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5 November 2013
New York Check Cashing Company and Owner Plead Guilty for Roles in $19 Million SchemeRead the Press Release
Belair Payroll Services Inc. (Belair), a multi-branch check cashing company in Flushing, N.Y., and its owner, Craig Panzera, 47, pleaded guilty today for failing to follow reporting and anti-money laundering requirements for more than $19 million in transactions, in violation of the Bank Secrecy Act (BSA). Panzera also pleaded guilty to conspiring to defraud the United States by willfully failing to pay income and payroll taxes.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE), and Chief Richard Weber of the Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
As part of the guilty plea, Belair will forfeit $3,267,252.10, and Panzera will pay restitution in the amount of $946,841.17 to the IRS. Sentencing for Belair and Panzera will be determined at a later date.
According to court records, from in or about June 2009 through June 2011, certain individuals presented to Belair’s manager and other employees checks to be cashed at Belair. The checks were written on accounts of shell corporations that appeared to be health care related, but in fact, the corporations did no legitimate business. The shell corporations and their corresponding bank accounts on which the checks were written were established in the names of foreign nationals, many of whom were no longer in the United States.
Belair accepted these checks and provided cash in excess of $10,000 to the individuals. Panzera and others at Belair never obtained any identification documents or information from those individuals. Belair filed currency transaction reports (CTRs) that falsely stated the checks were cashed by the foreign nationals who set up the shell corporations, and in certain CTRs, Belair failed to indicate the full amount of cash provided to the individuals. The individuals cashed more than $19 million through Belair during the course of the scheme. Panzera and Belair willfully failed to maintain an effective anti-money laundering program by cashing these checks.
The charges in the indictment against Panzera’s and Belair’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
The cases are being investigated by agents from ICE Homeland Security Investigations and IRS-CI. These cases are being prosecuted by Trial Attorneys Claiborne W. Porter and Kevin G. Mosley of the Criminal Division’s Asset Forfeiture and Money Laundering Section’s (AFMLS) Money Laundering and Bank Integrity Unit, Trial Attorney Darrin McCullough of AFMLS’s Forfeiture Unit, and Assistant U.S. Attorney Patricia Notopoulos of the Eastern District of New York.
The Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act and other related statutes. The Unit’s prosecutions generally focus on three types of violators: financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system; professional money launderers and gatekeepers who provide their services to serious criminal organizations; and individuals and entities engaged in using the latest and most sophisticated money laundering techniques and tools.
New Haven Man Charged with Escape from Federal CustodyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging MICHAEL BEVERLY, 37, formerly of New Haven, with one count of escape from federal custody.
The indictment alleges that on June 17, 2013, BEVERLY escaped from the Watkinson House Residential Reentry Center in Hartford where he was completing a federal prison term.
On January 29, 2009, BEVERLY was sentenced in Hartford federal court to 77 months of imprisonment for possession of ammunition by a convicted felon.
BEVERLY was apprehended by the U.S. Marshals Service and New Haven Police on July 3, 2013, and is currently incarcerated.
If convicted of escape from custody, BEVERLY faces a maximum term of imprisonment of five years and a fine of up to $250,000.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been investigated by the U.S. Marshals Service and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher Mattei.
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(203) 821-3722 [email protected]Naturalized U.S. Citizen Charged with Fraudulently Obtaining CitizenshipRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that defendant Chi Da Liu a/k/a Zhida Liao, 55, formerly of El Cerrito, California and Guatemala, has been arrested on charges of fraudulently obtaining U.S. citizenship, in violation of Title 18, United States Code, Section 1425(b).
Liu was arrested in Northern California on September 3, 2013, where a U.S. Magistrate Judge ordered that he be detained and transported to the Southern District of Florida by the U.S. Marshals Service. Liu made his initial appearance this afternoon in federal court in Miami before U.S. Magistrate Judge Jonathan Goodman. Liu waived his right to grand jury indictment and agreed to proceed by information. The information charges that on or about October 4, 2010, in San Francisco County, California, Liu knowingly applied for and attempted to obtain U.S. citizenship and evidence of naturalization and citizenship, to which he was not entitled.
In 2011 and 2012, Liu was convicted in two separate cases in the Southern District of Florida of visa fraud, a currency-reporting violation, and alien smuggling. In a plea agreement, Liu agreed to leave the United States within five days of his release from prison and to voluntarily renounce his U.S. citizenship within 10 days thereafter. Liu was released from federal prison on July 15, 2013, and did not leave the country prior to his arrest on September 3, 2013.
If convicted, Liu faces a maximum sentence of 10 years in prison and a $250,000 fine, as well as mandatory revocation of his U.S. citizenship and cancellation of his naturalization certificate.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Robert T. Watson.
An information 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.
Native of Mexico Sentenced to Time Served for Illegally Re-entering United StatesRead the Press Release
PITTSBURGH, PA - An illegal alien found in Pittsburgh, Pennsylvania, pleaded guilty and has been sentenced in federal court to time served for his conviction of Re-Entry into the United States after Deportation, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Luis Alberto Alvarez Arguello, a/k/a Rosalio Martinez Alvarez, a/k/a Rosalio Alvarez Martinez, a/k/a Mario Martinez Contreras, 28, a native of Mexico.
According to information presented to the court, Luis Alberto Alvarez-Arguello, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on January 14, 2011 and June 13, 2011. Luis Alberto Alvarez-Arguello was found to be illegally present in Pittsburgh on July 19, 2013, by the Port Authority Police.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Immigration and Customs Enforcement and the Port Authority Police for the investigation leading to the successful prosecution of Luis Alberto Alvarez Arguello, a/k/a Rosalio Martinez Alvarez, a/k/a Rosalio Alvarez Martinez, a/k/a Mario Martinez Contreras.
Nampa Man Pleads Guilty to Unlawfully Possessing Firearms While Under A Protective OrderRead the Press Release
BOISE – Darrel Dwayne Smith, 44, of Nampa, Idaho, pleaded guilty today in United States District Court to one count of unlawful possession of two firearms by a person under a protective order, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on June 16, 2013, Smith was arrested for misdemeanor DUI, possession of marijuana and possession of drug paraphernalia. In the bed of the pickup truck he was driving, Smith had a loaded Ruger .44 caliber revolver, ammunition, and a Smith and Wesson .22 caliber revolver. At the time of his arrest, Smith was under a protective order issued in Canyon County, Idaho, on January 24, 2013, and valid until July 31, 2013. The order prohibited Smith from harassing, annoying, disturbing the peace of, contacting, or otherwise communicating with his wife. According to the plea agreement, Smith agreed to forfeit the firearms and ammunition.
Smith is set for sentencing on January 24, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Smith was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Montrose County Man Is Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – David Anthony Roesener, age 32, of Montrose, Colorado, was sentenced yesterday by Senior U.S. District Court Judge John L. Kane to serve 120 months (10 years) in federal prison for possession of child pornography, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Following his prison sentence, Judge Kane ordered Roesener to serve 20 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at the conclusion of the hearing.
Roesener was first charged by Criminal Complaint on December 11, 2012. He was indicted by a federal grand jury in Denver on December 18, 2012. He pled guilty before Judge Kane on April 4, 2013. He was sentenced yesterday, November 4, 2013.
According to court documents, including the stipulated facts contained in the plea agreement, on November 11, 2011, and FBI Task Force Officer, operating in an undercover capacity in New Haven, Connecticut, accessed the internet using a peer-to-peer program. The task force officer observed a screen name connected to the network that was sharing files which depicted images and videos of child pornography. Further investigation revealed that the screen name resolved to an Internet Protocol (IP) address in Montrose, Colorado.
A search warrant was served on that address. FBI agents and task force officers found images and videos on Roesener’s computer. The images included prepubescent children engaging in sexually explicit conduct, some of which depicted sadistic and masochistic conduct. Among the material seized were various images and videos of unclothed male children bound and gagged, taped to walls, and performing sex acts on adult males and other children.
“The defendant in this case collected images that exploited vulnerable children sexually,” said U.S. Attorney John Walsh. “The 10 year prison sentence is more than appropriate given the types of images this defendant collected.”
“The FBI remains committed to ensuring those responsible for exploiting innocent children are actively investigated and brought to justice,” said Thomas P. Ravenelle, Special Agent in Charge of the FBI’s Denver Division Field Office.
This case was investigated by the FBI.
The defendant was prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
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Milwaukee Man Pleads Guilty to Transporting Minors to Cedar Rapids for the Purpose of ProstitutionRead the Press Release
A man who transported two minor girls from Milwaukee, Wisconsin to Cedar Rapids, Iowa for the purpose of having them engage in prostitution pled guilty today in federal court in Cedar Rapids.
Robert Jackson, age 31, from Milwaukee, Wisconsin, was convicted of one count of transporting minors across state lines with the intent they engage in prostitution.
At the plea hearing, Jackson admitted that on July 16, 2013, he transported two females, referred to in the indictment as Jane Doe #1 and Jane Doe #2, from Milwaukee, Wisconsin, to Cedar Rapids, Iowa, for the purpose of having them engage in prostitution. The girls were each under 18 years of age.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Jackson remains in custody of the United States Marshal and will remain in custody pending sentencing. Jackson faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, $100 in special assessments, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Iowa Division of Criminal Investigation, the Marion Police Department, and the Johnson County Sheriff’s Office, with the assistance of the Milwaukee Human Trafficking Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-0063.
Melbourne Man Sentenced to 5 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. sentenced Kevin Porter (27, Melbourne) yesterday to 60 months in federal prison for distribution of child pornography. Porter was also ordered to serve a 10-year term of supervised release upon completion of his prison sentence and must register as a sex offender. The court also ordered Porter to forfeit his computer equipment.
Porter was found guilty on August 21, 2013.According to court documents, in April 2012, Porter distributed child pornography over the Internet via a peer-to-peer file sharing program. Law enforcement officers conducted a search of Porter’s home and found that he used his computer to possess images and movies of minor children being sexually abused and exploited.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
It is another 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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Martinez Resident Sentenced to More Than 5 Years in Prison for Conspiracy to Commit Sex Trafficking of A Minor and Being A Felon in Possession of A FirearmRead the Press Release
OAKLAND – Eric Demetrius Smith was sentenced yesterday to 70 months in prison for conspiracy to commit sex trafficking of a minor and, separately, for being a felon in possession of a firearm, United States Attorney Melinda Haag announced.
On August 12, 2013, Smith, 26, of Martinez, pleaded guilty to two charges: (1) conspiracy to commit sex trafficking of a minor, and (2) felon in possession of a firearm. According to the plea agreement, Smith admitted that, in March 2013, he recruited a minor to become a prostitute. He advertised the prostitution services on the internet and arranged for commercial sex at various motels in Contra Costa County. Smith also admitted that on April 7, 2012 he was a felon in possession of a firearm.
Smith was indicted by a federal grand jury on May 16, 2013 for conspiracy to commit sex trafficking. He was indicted by a federal grand jury on March 21, 2013 for being a felon in possession of a firearm.
The sentence was handed down by The Honorable Claudia Wilken, U.S. District Court Chief Judge, following a guilty plea to Count One of the Indictment in case number CR-13-00315, in violation of 18 U.S.C. § 1594(c), and to Count One of the Indictment in case number CR-13-00185, in violation of 18 U.S.C. § 922(g)(1). Judge Wilken also sentenced the defendant to a three year period of supervised release.
Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Smith 922 indictment )
(Smith 1594 indictment )
Manhattan U.S. Attorney Announces Arrest of SuspendedPort Chester Police Chief for Witness Tampering and RetaliationRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, (“FBI”), announced today the unsealing of a two-count Complaint charging JOSEPH KRZEMINSKI, the Village of Port Chester Police Chief, with tampering with, and retaliating against, a witness in a federal investigation being conducted by the FBI. The Complaint alleges that the FBI is conducting an investigation into allegations surrounding the disappearance of over $26,000 in cash and narcotics from the evidence room at the Port Chester Police Department, and other allegations of theft and misconduct. The Complaint further alleges that KRZEMINSKI, age 62, physically threatened and retaliated against the Port Chester Police Department’s Acting Chief, who has been cooperating with the FBI in its investigation. KRZEMINSKI was arrested yesterday afternoon and was presented before United States Magistrate Judge Lisa Margaret Smith in White Plains federal court. KRZEMINSKI was released pursuant to a $100,000 personal recognizance bond to the custody of his son.
According to the Complaint unsealed in White Plains federal court:
Since early September 2013, the FBI has been investigating the theft of more than $26,000 in cash from one of the evidence rooms at the Port Chester (Westchester County, New York) Police Department headquarters and additional matters. Shortly after the investigation began, KRZEMINSKI was directed by the Village of Port Chester "not to exercise any of the authority, responsibilities and duties associated with being the Chief of Police" until he was authorized to return to duty. The Village also appointed a Captain of the Port Chester Police Department to the position of Acting Chief. After assuming his duties, the Acting Chief provided information to the FBI relating to possible violations of federal law.
On October 28, 2013, KRZEMINSKI forced his way inside the Acting Chief's home in Port Chester and shouted that the Acting Chief was a "rat" and a "rat bastard." KRZEMINSKI also stated to the Acting Chief, “Who do you think you are telling those people what's going on?" and further said that the Acting Chief did not have the authority to make such reports. KRZEMINSKI also stated, in substance and in part, that he would fire the Acting Chief when KRZEMINSKI returned to duty. During the encounter, KRZEMINSKI put his hands on the Acting Chief's shoulders near his neck. At another point during the encounter, KRZEMINSKI made a fist and cocked his arm, as if he intended to strike the Acting Chief.
On the same day, KRZEMINSKI placed a call to the Port Chester Police Department and told a supervisory police officer that “if [the Acting Chief] doesn’t think I’m coming back he’s dreaming” and that “the first thing I’m gonna do is retaliate against him.” KRZEMINSKI further explained that when he returned to work he would immediately place the Acting Chief on unpaid leave. KRZEMINSKI repeatedly told the supervisory police officer to tell the Acting Chief what he had said.
The Port Chester Village Board met in the late afternoon of October 31, 2013. As the Board was about to go into executive session, KRZEMINSKI forced his way into the room and refused to leave. After the Acting Chief warned KRZEMINKSI that he would be arrested if he did not leave, KRZEMINSKI stated "Go fuck yourself. Don't you tell me you gonna arrest me." KRZEMINSKI then stated, "Let me tell you what this scumbag did to me." The Acting Chief then directed police officers who were present to arrest KRZEMINSKI. KRZEMINSKI resisted arrest, but was handcuffed and removed.
KRZEMINSKI faces, upon conviction, a maximum sentence of 20 years' imprisonment on each of the two counts charged in the Complaint, which charge KRZEMINSKI with witness tampering and retaliating against a witness.
This prosecution is being handled by the Office's White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
KrzeminskiJoseph.Complaint
Manchester "OG" Gang Member Sent Back to Federal PrisonRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton announced today that Corneil Jones, who has also used the aliases Robert Eric James, Eric Germaine James, Kornell Jones, Enrique Williams, Kevin Liles, Richard Nelson, Lewis Mitchell, Julian Robinson, and Germaine Jones, was sentenced on Nov. 4, 2013 for violating his federal supervised release.
According to information presented to the Court by Assistant United States Attorney Ross E. Lenhardt, Jones was out of federal Bureau of Prisons custody 22 days before he violated the supervision of United States Probation Officer Terrell Lewis. On that occasion, the defendant tested positive for drug use. Twenty-three 23 days later, on Nov. 11, 2012, Jones was leaving the Serenity Night Club on Hamilton Avenue in Pittsburgh with two convicted felons and entered an SUV. The vehicle failed to stop for Pittsburgh Police officers who observed drugs and a loaded semiautomatic .40 caliber Glock handgun with an extended length magazine being thrown from the vehicle. Police located over 100 packages of drugs, including crack cocaine, powder cocaine and marijuana, along with a cellphone and large sums of cash, as a result of the incident.
Chief U.S. District Court Judge Joy Flowers Conti found that Jones had violated several conditions of his supervision including possessing drugs, associating with felons and associating with individuals engaged in criminal activity. Judge Conti sentenced Jones to 21months of federal incarceration, six months of house arrest and additional supervision as a result of the violations. Jones faces a trial on the underlying drug charges on Feb. 10, 2014, in the Allegheny County Court of Common Pleas.
The exhibits entered at the violation hearing included photographs of Jones' tattoos, which evidence his affiliation with the Manchester "OG", or "Original Gangster" street gang in the North Side of Pittsburgh. The tattoos included "Manchester" across his throat, including depictions of ammunition and firearms, "MOG" (Manchester OG), "1700" which represents his geographic area within Manchester and several references to "Killa County" and "CK" or "Crip Killer", referencing a rival gang.
Jones was originally sentenced to 69 months of imprisonment and three years supervision for illegally possessing a stolen .357 revolver on Dec. 16, 2006 and throwing a semiautomatic .40 caliber pistol during a high speed vehicle pursuit and subsequent foot chase on May 13, 2007.
The Court learned that the defendant's criminal career began at the age of 15 when he robbed a school student and continued with juvenile adjudications for giving a false name to police and dealing drugs on three different dates. Because Jones had lied about his age, he was prosecuted as an adult for felony drug charges that he committed as a juvenile. In addition to his two federal firearms convictions, his adult convictions include using a vehicle without permission, fleeing police, drug dealing, illegal firearms possession (on two different dates) and forging court documentation.
Louisville Felon Charged in Recent String of Restaurant Hold-UpsRead the Press Release
– Federal charges result from “Project Recoil”
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, announced the federal indictment of a Louisville felon, today charged with robbing three restaurants located in Jefferson County, Kentucky. These federal charges stem from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, created by U.S. Attorney Hale to maximize penalties for the most violent offenders and to reduce violent crime in our community.
The seven-count indictment charges Kenneth Dion Flintroy, Jr., age 24, with three counts of obstructing interstate commerce through robbery, three counts of brandishing a firearm during a robbery, and one count of being a felon in possession of a firearm. Flintroy is charged with robbing the McDonald’s located at 7426 3rd Street Road and the Papa John’s located at 6902 Southside Drive on April 16, 2013, and with robbing the McDonald’s located at 8600 Dixie Highway on May 2, 2013. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce.
“Project Recoil is one piece of a comprehensive anti-violent crime strategy which emphasizes collaboration among federal, state and local law enforcement and prosecutorial agencies to more effectively investigate and prosecute violent criminals in Louisville. By working together, and by including all of our community stakeholders in the broad effort to stem violent crime, we will reduce violence and its impact on our city,” stated U.S. Attorney Hale.
According to court records, on May 23, 2011, Flintroy was convicted of three counts of trafficking in a controlled substance within 1000 yards of a school, and three counts of possession of drug paraphernalia in Callaway County Circuit Court located in Murray, Kentucky.
If convicted at trial, Flintroy faces no less than 57 years in prison and up to life, a fine of up to $1,750,000 and up to and including a life term of supervised release.
This case is being prosecuted by Assistant United States Attorneys Tom Dyke and Amanda Gregory and is being investigated by the Louisville Metro Police Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Lewiston Woman Sentenced for Misappropriating Postal FundsRead the Press Release
Judge Orders Former Employee to Pay Over $3,600 in Restitution
COEUR D’ALENE – Shawn M. Stone, 49, of Lewiston, Idaho, was sentenced today in United States District Court in Coeur d’Alene to three years’ probation for misappropriation of postal funds, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill ordered Stone to pay $3,658.96 in restitution to the U.S. Postal Service. She pleaded guilty to the indictment on August 20, 2013.
According to the plea agreement, on April 2, 2012, agents with the U.S. Postal Service Office of Inspector General went to the U.S. Post Office in Winchester, Idaho, to investigate the suspected theft of postal money orders. An examination of Stone’s cash drawer at the post office located 29 postal money order vouchers issued between February 26 and March 22, 2012, totaling $3,904.54. Stone acknowledged that she had converted the money orders associated with the vouchers for her personal use.
The case was investigated by the United States Postal Service Office of Inspector General.
LG Chem Michigan, Inc. to Pay over $1.2 Million to the United States to Settle False Claims Act AllegationsRead the Press Release
Government alleged that the Holland, Michigan company improperly obtained Recovery Act funds to pay employees engaged in recreational and volunteer activities
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced today that LG Chem Michigan, Inc. (“LGCMI”) will pay the United States $1,231,319 to resolve allegations, under the federal False Claims Act, that the company improperly sought and obtained federal funds to pay employees who were engaged in recreational and volunteer activities. This amount is in addition to $842,189 that LGCMI refunded to the U.S. Department of Energy (“DOE”) in January 2013 based on the same allegations. LGCMI did not admit liability as part of this settlement, and the Government did not make any concessions regarding the legitimacy of its claims.
In 2010, DOE awarded LGCMI over $150 million in funds under the American Recovery and Reinvestment Act of 2009 to construct and operate a lithium-ion battery manufacturing plant in Holland, Michigan. The United States alleged that during the first three quarters of 2012, before LGCMI transitioned battery production from foreign sources to the Michigan plant, LGCMI submitted claims to obtain the federal share of wages and benefits paid to domestic workers who were engaged in non-work activities such as watching movies, playing games, and performing volunteer work. The United States further alleged that in response to governmental inquiries about those activities—and particularly in corporate executives’ written communications to DOE and statements made during a DOE audit—LGCMI failed to fully disclose the number of employees involved in those activities, the nature and scope of those activities, and the resulting losses to the government.
U.S. Attorney Miles noted that under the federal False Claims Act, the United States can seek up to three times the damages that it sustains, plus statutory penalties, from those who submit false claims for federal funds. U.S. Attorney Miles emphasized that the manner in which LGCMI handled the unallowable costs shortly after those costs were identified factored into the Government’s settlement position in this case. “Those who receive federal grant funds must deal openly and honestly with the federal government,” U.S. Attorney Miles said. “This settlement should send a clear message to our corporate citizens: ‘How you respond to a problem can be as significant as the problem itself.’”
Gregory H. Friedman, the DOE Inspector General, said, “Evaluating the management of Department funds received as part of the 2009 Recovery Act has been a priority of my office. We are pleased that this matter, which involved the expenditure of significant unallowable costs by LGCMI, has been settled. I want to express my thanks to the U.S. Attorney’s Office for its efforts and to the Inspector General Special Agents and auditors who pursued this matter so effectively.”
This case was investigated by the DOE, Office of Inspector General, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States..
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Kamiah Man Sentenced for Assaulting Woman with A Dangerous WeaponRead the Press Release
COEUR D’ALENE — Andrew Tony Blackeagle, 30, of Kamiah, Idaho, was sentenced today in United States District Court to 67 months in prison, followed by three years of supervised release for assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Blackeagle appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene. He pleaded guilty to the charge on August 20, 2013.
According to the plea agreement, Blackeagle admitted that on October 12, 2012, he assaulted a woman, striking her with his hand and foot while threatening to cut her with a knife. The victim sustained a laceration to her scalp during the incident.
The case was investigated by the Federal Bureau of Investigation and Nez Perce Tribal Police, with the assistance of the Lewis County Sheriff’s Office.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Jury Convicts Las Vegas Man for Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A U.S. District Court jury convicted Jaime Ruiz-Montes, 43, of Las Vegas, Nevada for his role in a heroin trafficking organization operating in central Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and Colonel Paul Pride, Superintendent of the Ohio State Highway Patrol, announced the verdict returned today following a trial that began October 30 before Senior U.S. District Judge Peter C. Economus.Trial testimony showed that on January 7, 2013, law enforcement officers from the Drug Enforcement Administration, along with troopers of the Ohio State Highway Patrol, arrested Ruiz-Montes in Columbus after he met with Marcos Osorio, 35, of Columbus and obtained a package containing nearly two kilograms of suspected heroin from Osorio’s vehicle.
Both Osorio and the passenger in Ruiz-Montes’ vehicle, Benjamin Uribe-Cervantes, 37, of Columbus, were also arrested. All three men were charged with conspiracy to possess with the intent to distribute more than one kilogram of heroin along with substantive heroin trafficking charges. Osorio and Uribe-Cervantes each pleaded guilty to drug trafficking charges.
The jury convicted Ruiz-Montes of one count of conspiracy, and one count of attempted possession with intent to distribute more than one kilogram of heroin, each crime is punishable by at least 20 years and up to life in prison.
Judge Economus will schedule a date for sentencing Ruiz-Montes and Uribe-Cervantes. Osorio is scheduled to be sentenced on January 7, 2014. All three have been in custody since their arrest.
U.S. Attorney Stewart commended the investigation conducted by the Ohio State Highway Patrol, DEA and the Franklin County Drug Task Force, and Assistant U.S. Attorney Salvador A. Dominguez and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.
Irish National Pleads Guilty in New York to Crimes Relating to Illegal Trafficking of Endangered Rhinoceros HornsRead the Press Release
Michael Slattery Jr., 25, an Irish national, pleaded guilty today in federal court in Brooklyn, N.Y., to conspiracy to violate the Lacey Act in relation to illegal rhinoceros horn trafficking, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Loretta E. Lynch, U.S. Attorney for the Eastern District of New York.
Slattery pleaded guilty to one count of conspiracy to violate the Lacey Act, which carries a maximum penalty of five years in prison. Under the terms of the plea agreement, any proceeds from the illegal trafficking that remain in the United States will be forfeited or put toward the criminal fine. Slattery is scheduled to be sentenced by U.S. District Judge John Gleeson in the Eastern District of New York on Jan. 10, 2014.
In the plea agreement, Slattery admitted that he, along with others, traveled throughout the United States to illegally purchase and sell endangered rhinoceros horns. Slattery was arrested in September as part of “Operation Crash,” a nationwide, multi-agency crackdown on those involved in the black market trade of endangered rhinoceros horn.
“Slattery and his co-conspirators traveled to the United States to profit from the illegal trade in black rhinoceros horns,” said Acting Assistant Attorney General Dreher. “The black rhino is a species that, without our protection, could be headed for extinction in our own time. Rhino horn trafficking is a violation of the laws enacted by Congress to protect endangered species from extinction and the Justice Department will aggressively prosecute those who engage in this egregious market.”
“Today’s guilty plea highlights our commitment to protect endangered species, like the black rhinoceros, by prosecuting those who would profit from the rhinos’ extinction,” said U.S. Attorney Lynch. “Michael Slattery traveled the world in pursuit of illicit profit from the sale of blank rhino horns. But instead of gaining a windfall by contributing to the demise of an age-old species, Slattery now faces up to five years in prison for his illegal conduct.”
“The involvement of an alleged member of an organized criminal group in rhino horn trafficking speaks to the scope, scale, and lawlessness of this problem,” said U.S. Fish and Wildlife Service Director Dan Ashe. “We will continue to work closely with the Department of Justice to crack down on profiteers whose crimes are pushing rhinos to the brink of extinction.”
“The black rhinoceros has been driven to the brink of extinction by this illicit trade,” said Special Agent in Charge James T. Hayes of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in New York. “HSI, along with our partners at the U.S. Fish and Wildlife Service and the Department of Justice, stand ready to protect these beautiful creatures from the villains who would trade the rhino’s continued existence on this planet for a quick buck.”
Rhinoceros are a herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered.
Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s U.S. Fish and Wildlife Service in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation is being led by the Special Investigations Unit of the FWS Office of Law Enforcement and involves a nationwide task force of agents focused on rhino trafficking.
According to the information, plea agreement and statements made during court proceedings: Beginning in May 2010 and continuing until April 2011, Slattery, along with others, traveled within the United States to purchase rhinoceros horns, which he, along with others, then resold to private individuals or consigned to auction houses in the United States. The profits from the sale of the rhinoceros horns were distributed via cashier’s checks made out to Slattery and others. Slattery used a fictitious “Endangered Species Bill of Sale” in connection with the purchase and sale of rhinoceros horns.
In September 2010, Slattery, along with others, traveled from London to Houston, where they attempted to purchase a taxidermied black rhinoceros mount with two horns from a business in Austin, Texas. The manager of the business refused to sell the mount to the defendant because Slattery and the others did not have proof that they resided in the State of Texas. Within days of being refused, Slattery returned to the establishment in Austin, where, with the assistance of a “straw buyer” that Slattery and his co-conspirators hired, the group purchased the mount for $18,000. At the time of the sale, the purchasers were given an “Endangered Species Bill of Sale” that stated “[s]eller expressly states that the described taxidermy is an endangered species and that interstate or foreign sales, barter and trade are strictly prohibited …. [p]ursuant to [the Endangered Species Act]. Buyer has expressly stated that he/she is a current resident of the State of Texas and has no intention of participating in any form of interstate commerce involving the described taxidermy.”
Following the purchase of the mount, Slattery and his co-conspirators traveled to Flushing, N.Y., where they sold the horns from the mount and other horns they had acquired to an individual for $50,000. At the time of the sale, Slattery and his co-conspirators provided the purchaser with a false and fictitious “Endangered Species Bill of Sale.” The “Endangered Species Bill of Sale” stated that the two pair of black rhinoceros horns were purchased in August 2010. The falsified document also included a false and fictitious FWS emblem, which it did not have at the time of purchase from the establishment in Texas. Pursuant to instructions from Slattery and his co-conspirators, the purchaser paid for the horns with cashier’s checks. One check in the amount of $12,500 was made payable to Michael Slattery Jr.
U.S. Attorney Lynch and Acting Assistant Attorney General Dreher commended FWS and ICE-HSI for their outstanding work in this investigation.
The case is being handled by the U.S. Attorney’s Office for the Eastern District of New York and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division. Assistant U.S. Attorney Julia Nestor and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.Irish National Pleads Guilty in Brooklyn Federal Court to Crimes Relating to Illegal Trafficking of Endangered Rhinoceros HornsRead the Press Release
WASHINGTON – Michael Slattery Jr., 25, an Irish national, pleaded guilty today in federal court in Brooklyn, N.Y., to conspiracy to violate the Lacey Act in relation to illegal rhinoceros horn trafficking, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Loretta E. Lynch, U.S. Attorney for the Eastern District of New York.
Slattery pleaded guilty to one count of conspiracy to violate the Lacey Act, which carries a maximum penalty of five years in prison. Under the terms of the plea agreement, any proceeds from the illegal trafficking that remain in the United States will be forfeited or put toward the criminal fine. Slattery is scheduled to be sentenced by U.S. District Judge John Gleeson in the Eastern District of New York on Jan. 10, 2014.
In the plea agreement, Slattery admitted that he, along with others, traveled throughout the United States to illegally purchase and sell endangered rhinoceros horns. Slattery was arrested in September as part of “Operation Crash,” a nationwide, multi-agency crackdown on those involved in the black market trade of endangered rhinoceros horn.
“Slattery and his co-conspirators traveled to the United States to profit from the illegal trade in black rhinoceros horns,” said Acting Assistant Attorney General Dreher. “The black rhino is a species that, without our protection, could be headed for extinction in our own time. Rhino horn trafficking is a violation of the laws enacted by Congress to protect endangered species from extinction and the Justice Department will aggressively prosecute those who engage in this egregious market.”
“Today’s guilty plea highlights our commitment to protect endangered species, like the black rhinoceros, by prosecuting those who would profit from the rhinos’ extinction,” said U.S. Attorney Lynch. “Michael Slattery traveled the world in pursuit of illicit profit from the sale of black rhino horns. But instead of gaining a windfall by contributing to the demise of an age-old species, Slattery now faces up to five years in prison for his illegal conduct.”
“The involvement of an alleged member of an organized criminal group in rhino horn trafficking speaks to the scope, scale, and lawlessness of this problem,” said U.S. Fish and Wildlife Service Director Dan Ashe. “We will continue to work closely with the Department of Justice to crack down on profiteers whose crimes are pushing rhinos to the brink of extinction.”
“The black rhinoceros has been driven to the brink of extinction by this illicit trade,” said Special Agent in Charge James T. Hayes of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in New York. “HSI, along with our partners at the U.S. Fish and Wildlife Service and the Department of Justice, stand ready to protect these beautiful creatures from the villains who would trade the rhino’s continued existence on this planet for a quick buck.”
Rhinoceros are a herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered.
Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s U.S. Fish and Wildlife Service in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation is being led by the Special Investigations Unit of the FWS Office of Law Enforcement and involves a nationwide task force of agents focused on rhino trafficking.
According to the information, plea agreement and statements made during court proceedings:
Beginning in May 2010 and continuing until April 2011, Slattery, along with others, traveled within the United States to purchase rhinoceros horns, which he, along with others, then resold to private individuals or consigned to auction houses in the United States. The profits from the sale of the rhinoceros horns were distributed via cashier’s checks made out to Slattery and others. Slattery used a fictitious “Endangered Species Bill of Sale” in connection with the purchase and sale of rhinoceros horns.
In September 2010, Slattery, along with others, traveled from London to Houston, where they attempted to purchase a taxidermied black rhinoceros mount with two horns from a business in Austin, Texas. The manager of the business refused to sell the mount to the defendant because Slattery and the others did not have proof that they resided in the State of Texas. Within days of being refused, Slattery returned to the establishment in Austin, where, with the assistance of a “straw buyer” that Slattery and his co-conspirators hired, the group purchased the mount for $18,000. At the time of the sale, the purchasers were given an “Endangered Species Bill of Sale” that stated “[s]eller expressly states that the described taxidermy is an endangered species and that interstate or foreign sales, barter and trade are strictly prohibited …. [p]ursuant to [the Endangered Species Act]. Buyer has expressly stated that he/she is a current resident of the State of Texas and has no intention of participating in any form of interstate commerce involving the described taxidermy.”
Following the purchase of the mount, Slattery and his co-conspirators traveled to Flushing, N.Y., where they sold the horns from the mount and other horns they had acquired to an individual for $50,000. At the time of the sale, Slattery and his co-conspirators provided the purchaser with a false and fictitious “Endangered Species Bill of Sale.” The “Endangered Species Bill of Sale” stated that the two pair of black rhinoceros horns were purchased in August 2010. The falsified document also included a false and fictitious FWS emblem, which it did not have at the time of purchase from the establishment in Texas. Pursuant to instructions from Slattery and his co-conspirators, the purchaser paid for the horns with cashier’s checks. One check in the amount of $12,500 was made payable to Michael Slattery Jr.
U.S. Attorney Lynch and Acting Assistant Attorney General Dreher commended FWS and ICE-HSI for their outstanding work in this investigation.
The case is being handled by the U.S. Attorney’s Office for the Eastern District of New York and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division. Assistant U.S. Attorney Julia Nestor and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.
Illegal Alien Sentenced to Time Served for Re-Entering U.S. After Being DeportedRead the Press Release
PITTSBURGH, PA - An illegal alien found in Cranberry Township, Pennsylvania, pleaded guilty and has been sentenced in federal court to time served on his conviction of Re-Entry into the United States after Deportation, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Josue Elias Calidonio-Castillo, 29, formerly from Honduras.
According to information presented to the court, Josue Elias Calidonio-Castillo, an alien, was removed from the United States by United States Immigration and Customs Enforcement on September 1, 2006. Josue Elias Calidonio-Castillo was found on July 16, 2013, in Cranberry Township, Pennsylvania.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Josue Elias Calidonio-Castillo.
Huntington Heroin Dealer Enters Guilty Plea in Federal CourtRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty on Nov. 4 in federal court in connection with his role in a heroin distribution conspiracy, announced U.S. Attorney Booth Goodwin. Forty-nine-year-old Ricky Ray Rockwell pleaded guilty to conspiracy to distribute heroin before Chief United States District Judge Robert C. Chambers in Huntington.
Between November 2010 and July 2011, Rockwell participated with convicted felons Kevin Luthor Robinson and Jermaine D. Dickerson to distribute heroin in and around the Huntington area.
Rockwell told police that during the illegal drug scheme, he controlled the door to a Huntington residence that was used primarily as a place to distribute illegal drugs. Rockwell also completed illegal heroin transactions on behalf of Robinson and Dickerson. Afterward, Rockwell gave the drug proceeds to his co-conspirators at the completion of the drug transactions.
Robinson, 44, was sentenced to 11 years and three months in prison in March for his role in the illegal drug conspiracy. Dickerson, 36, was also sentenced in March to 15 years and nine months in federal prison. Robinson and Dickerson, both of Columbus, previously pleaded guilty in December 2012 to conspiracy to distribute heroin and 28 grams or more of crack cocaine.
During the scheme, Robinson and Dickerson arranged frequent trips to Columbus to purchase heroin and cocaine. The illegal drugs were then brought to Huntington and sold. The defendants also utilized several Huntington residences to store, prepare and package illegal drugs during the fall of 2010 through July 2011.
Rockwell faces up to 20 years in federal prison when he is sentenced on February 24, 2014.
This case was investigated by the DEA, the Huntington Police Department, and the High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
Goodwin Announces Three Guilty Pleas in Federal Prescription Drug CrackdownRead the Press Release
BLUEFIELD, W.Va. – Three individuals from Mercer County pleaded guilty in federal court this week in connection with the illegal distribution of powerful prescription painkillers, announced U.S. Attorney Booth Goodwin. The charges against each defendant were brought as part of the Bluefield Pill Initiative, a concerted attack by federal, state, and local government on the illegal distribution of prescription drugs in the southern region of West Virginia.
The following defendants pleaded guilty on Nov. 4 to distribution of hydromorphone, a powerful prescription painkiller commonly known as Dilaudid: Darryl Shrader, 53, of Spanishburg; Bobby Michael Short Jr., 46, of Princeton; and Faith Michelle Akers, 44, of Princeton. Shrader, Short and Akers each sold hydromorphone pills to a confidential informant working in cooperation with law enforcement. The pill transactions took place in and around Mercer County.
All three defendants face up to 20 years in federal prison when they are sentenced on March 10, 2014 by Senior United States District Judge David A. Faber.
The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation, the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments. Assistant United States Attorney John File is in charge of the prosecutions.
Fort Yates Man Sentenced for Domestic Assault by Habitual OffenderRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Nov. 4, 2013, Marcus Flying Horse, 29, Fort Yates, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of domestic assault by habitual offender. Flying Horse pleaded guilty to the charge on Aug. 13, 2013.
Judge Hovland sentenced Flying Horse to serve two years and three months in federal prison, to be followed by three years of supervised release. Flying Horse was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On March 1, 2013, Flying Horse committed a domestic assault by hitting a woman in the eye. At the time when this assault took place, Flying Horse had at least six prior misdemeanor convictions in Standing Rock Tribal Court for qualifying domestic violence offenses.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency, with the assistance of the Standing Rock Tribal Prosecutor’s Office and Standing Rock Tribal Court.
Assistant U.S. Attorney Gary Delorme and Special Assistant U.S. Attorney Erin Shanley prosecuted the case. Ms. Shanley’s position is funded by a Department of Justice Office on Violence Against Women grant program.
Fort Yates Man Sentenced for Child AbuseRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Nov. 4, 2013, Terry Holy Elk Face, 21, Fort Yates, N.D., pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of child abuse in Indian country.
Judge Hovland credited Holy Elk Face for 159 days in custody, to be followed by two years of supervised release. Holy Elk Face was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On Dec. 22, 2012, Holy Elk Face hit a child in the face, which caused the child to fall into a piece of furniture. The child’s injuries were not life threatening.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Former Police Officer Sent to Federal PrisonRead the Press Release
HOUSTON - Michael Mares, a former officer with the Onalaska Police Department, has been ordered to federal prison for providing firearms to a convicted felon, announced United States Attorney Kenneth Magidson. Mares, 51, pleaded guilty, admitting he knowingly sold a firearm and various police items to a convicted felon who was planning a home invasion in which he and others planned on impersonating police officers.
Today, U.S. District Judge Nancy Atlas, ordered Mares serve a term of 37 months in federal prison. At the hearing, the court admonished Mares that when police officers arrive at a home, citizens rely on them actually being police officers and that Mares helped others who intended to abuse that trust to commit crimes.On Aug. 30, 2011, a FBI confidential source met with Mares and provided him with $1000 to purchase a firearm, five police t-shirts and police strobe lights. The source told Mares that he was a convicted felon. The source further noted he and others were going to conduct a home invasion of a narcotics trafficker and intended to impersonate police officers in order to gain control of the residence. Mares agreed to purchase the items for him.
The investigation culminated in the indictment of 25 members and associates of the Texas Mexican Mafia charged with drug trafficking, various firearms offenses and violent crimes in aid of racketeering.
According to the indictment, the TMM formed in the early 1980s in the Texas Department of Criminal Justice. The defendants conspired with one another and others from 2008 through October 2012 to procure illegal drugs and distribute the drugs to numerous associates involved in drug trafficking in order to carry out the business of the gang. Gang members also sold numerous assault rifles and other guns as well as detonation cord to FBI sources.
Mares has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The four-year investigation was conducted by the FBI, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department. Assistant United States Attorneys Tim S. Braley and Mark Donnelly are prosecuting.
Former Member of Moreno Valley City Council Agrees to Plead Guilty to Federal Bribery Charge for Taking $2.3 Million Cash PaymentRead the Press Release
RIVERSIDE, California – In a case stemming from what is believed to be the largest bribe ever accepted by a public official in an undercover operation, a former member of the Moreno Valley City Council has agreed to plead guilty to a federal bribery charge for taking a $2.36 million cash payment from an undercover operative posing as a real estate broker.
Marcelo Co, 64, was charged this morning with one bribery count and one count of filing a false corporate tax return. In court documents filed this morning in United States District Court, Co agreed to plead guilty to the two charges that could send him to federal prison for as long as 13 years.
“Mr. Co orchestrated an elaborate and brazen scheme to undermine the democratic process in Moreno Valley,” said United States Attorney André Birotte Jr. “Whether he was motivated by power or greed, these crimes constitute a wholesale violation of his oath to work for the citizens who elected him.”
Co, who was elected to the City Council in November 2010 and resigned from his seat in August after being charged in state court in an unrelated welfare fraud case, is expected to make his initial court appearance in the federal bribery case early next month.
“It is a very sad day for the citizens of Moreno Valley when one of their elected council members sacrifices his legal and ethical obligations for power and greed,” said Riverside County District Attorney Paul Zellerbach. “This type of unlawful conduct by Mr. Coe undermines the very fabric of good government and what we all hope and expect from our elected officials.”
The case against Co is the result of an ongoing investigation by the Inland Regional Corruption Task Force, which is comprised of prosecutors, agents and investigators from the Federal Bureau of Investigation, IRS – Criminal Investigation, the Riverside County District Attorney’s Office and the United States Attorney’s Office.
“Mr. Co regularly traded votes, land and confidential information in exchange for cash to fund his personal bank account, rather than what was in the best interest of the residents of Moreno Valley," said Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. "This case was a result of seamless collaboration by the Inland Regional Corruption Task Force, whose members share a mission of rooting out corruption across the Inland Empire."
The court documents filed this morning outline a bribery scheme in which Co told a businessman and an undercover FBI operative posing as a real estate broker that he would control a voting majority of the Moreno Valley City Council and would be able to guarantee land use decisions that would benefit the businessman and the land broker. Co also promised to always vote in favor of land use decisions that would benefit the real estate broker.
Co solicited campaign donations from the businessman, who was cooperating with the investigation, and the FBI undercover operative. Co eventually received payments of $5,000 and $10,000 that he said were to be used to finance the campaigns of individuals who would vote with him on land use issues.
In the fall of 2012, Co met with the undercover operative to discuss a multimillion dollar sale of a 30-acre parcel that he owned. Co told the real estate broker that once he had control of the City Council, he could change the zoning of the property and the land value would dramatically increase. With the City Council election in November 2012, Co told the undercover investigator that he had the votes to alter the zoning and increase the value of Co’s 30-acre parcel, which had been appraised at $710,000. Co proposed that the undercover operative purchase the property for $5.36 million, which would include a cash payment of $2.36 million.
At a meeting on January 30, 2013, Co agreed to sell the property for $5.36 million, but that the publicly filed documents would reflect a sale price of only $3 million. At this meeting, Co accepted $2.36 million in cash.
The tax charge that was filed today concerns a United States Corporation Income Tax Return (Form 1120) that Co filed for his company, Qwik Pack Systems, for tax year 2010. In that filing with the IRS, Co failed to report well over $100,000 in income. This tax charge is not related to the bribery scheme.
“Mr. Co’s intentional omission of more than $112,000 in taxable income – and failure to pay $31,000 in tax to the IRS – was committed for his own private gain and was an insult to honest taxpayers and the citizens of Moreno Valley,” said Joel P. Garland, Acting Special Agent in Charge for IRS - Criminal Investigation, Los Angeles Field Office. “Today’s action is an example of IRS-CI’s vigilance when it comes to enforcing tax laws, particularly when it involves our public officials. IRS-CI, in partnership with our law enforcement partners, is committed to bringing to justice public officials who use their political office to commit crimes.”
At Co’s initial appearance in federal court, which is expected to be in early December, the case will be assigned to a District Judge who will schedule a hearing for Co to formally enter the guilty pleas.
Release No. 13-126
Former Lee's Summit Man Pleads Guilty to $3 Million Ponzi SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Lee’s Summit, Mo., man pleaded guilty in federal court today to defrauding 39 investors in a $3 million Ponzi scheme.
Ronald W. Shepard, 74, formerly of Lee’s Summit, pleaded guilty before U.S. District Judge Gary A. Fenner to mail fraud.
Shepard received approximately $3,188,765 from approximately 39 investors from January 2006 through December 2009. Shepard returned approximately $1,235,853 to the investors, and lost or spent the rest, resulting in a minimum loss to investors of $1,825,883.
Shepard, who prepared tax returns for individuals, discussed their investments and pitched his own companies as investments. Shepard’s company, Safety Solutions USA, LLC, in Lee’s Summit, developed and marketed a trailer hitch called Tow-Safe. A patent request for the trailer hitch safety device was filed, but rejected by the U.S. Patent Office. Shepard also operated a company called The Real Estate in Lee’s Summit.
Shepard claimed that investors would make anywhere from a 15 percent to 100 percent annual return on their investment. He failed to inform potential investors that the state had issued a cease and desist order that barred him from offering or selling any unregistered security. Shepard has never been registered to sell securities in the state of Missouri.
Shepard told investors that their money was used to purchase property in Kansas City, the Lake of the Ozarks and Hawaii. Except for purchasing his own personal residence at the Lake of the Ozarks, however, Shepard did not purchase any real estate. Instead, Shepard used investor funds for personal living expenses, to pay other investors, to pay relatives, in disbursements of cash to himself and in real estate ventures.
Many investors liquidated their Individual Retirement accounts or 401(k) accounts and transferred the proceeds to Shepard for investment. Shepard told investors that if they liquidated retirement funds, thereby incurring penalties, he would refund their initial investment, plus the amount of penalty, plus interest.
Under the terms of today’s plea agreement, Shepard will be sentenced to two years in federal prison without parole, to be served concurrently with the five-year sentence he is currently serving after his supervised release was revoked in another case. Shepard must pay a total of $1,825,883 in restitution to his victims.
This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the FBI and the Missouri Division of Securities.Former Background Investigator for Federal Government Sentenced to Six Months in Prison for Making A False StatementRead the Press Release
WASHINGTON – Lindsay Branson III, 58, a former background investigator for the U.S. Office of Personnel Management (OPM), was sentenced today to six months of incarceration on a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Branson, of Silver Spring, Md., pled guilty in July 2013 in the U.S. District Court for the District of Columbia to making a false statement. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Branson will be placed on three years of supervised release. During that time, he is required to perform 200 hours of community service. In addition, he must pay $159,918 in restitution to the federal government.
According to a statement of offense submitted to the Court, Branson worked for Federal Investigative Services, a part of OPM that does federal background investigations.
Between September 2010 and November 2011, in multiple Reports of Investigations on background investigations, Branson represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. His reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances.
Branson’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $159,918 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Branson, 16 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.3 million investigations during the 2013 fiscal year. More than 700,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and Philip Kroop and David Newcomer, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Nicole Wattelet and Legal Assistant Angela Lawrence, as well as Assistant U.S. Attorneys Ellen Chubin Epstein and David A. Last, who investigated and prosecuted this matter.
13-377Florida Man Convicted for Attempted Online Enticement of a MinorRead the Press Release
TALLAHASSEE, FLORIDA – Following a trial in federal court in Tallahassee, a jury found Jose Galdamez, 42, of Tallahassee, Florida, guilty of using the Internet in an attempt to persuade, induce, and entice a minor to engage in sexual activity.
Evidence presented during trial proved that, on April 14, 2013, Galdamez responded to an advertisement entitled “Bored and Home Alone Looking For Some Fun - w4w – (ASK),” which had been posted under the “Casual Encounters” link on Craigslist. Over the next 24 hours, Galdamez engaged in email chats, phone calls, and text messages of a sexual nature with a person he believed to be a 14-year-old girl named Crystal. Subsequently, Galdamez drove to the location where he had arranged to meet Crystal. Once Galdamez arrived at the location, officers arrested him for attempted online enticement of a child.
As a result of the guilty verdict, Galdamez faces a sentence of ten years to life in prison, a fine of up to $250,000, not less than five years and up to a life term of supervised release, and a $100 special monetary assessment.
In announcing the verdict, Pamela C. Marsh, United States Attorney for the Northern District of Florida, credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida ICAC, particularly U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Marshals Service, Volusia County Sheriff’s Office, Florida Department of Law Enforcement, Leon County Sheriff’s Office, and the Tallahassee Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorney Herbert Lindsey.
El Paso, Texas Man Sentenced to Twenty Years in Federal Prison for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE –Francisco Burciaga, 43, of El Paso, Texas, was sentenced this morning to 20 years in federal prison followed by ten years of supervised release for his heroin trafficking conviction, announced Acting U.S. Attorney Steven C. Yarbrough, Joseph M. Arabit, Special Agent in Charge of the DEA’s El Paso Division, Chief Pete N. Kassetas of the New Mexico State Police and Chief Terry Sisneros of the Raton Police Department.
Burciaga was arrested in June 2008, after officers found 32 pounds of heroin secreted in his vehicle during a routine traffic stop in Colfax County, N.M. In July 2008, he was indicted and charged with possession of heroin with intent to distribute. A trial in Nov. 2010 ended in a mistrial and proceedings in the case were stayed during the pendency of an interlocutory appeal. The retrial of the case concluded on May 31, 2013, when the jury returned a guilty verdict against Burciaga on the sole count of the indictment.
According to the evidence at trial, on June 24, 2008, a New Mexico Motor Transportation Police officer executed a routine traffic stop of a vehicle driven by Burciaga on Interstate 25 just south of Raton, N.M. When the officer approached Burciaga, he provided a Texas driver’s license and documents reflecting that the vehicle was registered to him in Phoenix, Ariz., on June 23, 2008, and insured by him on that same day. After the officer explained the traffic violation he observed, Burciaga admitted the violation and agreed to pay the fine.
While talking with Burciaga, the officer noticed a strong chemical odor coming from the vehicle and an air freshener hanging from the vehicle’s rear-view mirror, which, together with the vehicle’s recent registration, triggered the officer’s suspicions. Accordingly, the officer asked Burciaga if he had anything illegal in the vehicle. Burciaga responded by opening the vehicle’s hatchback and saying, “Wanna take a look.” Shortly thereafter, a New Mexico State Police Officer arrived to assist and noticed fresh tool marks and spray paint on the underside of the vehicle and its back bumper area. The officers then had a narcotics dog inspect the vehicle and the dog reacted to the back bumper area of the vehicle.
When the officers removed the back bumper from Burciaga’s vehicle, they found a hidden compartment containing 24 sealed packages containing a white powdery substance. Subsequent laboratory analysis revealed that the packages contained 14.4 kilograms (32 pounds) of heroin that was 72% pure. The Chief of the Indications and Warnings Section of DEA’s Intelligence Division in Washington, D.C., who testified as an expert, told the jury that the heroin seized from Burciaga was one of the top ten DEA heroin seizures in the United States in 2008 in terms of weight. He also testified that, in Chicago, Ill., where Burciaga intended to deliver the heroin, the conservative retail, or street, value of the heroin in 2008 was at least $2,900,000.
Burciaga faced enhanced penalties in this case because he previously was convicted of a felony drug trafficking crime in a Texas state court in 1996.
This case was investigated by the Albuquerque office of the DEA, the New Mexico Motor Transportation Police, the New Mexico State Police and the Raton Police Department, with assistance from the New Mexico State Police, and was prosecuted by Assistant U.S. Attorneys Jon K. Stanford and C. Paige Messec.
Effingham County Man Sentenced on Gun Related ChargesRead the Press Release
An Effingham County man was sentenced on November 1, 2013, to federal prison on gun related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Ivan Joe Golladay, 33, of Effingham, IL, was sentenced to 96 months in prison, three years of supervised release following his imprisonment, and fined $200. Golladay had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that on November 9, 2012, in Effingham County, Golladay was a convicted felon in possession of a .22 Caliber Revolver. Count 2 charged that on November 13, 2012, in Effingham County, Golladay was a convicted felon in possession of a 12 gauge shotgun.
The investigation in this case was conducted by the Effingham Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
The case is being handled by Assistant United States Attorney George Norwood.
Eddie Bynum, Sr. Pleads Guilty to Money LaunderingRead the Press Release
Portland, Ore. — Eddie L. Bynum, Sr. (a/k/a “Fast Eddie”), 54, of Portland, Oregon, pled guilty to money laundering today in U.S. District Court. The Internal Revenue Service’s (IRS) Criminal Investigations Division initiated a “sting” money laundering investigation of Bynum after learning from the Federal Bureau of Investigation’s Metro Gang Task Force that Bynum might be laundering money for local gang members through his Vancouver automobile dealerships. Bynum is scheduled to be sentenced by U.S. District Court Judge Marco Hernandez on February 18, 2014.
Bynum pled guilty to one count of money laundering, and admitted that he accepted $34,000 in cash from an IRS undercover agent to purchase a 2005 Maserati, and that the agent told him that the cash came from dealing drugs. Bynum also admitted that he conducted the Maserati sale to conceal the source and nature of the dirty money. Bynum acknowledged he later accepted $50,000 cash from the undercover agent, pursuant to an agreement that Bynum would launder that money by returning the $50,000 to the agent in $5,000 monthly checks from one of his businesses. The government alleged that Fountaine Motors, Manor Highway Auto, Inc., JT’s Barber Shop, and Seeznin’s Sports Bar were among the local businesses Bynum used to launder money.
This case stemmed from an investigation by the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Stacie Beckerman.
Dollar General Armed Robbers SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Nyneson S. Jeudy, 21, and Jarrett J. Sutton, 22, both of Moultrie, Georgia, were sentenced on Monday, October 28, 2013, in Valdosta, Georgia by Senior United States District Judge Hugh Lawson for armed robbery of the Dollar General, a large multistate retailer, in Coolidge, Georgia. Mr. Jeudy was sentenced to serve one hundred forty-one (141) months imprisonment. Mr. Sutton was sentenced to serve seventy (70) months imprisonment. As part of the sentence, Mr. Jeudy and Mr. Sutton will each pay restitution to the Dollar General in the amount of $2,300.00 and a total of $47.00 to two employees of the store at the time of the robbery.In his plea of guilty, Mr. Jeudy admitted to carrying and pointing a firearm at employees when he entered the Dollar General on March 22, 2010. Although Mr. Sutton admitted to participating in the robbery of the store and the employees, he did not possess a firearm at the time of the robbery. The store’s videotape of the robbery confirmed Mr. Sutton’s statement and exposed that Mr. Jeudy was armed with both a rifle and a handgun.
“This case is another example of the senseless use of a firearm during a crime. The sentences imposed will give both Mr. Jeudy and Mr. Sutton a long time to think about what they did. When you use a gun in a crime, you can expect to spend a long, long time in prison,” said U.S. Attorney Michael Moore.
The case was investigated jointly by the Georgia Bureau of Investigation, the Thomas County Sheriff’s Office and the Coolidge, Georgia Police Department. Assistant United States Attorney Robert McCullers prosecuted the case for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Defendant Sentenced for Possession of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Brandon Meredith Hardy, 23, Moody AFB, Georgia, was sentenced on Monday, October 28, 2013, by the Honorable Hugh Lawson, Senior United States District Judge, in Valdosta, Georgia, for possession of child pornography. Mr. Hardy was sentenced to serve 108 months imprisonment. Once Mr. Hardy is released from prison, he will be under supervision for 15 years and will be monitored as a registered sex offender.Mr. Hardy entered a plea of guilty on July 17, 2013, to one count of possession of child pornography. In his plea, Mr. Hardy admitted that in September 2010, during his time as an airman at Moody Air Force Base, he used a computer at the base to search for and download child pornography. As part of an undercover investigation, a federal search warrant was executed on Mr. Hardy’s room on November 4, 2010. During the search, agents located a computer and thumbdrive containing images of prepubescent minors and minors under the age of twelve (12) years engaged in sexual acts with adult males.
“Mr. Hardy caused the young children in these disgusting images to be re-victimized every time he looked at the pictures. Possessing child pornography is not a victimless crime, and the Department of Justice will use all of its resources to make sure that people like Mr. Hardy don’t have the opportunity to harm our children,” said United States Attorney Michael Moore.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Defendant Sentenced for Fraud by WireRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that John Dewey Morris, 70, of Coolidge, Georgia, was sentenced on Monday, October 28, 2013, by Senior United States District Judge Hugh Lawson, in Valdosta, Georgia, for wire fraud. Judge Lawson sentenced Mr. Morris to five (5) years probation and ordered him to pay $131,443.00 in total restitution to Progressive Insurance and Auto Owners Insurance.
Mr. Morris entered a plea of guilty on July 24, 2013, to one count of wire fraud. In his plea, Mr. Morris admitted that he caused false and fraudulent insurance claims to be filed on a truck and wood chipper owned by his companies Beeline Wood Products, Inc. and Big Bend Timber Services. Mr. Morris admitted that he knew the truck and wood chipper had not been stolen from a location in Thomas County, Georgia, but instead at his request, had been cut up and sold for parts and scrap metal.“When people defraud insurance companies, they end up hurting every honest policyholder by subjecting them to increased insurance rates to help offset the effect of the fraud,” said United States Attorney Michael Moore.
The case was investigated by the United States Secret Service along with the Thomas County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Debt Collection Employee and Son-in-Law Sent to Prison for Identity Theft Tax SchemeRead the Press Release
Montgomery, Alabama - Quentin Collick of Montgomery, Ala., and Deatrice Williams of Duluth, Ga., were sentenced Nov. 1, 2013, to serve 85 and 51 months in prison, respectively, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Collick and Williams were previously found guilty by a jury in the Middle District of conspiring to file false claims, wire fraud, and aggravated identity theft. Collick was also convicted on three counts of theft of public funds. Corey Thompson, a co-conspirator, previously pleaded guilty and was sentenced to serve 30 months in jail.
Based on evidence introduced at trial and court filings, Williams worked for a debt collection company located in Norcross, Ga. As an employee, Williams had access to a database that stored names, social security numbers, and dates of birth of individuals who owed medical debts. Williams stole the identities of a number of these individuals and provided the information to Collick, her son-in-law.
Collick and Thompson used the stolen identities to file false tax returns and fraudulently claim tax refunds. In 2011 and 2012, Thompson worked as an independent contractor for a cable company installing cable and internet access for customers. To conceal the filing of the false tax returns, Thompson used his specialized knowledge and equipment to shut down and hijack his customers’ internet service, and along with Collick, filed false tax returns using the customers’ internet access, making it appear as if the false tax returns were being filed by the customers. Thompson and Collick then directed the tax refunds to be placed on pre-paid debit cards, which were mailed to Montgomery, Ala. However, those cards were intercepted by the U.S. Postal Service. Several tax refund checks were also mailed by the IRS, based upon the fraudulent returns, which Collick retrieved and cashed.
This case was investigated by special agents of IRS - Criminal Investigation and prosecuted by Tax Division Trial Attorneys Michael Boteler, Jason H. Poole and Alexander Effendi and Assistant U.S. Attorney Todd A. Brown.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Dallas Man Sentenced to A Total of 240 Months in Federal Prison for Role in Heroin Distribution ConspiraciesRead the Press Release
DALLAS — Refugio Ramirez-Garcia, aka “Cuco,” “Refugio,” “Miguel,” and “Arturo Ramirez,” 35, of Dallas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 240 months in federal prison for his role in heroin distribution conspiracies that he operated in the Dallas-Fort Worth metroplex, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ramirez-Garcia pleaded guilty in January 2013 to his role in both conspiracies. In one case, he admitted that he was involved in a conspiracy, in 2006 and 2007, with co-defendants, Martin Laguna, Francisco Laguna, Marco Antonio Romero, Jaun Curz Puerto and Timothy Ryan Daniels, to distribute more than one kilogram of heroin. His co-defendants received sentences ranging from 15 months to 180 months in federal prison. In the other case, he admitted that from August 2010 to August 2012 he was involved in a conspiracy to distribute heroin. In fact, when he was arrested on August 8, 2012, he was in possession of approximately 10 ounces of black tar heroin.
During the course of the earlier conspiracy, Ramirez-Garcia distributed heroin to his co-defendants and other individuals. By way of example only, in late March 2006, officers with the Dallas Police Department executed a search warrant at Ramirez-Garcia’s apartment in Dallas and seized: 2,353 grams of black tar heroin; 3.6 grams of powder cocaine; $66,760 in cash and three digital scales. Ramirez-Garcia admitted the cash seized from his apartment was proceeds from heroin sales.
The cases were investigated by the Coppell, Dallas and Farmers Branch Police Departments, the Dallas Independent School District Police Department – Criminal Investigations Division and the Drug Enforcement Administration. Assistant U.S. Attorneys Keith Robinson and Aisha Saleem prosecuted.
Crownpoint Man Sentenced to Federal Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Sampson Antonio, Jr., 25, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced this afternoon to 30 months in federal prison followed by three years of supervised release for his involuntary manslaughter conviction. Antonio also was ordered to pay $4,077.05 in restitution to cover funeral costs for the victim.
Antonio was arrested in July 2012, on a criminal complaint charging him with involuntary manslaughter in connection with the death of a 19-year-old Navajo woman in Mariano Lake, N.M., on April 21, 2012. Antonio subsequently was indicted and charged with driving a vehicle while intoxicated and running over the victim and causing her death.
On April 30, 2013, Antonio pled guilty to the indictment and admitted killing the victim on April 21, 2012, while driving under the influence of alcohol and driving recklessly.This case was prosecuted by Assistant U.S. Attorneys Kyle T. Nayback and David M. Adams, and was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety.
Claymont Man Charged with Distributing Child Pornography from Residence Used for In-Home DaycareRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Carl McBride, age 48, of Claymont, Delaware, was arrested earlier today and charged by criminal complaint with transportation of child pornography, in violation of Title 18, United States Code, Section 2252A(a). This federal criminal charge results from an online undercover operation in which McBride utilized a non-public, peer-to-peer computer network to distribute child pornography to over 100 individuals from his Claymont home.
If convicted of the charges, McBride faces a mandatory minimum sentence of at least five years, and up to twenty years, in prison, a fine of up to $250,000, and a term of supervised release of at least five years to life following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he resides, works or attends school.
After identifying McBride through computer network records, investigators discovered that another person residing at his Claymont residence has been providing daycare services out of the home for at least three years under the name “Little Tykes Day Care.” The Office of Child Care Licensing suspended the operator’s license today.
Early this morning, law enforcement agents executed a federal search warrant at McBride’s residence, seizing multiple computers, cell phones, cameras and other digital equipment. In particular, agents seized a laptop computer found next to a diaper changing table in a room used for daycare services. A forensic preview of that laptop revealed hundreds of images and movies of child pornography depicting prepubescent females engaged in sex acts. In a number of the images, the young children are bound and violently assaulted by adult males.
McBride was arrested by U.S. Homeland Security special agents, and made his initial appearance in United States District Court this afternoon. McBride waived his rights to a preliminary and detention hearing, and will remain in custody pending further proceedings.
Any person possessing information about this matter are encouraged to contact the United States Department of Homeland Security’s Tip Line at 302-428-0104, extension 3.
The case is being prosecuted by Assistant United States Attorney Edward J. McAndrew and investigated by the Delaware State Police and the United States Department of Homeland Security, Homeland Security Investigations.
The charge in the Complaint is only an allegation and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Clay County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
A Clay County man was sentenced on October 31, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Derek L. Cosner, 32, of Mason, IL, was sentenced to 170 months in prison, four years supervised release following his imprisonment, and fined $500. Cosner had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from February 2011, until on or about February 7, 2013, in Clay County, Cosner conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine. Count 2 charged that from February 1-7, 2013, Cosner knowingly and intentionally possessed equipment, chemicals, products, or materials, knowing the items would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
California Man Sentenced to Ten Years for Heroin Trafficking ConvictionRead the Press Release
ALBUQUEQUE – Louie Villegas, 49, of Palm Springs, Calif., was sentenced this afternoon to ten years in federal prison followed by five years of supervised release for his heroin trafficking conviction.
Villegas was arrested on April 18, 2013, at the Greyhound Bus Station in Albuquerque, N.M., after DEA agents found more than a kilogram of heroin concealed in inside the inner soles of his tennis shoes. He subsequently was indicted and charged with possession of heroin with intent to distribute.
Villegas entered a guilty plea to the indictment on Aug. 5, 2013. Villegas admitted that, while at the Greyhound bus station in Albuquerque on April 18, 2013, he had a consensual encounter with DEA agents and gave the agents permission to search him and his shoes for contraband. When Villegas handed his left shoe to the agents, it was abnormally heavy. Inside the inner sole of both shoes, the agents found approximately 1.3 kilograms of heroin.
This case was investigated by the Interdiction Unit of the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Lynn W.Y. Wang.
California Man Arraigned on Multi-Million Dollar Fraud ScamRead the Press Release
BOSTON – A California man was arraigned yesterday after being indicted for defrauding a number of borrowers looking for multi-million dollar financing.
Damien Hess, a/k/a John Hess, 36, the former Chief Executive Officer of Quest Capital Finance (Quest), was arraigned yesterday after being indicted for wire fraud and conspiracy.
The indictment alleges that between 2008 and 2012, Hess and his co-defendant, Lucas Ford, falsely represented that Quest was a financing company with hundreds of millions of dollars to lend to prospective borrowers. Hess and Ford told these borrowers that in order to close on these loans, the borrowers first needed to put hundreds of thousands of dollars into escrow accounts that would be held by a third party until all contingencies for the financing were resolved. Contrary to explicit statements contained in the escrow agreements, prior to all contingencies being resolved and without providing any financing for the prospective borrowers, Ford and Hess took all or most of the escrowed money and transferred it to their company. Those stolen funds were later transferred to other business and personal accounts and used for personal expenses, such as plastic surgery and trips to Disneyland. When the deadlines for the various loan closings passed and borrowers asked where their loans were, Hess and Ford made false representations that the financing would be available shortly and provided a series of false excuses to explain why the funding was not yet ready. In total, Hess and Ford took into Quest over $2.8 million worth of borrower deposits and never provided any financing.
If convicted, the maximum sentence under the statute is 20 years in prison for the wire fraud counts, three years of supervised release and a fine of the greater of $250,000 per count or twice the gross loss or gain resulting from the offense.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Rafael A. Medina, Special Agent in of the U.S. Postal Service, Office of Inspector General, Northeast Area Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Patrick M. Callahan of Ortiz’s Office.
The details contained in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Benton Attorney Pleads Guilty to Federal Drug Conspiracy - Related ChargeRead the Press Release
Agrees to permanently surrender law license at sentencing
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced Dustin Dyer, of Benton, pled guilty before United States District Judge James M. Moody to the use of a cell phone to facilitate the commission of an offense of conspiracy to possess with intent to deliver methamphetamine.
Dustin Dyer was originally indicted in June 2011, in an Indictment returned against 19 individuals involved in a methamphetamine trafficking organization led by Daniel Henry of Cabot, Arkansas. Dyer was charged with one count of using a telephone to facilitate the distribution of methamphetamine by a member of the Henry conspiracy. The case against Dyer was severed from the other defendants in October, 2012 and the other defendants resolved their cases through pleas or trial. On July 11, 2013, a Third Superseding Indictment was returned against Dyer which charged Dyer with being involved in a conspiracy to distribute methamphetamine, use of a telephone to facilitate the conspiracy, and witness tampering.
Today, Dyer pled guilty to Count 18 of the Third Superseding Indictment which charged use of a telephone to facilitate the drug conspiracy. In entering his plea, Mr. Dyer admitted that on December 20, 2010, he sent a series of text messages to a client who he knew to be involved in a conspiracy to distribute methamphetamine. His intent was to assist the client in obtaining methamphetamine for distribution to him and to others. Upon acceptance by Judge Moody of Dyer’s guilty plea, the United States moved to dismiss Count 1-Conspiracy to distribute methamphetamine and Count 19-Witness tampering.
Under the plea agreement reached by the parties, Dyer agreed to permanently surrender his law license at the time of sentencing. The United States agreed to recommend a sentence of probation for Dyer. The Court is not bound to the recommended sentence. If the Court does not follow the recommended sentence, Dyer will have the option to withdraw his guilty plea.
This investigation was conducted by the Drug Enforcement Administration lead High Intensity Drug Trafficking Area Task Force consisting of local, state and federal law enforcement agencies Substantial support in the Dyer investigation was provided by the Benton Police Department. Assistant United States Attorney Anne Gardner is prosecuting this case for the United States.
Alabama Husband and Wife Plead Guilty to Identity Theft SchemeRead the Press Release
Mary Young and Christian Young each pleaded guilty yesterday to one count of conspiracy to defraud the United States and one count of aggravated identity theft for their role in a stolen identity refund fraud (SIRF) scheme , announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.
According to court documents, between January 2010 and June 2012, Mary Young, Christian Young, Octavious Reeves and others obtained stolen identities from individuals and used those stolen identities to file false tax returns. The false tax returns were filed from the Youngs’ residence and the conspirators directed the false tax refunds to prepaid debit cards in the names of the identity theft victims. The Youngs and others used the prepaid debit cards to withdraw the fraudulent proceeds, which allegedly totaled over $400,000.
Sentencing has not yet been scheduled. The Youngs each face a minimum sentence of two years imprisonment with a maximum of twelve years, as well as three years of supervised release, restitution and a maximum fine of $250,000, or twice the loss caused by the offense. Reeves previously pleaded guilty and will be sentenced on Feb. 19, 2013.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler, Charles Edgar Jr. and Gregory Bailey of the Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Alabama Husband and Wife Use an Identity Theft Scheme Used to Fund Their Gambling ActivitiesRead the Press Release
Montgomery, Alabama - Mary Young, 48 years old, and Christian Young, 49 years old, both of Wetumpka, each pleaded guilty yesterday to one count of conspiracy to defraud the United States and one count of aggravated identity theft for their role in a Stolen Identity Refund Fraud (“SIRF”) scheme, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to court documents, between January 2010 and June 2012, Mary Young, Christian Young, Octavious Reeves, and others obtained stolen identities from individuals and used those stolen identities to file false tax returns. The false returns were filed from the Young’s residence and the conspirators directed the unlawful refunds to prepaid debit cards in the names of the identity theft victims. Mary Young, Christian Young, and others used the prepaid debit cards to withdraw the fraudulent proceeds.
In total, the scheme generated over $400,000 in fraudulent tax refunds. Mary Young and Christian Young used a substantial amount of the illicit proceeds to fund their gambling activities. Between 2010 and 2012, the Youngs lost nearly $200,000 at casinos in Alabama.
Sentencing has not yet been scheduled. Mary Young and Christian Young both face a minimum sentence of two years and a maximum of twelve years in prison, along with three years of supervised release, restitution, and a maximum fine of $250,000 or twice the loss caused by the offense. Reeves previously pleaded guilty and will be sentenced on February 19, 2014.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler, Charles Edgar, Jr., and Gregory Bailey of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
4 November 2013
Woman Convicted at Trial for Role in Nearly $3 Million Health Care Fraud Scheme Involving the Operation of Euless Healthcare Corp. Is Sentenced to 72 Months in Federal PrisonRead the Press Release
Defendant Also Ordered to Pay $830,000 in Restitution
DALLAS — Comfort Gates, 48, was sentenced this afternoon, by U.S District Judge David C. Godbey, to 72 months in federal prison and ordered to pay $830,000 in restitution following her conviction at trial in April 2013 on charges stemming from her involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic). Gates is one six defendants convicted in the conspiracy. Judge Godbey ordered that Gates, a current resident of Houston, surrender to the Bureau of Prisons on January 13, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gates, an employee of Medic, and coconspirator Godwin Umotong, 58, an employee of EHC and Medic, were each convicted at trial on one count of conspiracy to commit health care fraud. Gates was also convicted on two counts of health care fraud and Umotong was also convicted on five counts of health care fraud. Umotong is scheduled to be sentenced on December 2, 2013; he faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each of the counts of conviction. He could also be ordered to pay restitution.
Other defendants in the case who have been convicted and sentenced are listed below. Each was also ordered to pay restitution of amounts ranging from approximately $195,000 to $1.4 million.
Ovsanna Agopian, 58, Houston, 120 months in federal prison
Boghos Babadjanian, 55, of Sherman Oaks, Calif., probation
Leslie Omagbemi, 56, of Dallas, 30 months in federal prison
Munda Massaquoi, 69, of Houston, 37 months in federal prison
ECH was located on West Bedford Euless Road in Hurst Texas, and Medic, which operated from October 2009 to May 2011, was located on Bonhomme Road in Houston. Agopian, 58, was the operator of both EHC and Medic.
According to documents filed in the case and evidence presented at trial, Agopian, Umotong, Omagbemi, Massaquoi and Gates conspired together to submit, or cause to be submitted, fraudulent claims to Medicare for diagnostic tests and office visits. Agopian recruited unlicensed doctors to work for EHC and Medic by telling them that they would treat beneficiaries in the beneficiaries’ homes. Medicare does not pay for services performed by unlicensed persons. Nevertheless, these recruits went to beneficiaries’ homes and purported to conduct medical examinations, including ordering diagnostic tests. In total, more than $2.7 million was fraudulently billed, and of that amount, Medicare paid more than $1.3 million.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Michael Elliott prosecuted.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, go to: www.stopmedicarefraud.gov.
Williamson County Man Charged with Firearm OffenseRead the Press Release
On October 31, 2013, Sherman L. Allen, Jr., a/k/a “Larue,” 29, of Marion, IL, was arraigned in federal court in Benton, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Allen was charged by indictment, on October 23, 2013, with Possession of a Firearm by a Felon. At the October 31, 2013, court hearing, Allen was ordered held without bond pending a December 30, 2013, jury trial.
The offense occurred on July 29, 2013, in Marion, Williamson County. The firearm offense carries a penalty of up to 10 years in prison, to be followed by 3 years supervised release, and a fine of up to $250,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the Southern Illinois Enforcement Group and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Illinois State Police Special Weapons and Tactics Team and Williamson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Uniontown Man Illegally Possessed RevolverRead the Press Release
PITTSBURGH - A resident of Uniontown, Pa., pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
William Kent Bricker, 56 pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on or about Sept. 2, 2012, Bricker, being a convicted felon, illegally possessed a .32 caliber revolver. Bricker was convicted of armed bank robbery in 1993 and illegal firearms possession in 2004. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Judge Hornak scheduled sentencing for Feb. 26, 2014 at 9:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of William Kent Bricker. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Two Plead Guilty in Connection with Sunshine Pharmacy Health Care Fraud SchemeRead the Press Release
Fort Myers, Florida – Acting United States Attorney A. Lee Bentley, III announces that Delmer Holmes Parrish (44) and Patricia Parrish (74), both of Naples, today pleaded guilty to conspiracy to commit health care fraud. Delmer Holmes Parrish, a licensed pharmacist, and Patricia Parrish each face a maximum penalty of ten years in federal prison. In addition, they have agreed to pay restitution to the United States in the amount of $351,358.14. As part of the agreement, Delmer Holmes Parrish has also agreed to voluntarily relinquish his pharmacist license to the State of Florida. A sentencing date has not yet been set.
According to the plea agreement, from in or around February 2009 through in or about July 2012, Delmer Holmes Parrish and Patricia Parrish participated in a conspiracy to defraud federal health care benefit programs out of approximately $351,358.14. Along with others, both used Sunshine Pharmacy and Sunshine Solutions to submit and cause claims to be submitted for reimbursement from Medicaid, Medicare, and TRICARE programs for prescriptions not filled or provided to beneficiaries and recipients. The claims included prescriptions for patients that had not been written or authorized by any duly licensed physician. In addition, the co-conspirators submitted and caused claims to be submitted for reimbursement from these same programs for beneficiaries and recipients who were deceased.
In carrying out the offense, the conspirators also used the means of identification of individuals who were enrolled in the Medicaid, Medicare, or TRICARE programs, without their knowledge or consent. The members of the conspiracy also would and did perform acts and made statements to hide and conceal the scheme. As a result of the fraudulent scheme, the government’s losses totaled approximately $351,358.14.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; Department of Defense, Defense Criminal Investigative Service; and the Drug Enforcement Administration. They were assisted by the Naples Police Department, Collier County Sheriff's Office, and the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
Two Florida Residents Arrested inConnection with International Lottery ScamRead the Press Release
Two individuals charged in connection with the operation of a fraudulent lottery scheme were arrested today in south Florida following their indictment by a federal grand jury in Miami on Oct. 31, 2013, the Justice Department, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Marshals Service announced. Althea Angela Peart and Charmaine Anne King were arrested on charges that they and their co-conspirators, some of whom operated from outside of the U.S., participated in a fraudulent lottery scheme. As alleged in the indictment, co-conspirators induced elderly victims in the U.S. to send thousands of dollars to Peart and King to cover fees for lottery winnings that victims had not won. The indictment, unsealed with Peart’s and King’s arrests, is part of the government’s crackdown on fraudulent international lottery schemes.
“Operators of foreign lottery schemes often cannot succeed without the assistance of co-conspirators in the United States,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “These schemes can cause devastating financial harm to their victims, and the Department of Justice is committed to prosecuting those who engage in this criminal activity.”
From March 2012, Peart’s and King’s co-conspirators are alleged to have contacted victims in the U.S. and falsely informed them that they had won more than a million dollars in a lottery. According to the indictment, the co-conspirators sent letters to the victims from a purported sweepstakes company in the U.S. and included false and fraudulent cashier’s checks made out to the victims for thousands of dollars. As alleged in the indictment, these letters told victims to call “claims agents” who were actually co-conspirators, and when the victims called the purported claims agents, the agents informed the victims that they had to pay several thousand dollars in order to collect their purported lottery winnings. The claims agents allegedly told the victims to deposit the cashier’s checks in the victims’ bank accounts in order to purportedly cover the money they had to pay. The co-conspirators allegedly instructed the victims on how to send and wire this money to Peart and King.
The indictment charges that Peart and King each kept a percentage of the money they received from victims and sent the rest of the money to their co-conspirators. According to the indictment, because the cashier’s checks were false and fraudulent and had no value, any payments the victims sent to Peart and King were funded by their own money, and victims never received any lottery winnings.“As fraudsters from outside of the United States seek to take advantage of some of the most vulnerable in our community, they rely on co-conspirators in the United States for help,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “As I have previously stated, we will continue to vigorously pursue and prosecute those responsible for these illegal schemes.”
Peart is charged with conspiracy, eight counts of mail fraud and three counts of wire fraud and with committing these offenses via telemarketing. King is charged with conspiracy, four counts of mail fraud and three counts of wire fraud and with committing these offenses via telemarketing.
“The U.S. Postal Inspection Service is committed to investigating fraudulent lottery schemes designed to defraud innocent victims,” said U.S. Postal Inspector in Charge in Miami Ronald Verrochio. “Combating international lottery fraud is a priority of the Postal Inspection Service given that a significant amount of the money in these frauds is sent through the U.S. mail. We are actively taking steps to educate Americans about the dangers of lottery frauds.”
“These arrests show that HSI is committed to stopping individuals who prey on our senior citizens,” said Special Agent in Charge of HSI Miami Alysa D. Erichs. “We will continue to work with our international partners and other law enforcement agencies to put an end to these criminal organizations.”
“The U.S. Marshals Service is proud to be part of the team bringing scam artists such as these to justice,” said Acting U.S. Marshal Neil DeSousa. “These international lottery scams that prey on our elderly cannot be allowed to continue. The arrests of these two perpetrators are a testament to federal law enforcement’s dedication to protecting our citizens against all types of crimes.”
Assistant Attorney General Delery and U.S. Attorney Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Two Florida Residents Arrested in Connection with International Lottery ScamRead the Press Release
Two individuals charged in connection with the operation of a fraudulent lottery scheme were arrested today in south Florida following their indictment by a federal grand jury in Miami on Oct. 31, 2013, the Justice Department, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Marshals Service announced. Althea Angela Peart and Charmaine Anne King were arrested on charges that they and their co-conspirators, some of whom operated from outside of the U.S., participated in a fraudulent lottery scheme. As alleged in the indictment, co-conspirators induced elderly victims in the U.S. to send thousands of dollars to Peart and King to cover fees for lottery winnings that victims had not won. The indictment, unsealed with Peart’s and King’s arrests, is part of the government’s crackdown on fraudulent international lottery schemes.
“As fraudsters from outside of the United States seek to take advantage of some of the most vulnerable in our community, they rely on co-conspirators in the United States for help,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “As I have previously stated, we will continue to vigorously pursue and prosecute those responsible for these illegal schemes.”
“Operators of foreign lottery schemes often cannot succeed without the assistance of co-conspirators in the United States,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “These schemes can cause devastating financial harm to their victims, and the Department of Justice is committed to prosecuting those who engage in this criminal activity.”
From March 2012, Peart’s and King’s co-conspirators are alleged to have contacted victims in the U.S. and falsely informed them that they had won more than a million dollars in a lottery. According to the indictment, the co-conspirators sent letters to the victims from a purported sweepstakes company in the U.S. and included false and fraudulent cashier’s checks made out to the victims for thousands of dollars. As alleged in the indictment, these letters told victims to call “claims agents” who were actually co-conspirators, and when the victims called the purported claims agents, the agents informed the victims that they had to pay several thousand dollars in order to collect their purported lottery winnings. The claims agents allegedly told the victims to deposit the cashier’s checks in the victims’ bank accounts in order to purportedly cover the money they had to pay. The co-conspirators allegedly instructed the victims on how to send and wire this money to Peart and King.
The indictment charges that Peart and King each kept a percentage of the money they received from victims and sent the rest of the money to their co-conspirators. According to the indictment, because the cashier’s checks were false and fraudulent and had no value, any payments the victims sent to Peart and King were funded by their own money, and victims never received any lottery winnings.
Peart is charged with conspiracy, eight counts of mail fraud and three counts of wire fraud and with committing these offenses via telemarketing. King is charged with conspiracy, four counts of mail fraud and three counts of wire fraud and with committing these offenses via telemarketing.
“The U.S. Postal Inspection Service is committed to investigating fraudulent lottery schemes designed to defraud innocent victims,” said U.S. Postal Inspector in Charge in Miami Ronald Verrochio. “Combating international lottery fraud is a priority of the Postal Inspection Service given that a significant amount of the money in these frauds is sent through the U.S. mail. We are actively taking steps to educate Americans about the dangers of lottery frauds.”
“These arrests show that HSI is committed to stopping individuals who prey on our senior citizens,” said Special Agent in Charge of HSI Miami Alysa D. Erichs. “We will continue to work with our international partners and other law enforcement agencies to put an end to these criminal organizations.”
“The U.S. Marshals Service is proud to be part of the team bringing scam artists such as these to justice,” said Acting U.S. Marshal Neil DeSousa. “These international lottery scams that prey on our elderly cannot be allowed to continue. The arrests of these two perpetrators are a testament to federal law enforcement’s dedication to protecting our citizens against all types of crimes.”
U.S. Attorney Ferrer and Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.