLEY until backup units arrived.
When interviewed, PEASLEY admitted to throwing a firearm into the canal before he stopped running. PEASLEY stated that a friend paid him $85 to throw the firearm into the river. The firearm was black and silver with the serial number scratched off.
The next day, MPD officers located the black and silver, Kahr .40 caliber pistol in the river. It was loaded with six rounds of ammunition.
The caller from November 11, 2012, previously observed PEASLEY with the .40 caliber, black and silver, pistol on November 9, 2012. PEASLEY pulled the pistol out of his backpack and told the caller to, "check it out."
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PEASLEY will likely serve all of the time imposed by the court. In the federal system, PEASLEY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Missoula Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jerri Rowher Mccubbins Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Butte, on November 8, 2013, before U.S. District Judge Sam E. Haddon, JERRI ROWHER McCUBBINS, a 63-year-old resident of Butte, was sentenced to a term of:
Prison: 48 months
Special Assessment: $100
Supervised Release: 5 years
McCUBBINS was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
From approximately March 2012 until approximately July 2012, McCUBBINS and others possessed with the intent to distribute methamphetamine in Butte and other places in Montana. The methamphetamine came from Las Vegas for distribution in the Butte area.
During the time frame alleged in the indictment, McCUBBINS received 8 to 10 ounces of methamphetamine from her co-conspirators for further distribution in the Butte area.
McCUBBINS admitted to this conduct when interviewed by law enforcement.
This information was confirmed through the interview of other witnesses. Money Gram records also confirmed McCUBBINS' admissions.
A laboratory analysis confirmed the presence of methamphetamine that was confiscated by law enforcement during their investigation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that McCUBBINS will likely serve all of the time imposed by the court. In the federal system, McCUBBINS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations, the Butte-Silverbow Police Department, and the Drug Enforcement Administration Lab.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on November 8, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
NATHANIEL COLE BURDEAU, a 21-year-old resident of Browning, appeared on a charge of assault resulting in serious bodily injury. He is currently released on special conditions. If convicted of this charge, BURDEAU faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Individual Charged with Attempt to Provide Material Support to A Foreign Terrorist OrganizationRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina and the Deparment of Justice National Security Division announced that on November 5, 2013, a federal grand jury in Raleigh, North Carolina returned a one-count indictment charging BASIT JAVED SHEIKH with attempting to provide material support and resources to a foreign terrorist organization in violation of Title 18, United States Code, Section 2339B. Specifically, the indictment charges that SHEIKH attempted to provide material support and resources to Jabhat al-Nusrah, which the United States Secretary of State has identified as an alias name for al-Qa’ida in Iraq, a designated Foreign Terrorist Organization.
The charges contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. United States Attorney for the Eastern District of North Carolina, Thomas G. Walker, emphasized, "This indictment details the violent intentions of one man and is in no way a reflection on anyone else."
SHEIKH was initially charged in a criminal complaint. As set forth in the affidavit supporting the complaint, SHEIKH is a 29 year-old legal permanent resident of the United States. The affidavit describes multiple Facebook postings by SHEIKH since April, 2013, expressing support for Jahbat al-Nusrah, which has claimed responsibility for nearly 600 attacks in Syria that have killed numerous innocent civilians. SHEIKH posted articles acknowledging that Jahbat al-Nusrah had been designated by the United States as a terrorist organization.
According to the affidavit, SHEIKH reached out to an individual he believed could assist him. SHEIKH communicated to this individual his desire to travel to Syria in support of violent jihad. This individual informed SHEIKH of another individual who was a member of Jabhat al-Nusrah and who could assist him. In reality, this individual was an FBI covert employee. SHEIKH reached out to the covert FBI employee and expressed his desire to travel to Syria in order to “help the mujahideen…in any way I can.” When asked how he wanted to help, SHEIKH responded “logistics, media, fight too, God willing.” Despite the FBI covert employee stating to SHEIKH that fighting was not for everyone, SHEIKH informed the FBI covert employee that he was “serious” and that he was ready to be a martyr.
Believing that the FBI covert employee would be able to assist in smuggling him from Lebanon into Syria, SHEIKH purchased a one way ticket with a final destination of Lebanon and a departure from Raleigh-Durham Airport on November 2, 2013. On that date, SHEIKH traveled to Raleigh-Durham Airport, obtained a boarding pass, checked in luggage, and proceeded through the security screening en route to his gate of departure. SHEIKH was arrested prior to boarding his flight.
If convicted, SHEIKH faces a maximum penalty of 15 years imprisonment, a $250,000 fine, and 3 years supervised release. The actual sentence would be determined by the sentencing court after consideration of the advisory sentencing guidelines.
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Resident Agency Joint Terrorism Task Force (JTTF). The Raleigh JTTF consists of the following agencies: FBI, DHS-H.S.I., Raleigh Police Department, Durham Police Department, NC State Bureau of Investigation, NC Department of Public Safety- NC State Highway Patrol and NC Alcohol Law Enforcement. The prosecution is being handled by Assistant United States Attorney Jason Kellhofer and Trial Attorney Jennifer Levy of the Counterterrorism Section in the Justice Department’s National Security Division.
10 November 2013
Jury Convicts Former Hialeah Police Officer and Wife of Dealing in Firearms Without A LicenseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Scott J. Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Rafael Oscar Valdes and Tammy Lynn Valdes, of Miami, Florida, were found guilty by a federal jury of all counts charged in connection with the unlawful sale of hundreds of firearms without a federal firearms license.
After a two week trial and over 300 items of admitted evidence, the jury convicted Rafael Valdes with dealing in firearms without a license (18 U.S.C. § 922(a)(1)(A)), making a false statement to a federal firearms dealer (18 U.S.C. § 922(a)(6)), interstate transportation of stolen property (18 U.S.C. § 2314), and filing false tax returns for years 2008 – 2011 (26 U.S.C. § 7206(1)). The jury also convicted Tammy Valdes with dealing in firearms without a license and filing false tax returns for years 2008 – 2011. At sentencing, Rafael Valdes faces a combined maximum statutory term of imprisonment of 37 years, as well as paying restitution to the City of Hialeah and possible fines. At sentencing, Tammy Valdes faces a combined maximum statutory term of imprisonment of 18 years and possible fines. Sentencing is scheduled for December 12, 2013, before U.S. District Judge Donald M. Middlebrooks.
According to the court record and evidence presented at trial, Rafael Valdes was employed as a police officer with the City of Hialeah, Florida since 2004. Tammy Valdes was also once employed as a police officer with the City of West Miami, Florida, from 2004 until 2008 and the Town of Golden Beach, Florida, from 2008 through 2009. Neither defendant ever possessed a federal firearms license.
The Valdeses were initially indicted on December 13, 2012, for dealing in firearms without a license. Starting as early as July 2005, and continuing through June 2012, the defendants sold hundreds of firearms. In November 2008, the defendants began buying and selling firearms under the fictitious name of Custom Weapons Systems. The defendants advertised and sold over 100 firearms via the Internet to persons across the nation. The defendants also attended over 100 gun shows in the Southern and Middle Districts of Florida, during which they purchased over 400 firearms and sold over 500 firearms. At times, their purchase and subsequent sale of firearms took place on the same day. Additionally, the defendants sold nine firearms to undercover agents, solicited the purchase of firearms from undercover agents, and offered to acquire firearms for undercover agents on a repetitive basis.
As part of the initial indictment, Rafael Valdes was charged with making a false statement to a licensed firearms dealer in December 2008 when he purchased three AR-15 serialized lower receivers. Evidence admitted during trial proved that Rafael Valdes purchased those receivers for the sole purpose of building and selling completed rifles to three other officers after taking deposits. Rafael Valdes then falsely stated on an ATF Form 4473 that all three receivers were his, when in fact he was acquiring those receivers for other persons.
On July 31, 2013, a superseding indictment added tax charges against both defendants for filing false tax returns from 2008 – 2011, in that they failed to report their total income which included money derived from firearm sales. During trial, evidence was presented that the Valdeses failed to report over $350,000.00 in gross receipts during 2008 - 2011.
The superseding indictment also charged Rafael Valdes with transporting stolen firearm parts from the Hialeah Police Department where he was employed in the training section. During trial, the evidence showed that Rafael Valdes took apart firearms that were in evidence at the Hialeah Police Department and deemed to be destroyed. Rafael Valdes then advertised those parts for sale on the internet and later transported those parts to buyers located across the United States, including; New York, California, Utah, and Missouri. Rafael Valdes then deposited the proceeds into his personal bank account. In addition to selling parts of firearms that were once in evidence, Rafael Valdes also sold machine gun parts taken from six different Heckler and Koch, MP-5 machine guns which had been utilized by the Hialeah Police Department SWAT team.
Mr. Ferrer commended the investigative and cooperative efforts of ATF, IRS-CI, BSO, PBSO, Miami-Dade Police Department, Miami Beach Police Department, City of Miami Police Department, Virginia Gardens Police Department, Hialeah Police Department, FDLE, FBI and HSI. The case was prosecuted by Assistant U.S. Attorneys Adam McMichael and John McMillan.
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.
47 Defendants Charged in Separate Schemes That Resulted in Thousands of Identities Stolen and Millions of Dollars in Identity Theft Tax FilingsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Guy Fallen, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Steven Steinberg, Chief, Aventura Police Department, Larry Gomer, Interim Chief, North Miami Beach Police Department, and Juan Santana, Chief, Miami-Dade Police Department, announce the filing of federal charges against 47 defendants in 30 separate cases, dealing with thousands of stolen identities and millions of dollars of fraudulent identity theft tax filings. Today’s cases reaffirm the joint federal and local commitment to crack-down on stolen identity tax refund fraud (SIRF) perpetrators.
According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in 2012. While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions. Florida’s rate of 361.3 complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 645.4 complaints per 100,000 residents.
Moreover, a September 2012 report by the U.S. Treasury Inspector General for Tax Administration (TIGTA) determined that Florida has the highest rate of stolen identity tax refund fraud in the United States. The City of Miami’s per capita number of false returns based on identity theft was 46 times the national average, and its per capita SIRF dollar value was more than 70 times the national average. Worse still, this problem is projected to grow: the TIGTA report estimates that the IRS could issue as much as $21 billion in fraudulent tax refunds over the next five years.
In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012.
The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service (USPIS), Miami Division, Social Security Administration, Office of Inspector General (SSA-OIG), Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Town of Davie Police Department, Florida Highway Patrol, Lee County Sheriff’s Office, Broward Sheriff’s Office (BSO), Ft. Lauderdale Police Department, Coconut Creek Police Department, Sunrise Police Department, Coral Springs Police Department, Miramar Police Department and North Miami Police Department.
Since the inception of the Strike Force, we have charged 273 defendants responsible for approximately $451 million in intended stolen identity refund fraud loss and in excess of $99 million in actual SIRF fraud loss. The Strike Force also worked proactively to hinder the efforts of SIRF defendants by attacking the fraudulent use of EFIN numbers in the Southern District of Florida. An EFIN number is a designated number issued by the IRS that allows individuals to file tax returns on behalf of other taxpayers. By analyzing fraudulent returns associated with certain of the EFIN numbers used in this District, the Strike Force, working closely in conjunction with IRS, revoked or suspended 70 of the worst offending EFIN numbers with which 53,900 returns were filed and stopped the flow of refunds associated with those numbers, saving the taxpayers untold millions of dollars.
Today, U.S. Attorney Ferrer, joined by members of the Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:
1. United States v. Angelo Ponds and Sean Guillaume, Case No. 13-60242-CR-Cohn
Defendants Angelo Ponds, 32, of Miami Gardens, and Sean Guillaume, 31, of Miramar, were charged in a nine count indictment for their participation in a stolen identity tax refund scheme relating to a health care provider.
According to the indictment, Guillaume worked for a company that performed medical laboratory tests where he had access to medical records with names, dates of birth, and Social Security numbers (personal identity information or “PII”) of individuals in the course of his employment with that company. During the conspiracy, Guillaume stole PII from the company and sold five thousand individuals’ PII to Ponds. Guillaume knew that Ponds would use the PII for the filing of fraudulent and unauthorized tax returns. Ponds caused other individuals to file false and fraudulent tax returns with the Internal Revenue Service (IRS) seeking refunds using the PII provided by Guillaume.
The defendants were charged with conspiracy to submit fraudulent claims to the government, theft of government money, and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the Internal Revenue Service, Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
2. United States v. Camilla Gonzalez and Patricia Alcime, Case No. 13-60249-CR-Scola
On October 3, 2013, defendants Camilla Gonzalez, 29, and Patricia Alcime, 29, both of Lauderhill, were charged in a 13 count indictment for their participation in a stolen identity tax refund scheme that resulted in the submission of approximately $2 million in fraudulent refund claims.
According to the indictment, Gonzalez and Alcime, while operating the tax preparation company “Luxury Tax,” obtained personal identifying information of numerous identity theft victims, including their names, dates of birth, and Social Security numbers. Upon receipt of the sensitive personal identifying information, they utilized this information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, utilizing the EFIN assigned to Luxury Tax Inc. and their individually assigned PTIN’s, and thereafter claimed refunds to which they were not entitled from the IRS. Defendants thereafter directed the IRS that the fraudulently claimed refunds be direct deposited into “Luxury Tax Inc.” bank accounts or onto pre-paid reloadable debit cards. Once the bank accounts or pre-paid reloadable debit cards had been funded by the Department of the Treasury, defendants withdrew the funds at local automated teller machines (ATM’s) or by utilizing their debit cards to make everyday purchases, including point of sale transactions at various local businesses and merchants. In total, they defrauded the IRS out of approximately $2,000,000.
The defendants were charged with conspiracy to submit fraudulent claims to the government, theft of public money, and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the IRS-CI and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Marc Anton.
3. United States v. Ernest Archie, III, Case No. 13-20755-CR-Martinez
On October 4, 2013, defendant Ernest Archie, 21, of Miami, was charged in a two count indictment with mail theft offenses.
According to the indictment, the defendant, while working as a postal employee, delayed and embezzled articles of mail, including debit cards which were intended to be delivered by the defendant, all in connection with a stolen identity tax refund scheme.
The indictment charges the defendant with theft of mail by a postal employee and delay of mail by a postal employee. Mr. Ferrer commended the investigative efforts of U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
4. United States v. Henry Dorvil et al., Case No. 13-60029-CR-Scola(s)
Defendants Corey Williams, 30, of Miami Gardens, Delvin Jean Baptiste, 29 of Miramar, and Ronald Gustave, 36, of Miami, were charged in a 41 count superseding indictment for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity.
According to the superseding indictment, the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers in their names, through which fraudulent transactions would be conducted.
To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.
According to the superseding indictment, defendant Williams, with others, caused the creation of Miami Gardens Check Cashing Store, LLC and Lucky Star Check Cashing Services, LLC, each opened for the purpose of cashing fraudulently obtained United States Treasury tax refund checks. From 2010, through early 2011, defendant Williams caused to be filed with the IRS 835 federal income tax returns, requesting refunds totaling $3,862,383; including 37 returns for deceased individuals totaling $155,802 in false claims.
Also according to the superseding indictment, in 2011, defendant Baptiste caused to be filed with the IRS 3,178 federal income tax returns, requesting refunds totaling $10,245,641; including 853 fraudulent returns for deceased individuals totaling $2,280,867 in false claims. And during 2012, defendant Gustave caused to be filed with the IRS 366 federal income tax returns, requesting refunds totaling $1,784,923; including 18 fraudulent returns for deceased individuals totaling $79,533 in false claims.
The defendants were each charged with a conspiracy to defraud the United States, commit wire fraud and aggravated identity theft as well as two substantive counts of both wire fraud and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the IRS-CI and the Federal Bureau of Investigation (FBI). The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil.
5. United States v. Marcelin Jean-Louis, Case No. 13-20738-CR-Cooke
Defendant Marcelin Jean-Louis, 40, of Homestead, was charged in an 11 count indictment for his participation in a stolen identity tax refund scheme involving several million dollars in fraudulently obtained tax refunds.
According to the complaint, Jean-Louis agreed on a plan whereby he would take fraudulently obtained tax refund checks to Mahadeo Singh for cashing at Argo Check Cashing (“Argo”) in Homestead, Florida. Singh cashed over five million dollars in fraudulently obtained tax refund checks at Argo, several million of which came from Jean Louis. Jean Louis acknowledged to the owner of Argo that the checks were fraudulent and that he obtained them from people at the post office and from a tax preparer.
The defendant was charged with conspiracy to steal government funds, theft of government funds, and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the U.S. Secret Service and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
6. United States v. Michael Douarin and Odelson Georges, Case No. 13-20756-CR-Moore
On October 4, 2013, defendants Michael Douarin, 25, and Odelson Georges, 33, both of Miami, were charged in a five-count indictment for their participation in an identity theft tax refund fraud scheme.
According to the indictment, on March 24, 2011, Michael Douarin and Odelson Georges were caught in possession of personal identity information belonging to hundreds of people. Among the paperwork were computer screen-shot printouts displaying patients’ personal information from a local hospital in Miami Beach, Florida, numerous case sheet printouts from another facility, and handwritten ledgers listing social security numbers with corresponding names and dates of birth. Investigation revealed that co-conspirators filed fraudulent tax returns using some of these identities. The scheme involved the use of “Get it Now” debit cards, which are commonly used by tax preparers as a means to receive tax refunds.
The indictment charges the defendants with unauthorized possession of personal identification information, conspiracy to possess personal identification information, and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the IRS-CI, the North Miami Beach Police Department, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI). The case is being prosecuted by Assistant U.S. Attorney Marton Gyires.
7. United States v. Carl Borgella and Paul Borgella, Case No. 13-20710-CR-Cooke
On September 20, 2013, defendants Carl Borgella, 31, of Hollywood, and Paul Borgella, 34, of North Miami Beach, were charged in a seven count indictment in connection with a scheme to obtain fraudulent tax return refunds.
According to the indictment, between January and September 2011, the defendants operated “TRCJ Asset Services,” a tax preparation company, and utilized two business accounts to receive fraudulently obtained United States Department of Treasury tax refunds, without the authorization of the filers. Once the bank accounts had been funded by the Department of the Treasury, the defendants would thereafter withdraw the funds by writing, and endorsing, checks to TRCJ Asset Services, making ATM withdrawals, and making debit card payments. In total, they defrauded the IRS out of approximately $412,000.
The defendants were charged with conspiracy to steal government funds and theft of government funds. Mr. Ferrer commended the investigative efforts of the U.S. Secret Service, the North Miami Beach Police Department, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Amanda Perwin.
8. United States v. Ivory Covington and Tekia Jones, Case No. 13-20704-CR-Dimitrouleas
On September 20, 2013, defendants Ivory Covington, 26, of Miami Lakes, and Tekia Jones, 31, of Lauderhill, were charged in a nine count indictment in connection with a scheme to steal identities of current and former employees of a national fast food restaurant chain. According to the indictment, the defendants conspired to possess and possessed at least fifteen social security numbers, names and dates of birth belonging to persons who were formerly or presently employed with a national fast food restaurant.
The indictment charges the defendants with conspiracy to commit access device fraud, access device fraud and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the Aventura Police Department and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
9. United States v. Marquis Onigirin Moye and Angela Dione Rosier, Case No. 13-6462-CR-Hunt
Defendants Marquis Onigirin Moye, 24, of Pompano Beach, and Angela Dione Rosier, 41, of Coral Springs, were charged by criminal complaint for their participation in a stolen identity fraud scheme.
According to the complaint, Rosier worked for a company that performed medical laboratory tests where she had access to medical records with names, dates of birth, and Social Security numbers (personal identity information or “PII”) of individuals in the course of her employment with that company. During the conspiracy, Rosier provided access to the company's database which allowed other coconspirators to steal PII from the company. Found on the computer of one of the coconspirators was the PII of over 1,300 individuals. Rosier knew that her co-conspirators would use the PII for fraudulent purposes. Moye also obtained information from the company's database, which he used to obtain credit cards and other identification in the name of a patient.
The defendants were charged with conspiracy to possess fifteen or more unauthorized access devices. Mr. Ferrer commended the investigative efforts of the FBI, the IRS-CI, the Fort Lauderdale Police Department, the Broward Sheriff's Office, and the Coconut Creek Police Department. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
10. United States v. Robinson Calixte, Case No. 12-60250-CR-Graham
On September 13, 2013, defendant Robinson Calixte, 22, of Miami, was charged in a five count indictment for identity theft in connection with his unauthorized possession of at least fifteen social security numbers belonging to other individuals. Defendant was found with over 800 names, dates of birth and social security numbers of other individuals.
The indictment charges the defendant with access device fraud and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, North Miami Beach Police Department, North Miami Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
11. United States v. Nolan McFarland, Case No. 13-20757-CR-Ungaro
On October 4, 2013, defendant Nolan McFarland, 34, of Opa Locka, was charged in a nine count indictment for his participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $295,000.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
12. United States v. Ronald Walker, Case No. 13-60248-CR-Cohn
On October 3, 2013, defendant Ronald Walker, 36, of Fort Lauderdale, was charged in a 15 count indictment for his participation in a stolen identity tax refund scheme involving approximately $1.2 million in stolen or otherwise fraudulent U.S. Treasury checks.
According to the indictment, Walker facilitated the negotiation of stolen and fraudulently obtained U.S. Treasury checks by receiving the checks, forging the payees’ endorsements, and providing images of altered driver’s licenses to a check cashing store, American Quick Cash, in Oakland Park, Florida, where he cashed the stolen checks. Walker cashed approximately 23 U.S. Treasury checks worth approximately $1.2 million.
The defendant was charged with theft of government funds and aggravated identity theft. Mr. Ferrer commended the investigative efforts of U.S. Secret Service and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Alicia Shick
13. United States v. Willy Toussaint, Case No. 13-60247-CR-Scola
On October 3, 2013, defendant Willy Toussaint, 43, of Lauderhill, was charged in a five count indictment with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft.
According to the indictment, persons whose identities are currently unknown to the Grand Jury obtained, possessed, and used stolen personal identifying information to submit to IRS false, fictitious, and fraudulent federal income tax returns claiming tax refunds to which they were not entitled. Defendant Willy Toussaint obtained counterfeit and fraudulent means of identification, including counterfeit State of Florida driver’s licenses, and thereafter caused multiple unauthorized personal and business bank accounts to be created at JP Morgan Chase Bank, N.A., utilizing the personal identification information of unsuspecting identity theft victims. Once these bank accounts had been created at the direction of defendant Willy Toussaint, other persons either directed the IRS to electronically transmit or “direct deposit” the fraudulently claimed tax refunds to the bank accounts established at the direction of defendant Willy Toussaint, or other persons would deposit U.S. Treasury tax refund checks into these fraudulently established accounts. Once JP Morgan Chase Bank, N.A. received the tax refunds from the U.S. Treasury, other persons would unjustly enrich themselves by either “wiring” the money out of the fraudulently established accounts at JP Morgan Chase Bank, N.A. or would utilize multiple automated teller machines (ATM) to withdraw the money in cash. As compensation for opening the fraudulent bank accounts at JP Morgan Chase Bank, N.A., defendant Willy Toussaint thereafter paid bank employees between $2,000 and $10,000. In total, approximately $208,000 in fraudulently obtained income tax refunds were deposited into fraudulent bank accounts created at the direction of Willy Toussaint.
Mr. Ferrer commended the investigative efforts of the IRS-CI, U.S. Secret Service, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Marc Anton.
14. United States v. Monique Adelson, Case No. 13-20705-CR-Scola
On September 20, 2013, defendant Monique Adelson, 20, of North Miami, was charged in a five count indictment in connection with a scheme to obtain fraudulent tax return refunds. The tax fraud scheme involved individuals obtaining personally identifiable information (PII) from a combination of five websites, which included Florida Department of Highway Safety and Motor Vehicle's website www.GoRenew.com and a website that contained a Death Master File (DMF). The DMF is a list of social security numbers, dates of birth, and names of deceased individuals, which was used to guess a living individual's identity. The PII obtained from the five website combination was used to file fraudulent tax returns and have the refunds directly deposited into the defendant’s bank account.
The indictment charges the defendant with theft of government funds. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
15. United States v. Marie Jean Baptiste, Case No. 13-20707-CR-Rosenbaum
On September 20, 2013, defendant Marie Jean Baptiste, 22, of Miami, was charged in a three count indictment in connection with a scheme to obtain fraudulent tax return refunds. The tax fraud scheme involved individuals obtaining personally identifiable information (PII) from a combination of five websites, which included Florida Department of Highway Safety and Motor Vehicle's website www.GoRenew.com and a website that contained a Death Master File (DMF). The DMF is a list of social security numbers, dates of birth, and names of deceased individuals, which was used to guess a living individual's identity. The PII obtained from the five website combination was used to file fraudulent tax returns and have the refunds directly deposited into the defendant’s bank account.
The indictment charges the defendant with theft of government funds. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
16. United States v. Hans Velo-Germain, Case No. 13-20708-CR-Dimitrouleas
On September 20, 2013, defendant Hans Velo-Germain, 20, of North Miami, was charged in a six count indictment in connection with a scheme to obtain fraudulent tax return refunds. The tax fraud scheme involved individuals obtaining personally identifiable information (PII) from a combination of five websites, which included Florida Department of Highway Safety and Motor Vehicle's website www.GoRenew.com and a website that contained a Death Master File (DMF). The DMF is a list of social security numbers, dates of birth, and names of deceased individuals, which was used to guess a living individual's identity. The PII obtained from the five website combination was used to file fraudulent tax returns and have the refunds directly deposited into the defendant’s bank account.
The indictment charges the defendant with theft of government funds. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
17. United States v. Richard Oliver, Case No. 13-20682-CR-Moreno
On September 13, 2013, defendant Richard Oliver, 54, of Miami Gardens, was charged in a three count indictment for theft of a U.S. Treasury check, forgery and aggravated identity theft in connection with defendant’s deposit of a stolen U.S. Treasury check into his personal bank account.
The indictment charges the defendant with theft of government funds, forgery and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
18. United States v. Peter Michael Daniel, Case No. 13-20685-CR-Middlebrooks
On September 13, 2013, defendant Peter Michael Daniel, 29, of Sweetwater, was charged by indictment with access device fraud for his unauthorized possession of at least fifteen social security numbers belonging to other individuals.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to U.S. Secret Service, IRS-CI, and Lee County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
19. United States v. Randy Sam Jackson and Braden Anthony Jones, Case No. 13-20770-CR-Zloch
On October 8, 2013, defendants Randy Sam Jackson, 27, of North Miami and Braden Anthony Jones, 28, of North Miami, were charged in a nine count indictment for their participation in a stolen identity tax refund scheme resulting in the recovery of over 653 stolen names, social security numbers and birthdates of individuals.
According to the indictment, on April 30, 2013, Randy Sam Jackson and Braden Anthony Jones had in their possession a notebook containing over 635 names, social security numbers, and dates of birth of individuals. They were apprehended by law enforcement while using a laptop computer to input a federal income tax return application in the name of one of those stolen identities using the tax filing service “Express1040.com.”
The defendants were charged with conspiracy to possess fifteen or more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Brooke Watson.
20. United States v. Moshi Barnard, Case No. 13-20684-CR-Cooke
On September 13, 2013, defendant Moshi Barnard, 28, of Hollywood, was charged in a seven count indictment for identity theft in connection with her unauthorized possession of at least fifteen social security numbers belonging to other individuals. Defendant was found with over 200 social security numbers, names and dates of birth of other individuals. The actual loss to the IRS was $56,987.
The indictment charges the defendant with access device fraud and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to U.S. Secret Service, Aventura Police Department, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
21. United States v. Tiffany Charise Fields and Robert Howell, Case No. 13-60254-CR-Hurley
On October 3, 2013, defendants Tiffany Charise Fields, 33, of Pompano Beach, and Robert Howell, 37, of Miami, were charged in an eight count indictment for identity theft in connection with their fraudulent possession of at least 15 social security numbers belonging to other individuals, which resulted in an estimated intended loss of approximately $111,500.
According to the indictment, the defendants possessed and sold the social security numbers of other individuals to a confidential informant on three separate occasions in March and April 2013. The defendants sold the personal identifying information of other individuals knowing that it was intended to be used to commit fraud.
The indictment charges the defendants with conspiracy to commit access device fraud, access device fraud and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Andy R. Camacho.
22. United States v. Michael Leslie, Case No. 13-60253-CR-Zloch
On October 3, 2013, defendant Michael Leslie, 22, of North Lauderdale, was charged in a three count indictment for identity theft in connection with his fraudulent possession of at least 15 social security numbers belonging to other individuals, which resulted in an estimated intended loss of approximately $45,000.
According to the indictment, defendant possessed and sold the social security numbers of other individuals to a confidential informant. Defendant sold the social security numbers knowing that they were intended to be used to commit fraud.
The indictment charges the defendant with access device fraud and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Andy R. Camacho.
23. United States v. Andy Destin, Case No. 13-20761-CR-Huck
On October 4, 2013, defendant Andy Destin, 25, of Miami, was charged in a ten count indictment for theft of U.S. Treasury checks. The estimated loss to the IRS is $79,004.
According to the indictment, defendant knew that certain tax refund checks were obtained through fraud, and nevertheless deposited them into his bank account with the intent to convert the monies to his personal use.
The indictment charges the defendant with theft of government funds. Mr. Ferrer commended the investigative efforts of the IRS-CI and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Andy R. Camacho.
24. United States v. Felicidy Butler, Case No. 13-20733-CR-Williams
On September 27, 2013, defendant Felicidy Butler, 26, of Miami, was charged in a three count indictment for her participation in an identity theft tax refund scheme resulting in over $175,000 in disbursed tax refunds, with an intended loss of over $440,000.
According to the indictment, Butler fraudulently possessed fifteen or more social security numbers of other persons. The indictment also alleges that the defendant possessed the means of identification, specifically, the names and dates of birth of two identity theft victims.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the IRS-CI, the U.S. Secret Service, and the Sunrise Police Department. The case is being prosecuted by Assistant U.S. Attorney Elina Rubin-Smith.
25. United States v. Johny Dabrezil, Case No. 13-20765-CR-Graham
On October 4, 2013, defendant Johny Dabrezil, 28, of North Miami Beach, was charged in a four count indictment for his participation in an identity theft tax refund scheme. According to the indictment, the defendant fraudulently possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant stole the means of identification, specifically, the name and social security number, of three individuals.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
26. United States v. Roshawn Jermaine Davis, Case No. 13-20766-CR-Williams
On October 4, 2013, defendant Roshawn Jermaine Davis, 38, Miami, was charged in a six count indictment for his participation in an identity theft tax refund scheme. According to the indictment, the defendant fraudulently possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant stole the means of identification, specifically, the name and social security number, of five individuals.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI and the Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
27. United States v. Wendy Sands. Case No. 13-20759-CR-Williams
On October 4, 2013, defendant Wendy Sands, 43, of Opa Locka, was charged in a three count indictment for her participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $32,000.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft. Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
28. United States v. Donnavan Haynes, Case No. 13-20758-CR-Williams
On October 4, 2013, defendant Donnavan Haynes, 49, of Miami, was charged in a nine count indictment for his participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $214,000.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft. Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
29. United States v. Jean-Elguentino Cayo, Case No. 13-20769-CR-Martinez
On October 8, 2013, defendant Jean-Elguentino Cayo, 26, of Miami Gardens, was charged in a single count indictment with access device fraud.
The indictment charges the defendant with trafficking in unauthorized social security numbers with intent to defraud. Mr. Ferrer commended the investigative efforts of ICE-HSI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
30. United States v. Andrew Ware, et al., Case No. 13-60252-CR- Dimitrouleas
On October 3, 2013, defendants Andrew Ware, 27, David Tilus, 27, Jaqwayn Henry, 23, Alex Dontfred, 29, Fritznel Etienne, 24, Latanya Ware, 27, Latonya Ware, 27, and Sherika Rowe, 20, all of Lauderhill, were charged in a 48-count indictment for their participation in a stolen identity tax refund scheme and an access device fraud scheme that resulted in the submission of over $108,000 in fraudulent tax refund claims and over $48,000 in unauthorized access device purchases.
According to the indictment, Andrew Ware, David Tilus, Latanya Ware, Latonya Ware and Sherika Rowe obtained the personal identifying information (PII) of numerous identity theft victims, including their names, dates of birth, and Social Security numbers. Upon receipt of the PII, they utilized this information to electronically file fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claimed refunds to which they were not entitled from the IRS. Defendants thereafter directed the IRS that the fraudulently claimed refunds be direct deposited onto pre-paid reloadable debit cards. Once these debit cards had been funded by the Department of the Treasury, defendants withdrew the funds by utilizing the debit cards to purchase gift cards and other merchandise, and make everyday purchases, including point of sale transactions at various local Walmart stores.
The conspiracy to commit access device fraud involved Andrew Ware, David Tilus, Jaqwayn Henry, Alex Dontfred and Fritznel Etienne in a plan to utilize victims’ access devices, without their authorization, to purchase merchandise totaling at least $1,000 in a single year. These defendants obtained credit card numbers from various victims and used these stolen access devices to purchase merchandise, gift cards and prepaid debit cards for later use.
Mr. Ferrer commended the investigative efforts of the U.S. Secret Service, IRS-CI and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Harry Wallace and Alicia Shick.
If convicted, the defendants face a possible maximum statutory sentence of 20 years in prison for each count of wire fraud; 10 years in prison for conspiracy to make false claims against the United States; five to 15 years in prison for access device fraud; 10 years in prison for stealing government funds; and, two years in prison consecutive to any other term for aggravated identity theft.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
8 November 2013
Woodstock, Vermont Business Primrose Garden Gift Shop Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that the owners of Primrose Garden Gift Shop and the building in which it is located at 26 Central Street Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of Primrose Garden Gift Shop.
An onsite survey of Primrose Garden Gift Shop performed by United States Department of Justice architects revealed ADA compliance issues related to the shop’s entrance and interior space. Primrose Garden Gift Shop will remedy the agreed upon ADA compliance issues by April 30, 2014.
Primrose Garden Gift Shop’s owner and the owner of the building in which Primrose Garden Gift Shop is located recognized their obligation to address the issues identified in the onsite survey. Anne Nestler, owner of Primrose Garden Gift Shop, and Thomas Byrne, owner of 26 Central Street, are to be commended for their cooperation with the Office of the United States Attorney for the District of Vermont.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Manuel Montalvo, 39, of East Chicago, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 24 months of probation, with home detention of 4 months, and a $1000.00 fine after pleading guilty to the felony offense of filing a false tax return for the tax year 2009.According to documents filed in this case, Montalvo admitted that he provided false information about deductions including that he had $23,382 in business expenses and $17,063 in medical expenses.In fact, both figures were made up. Montalvo filed the false returns while employed as the Director of East Chicago Public Library. This case was the result of an investigation by the Internal Revenue Service and the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Alexander Vargas, 36, of Highland, Indiana, was sentenced by Senior District Judge Rudy Lozano to 276 months imprisonment and 5 years of supervised release after pleading guilty to one count of conspiracy to commit racketeering activity, one count of narcotics conspiracy, two counts of murder in aid of racketeering and two counts of murder resulting from the use of a firearm in relation to crimes of violence and drug trafficking.According to the indictment, the Latin Kings is a nationwide gang that originated in Chicago and has branched out throughout the United States, including to Texas. The Latin Kings is a well-organized street gang that has specific leadership and is comprised of regions that include multiple chapters.The indictments filed in these cases allege that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the National Gang Targeting, Enforcement & Coordination Center; the National Gang Intelligence Center; the Chicago Police Department; the East Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; and the Houston Police Department.The investigation of the Chicago Police Department officers was conducted by Chicago City Public Corruption Task Force, a Chicago Police Department- Internal Affairs and FBI - Chicago law enforcement initiative.This case was prosecuted by Assistant United States Attorney David J. Nozick, and Joseph A. Cooley, Trial Attorney, United States Department of Justice - Organized Crime and Gang Section.
Warwick Man Ordered Detained on Federal Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Sean Keener, 26, of Warwick, R.I., was ordered detained by U.S. District Court Magistrate Lincoln D. Almond today following an initial appearance in U.S. District Court in Providence on charges of possession and distribution of child pornography, announced United States Attorney Peter F. Neronha, Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); and Warwick Police Chief Colonel Stephen M. McCartney.
According to an affidavit in support of a criminal complaint which charges Keener with one count each of possession of child pornography and distribution of child pornography, a thumb drive was seized by HSI agents in Boston in June which allegedly contained photographs depicting child pornography and, among other information, an email address allegedly belonging to Keener. Among the sexually explicit photographs was that of a prepubescent child believed to be a 7-year-old girl from Rhode Island. HSI agents also linked the email address to an account on a Russian website where they discovered a folder allegedly created by Keener which contained several pictures of the same child.
According to the affidavit, based on an examination of Internet and cell phone company records, a social media website and information developed by Warwick Police, Keener’s residence and the identity of the 7-year-old child from Rhode Island who was depicted in the photographs was determined. A court authorized search of a Warwick residence where Keener was staying by HSI agents and Warwick Police resulted in the seizure of a computer allegedly belonging to Keener and which allegedly contained more than 600 images and videos, many of which depicted minors engaged in sexually explicit conduct.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Distribution of child pornography is punishable by a statutory penalty of between 5 and 20 years imprisonment and a fine of up to $250,000. Possession of child pornography is punishable by a statutory penalty of up to 10 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Violent Felon Sentenced to 15 Years in Prison for Attempted Assault on Federal OfficerRead the Press Release
A repeat offender who attempted to shoot a U.S. Marshal while handcuffed, was sentenced today in U.S. District Court in Tacoma to 15 years in prison, announced U.S. Attorney Jenny A. Durkan. JOSEPH ROBERT SMITH, 41, was arrested by the U.S. Marshal Service Pacific Northwest Violent Offender Task Force on October 23, 2012. In the course of the arrest, SMITH attempted to use a handgun he had hidden in his waistband to shoot one of the federal officers on the arrest team. U.S. District Judge Robert J. Bryan imposed the sentence which will run concurrent with a 249 month sentencing in state court for four armed robberies.
According to records filed in the case, SMITH was wanted on a warrant issued by the Department of Corrections for escape. SMITH was located in Tacoma and was taken into custody after a short foot chase by officers. SMITH was briefly patted down and handcuffed, with the plan to do a more thorough search after taking him to a more secure area. As the officers were leading him out of the area where he was apprehended, SMITH brought his hands around from behind his back and attempted to grab the butt of a gun that was concealed in his waistband. SMITH had the gun pointed at the leg of the Deputy Marshal escorting him and was attempting to chamber a round when the Deputy Marshal knocked the gun to the ground.
Since 1989, SMITH has multiple felony convictions including burglary, robbery, escape, assaults, eluding, and domestic violence.
The case was investigated by the U.S. Marshal Service and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case was prosecuted by Assistant United States Attorney Todd Greenberg.Two Men Sentenced in Scheme to Fraudulently Obtain Licenses for more than 100 Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two more men were sentenced in federal court today for their roles in a conspiracy to provide false identity documents so that more than 100 illegal immigrants could fraudulently obtain driver’s and non-driver’s licenses from the license office in St. Joseph, Mo., which is operated by a contractor for the Missouri Department of Revenue.
Domingo Ajanel-Castro, 34, a citizen of Guatemala who was illegally residing in St. Joseph, and Hector Juarez Mendoza, Sr., 55, of St. Joseph, a citizen of Mexico who is a lawful permanent resident of the United States, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes. Ajanel-Castro was sentenced to four years in federal prison without parole. Mendoza was sentenced to three years and six months in federal prison without parole. The court also ordered Ajanel-Castro and Mendoza to forfeit to the government $125,000 as proceeds of the criminal conspiracy.
Ajanel-Castro and Mendoza have both pleaded guilty to their roles in a conspiracy to unlawfully produce identification documents, unlawfully transfer the means of identification of another person and commit Social Security fraud and to aggravated identity theft. Ajanel-Castro also pleaded guilty to possessing false or fraudulently obtained identification documents.
Illegal aliens traveled across the United States to obtain licenses at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. It is estimated that well over 100 Missouri licenses have been unlawfully issued to illegal aliens as part of this conspiracy.
Mendoza’s wife, Isabel Ramirez Mendoza, 63, of St. Joseph, was sentenced on Sep. 26, 2013, to three years and six months in federal prison without parole after pleading guilty to her role in the conspiracy and to aggravated identity theft. The court also ordered Mendoza to pay a $125,000 money judgment to the government. Prior to the sentencing, Isabel Mendoza had already forfeited several vehicles that were seized by the government because they were used to transport illegal aliens and to further the conspiracy, including a 2004 Chevrolet Silverado, a 2009 Dodge Ram and a 2005 Dodge Durango.
Hector and Isabel Mendoza admitted that they assisted well over 100 illegal aliens in fraudulently obtaining Missouri driver’s and non-driver’s licenses from July 2010 until Jan. 10, 2012. Conspirators (including family members, such as her minor son) escorted illegal aliens into the St. Joseph license office under the guise of serving as translators.
The Mendozas charged a fee, typically $100, for assisting the illegal aliens to obtain a Missouri driver’s or non-driver’s license that was in the name of another person who was listed on unlawfully obtained birth certificates and Social Security cards. They assisted illegal aliens in preparing for potential questions from the license office employees, such as learning the names on the birth certificates, the names of the parents on the birth certificates, the dates of birth, and the Social Security numbers.
The Mendozas referred illegal aliens to Ajanel-Castro so that he could help them obtain identification documents that could be used to fraudulently obtain Missouri non-driver’s licenses. Ajanel-Castro obtained the identification documents from co-defendant Pedro Pablo-Solis, 30, a citizen of Guatemala residing in Liberal, Kan. Ajanel-Castro requested identification documents to be of a specific age range for either a male or a female that corresponded with the illegal alien who was purchasing the document set. The illegal aliens were usually charged between $500 and $950 for the document sets and the Missouri driver’s and non-driver’s licenses.
Pablo-Solis, who admitted his role in the conspiracy, pleaded guilty to aggravated identity theft and awaits sentencing.
They knew the vast majority, if not all, of the illegal aliens they helped had stolen the identity of American citizens to fraudulently obtain Missouri non-driver’s licenses. Illegal aliens could later use these fraudulently obtained Missouri non-driver’s licenses as evidence of authorized stay or employment in the United States. The illegal aliens could also potentially use these identification documents to fraudulently obtain credit in the name of another person or to further other fraudulent schemes.
Sometime between June 22, 2009, and Nov. 2, 2011, Isabel Mendoza approached co-defendant Thomas Richard McNamara III, 26, of St. Joseph, who was an employee at the St. Joseph license office. She asked McNamara to accept identification documents he was not supposed to accept and issue Missouri driver’s or non-driver’s licenses to individuals who were escorted by her and others. In exchange, she offered to pay McNamara a fee of approximately $50 to $100 for each time he issued a license he was not supposed to issue due to the inadequate documentation of their true identity.
McNamara pleaded guilty on Dec. 11, 2012 to his role in the conspiracy and awaits sentencing. According to McNamara, it was common knowledge among the employees at the license office that co-conspirators were assisting illegal aliens to obtain licenses.
McNamara admitted that he accepted improper documents approximately two to three times a week, but he didn’t do this every week. Isabel Mendoza often called McNamara before bringing aliens to the license office to make sure he would be working and to let him know they were bringing in clients. McNamara then met with Isabel Mendoza on numerous occasions during non-work hours at locations.
Ajanel-Castro also admitted that he used a Social Security number that belonged to another person, Javier Flores, in order to obtain employment at Triumph Foods in St. Joseph in 2009. After he began working at Triumph Foods, Ajanel-Castro’s salary was garnished to pay for child support owed to the children of the real Javier Flores, thus confirming that Javier Flores was an identity of a real person.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, and the U.S. Postal Inspection Service.
Two Charlotte Women Sentenced to Prison for Fraudulent Tax Refund SchemeRead the Press Release
Defendants Sought More Than $3 Million In Tax Refunds Using False Tax Identification Numbers
CHARLOTTE, N.C. – Two Charlotte women were sentenced to prison by U.S. District Court Judge Max O. Cogburn, Jr. on Thursday, November 7, 2013, for obtaining false and fraudulent income tax refunds, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Jeannine Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division and Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join U.S. Attorney Tompkins in making today’s announcement.
Candida Figueroa, 42, of Charlotte, was sentenced to serve 30 months in prison, to be followed by two years of supervised release. Figueroa pleaded guilty in November 2012 to one count of false claims conspiracy. Her co-defendant, Cathy Cisneros, 31, also of Charlotte, was sentenced to 37 months in prison and was ordered to serve three years under court supervision following her prison term. Cisneros also pleaded guilty to one count of false claims conspiracy in October 2012. Judge Cogburn ordered both defendants to pay restitution to IRS in the amount of $1,658,477.67.
“Figueroa and Cisneros thought they could get away with ripping off the government and honest taxpayers who file truthful and honest tax returns. But instead of a pot of gold, the pair found prison cells waiting at the end of their tax fraud rainbow,” said U.S. Attorney Tompkins.
Special Agent in Charge Jeannine A. Hammett, IRS Criminal Investigation said, “IRS CI is committed to stopping those who undermine the federal tax system. Preparers like these defendants seek to enrich themselves by essentially stealing from all of us who pay our taxes honestly.”
According to filed court documents and yesterday’s sentencing hearing, from January to July 2012, Figueroa and Cisneros conspired to defraud the U.S. Treasury Department by participating in a scheme to obtain false tax refunds, using fraudulently obtained Individual Taxpayer Identification Numbers (ITINs). Court records indicate that the two women obtained ITIN numbers for various individuals using Mexican birth certificates and other documents. Then, using these ITIN numbers, the defendants prepared fraudulent federal tax returns seeking refunds based on false wage, income, and withholding tax information and claiming multiple dependents.
According to filed court records, Figueroa and Cisneros rented apartments at complexes with clustered mailboxes and then used the multiple apartment addresses on the fraudulent tax returns they submitted to IRS seeking refunds, causing the Treasury Department to mail false tax refund checks to these addresses.
Court records reflect that at least 1,104 fraudulent tax returns claiming $5.1 million in refunds have been associated with the pair’s conspiracy. Of this amount, the IRS issued refunds totaling approximately $1.6 million. As part of the scheme, Figueroa and Cisneros arranged for the Treasury checks to be cashed, and then they deposited the cash into bank accounts or held it in safety deposit boxes before wiring it to Mexico. To date, law enforcement have recovered $136,334.
Figueroa and Cisneros are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
A third co-conspirator, Ana Portillo, 42, of Charlotte, (also known as Ana Portillo-Flores, Ana Flores-Portillo, Peladita Portillo or Lety Portillo), pleaded guilty in May 2013, to one count of false claims conspiracy for participating in the tax fraud scheme. Portillo is currently released on bond and is awaiting sentencing. She faces a maximum prison term of 10 years, a $250,000 fine, or both.
The case was investigated by the IRS-Criminal Investigations Division with substantial assistance from the U.S. Postal Service. The prosecution is being handled for the government by Assistant U.S. Attorney Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
Tampa Couple Faces Conspiracy Charges Related to A Series of Bank RobberiesRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that Immanuel Lee Williams (28) and Cara Lee Williams (28), both of Tampa, have been arrested and charged in a criminal complaint with conspiracy to obstruct, delay, or affect commerce by robbery and conspiracy to commit bank robbery. If convicted on all charges, each faces a maximum penalty of twenty years in federal prison.
According to the criminal complaint, from December 5, 2012 to date, Immanuel Lee Williams and Cara Lee Williams conspired to rob thirteen federally-insured banks in the Middle District of Florida and two federally-insured banks in Alabama. To carry out the robberies, both are alleged to have worn disguises and used notes demanding money from the banks. Additional details are set forth in the attached criminal complaint.
Both individuals made their initial appearances, in Tampa, earlier today before U.S. Magistrate Judge Anthony E. Porcelli. A bond hearing is set for Cara Lee Williams on November 14, 2013 at 11:30 a.m. Immanuel Lee Williams reserved on the matter of bond and is being held without bail.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, Tampa Police Department, Polk County Sheriff’s Office, Hillsborough County Sheriff’s Office, Auburndale Police Department, Lee County Sheriff’s Office, Sumter County Sheriff’s Office, Orange County Sheriff’s Office, and Ocala Police Department. It will be prosecuted by Assistant United States Attorney Joseph W. Swanson.
Statement of Manhattan U.S. Attorney Preet Bharara on the Guilty Plea of the SAC Capital CompaniesRead the Press Release
“Subject to the Court’s acceptance, today four SAC Capital companies pled guilty to serious federal crimes that undermined the integrity of our securities markets. Financial institutions should know that they are not automatically immune from prosecution, and we will hold companies, as well as individuals, accountable wherever appropriate.”
St. Petersburg man sentenced to more than 5 years in prison for failure to register as a sex offenderRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday yesterday sentenced Jon Leslie Williams (55, St. Petersburg) to 5 years and 11 months in federal prison for failure to register as a sex offender. Williams was also ordered to serve a 20-year term of supervised release upon completion of his prison sentence.
Williams was found guilty on July 24, 2013.
According to court documents and testimony, Williams was convicted of criminal sexual conduct in Michigan, in 1991. As part of that sentence, he was required to register as a sex offender. Sometime in February 2013, Williams moved to St. Petersburg, Florida and failed to register as required. He remained there until April 4, 2013.
This case was investigated by the United States Marshals Service, the Pinellas County Sheriff’s Office and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
St. Louis Man Sentenced on Cocaine OffenseRead the Press Release
Michael J.W. Bryant, 41, of St. Louis, Missouri, was sentenced to 30 months in prison on November 8, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Bryant pled guilty on August 1, 2013, to Unlawful Possession with the Intent to Distribute Cocaine. Bryant had been indicted on June 18, 2013, by a federal grand jury sitting in East St. Louis.
In addition to the term of imprisonment, Bryant was ordered to pay a $300 fine and a $100 Special Assessment. He was also ordered to serve three years of supervised release following service of his term of imprisonment.
Evidence for this indictment was gathered during an investigation conducted by the Drug Enforcement Administration (DEA) and the Illinois State Police. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
South Carolina Tobacco Broker ConvictedRead the Press Release
Guilty of 44 wire fraud and money laundering charges
SYRACUSE, NEW YORK – William David Humphries, age 67, of Lake City, South Carolina, was found guilty today by a U.S. District Court jury of forty-four felony counts, including interstate travel in aid of racketeering, a wire fraud conspiracy to defraud Canada of tax revenue, a conspiracy for the unlicensed manufacture of tobacco products, and concealment money laundering – announced United States Attorney Richard S. Hartunian and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Thomas J. Cannon.
U.S Attorney Hartunian stated, “I would like to commend the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the other state, federal, and Canadian law enforcement agencies for their excellent investigative efforts in bring about today’s guilty verdict. We will continue our efforts with ATF and our other law enforcement partners to prosecute those individuals and organizations that seek to profit from the illicit smuggling of tobacco across our border.”
Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Cannon stated that “Today’s conviction of Mr. Humphries sends a clear and resounding message to all those involved in the illicit trade of cigarette trafficking that their schemes to defraud the United States Government and neighboring Canada will not be tolerated. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Attorney’s Office and our law enforcement partners that comprise the Northern Border Initiative remain steadfast not only in our fight to interdict the illegal flow of tobacco, but also ensuring those criminally responsible be brought to justice.”
Following a two week jury trial, Humphries was convicted of interstate travel in aid of racketeering, in violation of Title 18, United States Code, Section 1952(a)(1) and (a)(3), a wire fraud conspiracy to defraud Canada of tax revenue, in violation of Title 18, United States Code, Sections 1343 and 1349, a conspiracy to manufacture of tobacco products without a license in violation of Title 26, United States Code, Section 5672 and Title 18, United States Code, Section 371, and forty-one counts of concealment money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i).
Between 2005 and 2006, the defendant, a tobacco broker and wholesaler from South Carolina, conspired with other individuals living on the Akwesasne Indian Reservation (AMIR) to defraud Canada of tax revenue. In 2005, the defendant began working with a major manufacturer of cigarettes that was operating on the AMIR without the federally required bond and permit. The defendant provided “Canadian Blend” cut-rag tobacco and cigarette-making supplies to the unlicensed manufacturer. This tobacco was manufactured into cigarettes and subsequently smuggled into Canada without the payment of any legally required taxes to Canada. Between the summer of 2005 and May 2006, the defendant supplied the unlicensed manufacturer with approximately one load of cut-rag tobacco per week. The defendant supplied approximately 44 loads of tobacco, with each load producing 13,200,000 contraband cigarettes, causing a significant tax loss to Canada.
The unlicensed manufacturer was also engaged in a conspiracy to distribute marijuana smuggled in from Canada and then distributed throughout the United States. The proceeds of that marijuana distribution were used to fund the cigarette smuggling conspiracy, which employed the same smuggling routes used to bring marijuana into the United States from Canada.
In February 2006, after delivering a load of tobacco to the unlicensed manufacturer on the AMIR, the defendant was stopped on the AMIR for a vehicle infraction. Law enforcement officers seized approximately $88,000 in U.S. currency paid to Humphries for the sale of tobacco. A narcotics detection canine alerted to the currency, and officers were able to smell marijuana on the money. At trial, witness testimony established that the money found on Humphries was the proceeds of marijuana distribution.
In May 2006, the unlicensed manufacturers dealing with Humphries were arrested on federal marijuana charges and thereafter cooperated with the government. However, Humphries continued to sell tobacco and cigarette-making supplies to other unlicensed cigarette manufacturers based on the AMIR. Humphries continued to receive payments in the form of proceeds of marijuana sales from unlicensed manufacturers to which he had sold Canadian blend tobacco and supplies. In an attempt to disguise the source of the money, which was criminal proceeds, Humphries began taking substantial sums of U.S. currency to the Mohawk Bingo Palace, located on the AMIR. In recorded conversations heard by the jury with one of the government informants, he explained that he was inserting large sums of currency into the electronic bingo machines and then repeatedly cashing out at the cashiers’ window in an attempt to remove the smell of marijuana from the money.
The prosecution arose from the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Royal Canadian Mounted Police, the Alcohol and Tobacco Tax and Trade Bureau, St. Regis Mohawk Tribal Police Force, Homeland Security Investigations, the Drug Enforcement Administration, the Massena Police Department, the United States Border Patrol, and the Rensselaer County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorneys Carl Eurenius and Gwendolyn Carroll. For further information, please contact AUSA Eurenius at (315) 448-0672.
SAC Capital Management Companies Plead Guilty to Insider Trading Charges in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that S.A.C. CAPITAL ADVISORS, L.P. (“SAC Capital LP”), S.A.C. CAPITAL ADVISORS, LLC (“SAC Capital LLC”), CR INTRINSIC INVESTORS, LLC (“CR Intrinsic”), and SIGMA CAPITAL MANAGEMENT, LLC (“Sigma Capital”), collectively (the “SAC Companies”) that are responsible for the management of a group of affiliated hedge funds, collectively (the “SAC Hedge Fund” or “SAC”), pled guilty to each count in which they are charged in an indictment (the “Indictment”) unsealed in July of this year. The Indictment charges the SAC Companies with securities fraud and wire fraud in connection with a large-scale insider trading scheme. The SAC Companies pled guilty today before U.S. District Judge Laura T. Swain, pursuant to a plea agreement. Sentencing is scheduled for March 14, 2014, before Judge Swain, who reserved on the decision of whether to accept the pleas.
Manhattan U.S. Attorney Preet Bharara said: “Subject to the Court’s acceptance, today four SAC Capital companies pled guilty to serious federal crimes that undermined the integrity of our securities markets. Financial institutions should know that they are not automatically immune from prosecution, and we will hold companies, as well as individuals, accountable wherever appropriate.”
As alleged in the Indictment, from 1999 through at least 2010, numerous employees of the SAC Companies obtained and traded on material, non-public information that they were not permitted to have (“Inside Information”), or recommended trades based on such information to SAC Portfolio Managers (“SAC PMs”) or the SAC Owner. Specifically, the Indictment charges the SAC Companies with insider trading offenses committed by numerous employees, occurring over the span of more than a decade, and involving the securities of more than 20 publicly-traded companies across multiple sectors of the economy. As charged in the Indictment, the systematic insider trading engaged in by SAC PMs and Research Analysts was the predictable and foreseeable result of multiple institutional failures. The failures alleged included hiring practices heavily focused on recruiting employees with networks of public company insiders, the failure of SAC management to question employees about trades that appeared to be based on Inside Information, and ineffective compliance measures that failed to prevent or detect such trading, particularly prior to late 2009.
The plea agreement in this case was one of two component parts of an overall Agreement (the “Agreement”) reached by the parties and announced earlier this week. The Agreement imposes an additional $1.184 billion financial penalty on the SAC Companies, on top of the $616 million the SAC Companies have already agreed to pay to the U.S. Securities & Exchange Commission (“SEC”). The financial penalty – the largest insider trading penalty in history – is split between a fine in the criminal case (the “Criminal Case”), and a forfeiture judgment in a civil money laundering and forfeiture action (the “Forfeiture Action”) filed by the Government simultaneously with the criminal charges. It also provides that the SAC Companies and their affiliates will no longer accept outside investor funds and will shut down operations as an investment adviser.
The Agreement between the Government and the SAC Companies to plead guilty to all of the charges in the Indictment in which they are charged and resolve the Forfeiture Action was submitted to the Courts subject to judicial review and approval. Judge Swain received the pleas in the Criminal Case, United States v. S.A.C. Capital Advisors, L.P., et al., 13 Cr 541 (LTS), earlier today. U.S. District Judge Richard J. Sullivan, who is presiding over the Forfeiture Action, captioned United States v. S.A.C. Capital Advisors, L.P., et al., 13 Civ. 5182 (RJS), approved on Wednesday, November 6, 2013, the stipulation and proposed order to resolve the civil money laundering and forfeiture claims in the Forfeiture Action.
The remaining terms of the Agreement provide for the following:
- The total financial penalty is $1.8 billion, consisting of a $900 million fine in the Criminal Case and a $900 million judgment in the Forfeiture Action. Because the SAC Companies have already agreed to pay $616 million to the SEC to resolve related civil insider trading charges, that amount will be credited against the $900 million judgment in the Forfeiture Action, and therefore, the additional payment required under this Agreement will be approximately $1.184 billion. The SAC Companies have further agreed that neither they nor any other person or entity paying any portion of the financial penalty shall claim any tax deduction or credit for any money paid in resolving the Criminal Case and the Forfeiture Action.
- The SAC Companies will no longer accept third party investor funds and will terminate operations as an investment adviser.
- The SAC Companies will each be sentenced to a five-year term of probation – the maximum allowed by law – with a provision to end probation earlier if the SAC Companies cease operating entirely. The terms of probation will require, among other conditions, that the SAC Companies employ appropriate compliance measures to identify and prevent insider trading. Additionally, the insider trading compliance measures of the SAC Companies and any related entities trading securities will be reviewed by an independent compliance expert who will direct the SAC Companies to correct identified deficiencies.
The Agreement resolves the criminal charges against the SAC Companies but does not provide any individual with immunity from prosecution. Under the terms of the Agreement, the Government is not prevented from charging any individual with insider trading offenses and seeking the maximum prison term authorized by law for such offenses.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Arlo Devlin-Brown, Antonia M. Apps and John T. Zach are in charge of the prosecution, and Assistant U.S. Attorneys Sharon Cohen Levin, Chief of the Asset Forfeiture Unit, Micah Smith and Christine Magdo are responsible for the forfeiture aspects of the case.
The pleas announced today relate only to the pending charges against the SAC Companies and relate only to the guilt of the SAC Companies. The pleas do not include any admissions pertaining to individual defendants. All criminal defendants are presumed innocent unless and until proven guilty.
U.S. v. SAC Capital Advisors LLP, et al. Cover Ltr, Plea Agt, and Stip