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4 November 2013
Bluford Man Sentenced to Two Years in Prison for Illegally Possessing FirearmRead the Press Release
Craig L. Fenton, 47, of Bluford, Illinois, was sentenced on Friday, November 1, 2013, in United States District Court in Benton to a term of 24 months in prison for being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Fenton was charged with illegally possessing a loaded .38 caliber revolver in an indictment returned by a Federal Grand Jury on May 9th. That firearm was located in Fenton’s vehicle during a traffic stop by a Wayne County Sheriff’s Deputy on April 2nd. During the stop, the deputy’s K-9 alerted on Fenton’s vehicle indicating that illegal narcotics were inside. A subsequent search revealed the firearm, a quantity of marijuana, drug paraphernalia that field tested positive for the presence of methamphetamine, digital scales, plastic sandwich baggies, and other items consistent with the use and distribution of illegal narcotics. Fenton, who had previously been convicted of two felony offenses which made it illegal under federal law for him to possess firearms or ammunition, pled guilty to the indictment on July 11th.
In addition to the 24 month term in federal prison, Fenton was ordered to pay fines and special assessments totaling $400, placed on a 3 year term of supervised release to follow his incarceration, and ordered to forfeit the .38 caliber revolver to the United States.
Fenton has been held without bond since his arrest on the federal charges and was again remanded to the custody of the United States Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department, with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Belle Glade Man Sentenced to 19 Years in Prison on Firearm and Drug ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Jose Nunez, 23, of Belle Glade, Florida, was sentenced to 228 months (19 years) in prison, to be followed by three years of supervised release, by U.S. District Judge Kenneth Marra.
On March 20, 2013, PBSO Gang Detectives investigated a shooting that occurred in Belle Glade, Florida. Detectives determined that Jose Nunez was involved in a verbal confrontation with another individual that escalated once Nunez removed a semi-automatic pistol from his waistband and pointed the firearm at the victim, firing one round into the ground. Gang detectives subsequently obtained a warrant for his arrest.
Agents of the PBSO Tactical Unit and U.S. Marshals Florida Regional Fugitive Task Force arrested Nunez due to an active warrant stemming from the shooting investigation. As the agents conducted a search incident to arrest they noticed that Nunez was wearing a bullet proof vest under his shirt and was in possession of cocaine, hydrocodone, morphine, alprazolam, marijuana, brass knuckles, and U.S. currency. The agents also located the semi-automatic pistol used in the March 20, 2013 shooting in Nunez’s possession.
A federal grand jury indicted Nunez on May 21, 2013, charging him with five counts of possession with intent to distribute a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition. In July 2013, Nunez pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime, being a felon in possession of a firearm and ammunition, and possession with intent to distribute cocaine.
Today at his sentencing, the court found Nunez qualified as a career offender based on his prior felony convictions, and this status subjected him to enhanced penalties.
Mr. Ferrer commended the investigative efforts of ATF, PBSO, and U.S. Marshal’s Service. This case was prosecuted by Assistant U.S. Attorney John McMillan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Art Gallery and Gallery Owner Charged with Obstruction of Justice in Connection with Importation of Ancient Chinese ArtifactsRead 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), Miami Field Office, announce that Lorin & Son, LLC, an art dealer based in Winter Park, Florida, and Francois B. Lorin, 74, of Winter Park, Florida, were each charged by Information with one count of obstruction of justice, in violation of Title 18, United States Code, Section 1512(c)(2), in connection with the importation of ancient Chinese artifacts that were interdicted by authorities at the Port of Miami. Lorin & Son, LLC faces a maximum $500,000 fine and up to five years’ probation, and Francois B. Lorin faces a maximum sentence of 20 years in prison and a $250,000 fine. The Information also alleges forfeiture of the items in the shipment, including various artifacts that were the subject of the alleged obstruction conduct. The case is assigned to U.S. District Judge Jose E. Martinez.
Lorin & Son, LLC conducted business under the name “Asiantiques,” and bought and sold Asian art through a gallery in Winter Park, Florida, and at trade shows and other industry meetings in the United States and Hong Kong. According to court documents, this matter involved the importation from Hong Kong of approximately 488 items of Chinese fine arts in June 2011, including certain cultural artifacts, through the Port of Miami. Twenty-seven of these items were subject to a prohibition against importation because they pre-dated 907 A.D. constitute items of significant Chinese cultural heritage. Pursuant to a Memorandum of Understanding between the United States and the People’s Republic of China entered into as of January 14, 2009 (the “MOU”), archaeological materials representing China’s cultural heritage from the Paleolithic Period (c. 75,000 B.C.) through the end of the Tang Period (A.D. 907) could not be imported into the United States absent specific prior government approval. If, however, such items were already in the United States as of the MOU date, the items could be re-imported without prior authorization.
According to court documents, invoices accompanying the shipment indicated that the entire contents had originated in Florida and were being returned to the United States after having been shipped to Hong Kong for a trade show. After the items were interdicted by U.S. Customs and Border Protection (“CBP”) officials, Francois B. Lorin and others created false documents to justify provenance for certain items in the shipment that were prohibited from entering the United States without such provenance. Thereafter, Lorin & Son, LLC and Francois B. Lorin, through counsel, filed a Petition for Remission with CBP and provided supporting materials, in which the defendants argued for release of the interdicted items by using false invoices and providing other false information. The invoices that were submitted were backdated, falsely claimed that items had been acquired from third-parties before the MOU date, and otherwise falsely claimed that these documents established “proof” that the items could be lawfully imported.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy. Forfeiture and repatriation is being handled by Assistant U.S. Attorney Alison Lehr.
An information is merely 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.
Adrian Resident Pleads Guilty to Health Care Fraudand Filing A False Tax ReturnRead the Press Release
The operator of a human resource company was sentenced today to 72 months in federal prison after having pleaded guilty to health care fraud and filing a false tax return, announced U.S. Attorney Barbara McQuade.
Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office.
Jason Syrek, age 39, of Adrian was sentenced before United States District Judge Paul D. Borman. In addition, Syrek was ordered to pay restitution in the amount of $4,502,576.04 to Blue Cross and Blue Shield of Michigan and $13,156,985 to the IRS.
According to court records, between May 2008 and December 2010, Syrek engaged in health care fraud and tax fraud while operating CAS Resources of Adrian, Michigan. CAS Resources provided outsourcing of human resource services, such as payroll, taxes and employee benefits administration, including health care coverage.
CAS collected $1.75 million in premiums from client companies in November and December 2010, an amount due to Blue Cross Blue Shield of Michigan (BCBSM), but never paid by Syrek. He admitted diverting these funds for personal use.
According to the plea agreement, in January, 2011, Syrek as the Director of CAS Resources filed a Form 941 for 2010: Employer’s Quarterly Federal Tax return for the third quarter. The Form 941 was filed with the IRS and stated that CAS Resources paid $1,862,902 in payroll taxes. Syrek knew he had diverted these funds for his own personal use and only paid $633,332 in payroll taxes. In addition to the third quarter Form 941 for 2010, Syrek filed approximately 7 other Form 941s with the IRS which he did not pay. In total, from 2010 through 2011, Syrek’s tax due was $13.4 million.
Syrek used the money to buy beachfront properties, several cars, a boat and investment properties. In order to pay his debt, Syrek will forfeit his homes, beach properties in Florida, 2009 32.5’ Sea Ray Boat and cars to include a 2008 Ferrari F430 and 2008 Porsche Boxster.
“Fraud schemes like this one may involve sophisticated methods, but they are nothing more than stealing. This defendant robbed health care programs and taxpayers for his personal benefit,” McQuade said.
“Syrek’s conduct was egregious in that he effectively stole funds that were withheld on behalf of employees,” said Erick Martinez. “His actions cost the government $13.4 million dollars in tax loss alone.”"Those who commit health care fraud and other related crimes will face severe penalties for their illegal acts,” stated FBI Special Agent in Charge Abbate. “The FBI is committed to working with the IRS and other agencies to bring these individuals to justice."
This case was prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Linda Aouate and investigated by special agents of the IRS Criminal Investigation and the FBI.32 Indicted for Federal Drug and Gun ViolationsRead the Press Release
CHATTANOOGA, Tenn. -- A federal grand jury in Chattanooga returned nine indictments charging 32 people on Oct. 22, 2013. Indictments charge Robert Stephon North, 34, of Chattanooga, Tenn.; Juanzell Jenkins, 37, of Adairsville, Ga.; Joe Jenkins, 40, of Chattanooga, Tenn.; Jumoke Johnson, Jr., 20, of Chattanooga, Tenn.; Shannon D. Mitchell, 29, of Chattanooga, Tenn.; Gerald Toney, 33, of Chattanooga, Tenn.; Dejuan Cooper, 23, of Chattanooga, Tenn.; Guy L. Wilkerson, Jr., 20, of Chattanooga, Tenn.; Rodney Harris II, 22, of Chattanooga, Tenn.; Frank White, 30, of Chattanooga, Tenn.; Valentino Harris, 28, of Chattanooga, Tenn.; Torrey Gilmore, 38, of Chattanooga, Tenn.; Reginald D. Oakley, 39, of Chattanooga, Tenn.; Tommy Ryals, 34, of Atlanta, Ga.; Juane Joseph, 19, of Chattanooga, Tenn.; Leonita Blackmon, 32, of Chattanooga, Tenn.; LaJeromeny Brown, 35, of Chattanooga, Tenn.; Kenneth Hopkins, 49, of Chattanooga, Tenn.; Kentarius Nealy, 20, of Chattanooga, Tenn.; Idriss Barr, 29, of Chattanooga, Tenn.; Adrian Washington, 36, of Chattanooga, Tenn.; Milo E. Geiger, 36, of Chattanooga, Tenn.; Jerry Wayne Alexander, Jr., 41, of Chattanooga, Tenn.; Johnny Caldwell, Jr., 44, of Chattanooga, Tenn.; Garry Brown, 24, of Chattanooga, Tenn.; Robert Siler, 27, of Chattanooga, Tenn.; and Thaddius L. Humphrey, 32, of Chattanooga, Tenn., with conspiracy to distribute 280 grams or more of cocaine base (“crack”), and/or five kilograms or more of cocaine. Derrick L. Smith, 22, of Chattanooga, Tenn., is charged with possession of cocaine base (“crack”) with the intent to distribute it. Donte Taylor, 27, of Chattanooga, Tenn.; Rahmon Christian, 21, of Chattanooga, Tenn.; and Tramale Johnson, 25, of Chattanooga, Tenn., are charged with being convicted felons in possession of firearms. Johnson is also charged with possession of marijuana with the intent to distribute. Finally, Stephone L. Reed, 23, of Chattanooga, Tenn., is charged with car-jacking, brandishing a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm.
The coordinated arrests of these individuals by federal, state and local law enforcement began on the morning of Nov. 4, 2013. The arrested individuals will be appearing in U.S. District Court this afternoon and throughout the remainder of the week.
If convicted, the individuals charged with conspiracy to distribute 280 grams or more of cocaine base (“crack”), and/or five kilograms or more of cocaine face a sentence of at least 10 years to life. Depending on their previous criminal histories, these individuals could face a sentence of 20 years to life or even a mandatory minimum sentence of life in prison. If convicted Derrick L. Smith faces up to 20 years in prison. If convicted Donte Taylor, Rahmon Christian, and Tramale Johnson face at least 0-10 years in prison, and possibly 15 years to life depending on their previous felony convictions. If convicted Stephone L. Reed faces 0-15 years in prison for carjacking, plus seven years to life for brandishing the firearm during a crime of violence. Any of these individuals who are convicted would also face a potential fine, restitution, and a period of supervised release. Sentences in federal court are served without the possibility of parole.
This indictment is the result of an investigation by the Drug Enforcement Administration, Chattanooga Police Department, Tennessee Bureau of Investigation, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Red Bank Police Department, Hamilton County Sheriff’s Office, and the United States Marshals Service. Assistant U.S. Attorney Chris Poole and Special Assistant U.S. Attorneys Nicholas Regalia and Meredith Edwards will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
2 November 2013
Jackson Man Sentenced on Federal Drug ChargeRead the Press Release
Jackson, Miss. – Booker Tarvin a/k/a Shanky, of Jackson, was sentenced to 151 months in federal prison followed by four years of supervised release for conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride and “crack” cocaine, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Tarvin was also ordered to pay $11,159 in restitution to the FBI.
Tarvin was indicted as a result of “Operation Paperchase”, an extensive investigation targeting illegal narcotics distribution in the City of Jackson conducted by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, U.S. Marshals Service, Gulf Coast HIDTA, Organized Crime Drug Enforcement Task Force, Mississippi Bureau of Narcotics, Hinds County Sheriff’s Department, and Jackson Police Department. The case was prosecuted by Assistant United States Attorney Erin Chalk.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
1 November 2013
Westlake Man Sentenced for Possessing Child PornRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Michael Sonnier, 32, of Westlake, La., was sentenced by U.S. District Judge Patricia Minaldi to 120 months in prison and a lifetime of supervised release for possession of child pornography. He pleaded guilty August 1, 2013.
According to evidence presented at the guilty plea, law enforcement authorities detected Sonnier downloading child pornography using file sharing software. A search of the defendant’s computer and phone on October 18, 2012, revealed that he downloaded more than 26 movies of hardcore child pornography, which included sadistic material depicting prepubescent children.Homeland Security Investigations investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Tenneil Selner, 33, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A Nuechterlein to the felony offense of distribution of pseudoephedrine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 1/30/2014. This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Horacio Hernandez, 50, of Goshen, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of reentry of a deported alien and failure to register as a sex offender. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 1/29/2014.This charge was filed as a result of an investigation by the United States Marshall.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Connie Horvath, 43, of Elkhart, Indiana was sentenced by District Judge Jon E. DeGuilio to 33 months of imprisonment, 2 years of supervised release and restitution of $249,390.11 after pleading guilty to the felony offense of bank fraud.According to documents filed in this case, Horvath executed a scheme to defraud the bank at which she was employed.Horvath worked in commercial banking and sales and issued loans that benefitted her personally without the approval of the bank. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Christopher Akens, 36, of Mishawaka, Indiana was sentenced by District Judge Jon E. DeGuilio to 78 months imprisonment and 15 years supervised release after pleading guilty to the felony offense of sexual exploitation of minors.According to documents filed in this case, Akens utilized ARES Peer-2-Peer file-sharing to download a video of child pornography. Upon further investigation by law enforcement, Akens revealed he maintained a digital collection of additional similar material.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney John Mac.
Kandi Biggins, 44, of Spencerville, Indiana was sentenced by District Judge Jon DeGuilio to 15 months imprisonment, 2 years supervised release and to pay restitution of $182,466 after pleading guilty to the felony offense of bank fraud.According to documents filed in this case, Biggins executed a scheme and artifice to defraud a financial institution and to obtain moneys, funds, credits, and other property owned by or under the custody or control of a financial institution, Tower Bank, by means of false and fraudulent pretenses and representations.In particular, Biggins was employed by Tower Bank and used false statements and pretenses in order to obtain bank funds in the form of cashier’s checks from her employer, Tower Bank, that she used to pay her personal expenses. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Heriberto Hernandez-Fraye, 34, of East Chicago, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of re-entry of a deported alien.Sentencing has been set for 1/29/14.This charge was filed as a result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case is being prosecuted by Assistant United States Attorney Philip Benson.
Jose Mariscal-Rivas, 42, of Indianapolis, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession with the intent to distribute methamphetamine.Sentencing has been set for 1/28/14. This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
Cahleb Smith-Conrad, 22, of Delphi, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tippecanoe County Sheriff’s Department and the Carroll County Sheriff’s Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Antonio Collins, 35, of Merrillville, Indiana, was sentenced by Senior District Judge Rudy Lozano to 57 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, law enforcement saw a vehicle parked in Collin’s driveway and observed the vehicle leave the premises and then fail to stop at a stop sign.The car was pulled over and the driver admitted he had marijuana in the car and that he had purchased the marijuana from Collins at his home.Using this information law enforcement obtained a state search warrant for Mr. Collins home.During the search officers found a false wall in the bathroom under some shelving.Within the false wall was a duffel bag containing eight sealed bags with a green leafy substance and two guns.Collins admitted that he deals marijuana from his house. Collins has a prior felony conviction for possession of cocaine.This case was the result of an investigation by the Federal Bureau of Investigation and the Merrillville Police Department.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Brian Washington, 23, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 123 months imprisonment and 4 years of supervised release after pleading guilty to the felony offenses of distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime.According to documents filed in this case, law enforcement found that Washington was selling large quantities of guns and drugs from a home in Gary. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Styles Taylor, 33, of Hammond, Indiana, was sentenced by Senior District Judge James Moody to lifetime imprisonment, 5 years of supervised release and $11,275.97 in restitution after being found guilty at trial of the felony offenses of conspiracy to commit interference with commerce by threat of violence, use of a firearm to cause death during a crime of violence and possession of a firearm by a convicted felon.According to documents filed in this case, Taylor and Keon Thomas robbed and murdered Frank Freund, Sr. to obtain numerous firearms to enhance their stature in the drug dealing community and to possibly trade some of the firearms for cocaine. When the trade deal fell through, the defendants began to sell the firearms throughout the Hammond area to any willing buyer, further endangering the citizens of the Hammond region.Mr. Freund, owner of Firearms Unlimited Gun Shop, was a 72 year old veteran who had a pacemaker and was virtually deaf. Mr. Freund was murdered execution style; shot from very close range inside his place of business.Taylor is a three time convicted felon who was involved in drug trafficking, the armed robbery of Fast Lane Foods causing serious bodily injury, one attempted murder of a pizza delivery man, an actual murder (Mr. Freund) and two other burglaries as a juvenile. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case was prosecuted by Assistant United States Attorneys Philip Benson and David Nozick.
David Beach, 25, of West Lafayette, Indiana, was sentenced by Senior District Judge James Moody to 120 months imprisonment, 30 years of supervised release and $500 in restitution to the named victims after pleading guilty to the felony offense of possession of child pornography.According to documents filed in this case, investigators observed than an individual later identified as Beach was downloading files containing images depicting children engaged in sexually explicit conduct.A search warrant was issued authorizing law enforcement to search Beach’s residence where at least 60 images depicting child pornography were found.Beach later admitted that he possessed more than 600 such images, that he distributed the material in return for more child pornography and that this child pornography depicted minor children who had not yet begun puberty.All told, the government recovered 1,637 images and 3 videos depicting child pornography from Beach’s computer. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Indiana State Police and the Kokomo Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Jerome Burney, 40, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of wire fraud. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Jamison Gudorf, 41, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of being a felon in possession of a firearm. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jason Bridges, 33, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to 100 months imprisonment; 2 years supervised release after pleading guilty to the felony offense of possession with intent to distribute marijuana plants and marijuana.According to documents filed in this case, Allen county law enforcement discovered marijuana plants after receiving information from a landowner about the discovery of an outdoor marijuana grow operation on the landowner’s property.Surveillance led to Bridges’ arrest. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Luther Vanhoosier, 44, of Redkey, Indiana was sentenced by District Judge Theresa L. Springmann to 5 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a convicted felon in possession of a firearm.According to documents filed in this case, law enforcement arrested Vanhoosier for domestic battery. At the time of his arrest, Vanhoosier was in possession of a shotgun and rifle.Vanhoosier has a previous conviction in 2012 for operating while intoxicated. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Juan Olivo, 36, of Milford, Indiana was sentenced by District Judge Theresa L. Springmann to 188 months imprisonment and 4 years supervised release after pleading guilty to the felony offense of knowingly or intentionally distributing heroin.According to documents filed in this case, in 2012, while under surveillance Milford sold heroin to a confidential informant working with the Allen County Drug Task Force. Milford continually distributed the narcotic throughout the year until his arrest.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Waynesboro Man Sentenced for Conspiracy to Defraud Fema During Hurricane Katrina Debris RemovalRead the Press Release
Jackson, Miss. - Aubrey Brent Sturdivant, 28, of Waynesboro, Mississippi, was sentenced in U.S. District Court on November 7, 2013, to 41 months in prison followed by two years of supervised release for his role in conspiring to defraud the Federal Emergency Management Agency (FEMA), announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Daniel McMullen and Mississippi State Auditor Stacey Pickering. Sturdivant was also ordered to pay a $10,000 fine.
The conspiracy to defraud FEMA began in November 2005 and continued through December 2006 during Hurricane Katrina debris removal operations in Wayne County, Mississippi. Sturdivant was given an additional sentence of 3 months imprisonment for criminal contempt for intentionally violating a court order during his January 2013 trial. The district court ordered the sentences to be served consecutively.
Sturdivant was charged as the result of a lengthy investigation conducted by the Department of Homeland Security, the Federal Bureau of Investigation, and the Mississippi State Auditors Office. Assistant United States Attorneys Jerry L. Rushing and Carla J. Clark handled the prosecution on behalf of the U.S. Attorney’s Office.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Two Sentenced, One Pleads Guilty to Child Pornography ChargesRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that two defendants were sentenced and one pleaded guilty to child pornography related charges. The hearings were held before U.S. District Judge Patricia Minaldi.
WESTLAKE MAN SENTENCED FOR POSSESSING CHILD PORNOGRAPHY
Michael Sonnier, 31, of Westlake, La., was sentenced to 120 months in prison and a lifetime of supervised release for possession of child pornography. He pleaded guilty August 1, 2013.
According to evidence presented at the guilty plea, law enforcement authorities detected Sonnier downloading child pornography using file sharing software. A search of the defendant’s computer and phone on October 18, 2012, revealed that he downloaded more than 26 movies of hardcore child pornography, which included sadistic material depicting prepubescent children. Homeland Security Investigations investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.EX-TUGBOAT CAPTAIN SENTENCED FOR TRANSPORTING CHILD PORN
Former tugboat captain Kenneth Dwight Dickey, 57, of Foley, Ala., was sentenced to 108 months in prison and a lifetime of supervised release for transporting child pornography. He pleaded guilty August 1, 2013.
According to evidence presented at the guilty plea, law enforcement authorities detected Dickey downloading child pornography using “peer-to-peer” software. Those using peer-to-peer software usually take a file and place it in a “shared folder” on a computer for the purpose of distributing it to others on the internet. A search of the defendant’s computer and phone on October 15, 2012 showed that Dickey was in possession of child pornography. He also admitted to transporting child pornography from Mississippi to the Western District of Louisiana. The child pornography on the computer was sadistic in nature. Homeland Security Investigations investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.JENNINGS MAN PLEADS GUILTY TO RECEIVING CHILD PORNOGRAPHY
Seth Ryan Bivens, 29, of Jennings, La., pleaded guilty to receiving child pornography.
According to evidence presented at the guilty plea, law enforcement authorities discovered that Bivens was downloading child pornography using “peer-to-peer” software. A warrant was obtained, and Bivens’ home was searched on November 14, 2012. An examination of Bivens’ computer and other electronic devices uncovered 294 movies and 28 images of child pornography.
Bivens faces five up to 20 years in prison, a $250,000 fine, and supervised release of five years to life. Sentencing is set for February 6, 2014. The U.S. Department of Homeland Security-Homeland Security Investigations and the Louisiana State Police conducted the investigation. Special Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.All of the cases were 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute 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 U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
Two Jackson Residents Sentenced in Connection with Narcotics Investigation in the City of JacksonRead the Press Release
Jackson, Miss. – Fredrick Darnell Ford, 38, and Shamika Y. Fulford, 34, both from Jackson, were sentenced on Thursday, October 31, 2013 by U.S. District Judge David C. Bramlette III for their roles in connection with a drug trafficking operation in the City of Jackson, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Fredrick Darnell Ford previously pled guilty to harboring a fugitive. He was sentenced to 27 months in federal prison followed by three years of supervised release and ordered to pay a $1500 fine. Ford was found harboring a co-defendant in the narcotics trafficking case.
Shamika Y. Fulford previously pled guilty to using a communication facility to further a drug trafficking offense. She was sentenced to nine months in federal prison followed by one year of supervised release and ordered to pay a $500.00 fine.The investigation, dubbed “Operation Paperchase”, was conducted by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, U.S. Marshals Service, Gulf Coast HIDTA, Organized Crime Drug Enforcement Task Force, Mississippi Bureau of Narcotics, Hinds County Sheriff’s Department, and Jackson Police Department. The case was prosecuted by Assistant United States Attorney Erin Chalk.
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Turkish National, Giray Biyiklioglu, Convicted of Wire Fraud, Aggravated Identity Theft, Tax, and Money Laundering ChargesRead the Press Release
GIRAY BIYIKLIOGLU, aka “Johnny Bryan,”, age 30, a Turkish national and resident of New Orleans, was convicted yesterday in federal court of 40 counts of wire fraud, aggravated identity thefts, tax fraud and money laundering, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to court documents and the court proceedings, BIYIKLIOGLU devised a scheme to defraud PayPal, Inc. using PayPal accounts he had fraudulently set up in the names of other persons. As proven at trial, the defendant wired funds from bank accounts in his name, through the fraudulent PayPal accounts, and then back to bank accounts in his name. The trial evidence further showed that the defendant then falsely claimed to the original banks that the wire transfers he had initiated to PayPal were unauthorized. These false claims caused the banks to debit PayPal and credit the defendant’s original bank accounts. According to the evidence adduced at trial, the defendant in fact maintained control over all funds throughout the scheme.
The aggravated identity theft charges stemmed from the BIYIKLIOGLU’s use of the personal information of six victims in furtherance of his wire fraud scheme. The defendant was also convicted of two counts of tax evasion for tax years 2010 and 2011. The jury convicted BIYIKLIOGLU of money laundering for using fraud proceeds to purchase a several motorcycles and a jet ski. Finally, BIYIKLIOGLU was convicted of thirteen counts of money laundering for concealing the proceeds of the wire fraud scheme and two counts of money laundering for wiring fraud proceeds to a bank in Turkey.
“Biyiklioglu stole the identities of innocent victims to finance his own lavish lifestyle,” stated U.S. Attorney Kenneth Allen Polite, Jr. “Yesterday’s jury verdict ensures that he will be brought to justice for defrauding these individuals and several financial institutions as part of his scheme.”
“Individuals who use stolen identities to commit crimes must be prosecuted for their actions,” stated Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation. “We thank the jury for their service during this trial and promise that IRS-CI will continue to work with the Department of Justice to stop identity theft.”
BIYIKLIOGLU faces the following terms of imprisonment:
- Counts 1-13 (wire fraud) – maximum term of 20 years imprisonment per count;
- Counts 14-20 (aggravated identity theft) – mandatory term of 2 years imprisonment per count, to be served consecutively;
- Counts 21-22 (tax evasion) – maximum term of 5 years imprisonment per count; and
- Count 23-25 and 27-41 (money laundering) – maximum term of 20 years imprisonment per count.
The jury also ordered BIYIKLIOGLU to forfeit bank accounts worth $85,919.77, a Ducati Diavel motorcycle, a Kawasaki jet ski and a jet ski trailer. Sentencing is scheduled for February 25, 2014, before U.S. District Judge Jay C. Zainey.
The case was investigated by Special Agents of the United States Secret Service and Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant U. S. Attorneys Dorothy Manning Taylor and Chandra Menon and Trial Attorney Hayden Brockett of the U.S. Department of Justice, Tax Division.
Springfield Man Sentenced to 72 Years in Prison for Armed Bank RobberiesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man was sentenced in federal court today for the armed robberies of two Springfield banks and a drugstore in November 2008.
Mark Joseph Morris, 49, of Springfield, was sentenced by U.S. District Judge Greg Kays to 72 years and six months in federal prison without parole. The court also ordered Morris to pay $5,632 in restitution. Morris was sentenced as a career criminal due to his prior felony convictions.
On March 21, 2013, Morris was found guilty of three counts of possessing a firearm during a crime of violence. Morris had earlier pleaded guilty (on Jan. 11, 2013) to committing the three robberies related to the firearm charges. Morris went to trial on the firearm charges, claiming the gun he used in the robberies was a BB gun. Video surveillance at the banks and drug store confirmed Morris’ use of a firearm. However, the firearm used by Morris to commit the robberies was never recovered.
Morris admitted that he robbed Bank of America, 2633 W. College Rd., on Nov. 7, 2008. Evidence introduced during the trial indicated that Morris handed a note to a bank teller and then revealed a handgun concealed in his waistband. He tapped on the handgun with one hand and pointed to the cash drawer with the other. The teller removed a cash drawer and placed it on the counter. Morris took $3,208 from the drawer and ran out of the bank.
Morris also admitted that he robbed the Walgreens Drug Store at 1930 W. Grand St. on Nov. 17, 2008.
Morris also admitted that he robbed Bank of America, 710 W. Sunshine, on Nov. 21, 2008. Morris approached a bank teller and showed her a black pistol that was in his waistband. When the teller did not immediately respond, Morris removed the pistol from his waistband, pointed it at the teller and demanded, “Give me all your money.” The teller removed $8,957 from her teller drawer and placed it on the counter. Morris tucked the pistol back into his waistband, grabbed the cash from the counter, and ran out of the bank.
This case was prosecuted by Assistant U.S. Attorneys Abram McGull II and Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.Specialty Hospitals of America to Pay United StatesRead the Press Release
$4.2 Million to Resolve False Claims AllegationsWASHINGTON – Specialty Hospitals of America, LLC has agreed to pay the United States $4.2 million to resolve allegations that it knowingly received reimbursement for inflated Medicare claims.
The settlement was announced today by U.S. Attorney Ronald C. Machen Jr. and Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in the region including Washington, D.C.
Specialty Hospitals of America, LLC, based in Portsmouth, N.H., operates two long-term care facilities in Washington, DC. The United States alleged that the company filed a cost report with its Medicare contractor in late May of 2008 that knowingly contained inaccurate revenue and expense data for the fiscal 2007 operations of Specialty Hospital of Washington-Hadley. These inaccuracies caused the cost-to-charge ratio to be inflated, which, in turn led to overpayments on certain claims submitted between Jan. 1, 2007 and July 14, 2009.
The settlement resolves a lawsuit filed in the U.S. District Court for the District of Columbia by a former company employee, James A. Roark, Sr., under the qui tam, or whistleblower provisions, of the False Claims Act. Under the Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. Mr. Roark will receive $798,000 as his share of the government’s recovery.
“This settlement holds the contractor accountable for overbilling the government by $4.2 million and returns that money to the federal treasury,” said U.S. Attorney Machen. “We commend the whistleblower for coming forward and bringing these billing practices to light.”
“When hospitals submit excessive costs for reimbursement, taxpayers pay more than they should for needed care,” said Special Agent in Charge DiGiulio. “We cannot tolerate any form of waste, fraud or abuse of our health benefits and we commend citizens who report suspected violations to the Office of Inspector General.
Special Agent in Charge DiGiulio urged people who suspect Medicare or Medicaid fraud to call the Office of Inspector General Hotline at 1-800-HHS-TIPS (1-800-447-8477).
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Columbia; the Department of Justice, Civil Division, and the HHS Office of Inspector General in investigating the allegations in this case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The case is captioned United States ex rel. Roark v. Specialty Hospitals of America, LLC, Case No. 1:10-cv-0719 (D.D.C.).
13-373Rochester Man Charged in Plot to Murder Witness in Sex Trafficking CaseRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Robert Palermo, 29, of Rochester, N.Y., was arrested and charged by criminal complaint with witness tampering by attempting to kill another person to prevent that person’s testimony in an official proceeding, and threatening to assault and/or murder a Federal law enforcement officer in retaliation for performance of his official duties. The witness tampering charge carries a maximum sentence of 30 years in prison and a fine of $250,000. Threatening to assault a federal law enforcement officer carries a maximum sentence of six years in prison and a $250,000 fine.
Assistant U.S. Robert A. Marangola, who is handling the case, stated that Palermo, who is in jail on pending federal charges of conspiracy to commit sex trafficking and sex trafficking of a minor, attempted to obtain a hit man to murder the 15 year-old female sex trafficking victim. According to the complaint, over the telephone and in letters, the defendant spoke to multiple individuals about his plot to have a hit man murder the victim in order to prevent her from testifying against him. To bring the murder plot to fruition, Palermo provided the victim’s name, description and directions to an address as well as the phone number for a person outside of jail for the hit man to contact on behalf of Palermo. Law enforcement learned of the plot before any harm came to the victim.
Law enforcement officers pursued the investigation by monitoring Palermo’s conduct in jail and utilizing an undercover police officer to pose as a hit man. During the investigation, the defendant threatened a particular investigating FBI agent by stating that Palermo would “beat that guy’s face in” and that the agent would “end up in a f__king river.”
The underlying sex trafficking case, which is being prosecuted by Assistant U.S. Attorney Tiffany H. Lee, alleges that Palermo and co-defendant Daniel Tanck, knowing the victim was then 14 years old, placed an ad on Backpage.com for her to engage in prostitution activities, took pictures of her for the Backpage.com ad at their residence on Emerson Street in the City of Rochester, and posted the advertisement using Tanck’s computer.
“The allegations in this case are especially egregious insofar as they accuse the defendant of attempting to victimize a young victim not once, but twice,” said U.S. Attorney Hochul. “Thanks to the diligent efforts of law enforcement officers, both efforts were unsuccessful.”
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Rochester Police Department, under the direction of Chief James Sheppard, the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, and Special Agents of the FBI, under the direction of Brian P. Boetig, Special Agent in Charge, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Private Investigator Williamson Pleads Not Guilty to Bribery Case Charges, Trial Date SetRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that private investigator Robert Williamson, 64, of Lafayette, was arraigned Wednesday of this week before U.S. Magistrate Judge Patrick J. Hanna on a nine-count indictment charging him with operating a pay-for-plea scheme that garnered favorable treatment for defendants charged with state violations of operating while intoxicated (OWI).
Williamson pleaded not guilty to the charges and was released on a $50,000 bond. The trial date has been set for December 16, 2013.
The grand jury returned the Williamson indictment February 28, 2013, charging him with one count of conspiracy, six counts of bribery relating to the OWI scheme, one count of Social Security Fraud for claiming Social Security payments while not reporting income from the bribery scheme, and one count of making false statements to a federal agent.
According to the indictment, Williamson, who is not licensed to practice law, was part of a conspiracy from March 2008 to February 2012 to solicit thousands of dollars from individuals with pending criminal charges in the 15th Judicial District. Williamson promised favorable resolutions to pending felony and misdemeanor cases, the majority of which were OWI cases.
The indictment states that Williamson paid bribes in cash and other things of value to personnel within the District Attorney's office and employees with other organizations associated with the OWI program, including Acadiana Outreach. Williamson is also alleged to have obtained false and fraudulent certifications from Acadiana Outreach, which certified that his clients completed court-ordered community service, when in fact the individuals had not. The indictment outlines that Williamson would obtain fraudulent driver safety training certificates showing that Williamson's "clients" completed court-mandated driver improvement programs when they had not.
If convicted of the conspiracy, Williamson faces a maximum penalty of five years in prison, a $250,000 fine or both with up to three years of supervised release. He faces a maximum penalty of 10 years in prison, a 250,000 fine or both with three years of supervised release for each count of bribery, five years in prison, a $250,000 fine or both with three years of supervised release for the Social Security Fraud count, and five years in prison, a $250,000 fine or both with three years of supervised release for the false statements to a federal agent count.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI conducted the investigation. Assistant U.S. Attorney John Luke Walker and Special Assistant U.S. Attorney Robert C. Abendroth are prosecuting the case.
Potomac Attorney Pleads Guilty to Tax ChargesRead the Press Release
Greenbelt, Maryland – George Nelson Smith, age 52, of Potomac, Maryland pleaded guilty today to filing a false tax return and failing to file a tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.“No matter how you disguise your income, one still has to pay taxes on it,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “As an attorney, Mr. Smith is well educated regarding his federal income tax obligations, making his actions even more egregious. Today’s plea should be a warning to others that IRS Criminal Investigation is focused on those that intentionally underreport taxable income, no matter how or what entity they may attempt to hide behind.”
According to his plea agreement, Smith is an attorney and owner of the Smith Law Firm, which specialized in litigating tort actions. Smith did not pay himself a salary, and used business funds for personal expenses. For example, on his individual tax return for 2005, which he filed on December 16, 2007, Smith stated that his income was $18,972.41, even though he knew that he used money from the law firm’s corporate account to pay for personal expenditures that were not accounted for as income on his tax return. These personal expenditures included over $4,100 to a homeowners’ association for his personal residence; over $83,000 in mortgage payments on his personal residence; and over $15,000 to a private school for his children’s education.Smith failed to file a tax return for 2007, even though he took at least $668,000 from the law firm for personal expenses, including the purchase of a home in Potomac.
Smith will be required to pay restitution of $91,547, the total loss caused by his conduct.
Smith faces a maximum sentence of three years in prison for filing a false tax return and one year in prison for failing to file a tax return. U.S. District Judge Alexander Williams, Jr. has scheduled sentencing for January 28, 2014.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Nicolas A. Mitchell and Special Assistant U.S. Attorney Gregory P. Bailey, of the U.S. Department of Justice, Tax Division, who are prosecuting the case.Pittsburgh Man Sentenced for Role in Law Firm HackRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court today on his conviction of recklessly damaging a computer and password trafficking, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Matthew James West, 22. West was sentenced to two years' probation; 250 hours community service; full restitution of $2,445.96; and computer monitoring; and he must notify any employer of this conviction.
According to information presented to the court, on Nov. 28, 2011, Alyson Cunningham had been fired from a Pittsburgh law firm referred to as "VG." In retaliation for the firing, Matthew West, acting at Alyson and Jonathan Cunningham's encouragement, logged into VG servers using an internal company password provided to him by Alyson Cunningham over Facebook. West utilized a VPN proxy server located in Germany to use the password to access VG servers, so as to shield his identity. Once West accessed the server, he installed software on the server which could be used to capture passwords of anyone on the firm's network.
On Nov. 29, 2011, West sent a partner at VG law firm an email from the account [email protected] that stated that the firm's web servers had been compromised, and that their backup files had been copied and deleted. This email, which was used to notify the victim company of the hack caused by the usage of the illegally trafficked password, electronically traveled from West's computer in Pennsylvania, to Google's servers in California, before arriving back at VG's server in Pennsylvania. The email further stated that "we are not interested in ruining your business, but routinely checking that business is fair and just. Our motive is to solely capture and record 100% of Pittsburgh business records and operations and protect it or use it against you as we could if Anonymous had a reason and needed to." Anonymous is a loosely connected network of computer hacker/activists who are known to intrude upon computer networks for political purposes.
According to the victim company, neither Alyson Cunningham, Jonathan Cunningham or Matthew West had authority to access their computer server, nor did they have authority to place malware onto VG's servers.
Internet chats indicate that Jonathan Cunningham was actively communicating with West during the hack into VG's servers, providing instruction and suggestions, including suggesting the use of specific VPN servers. When IM chatting with West on the night of the hack, Jonathan Cunningham and Alyson Cunningham alternated in their use of Alyson's Skype account when communicating with West about the hack.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of West.
Pinellas County Men Sentenced to Federal Prison for Firearms OffensesRead the Press Release
Tampa, Florida – On October 30, 2013, U.S. District Judge Steven D. Merryday sentenced Ronald Mark Nixon, Jr. (22, St. Petersburg) to 15 years and 8 months in federal prison for carrying firearms during and in relation to drug trafficking crimes. Nixon pleaded guilty to that charge on August 15, 2013. Judge Merryday also sentenced Kristopher Jamel Burgess (23, Pinellas Park), on October 15, 2013, to 7 years and 9 months in federal prison for being a felon in possession of firearms and for carrying those firearms during and in relation to drug trafficking crimes. Burgess pleaded guilty to those charges on August 1, 2013.
According to court documents, on the evening of October 28, 2012, Burgess and Nixon fled from law enforcement, after officers attempted to stop the car in which they were traveling. Burgess fled on foot and was eventually apprehended by the officers. Nixon was apprehended in the car. When the officers searched the car, they found two loaded firearms, distribution amounts of marijuana, and drug paraphernalia. Both Burgess and Nixon were convicted felons at the time of the incident.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Joseph W. Swanson.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Pennsylvania Woman Pleads Guilty to $1.8 Million Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Stephanie Patterson, age 41, of Royersford, Pennsylvania, pled guilty today to violations of 18 USC § 286 (False Claims Conspiracy), 18 USC § 1341 (Mail Fraud), and 42 U.S.C. § 408(a)(7)(B) & 18 U.S.C. § 2 (Aiding and Abetting Social Security Fraud). Patterson, who will be sentenced on March 13, 2014, by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, faces a maximum sentence of twenty years in prison, a fine of $250,000, and 3 years of supervised release.
According to statements made at the plea hearing and documents filed in court, the defendant participated in a tax fraud conspiracy involving the filing of more than 180 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The returns sought refunds of more than $1.8 million. The defendant and her co-conspirators received more than $800,000 on account of the fraudulent returns. The defendant’s role in the conspiracy involved providing names and social security numbers to another co-conspirator, who used the information to file the fraudulent returns. The defendant also acted as a facilitator between the co-conspirators responsible for filing the tax returns, and those who provided additional compromised identities. The defendant received more than $55,000 in fraud proceeds for her part in the scheme.
U.S. Attorney Oberly gave the following comments: “This case should send a clear signal that individuals who conspire with others to file false claims against the United States Treasury will face significant penalties. My office is committed to working with the Internal Revenue Service to prosecute these cases, and I will seek incarceration wherever possible and appropriate.”
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said Akeia Conner, IRS Criminal Investigation Special Agent in Charge. “The IRS has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system. We are obliged to our law enforcement partners and the United States Attorney’s office for their continued support of our endeavors.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, the Social Security Administration Office of the Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Lauren Paxton.
Partner in Liquor Store Businesses Admits Embezzling More Than $300,000Read the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PETER TURNER, 57, of Burlington, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to one count of wire fraud stemming from an embezzlement scheme.
According to court documents and statements made in court, TURNER is the managing partner of Two Buck Ring, LLC, a nine-member LLC that is the majority stake holder of The Bridge Fine Wine Spirits & Beer in New Milford. He also is a member of Spirited Endeavor, LLC, a 13-member LLC that does business as Town Line Fine Wine, Spirits & Beer in Stratford. As managing partner of Two Buck Ring (“TBR”), TURNER was responsible for the day-to-day operation of The Bridge Fine Wine Spirits & Beer and had access to the TBR business accounts.
Between November 2010 and February 2012, TURNER, without the authority of other TBR members, wrote numerous checks from the TBR business accounts to himself and used the money for various personal expenses. TURNER also prepared and disseminated to investors a fraudulent ledger in an effort to conceal his fraud.
Through this scheme, TURNER embezzled approximately $322,500.
TURNER is scheduled to be sentenced by U.S. District Judge Michael P. Shea in on January 14, 2014 in Hartford, at which time he faces a maximum term of imprisonment of 20 years and a fine of up to $645,000.
This investigation is being conducted by the Connecticut Financial Crimes Task Force, which includes members of the U.S. Secret Service, U.S. Postal Inspection Service, U.S. Department of State, Bureau of Diplomatic Security, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Stamford, Shelton and Stratford Police Departments. Acting U.S. Attorney Daly specifically recognized the efforts of the Greenwich Police Department for its assistance in the investigation and prosecution of this matter.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Owner and Marketer of Louisiana Medical Equipment Supply Company Indicted for Roles in $3 Million Medicare Fraud SchemeRead the Press Release
The owner of a Louisiana medical equipment supply company and a marketer who worked for the company have been indicted for allegedly engaging in a $3 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), and Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division made the announcement.
Tracy Brown, 43, of New Orleans, and Sandra Parkman Thompson, 62, who is currently incarcerated in Texas, were charged in the Eastern District of Louisiana in an 18-count indictment including charges of health care fraud, conspiracy to commit health care fraud, conspiracy to pay and receive health care fraud kickbacks, and illegal remuneration. If convicted, the defendants face 10 years in prison for each health care fraud conspiracy and health care fraud count, and five years in prison for each remaining count.
According to the indictment, Brown owned Psalms 23-DME and is alleged to have billed Medicare more than $3 million for power wheelchairs, wheelchair accessories and orthotic equipment for Medicare beneficiaries who neither wanted nor needed the equipment. Brown also allegedly paid illegal kickbacks to Thompson and other “marketers” to locate doctors who were willing to prescribe the equipment to Medicare beneficiaries who did not want or need these items. Thompson and other marketers were paid for each prescription they obtained for Psalms 23-DME, regardless of whether the items prescribed were wanted or needed.
Thompson and other marketers allegedly obtained falsified prescriptions for medically unnecessary equipment from Drs. Anthony Jase and Michael Hunter. A third physician allegedly provided falsified prescriptions directly to Brown. In exchange, Brown paid this physician approximately $250 per prescription.
The indictment alleges that in some cases, the equipment Psalms 23-DME billed to Medicare was never provided to a Medicare beneficiary. In other cases, Brown would bill for the most expensive types of durable medical equipment allowed by Medicare but would provide Medicare beneficiaries with much less expensive versions of the equipment, which would not have been reimbursed by Medicare.
According to the indictment, Brown allegedly paid Thompson and other marketers approximately $500 for each wheelchair referral submitted and between approximately $200 and $250 for a so-called “arthritis kit” referral, a term used by Psalms 23-DME for a number of braces and other orthotic items that were billed for Medicare beneficiaries regardless of medical need or physician request.
Jase and Hunter pleaded guilty to health care fraud charges on Oct. 31, 2013, and Sept. 26, 2012, respectively, and are awaiting sentencing.
An indictment is merely an accusation and defendants are presumed innocent until and unless they are proven guilty.
The case was investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section. This case is being prosecuted by Trial Attorney Arunabha Bhoumik of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Sullivan of the Eastern District of Louisiana.
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 Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
North Hills Woman Gets Jail Time for Illegally Possessing Oxycodone PillsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to six months imprisonment and three years supervised release on her conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Kathryn Joyce, 31.
According to information presented to the court, Joyce unlawfully possessed with intent to distribute 334 oxycodone 30 mg tablets on Jan. 11, 2012 when stopped by the Ross Township Police. She also sold 20 similar pills to a confidential informant.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Ross Township Police Department for the investigation leading to the successful prosecution of Joyce.
New Canaan Man Sentenced to 33 Months in Prison for Role in Organized Crime-controlled Gambling RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH BOREA, 56, of New Canaan, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by three years of supervised release, for being involved in organized crime-controlled gambling businesses. BOREA was also ordered to forfeit $75,000 and pay a $50,000 fine.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, BOREA, Dean DePreta, Richard Uva and 17 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs. As part of the conspiracy, DePreta and Uva were involved in the collection and payment of “tribute” payments to Gambino organized crime family associates in New York.
The investigation, which included the use of court-authorized wiretaps, revealed that DePreta operated a large-scale sports bookmaking business in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. Uva served as the “master agent” for the bookmaking operation.
In addition, DePreta, Uva and others operated card gambling clubs in Stamford and Hamden where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
BOREA collected gambling debts for DePreta and Uva.FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
BOREA has been released on bond since his arrest on June 13, 2012. On August 7, 2013, he pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act.
DePreta and Uva also pleaded guilty and are currently serving prison terms of 71 months and 46 months, respectively.
To date, 18 defendants who have pleaded guilty have agreed to forfeit approximately $1.4 million.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Natchitoches Tax Preparer Pleads Guilty to Filing False Tax Returns to the IRSRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Lashanda E. Harris, 38, of Natchitoches, La., pleaded guilty on Tuesday before U.S. District Judge Dee D. Drell to aiding and assisting in making and subscribing a false return.
According to evidence presented at the guilty plea, from January 2012 to April 2012, Harris, a tax preparer in Natchitoches, assisted customers in preparing false tax returns for tax year 2011. The returns contained false information concerning W-2, federal tax withholdings, Earned Income Tax Credit and the American Opportunity Tax Credit. Based on the false statements in the tax returns, individuals were able to obtain in excess of $100,000 in fraudulent tax refunds. As part of the scheme, Harris received “kickbacks” from the customers.
Harris faces up to three years in prison, one year of supervised release, a fine of $250,000 and restitution for aiding and assisting in making and subscribing a false return. Sentencing is set for January 30, 2014.
The Internal Revenue Service – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Montgomery Man Sentenced in Identity Theft Related State Income Tax FraudRead the Press Release
Montgomery, Alabama - John Irving Wheeler, 31 years old, of Montgomery, was sentenced to serve 210 months of incarceration on October 31, 2013, announced U.S. Attorney for the Middle District of Alabama George L. Beck, Jr. Wheeler was also ordered to pay one million dollars in restitution to the States of Georgia and Michigan. Wheeler pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud on April 1, 2013, based on his role in a stolen identity scheme to that resulted in Wheeler and others receiving fraudulent state income tax refunds.
According to the court documents, from February 2008 through at least November 2009, Wheeler and others stole identifications of other individuals, including their names, dates of birth, and Social Security numbers. Wheeler and his coconspirators would then use that information to electronically file fraudulent state income tax returns with numerous states, including Georgia and Michigan. The returns generated from the fraudulent state income tax refunds were either mailed or electronically transferred to Wheeler and his coconspirators. Bank records and information obtained from the Georgia Department of Revenue and the Michigan Department of Treasury showed that Wheeler and his coconspirators received $1,060,732 in fraudulent state income tax refunds. Agents also executed a search warrant at Wheeler’s residence and recovered over 300 stolen identities. Wheeler was attempting to flush paperwork containing the stolen identities down a toilet after agents arrived at Wheeler’s residence to execute the warrant.
The case was investigated by Special Agents of the United States Secret Service and the Alabama Alcohol Beverage Control Board. Assistant U.S. Attorney Todd Brown prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mastermind of Multi-Million Dollar Naval Fraud Scheme Sentenced to 10 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Ralph M. Mariano, 55, of Warwick, R.I., and South Arlington, VA., a former senior systems engineer with the United States Navy’s Naval Sea Systems Command (NAVSEA) in Newport, R.I., and Washington, D.C., was sentenced in U.S. District Court in Providence, R.I., today to 120 months in prison for masterminding a kickback scheme which defrauded the U.S. Navy of nearly $18 million dollars. Mariano pleaded guilty in May 2013 to conspiracy and theft of government funds.
Peter F. Neronha, United States Attorney for the District of Rhode Island; Craig Rupert, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office; Cheryl DiPrizio, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office; and John Collins, Acting Special Agent in Charge of the Boston Office of the Internal Revenue Service - Criminal Investigation announced the sentence imposed by U.S. District Court Chief Judge Mary M. Lisi.
At the time of his guilty plea, Mariano admitted to the court that from 1999 to 2011 he used his position at NAVSEA to direct Russell Spencer, a computer software specialist in Rhode Island, to submit millions of dollars in fraudulent invoices to Navy contractor Advanced Solutions for Tomorrow (ASFT), a now defunct Roswell, GA., and Middletown, R.I., company and to ASFT subcontractors. Mariano admitted that he directed ASFT and ASFT subcontractors to pay Spencer the full amount of the invoices with government funding ASFT received from the Navy. The invoices, processed by Patrick Nagle, Chief Financial Officer of ASFT, totaled approximately $17,957,000.
Mariano admitted that he directed Spencer to distribute the funds to Mariano and to individuals close to him, and that he received approximately $3 million dollars in checks beginning in 2003 and bi-weekly $3,500 cash payments from 2004 to 2011.U.S. Attorney Peter F. Neronha commented, “Nothing does more to erode trust in government than when a public official acts not in the public’s interest, but in his own. Mr. Mariano, whose sole obligation was to the United States Navy, and more broadly to the taxpayers, instead served only himself and his associates, committing fraud on a massive scale. He spent millions of dollars of taxpayer money in every conceivable way, money that otherwise would have been used to protect the people of this nation. His actions are indefensible, and he deserves every minute of the lengthy sentence he received today.”
At the time of his guilty plea, Mariano admitted to the court that in addition to the money he received, at his direction $2,567,028 was paid to his father, Ralph Mariano, Jr.; $1,692,650 was paid to his brother, Joseph Mariano and to his companies; $207,900 was paid to a veterinary laboratory company controlled by his sister, Michelle Mariano; $2,446,445 was paid to private entities controlled by Anjan Dutta-Gupta, CEO of ASFT; and $478,880 was paid to a company owned by Attorney Mary O’Rourke, of Warwick, R.I
“Mr. Mariano’s acts, while especially heinous individually, corrupted others, cost hard working Americans their jobs, and resulted in a tremendous loss to U.S. taxpayers, both financially and in their trust,” said Craig W. Rupert, Special Agent in Charge, Office of the Inspector General, Department of Defense, Defense Criminal Investigative Service Northeast Field Office. “Mr. Mariano’s actions directly affected the readiness of our naval forces, and his sentence demonstrates the continuing dedication of DCIS and our law enforcement partners to investigate and prosecute corrupt government officials. Consistent with our mission to "Protect America's Warfighters," DCIS remains vigilant to ensure the integrity of the DoD acquisition process and the safety and security of the U.S. military and the nation.”
“The FBI has a simple message of deterrence: It would be wise for any public official who is considering illegal acts to realize that we have successfully investigated nearly every conceivable corruption scheme that’s been concocted. Should they decide to betray the public’s trust, I promise we will bring them to justice,” said Vincent Lisi, special agent in charge of the FBI’s Boston Division. “We pursue these investigations because the cost of corruption is high and the American public relies on us to do so.”
Cheryl DiPrizio, Special Agent in Charge of the Naval Criminal Investigative Service’s Northeast Field Office added, “At a time when the Navy is making difficult strategic choices due to funding constraints, it's particularly appalling that Mr. Mariano, who was employed to serve the Navy, has instead caused significant harm to the Navy, to Sailors defending our nation around the globe, and to the American taxpayers who deserve honest and competent government employees. NCIS will continue to dedicate significant resources and work with our law enforcement partners in identifying and investigating all those who seek to steal from or defraud the Department of the Navy."
John Collins, Acting Special Agent in Charge, IRS Criminal Investigation stated, “Today’s sentencing of Ralph Mariano brings to justice a key player in a public corruption scheme of massive proportions. Mariano and his co-conspirators developed a sophisticated scheme to defraud the government and they lined their pockets at the taxpayers’ expense. In addition to pleading guilty to conspiracy and theft charges, Mariano pleaded guilty to tax charges based on his failure to report these ill-gotten gains as income. Fraudsters should beware that such ill-gotten gains are taxable income. This investigation highlights the positive impact on justice which is obtained through the collaborative efforts of multiple federal law enforcement agencies and the U.S. Attorney’s Office.”
In addition to pleading guilty to conspiracy and theft of government funds, Ralph Mariano also pleaded guilty to one count of tax evasion. Mariano admitted that from 2006-2009, he failed to report $1,864,910 in income he received from Russell Spencer and that he failed to pay $726,650 in taxes to the IRS.
At sentencing, U.S. District Court Chief Judge Mary M. Lisi ordered Mariano to make restitution to the U.S. Navy in the amount of $17,957,000; to pay a $10,000 fine; and to serve 3 years of supervised release upon completion of his imprisonment. Mariano was ordered to self-surrender to the Bureau of Prisons by November 26, 2013.
Anjan Dutta-Gupta, 60, of Roswell, GA., who pleaded guilty on April 28, 2011, to one count of bribery, is scheduled to be sentenced on December 4, 2013; Russell Spencer, 59, of Portsmouth, R.I., who pleaded guilty on July 25, 2012, to one count of conspiracy to commit bribery and on April 19, 2012, to one count of lying to the FBI is scheduled to be sentenced December 5, 2013; Patrick Nagle, 52, of Marietta, GA., who pleaded guilty on September 13, 2011, to one count of conspiracy to commit bribery, is scheduled to be sentenced on November 15, 2013; Mary O’Rourke, 50, of Warwick, R.I., who pleaded guilty on May 30, 2013, to one count of theft of government property, will be sentenced on December 5, 2013.
Ralph Mariano, Jr., 82, of North Providence, R.I., who pleaded guilty on May 15, 2013, to four counts of tax evasion, was sentenced on August 16, 2013, to four years of probation.
The cases are being prosecuted by Assistant United States Attorneys Lee H. Vilker, Terrence P. Donnelly and Dulce Donovan.
The matter was investigated by the U.S. Department of Defense - Defense Criminal Investigative Service; Federal Bureau of Investigation; Naval Criminal Investigative Service; and Internal Revenue Service, Criminal Investigation.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Maryland Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – John Cunningham, 26, of Hagerstown, Md., pled guilty today to traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Cunningham entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Beryl A. Howell is to sentence him on Jan. 31, 2014. Cunningham faces a maximum sentence of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and a maximum of 10 years of imprisonment for possession of child pornography, as well as potential financial penalties.
According to the government's evidence, on July 19, 2013, Cunningham contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Cunningham engaged in online email and text messaging with the undercover officer, whom he believed was the father of an under-aged girl. During this period of time, Cunningham arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On July 22, 2013, Cunningham traveled from Maryland to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. Subsequent to his arrest, law enforcement searched Cunningham’s residence and recovered a large collection of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-375Manhattan Man Pleads Guilty in Manhattan Federal Court to Engaging in A Fraudulent Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that S. GEORGE MILTER pled guilty today in Manhattan federal court to participating in an investment scheme that defrauded foreign investors out of nearly $1 million. As part of the scheme, MILTER lured investors with false promises that their funds would be safely invested in the U.S. financial markets through a legitimate broker-dealer. Instead, MILTER and his co-defendant Cliffe R. Bodden misappropriated the money by transferring it to related individuals and entities and using it to pay certain personal expenses. MILTER pled guilty today before U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “George Milter lied to foreign investors about the safety and performance of their funds while he diverted their money for his own purposes. With his guilty plea today, he joins the disgraced ranks of those convicted for perpetrating investment fraud.”
According to the Indictment against MILTER and Bodden, and statements made during MILTER’s plea allocution today, and prior court proceedings:
MILTER held himself out as the Chief Executive Officer of Lempert Brothers International U.S.A., a registered broker-dealer in Manhattan, and President and Chief Executive Officer of Lempert Capital Management, Ltd., which purportedly was incorporated in the Cayman Islands and managed by Lempert Brothers. Bodden held himself out as a Managing Director of Lempert Capital.
Starting in approximately 2005, MILTER lured foreign investors into sending at least $946,509 to Lempert Brothers under the pretense that those funds would be invested in the U.S. financial markets. To induce investors into wiring funds, MILTER falsely told them that the funds would be safeguarded, and that if the value of the funds dropped more than 20%, the money would be frozen and all remaining funds available for return to investors. In fact, MILTER and Bodden misappropriated the nearly $1 million of investors’ funds by using the money to pay their personal expenses and diverting the funds to a member of MILTER’s family and entities affiliated with Bodden.
To keep the scheme going, MILTER and Bodden sent fraudulent monthly account statements to the investors. These statements falsely reflected that the investors’ funds were invested and earning substantial income. When the investors attempted to withdraw money from their accounts at Lempert Brothers, MILTER and Bodden made additional false and fraudulent representations as to why the funds could not be returned when requested. For example, they falsely told investors that their money was illiquid because it had been invested in various companies that had not yet gone public.
MILTER, 35, of New York, New York, pled guilty to one count of wire fraud and faces a maximum sentence of 20 years in prison. In addition, he has agreed to a money judgment of $946,509 representing the amount of the crime proceeds. Milter is scheduled to be sentenced by Judge Forrest on March 7, 2014 at 2:00 p.m.
Bodden pled guilty in September 2012 to one count of conspiracy to commit wire fraud and one count of wire fraud for his participation in the investment scheme. He was sentenced by Judge Forrest in February 2013 to 74 months in prison and ordered to pay a money judgment and restitution of $946,509 representing the amount of the crime proceeds, as well as a fine of $25,000.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Milter, Bodden Indictment
Man Sentenced to 10 Years in Prison for Arson at Las Vegas Children’s Autism FacilityRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who attempted to destroy a local children’s autism learning facility with Molotov cocktails and gasoline, was sentenced today to 10 years in prison, three years of supervised release, and was also ordered to pay approximately $80,000 in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Samuel Powers, 24, was sentenced by U.S. District Judge Gloria M. Navarro. Powers pleaded guilty in July to one count of arson of property affecting interstate commerce and one count of possession of unregistered firearms, specifically Molotov cocktails.
“This was deliberate conduct that could have resulted in serious injury or loss of life, but for the very effective sprinkler systems in the building,” said U.S. Attorney Bogden. “Several buildings were damaged; sophisticated planning and means were used by the defendant to carry out his acts and we are very fortunate this did not result in serious injury or fatalities. Committing arson is never an appropriate way to resolve anger and conflict.”
"Some of the most dangerous criminals ATF investigates are those who use explosive devices to commit acts of violent crime by maliciously damaging property," said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. "ATF will continue to target persons who put the public at risk through the illegal use of these horrific instruments of death and destruction."
According to the plea agreement and other Court pleadings, on April 15, 2013, Powers knowingly and maliciously damaged a building which housed several commercial businesses, including Sport Social, a facility that provides services to autistic children, located at 7055 Windy Street in Las Vegas. Powers forcibly entered Sport Social with three Molotov cocktails and a gasoline container, and poured gasoline and set multiple fires inside the business. The fires caused at least $80,000 in damage to the structure and its contents. Powers also possessed two additional unignited Molotov cocktails inside his vehicle at the scene of the fire, along with plastic gloves, a mask, and handwritten directions to the business. When Powers set the fires, he knew or had cause to believe that persons were inside a neighboring business, thereby creating a substantial risk of death or serious bodily injury to those persons.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and was prosecuted by Assistant U.S. Attorney Christina M. Brown.
Local Businessman Convicted of Transporting and Sexually Assaulting Female EmployeesRead the Press Release
HOUSTON – Henri De Sola Morris, 66, president and chief executive officer of Solid Software Solutions LLC, which does business as Edible Software Inc., has been convicted on five counts of transportation, announced United States Attorney Kenneth Magidson.
Morris, a naturalized U.S. citizen residing in Houston, admitted that between February 2010 and February 2012, he traveled in interstate commerce and committed, and attempted to commit, the drug-facilitated sexual assaults of several women. Three of the women were present in the courtroom today as he acknowledged his guilt.
According to the plea agreement, five women relayed similar experiences of being in compromising situations with Morris after he provided each woman with a drugged alcoholic beverage he had prepared. Each woman reported instances of memory loss that followed the encounter consistent with being administered drugs commonly used in drug facilitated sexual assault. The women also reported unwanted contact with Morris and, due to their impairment, were unable to defend themselves against him. One woman described how she knew what was happening, but had lost physical control of her body and could not stop Morris from even undressing her.
The women all worked for Morris at one time and had taken business trips with him at his request to various states, including New York, New Jersey and Pennsylvania. The plea agreement indicates that on those trips, Morris gave the women drugged alcoholic drinks and later gained access to the women’s rooms and engaged in unwanted sexual contact while they were incapacitated.
In one instance, a woman attempted to dilute the drink Morris gave her using a bottle of soda. However, shortly after consuming only part of the beverage, she already felt intoxicated. She later awoke in her hotel room and heard a “click.” At that time, she saw Morris standing over her naked body and taking pictures with his cell phone. She also had scratches on each of her hips and bruises on her arm. During a later conversation with the woman, Morris admitted he was “lonely.”
Knowing he was about to leave for another trip with a female employee, the FBI obtained a search warrant which was executed at Bush Intercontinental Airport as he was headed out of town. The search resulted in the discovery of drugs, some of which were later identified as benzodiazipams, that a toxicologist has indicated can cause physical impairment and memory loss especially when mixed with alcohol. The toxicologist reviewed the statements of the women and found their experiences to be consistent with someone ingesting these drugs with alcohol. Viagra and Cialis, drugs commonly used for erectile dysfunction, were also found during the search.
At the time of the search, photos of the woman he previously photographed were recovered which corresponded to the dates of her travel with Morris.
Each count of transportation carries as punishment a maximum of 10 years in prison and a possible maximum $250,000 fine. Morris will also have to register as a sex offender. U.S. District Judge Melinda Harmon, who accepted the guilty plea, has set sentencing for Feb. 7, 2014. Morris was permitted to remain on bond pending that hearing.
The case was investigated by the FBI – Houston Division Violent Crime Task Force, comprised of agents and officers from the FBI, Houston Police Department and the Harris County Sheriff’s Office, with the assistance for the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Sherri Zack and John Jocher.
Law Enforcement Sweep Nets Individuals Charged with Meth, Cocaine, and Marijuana DistributionRead the Press Release
Jackson, TN – More than 120 law enforcement officials from 13 different agencies participated in a takedown Wednesday of a group of individuals indicted for their roles in distributing methamphetamine, cocaine, and marijuana throughout West Tennessee, announced U.S. Attorney Edward L. Stanton III and Brian K. Chambers, Resident Agent-in-Charge of the Drug Enforcement Administration’s Memphis office.
# # # #
Thirteen individuals were charged with one count of conspiracy to distribute methamphetamine, cocaine, and marijuana; and one count of distribution of methamphetamine, cocaine and marijuana. The individuals charged are: Roman Morales-Garza, 55, Jackson, TN
Felicia Almodover, 39, Jackson, TN
Angel Valeriano, 42, Jackson, TN
Raul Morales, 46, Bald Knob, AR
Rodrigo Guitierrez, Age Unknown, Jackson, TN
Arturo Penaloza, 31, Jackson, TN
Saul Lara-Ruiz, 32, Jackson, TN
Brian Warlick, 33, Jackson, TN
Vandrian Bradford, a/k/a Vadrian Cooper, a/k/a Eric Cooper, 40, Jackson, TN
Doyle Rushing IIII, 33, Jackson, TN
Vance Hudson, Jr., 46, Jackson, TN
Juan Javier Acosta-Melendez, 24, hometown unknown, Mexico
Anthony McKinnis, 36, Ripley, TN
If convicted, each charge carries a sentence of up to 20 years in prison and a fine of up to one million dollars. If any of the individuals has a prior drug conviction, the penalties increase to a maximum of 30 years in prison and a fine of up to two million dollars. There is no parole in the federal system.
This case was investigated by the DEA, the Federal Bureau of Investigation, Homeland Security Investigations, the Tennessee Highway Patrol, the Tennessee Bureau of Investigation, the Jackson Police Department, and the Madison County Sheriff’s Office. Agencies assisting the takedown included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the United States Secret Service, the West Tennessee Drug Task Force, the 25th Judicial District, and the Chester County Sheriff’s Office. Assistant U.S. Attorney Matt Wilson is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Lake Orion Man Pleads Guilty to Tax EvasionRead the Press Release
A Lake Orion resident pleaded guilty yesterday to tax evasion charges, United States Attorney Barbara L. McQuade announced. Ms. McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Bret Loren Kelly pleaded guilty before United States District Judge Denise Page Hood in Detroit, Michigan.
According to court records, Brett Kelly was employed as a financial broker. He assisted clients in securing commercial financing. In March of 2008, Kelly told IRS officials that he was destitute. Shortly thereafter, in May of 2008 Kelly opened a bank account in the name of Fidelity Capital Group, LLC (Fidelity). Kelly received approximately $1.8 million in income which he deposited into the Fidelity Bank account. He used this $1.8 million to purchase and renovate a home and two condominiums. He also purchased jet skis, snowmobiles, musical equipment and other assets which he concealed in the Fidelity name as well as another corporate shell called Cambridge North American Holdings out of Nevada. Kelly failed to file a 2007 income tax return. The 2008 and 2009 income tax returns were filed late and income was hidden in the Fidelity entity. In addition, Kelly failed to pay $141,725 in taxes in 2009.
“Kelly thought he had successfully disguised his income by diverting it into an undisclosed account,” said Acting Special Agent in Charge Carolyn Weber. “He should never have underestimated the IRS Criminal Investigators who were able to follow the money and bring him to justice.”
A sentencing hearing was set by Judge Hood for February 27, at 3 p.m. The maximum penalty for tax evasion is imprisonment of not more than five years and a $250,000 fine.The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.
Justice Department Sues to Stop Georgia Tax Return PreparerRead the Press Release
The United States filed a complaint today asking a federal court in the Statesboro Division of the Southern District of Georgia, to enjoin Lakesia Michelle Mills, who does business as Willis Tax Service, from preparing federal income tax returns for others, the Justice Department announced.
The complaint alleges that since January 2011, Mills, who resides in and operates her business in Adrian, Ga., has prepared over 455 amended federal income tax returns. According to the complaint, Mills understated her customers’ tax liabilities and overstated their refunds by preparing amended tax returns that improperly claimed the maximum First-Time Homebuyer Credit of $8,000. Along with preparing the amended return, Mills provided customers a false settlement statement and proof of insurance to support the credit. Mills prepared the amended returns without signing the returns or including her tax preparer identification number as is required. Altogether, the government’s complaint alleges that the bogus credits claimed on the amended returns exceeded $3.6 million.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013 . The Internal Revenue Service has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Lakesia Michelle Mills, etc.
Complaint for Injunctive Relief
Justice Department Seeks to Shut Down Utah Tax PreparerRead the Press Release
The Justice Department announced that on Nov. 1, 2013, it asked a federal court to bar Sergio Fernando Sosa and his company, Sergio Centro Latino, from preparing tax returns for others. The civil injunction suit, filed in the U.S. District Court for the District of Utah, alleges that Sosa, who has been preparing returns in Orem, Utah since at least 1994, routinely prepares federal tax returns for individuals and corporations that improperly claim deductions and result in understated federal tax liabilities for his customers.
The complaint also alleges that Sosa prepares federal tax returns for his customers that falsely claim unqualified individuals as dependents, and that include false claims or inflated claims related to the Earned Income Tax Credit, false claims or inflated claims related to the Additional Child Tax Credit, false inclusion of expenses and deductions related to fictitious business entities, underreported income and inflated expenses of legitimate business entities, and failure to calculate or incorrect calculation of self-employment tax liabilities. According to the complaint, Sosa has continued to engage in this conduct despite the fact that numerous penalties have been assessed against him for similar violations of the tax code.
The complaint alleges that Sosa’s actions have resulted in an estimated loss of as much as $416 million to the United States for tax returns prepared since 2008.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2013, which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . The Internal Revenue Service has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm
Related Materials:
United States v. Sergio Fernando Sosa, et al.
Complaint for Permanent Injunction and Other ReliefJennings Man Pleads Guilty to Receiving Child PornRead the Press Release
LAKE CHARLES, La. – U.S. Attorney Stephanie A. Finley announced today that Seth Ryan Bivens, 29, of Jennings, La., pleaded guilty before U.S. District Judge Patricia Minaldi to receiving child pornography.
According to evidence presented at the guilty plea, law enforcement authorities discovered that Bivens was downloading child pornography using “peer-to-peer” software. A warrant was obtained, and Bivens’ home was searched on November 14, 2012. An examination of Bivens’ computer and other electronic devices uncovered 294 movies and 28 images of child pornography.
Bivens faces five up to 20 years in prison, a $250,000 fine, and supervised release of five years to life. Sentencing is set for February 6, 2014. The U.S. Department of Homeland Security-Homeland Security Investigations and the Louisiana State Police conducted the investigation. Special Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Jenkens & Gilchrist Attorney Found Guilty in Manhattan Federal Court of Multibillion-Dollar Criminal Tax Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Ronald A. Cimino, Deputy Assistant Attorney General for the Tax Division of the Department of Justice, and Richard Weber, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that PAUL M. DAUGERDAS was convicted in Manhattan federal court for his role in a tax shelter scheme in which he and his co-conspirators designed, marketed, and implemented fraudulent tax shelters used by wealthy individuals to avoid paying taxes to the IRS. The 10-year scheme generated over $7 billion of fraudulent tax losses and netted DAUGERDAS approximately $95 million in profits. DAUGERDAS was convicted following a seven-week jury trial, presided over by U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “Paul Daugerdas concocted an elaborate web of lies in orchestrating a fraudulent tax shelter scheme that spanned a decade, generated more than $7 billon in phony tax losses, and made the defendant $95 million in profits. With yesterday’s guilty verdict, the defendant will now be punished for his actions.”
DAAG Ronald Cimino said: “The jury's guilty verdict of Paul Daugerdas reaffirms the principle that an individual who utilizes his expertise, training and skills to create and market fraudulent tax schemes will be prosecuted to the full extent of the law and ultimately held accountable for the crimes that he committed.”
IRS-CI Chief Richard Weber said: “Mr. Daugerdas’s use of convoluted mechanisms to conceal income from the IRS is criminal activity. He designed and marketed tax shelters making him $95 million in illegal profits from the ten-year scheme. Taxpayers deserve our vigilance in making sure everyone pays their fair share of tax.”
According to the evidence admitted at trial and other documents filed in the case:
From 1994 through 2004, DAUGERDAS, a lawyer, certified public accountant, and the former head of the Chicago office of the Jenkens & Gilchrist law firm (“J&G”) and its tax practice, participated in a scheme to defraud the IRS by designing, marketing, implementing, and defending fraudulent tax shelters.
As part of the scheme, DAUGERDAS and others undertook to prevent the IRS from: (i) detecting their clients’ use of these shelters; (ii) understanding how the transactions operated to produce the tax results reported by the clients; (iii) learning that the shelters were marketed as cookie-cutter products designed to eliminate or reduce large tax liabilities; (iv) learning that the clients were not seeking profit-making investment opportunities, but were instead seeking huge tax benefits; and (v) learning that, from the outset, all the clients intended to complete a pre-planned series of steps that had been designed to lead to the specific tax benefits sought by the clients. DAUGERDAS and others created, and assisted in creating, transactional documents and other materials that falsely and fraudulently described their clients’ motivations for entering into the tax shelters and for taking various steps in order to yield the tax benefits.
As a result of the scheme, the defendant and his co-conspirators made millions of dollars in fees and bonuses. Specifically, DAUGERDAS made $95 million in profits but used tax shelters to reduce the taxes he paid to less than $8,000; without the shelters, he would have owed over $32 million in taxes.
DAUGERDAS, 63, of Wilmette, Illinois, was convicted of conspiring to defraud the IRS, to evade taxes, and to commit mail and wire fraud, and of corruptly endeavoring to obstruct and impede the internal revenue laws. He was also convicted of four counts of tax evasion relating to the use of various tax shelters for specified clients, and of mail fraud.
DAUGERDAS faces a maximum sentence of 58 years in prison. He is scheduled to be sentenced by Judge Pauley on March 21, 2014, at 2:15 pm.
DAUGERDAS’s co-defendant at trial, Denis M. Field, was acquitted of all charges.
In connection with this same scheme, David Parse, a former broker at Deutsche Bank was convicted of various tax fraud charges in May 2011 after an 11-week jury trial, and was sentenced in March 2013 to 46 months in prison. Donna Guerin, a former lawyer at J&G’s Chicago tax practice pled guilty for her role in the scheme to various tax fraud charges in September 2012. She was sentenced in March 2013 to eight years in prison.
Former J&G partner Erwin Mayer, former BDO Seidman Vice Chairman and board member Charles W. Bee, Jr., former BDO principal and former member of BDO Seidman’s TSG and Tax Opinion Committee Michael Kerekes, former BDO Seidman Vice Chairman and TSG member Adrian Dicker, BDO Seidman partner Robert Greisman, and BDO Seidman partner Mark Bloom have all previously been convicted in connection with the scheme.
Mr. Bharara thanked the IRS and the Tax Division of the Department of Justice for their work on this case.
This case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Stanley J. Okula, Jr. and Niketh Velamoor, and DOJ Tax Division Assistant Chief Nanette L. Davis, are in charge of the prosecution.
Jamaican Citizen Pleads Guilty in Connection withInternational Lottery Scheme Based in JamaicaRead the Press Release
Oneike Mickhale Barnett pleaded guilty today in the U.S. District Court for the Southern District of Florida in Ft. Lauderdale to one count of conspiracy to commit wire fraud, the Justice Department, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Marshals Service announced. Barnett, a Jamaican citizen, was charged in connection with a lottery scheme based in Jamaica that fraudulently induced elderly victims in the U.S. to send Barnett and his co-conspirators thousands of dollars to cover fees for lottery winnings that victims had not won.
This prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat fraudulent lottery schemes in Jamaica preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries and sweepstakes.
“All too often, what appears to be an unexpected lottery win is in fact a pernicious lottery scam, and one that cheats unsuspecting Americans out of their hard-earned savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will continue our crackdown on those responsible for lottery schemes, particularly schemes that target the elderly.”
“As is evident by the prevalence of international lottery scams, fraudsters have no bounds,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “While we will continue to combat fraud vigorously, and pursue and prosecute fraudsters using all legal means available to us, now more than ever, the public needs to be mindful of these schemes to avoid falling prey to them. As I have previously stated, so long as fraudsters continue to line their pockets with the hard earned money of our most vulnerable citizens, we will be there to prosecute them and bring them to justice.”
Barnett was arrested in Orlando, Fla., in August 2013 following his indictment by a federal grand jury in Ft. Lauderdale on Aug. 9, 2012. As part of his guilty plea, Barnett acknowledged that, had the case gone to trial, the U.S. would have proved beyond a reasonable doubt that, from 2008 through 2012, Barnett was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barnett also acknowledged that the government would have proved that he knew the claims of lottery winnings were completely fabricated and that he, along with his co-conspirators, kept the victims’ money for their own benefit without paying any lottery winnings. Barnett also acknowledged that the government would have proved that, in an effort to convince the victims that the lottery winnings were real, the conspirators sent them written and electronic communications discussing their purported lottery winnings, which claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.“The United States Postal Inspection Service is dedicated to investigating and uncovering lottery fraud from Jamaica and combating such fraud,” said U.S. Postal Inspector in Charge for the Miami Division Ronald Verrochio.
“Lottery fraud from Jamaica against American citizens is a very challenging problem, but as this case demonstrates, law enforcement in the U.S. working with our partners in Jamaica will continue to aggressively pursue such scammers even if they base their operations outside of the U.S.,” said Special Agent in Charge for Homeland Security Investigations in Miami Alysa D. Erichs.
“Working with our law enforcement partners at the Postal Inspection Service and Homeland Security Investigations, the Marshals Service was pleased to be able to help catch this defendant and bring him to justice,” said Acting U.S. Marshal Neil DeSousa.
Assistant Attorney General Delery and U.S. Attorney Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, the U.S. Marshals Service and Jamaica’s Major Organized Crime and Anti-Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division Assistant Director Jeffrey Steger and trial attorney Kathryn Drenning.
Jamaican Citizen Pleads Guilty in Connection with International Lottery Scheme Based in JamaicaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General Delery, Department of Justice Civil Division, U.S. Postal Inspector in Charge Ronald Verrochio, U.S. Postal Inspection Service, Special Agent in Charge Alysa D. Erichs, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Acting U.S. Marshal Neil DeSousa, U.S. Marshals Service announced that Oneike Mickhale Barnett pleaded guilty today in the U.S. District Court in Ft. Lauderdale to one count of conspiracy to commit wire fraud, Barnett, a Jamaican citizen, was charged in connection with a lottery scheme based in Jamaica that fraudulently induced elderly victims in the U.S. to send Barnett and his co-conspirators thousands of dollars to cover fees for lottery winnings that victims had not won.
This prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat fraudulent lottery schemes in Jamaica preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries and sweepstakes.
“All too often, what appears to be an unexpected lottery win is in fact a pernicious lottery scam, and one that cheats unsuspecting Americans out of their hard-earned savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will continue our crackdown on those responsible for lottery schemes, particularly schemes that target the elderly.”
“As is evident by the prevalence of international lottery scams, fraudsters have no bounds,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “While we will continue to combat fraud vigorously, and pursue and prosecute fraudsters using all legal means available to us, now more than ever, the public needs to be mindful of these schemes to avoid falling prey to them. As I have previously stated, so long as fraudsters continue to line their pockets with the hard earned money of our most vulnerable citizens, we will be there to prosecute them and bring them to justice.”
Barnett was arrested in Orlando, Fla., in August 2013 following his indictment by a federal grand jury in Ft. Lauderdale on Aug. 9, 2012. As part of his guilty plea, Barnett acknowledged that, had the case gone to trial, the U.S. would have proved beyond a reasonable doubt that, from 2008 through 2012, Barnett was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barnett also acknowledged that the government would have proved that he knew the claims of lottery winnings were completely fabricated and that he, along with his co-conspirators, kept the victims’ money for their own benefit without paying any lottery winnings. Barnett also acknowledged that the government would have proved that, in an effort to convince the victims that the lottery winnings were real, the conspirators sent them written and electronic communications discussing their purported lottery winnings, which claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.
“The United States Postal Inspection Service is dedicated to investigating and uncovering lottery fraud from Jamaica and combating such fraud,” said U.S. Postal Inspector in Charge for the Miami Division Ronald Verrochio.
“Lottery fraud from Jamaica against American citizens is a very challenging problem, but as this case demonstrates, law enforcement in the U.S. working with our partners in Jamaica will continue to aggressively pursue such scammers even if they base their operations outside of the U.S.,” said Special Agent in Charge for Homeland Security Investigations in Miami Alysa D. Erichs.
“Working with our law enforcement partners at the Postal Inspection Service and Homeland Security Investigations, the Marshals Service was pleased to be able to help catch this defendant and bring him to justice,” said Acting U.S. Marshal Neil DeSousa.
U.S. Attorney Ferrer Assistant and Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, the U.S. Marshals Service and Jamaica’s Major Organized Crime and Anti-Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division Assistant Director Jeffrey Steger and trial attorney Kathryn Drenning.
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.
Illinois Man Sentenced for Sending Threatening CommunicationRead the Press Release
An Illinois man was sentenced to 13 months in federal prison and ordered to pay restitution in the amount of $45,955 after having pleaded guilty to sending threatening communications over the Internet, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation.
Rodney Termini, 48, of Oglesby, Illinois, was sentenced by United States District Judge Gershwin Drain.
According to court records, on April 15, 2013, the day of the Boston Marathon bombing, Termini posted two threatening messages to the Facebook page of Con-Way Freight, a shipping company with locations in various states, including Michigan and Illinois. Termini was a contract employee for Con-Way Freight at its LaSalle, Illinois facility. Termini—using a Facebook identification in someone else’s name—wrote to Con-Way “there is a bomb at one of your facilities, have fun finding it.” In response to the threats, Con-Way evacuated several of its facilities and suspended certain operations while law enforcement officers (assisted by bomb sniffing dogs) searched the facilities. At the time of Termini’s threats, law enforcement had not yet captured the two men suspected in the Boston Marathon bombings.
United States Attorney McQuade stated, “Hoax threats are a serious crime. In addition to needlessly alarming the victims, threats divert law enforcement resources from other important assignments. We hope this prosecution will deter others from committing similar crimes.”
Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office, stated, “The FBI takes threats like those communicated by Mr. Termini very seriously. Law enforcement must respond to these kinds of threats, which diverts critical resources from other missions. We will continue to thoroughly investigate actions like these, and bring those who commit them to justice.”
The investigation of this case was conducted by special agents of the FBI in Ann Arbor and prosecuted by Assistant U.S. Attorney Kevin Mulcahy.
Houston Couple Sentenced to Federal Prison for SBA Loan FraudRead the Press Release
HOUSTON – Mohammad Qureshi, 59, of Houston and South Dakota, and Fouzia Qureshi, 59, of Houston, have been ordered to prison following their convictions of conspiracy to commit wire fraud, announced United States Attorney Kenneth Magidson. The pair pleaded guilty Aug. 9, 2013.
Today, U.S. District Court Judge Melinda Harmon, who accepted the pleas, handed Mohammad and Fouzia Qureshi a sentence of 12 months and a day in federal prison. A money judgment of $281,672.90 for restitution was imposed as a part of the sentence, of which more than $151,200 has been paid thus far.
The conspiracy began in July 2007 when the couple agreed to buy the Cullen Food Mart for $500,000. The majority of that amount - $420,000 - was financed through Main Street Lender, a Small Business Administration (SBA) guaranteed loan lender. The Qureshis signed as guarantors for the loan and provided documents and information that was false and misleading as to their assets and liabilities. As part of the loan program, the pair were to pay the seller a “cash injection” of $145,000 which was to come from existing funds. However, instead of using such existing funds, the Qureshis in fact used monies from another undisclosed line of credit, in contrast to SBA program rules.
After several years, the Qureshis defaulted on the loan and the bank and the SBA incurred a loss of more than $281,000.
Previously released on bond, both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by SBA-Office of Inspector General and is being prosecuted by Assistant United States Attorney Martha Minnis.
Harboring of Illegal Alien/mail Fraud Case ConcludedRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
This week marked the end of the case against five individuals who were convicted in February of conspiring to harbor illegal aliens and conspiring to commit mail fraud.District Judge Jon DeGuilio sentenced:
Margarito Fuentes Reyes, age 52, of Goshen, to 48 months in prison;
Yalitza Exclusa Borrero, age 32, of Indianapolis, to 24 months in prison;
Luis Omar Montes Merino, age 34, of Indianapolis, to 60 months in prison, and
Omar Duran Lagunes, age 35, of Indianapolis, to 84 months in prison.
Earlier in October Judge DeGuilio sentenced Evelyn Rivera Borrero, age 44, also from Indianapolis, to 24 months in prison.
Judge DeGuilio ordered all of the defendants to serve one year on supervised release following their prison sentence.Although three of the defendants are in the United States illegally, Duran, Montes Merino and Fuentes Reyes, the judge imposed the supervised release terms to monitor their conduct should they return to the US after deportation.
All five defendants were convicted of all counts of the indictment.The defendants presented false information, forged documents, and made false representations to the Indiana Bureau of Motor Vehicles and the Indiana Secretary of State regarding the identity of the actual owners of motor vehicles in order to obtain registrations, license plates, and titles.The conspirators used false advertising, created thousands of business entities, used false notarizations on BMV forms, submitted fictitious insurance information, presented false vehicle sale price amounts to avoid sales taxes, and used intimate knowledge of BMV procedures to accomplish the crimes.By committing these and other misdeeds, the defendants concealed, harbored, and shielded from detection aliens who are in the United States in violation of immigration laws and encouraged aliens to enter and remain in the United States in violation of immigration laws.The conspirators typically charged their customers $350 and promised to register their vehicles in the customer’s name, but instead the conspirators registered the cars in the name of sham limited liability companies to avoid BMV scrutiny.The court found that the conspiracy victimized over 2500 individuals between 2009 and 2012.The conspirators operated in Elkhart, Goshen, and Indianapolis, Indiana.
“These sentences send a clear message about the consequences facing those involved in the illegal document trade," said Gary Hartwig, special agent in charge of ICE’s Homeland Security Investigations in Chicago. “We remain vigilant in our efforts to prevent, detect and dismantle identity fraud schemes that adversely affect the public trust throughout Indiana and elsewhere. HSI will continue to move aggressively against those who put personal profit ahead of public safety.”
Inspector-In-Charge of the Detroit Division, Eddie C. Woodson stated, “The U.S. Postal Inspection Service is committed to aggressively addressing and investigating these criminal acts and the victimization of the American public. I applaud the interagency cooperation of all involved.”
These charges were the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service titled “Operation Title Check.”Other law enforcement agencies assisting in the investigation include the Indianapolis Metropolitan Police Department, the Elkhart Police Department, the Indiana State Police and investigators with the Indiana Bureau of Motor Vehicles and Indiana Secretary of State.The United States Attorney for the Southern District of Indiana was also involved in the investigation and assisted.
Get Away Driver Sentenced to 7 Years in Prison for Three Bank RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Dwayne Smiley, Sr., age 49, of Detroit, Michigan, today to seven years in prison followed by three years of supervised release for bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Washington County Sheriff Douglas W. Mullendore.
According to Smiley’s plea agreement, on December 30, 2010, Smiley drove with Donald Hays from Detroit, Michigan to western Maryland and Martinsburg, West Virginia, where they robbed the BB&T bank in the 1100 block of Winchester Avenue. Smiley drove Hays to and from the bank. Later, they divided the $1,070 stolen from the bank.On January 6, 2011, Smiley and Hays again drove from Detroit, Michigan to western Maryland. The next day, Smiley drove Hays to and from the M&T Bank on Mill Street in Clear Spring, Maryland where they stole $3,186, and later divided the money. On January 10, 2011, Smiley drove Hays to and from the M&T Bank on Fairway Lane in Hagerstown, Maryland, where they stole $2,726, and later divided the money.
Donald Larue Hays, age 61, also of Detroit, previously pleaded guilty and is scheduled to be sentenced on November 12, 2013 at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mark W. Crooks and P. Michael Cunningham, who prosecuted the case.Funding for School Resource Officers and Troy Peer Court will help curb juvenile crimeRead the Press Release
Funds Will Hire School Resource Officers and assist with the start-up of the Troy Peer Court
Friday, November 1, 2013 -U.S. Attorney Richard S. Hartunian today announced two federal funding awards for Troy. The City of Troy has been awarded $375,000, through the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), which will be used to hire three School Resource Officers (SROs). U. S. Attorney Hartunian also announced a Project Safe Neighborhoods award of$7,763 to be used to start the Troy Peer Court.
The Office of Community Oriented Policing Services (COPS), in the office of the U.S. Department of Justice, advances the practice of community policing in America's law enforcement agencies. One method of accomplishing this is through their grants programs and funding. Today's funding is for School Resource Officers (SROs). SROs are sworn law enforcement officers responsible for providing security and crime prevention strategies in the school environment. The responsibilities of SROs are similar to regular service police officers in that they have the ability to make arrests, respond to calls for service, and document incidents that occur within their jurisdiction.
Project Safe Neighborhoods (PSN) is a nationwide grant program administered by the U.S. Department of Justice to reduce gun and gang crime by networking existing local programs that target such crime. There are five elements to PSN: partnerships, strategic planning, training, community outreach and accountability. PSN funding has been used, among other things, to implement juvenile crime deterrence strategies, such as a peer court. By intervening early in a juvenile's deviant behaviors, the chances of changing those behaviors to positive, more productive ones is much more likely. Such early intervention can help reduce the number of youth engaging in gang activities and crime.
"In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school and our communities are safe at all times," said Attorney General Eric Holder. "These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children, their families and our communities."
"Keeping our children safe in school, along with securing the safety of our communities is of critical importance and I am pleased to join the Attorney General and the COPS Office in announcing these grants which will help provide our communities with the resources needed to accomplish this vital mission," said United States Attorney RichardS. Hartunian.
"When I was running for mayor," said Troy's Mayor Lou Rosamilia, "I emphasized the importance of School Resource Officers (SROs) in our schools. It's all about safety- of our students, faculty and staff. SROs develop relationships with our students, and in fact become role models for them. If a disturbance occurs in a building, the SROs are able to get the situation under control very quickly. And because the SROs are based in the schools, we don't have to take any patrols off our streets. We are honored to be included in this beneficial grant award."
"In the City of Troy, our schools have thousands of students, teachers and support staff spread out over two school districts for almost seven hours each school day. These schools really are micro neighborhoods, if you will, for 5 days per week from Sept through June. This grant provides us with the added opportunity to continue to exercise our community oriented policing and problem solving (COPPS) paradigm," said Troy Police Commissioner Anthony D. Magnetto. "It is through the COPPS philosophy that we are able to not only enhance our police response to problems but also to provide crime prevention services, and early intervention as well, by interacting with our kids on a personal level each and every school day. In these tough economic times, this grant allows us some fiscal relief for a program that the City of Troy has fully funded, and has been faithfully committed to, for over a decade."
City Council President Lynn Kopka said, "I've always been a staunch advocate for School Resource Officers (SROs) and now with this grant, we can continue utilizing SROs in our schools and free up other officers to effectively patrol our streets. This is fantastic news for Troy."
"With much less money, but the same level of importance and impact, I announce a small Project Safe Neighborhoods grant to help the start-up of a Troy Peer Court," added United States Attorney Hartunian. "Youth courts, or peer courts, are proven as a successful tool that intervenes on juvenile delinquency and crime. Success rates of near 90% of youth successfully completing their youth court sentence not committing another crime for another year or more have been documented in the majority of youth courts across the nation. Almost eight thousand dollars has been awarded to the Troy Police Department to start up the Troy Peer Court."
"Members of the Troy community including residents, business owners, agency and school representatives, the Troy Police Department, Rensselaer County Probation and County Attorney's Office and others have been meeting since March of this year because we are concerned about the level of juvenile crime in Troy and believe a peer court can be a successful early intervention. This funding will allow us now to recruit youth, train them and start hearing appropriate cases in the Troy Peer Court," said Rensselaer County Family Court Judge Elizabeth Walsh. "We are very grateful to the U. S. Attorney's Office for their support through all this planning and the opportunity to get started."
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.
Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.
Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13 ,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Project Safe Neighborhoods ("PSN") is a Department of Justice initiative to reduce gun crimes. It networks existing local law enforcement programs that target gun crimes and provides a focal point for community activists in their anti-violence and anticrime initiatives.
There are five elements to PSN: partnerships, strategic planning, training, community outreach and accountability.
In 2006, in response to the growing problem of violent gangs across the country, the Department expanded Project Safe Neighborhoods to include a focus on gangs and gang violence. The goal is to use strategies and partnerships with state and local law enforcement and communities pioneered under PSN to shut down violent gangs in America. As a result, although PSN remains "America's Network Against Gun Violence," each federal judicial district has incorporated antigang efforts into its PSN program.
More information can be found at http://www.justice.gov/psc.
An Overview of Youth Courts
Structure & Background
Youth Courts are an alternative to the traditional juvenile court system1
• Targets youth aged 11-17 years old.
• Deals with first time offenders charged with either a misdemeanor or status offense
• Addresses early stages of delinquency
• Based on elements of restorative justice, concentrating on the harm done to the person or community
• Seeks to reintegrate the youth into the community and not stigmatize themEnsures offenders take responsibility for their actions, are held accountable, and make restitution for violating the law2
• Is completely voluntary; in most Youth Courts the offender must admit guilt
• Youth Court members are recruited from the community or school and trained to fill the roles of prosecutors, defense attorneys, juries, bailiffs and judges
• Typical offenses include theft, vandalism, assault, truancy, possession of marijuana, underage drinking etc.
• Sentences include community service, apologies to victims, workshops, essays on the effects of crime on societyYouth Courts offer an approach to engage the community in a partnership with the juvenile justice system3
• Imposes sentence, does not determine guilt
• Enforces positive peer pressure to help address the issues of delinquent behaviors in youths4
• Identifies problems and develops solutions for community and school issues
• Facilitates the development of sound problem-solving, decision-making and criticalthinking skillsData
• Youth Courts have been rapidly expanding in the past decade from 78 programs in 1994 to over 1,400 currently5
• 60 percent of Youth Courts are funded with less than $50,000 per year6
• A cost benefit analysis of Onondaga County Youth Court showed a savings of approximately $1000 per youth diverted to Youth Court7
• 89 percent of respondents successfully complete the program8
• 39 percent of teen courts only accept first time offenders9Outcomes
• 87-92 percent non-recidivism rate for successful completers of Youth Court10
• Enhanced perceptions of procedural justice
• Improved attitudes towards authority
• Better understanding of legal system
• Improved grades
• 1 in 5 juveniles return after completing the program to serve as volunteers
• The Taunton Youth Court showed the following accomplishments for 200811:• Students provided 1,775 hours of volunteer services, valued at more than $18,000
• School suspension rates were reduced by 44 percent
• School attendance increased by 65 percent among participantsFor more information:
More information about Youth Courts can be found at http://www.youthcourt.net.
____________________
1 OJJDP, Stickle, Connell, Wilson, and Gottfredson, 2008.
2HFI Report Series- Youth Courts: An Empirical Update and Analysis of Future Organizational and Research Needs, 2008
3NCJRS-Youth/Teen Court Diversion Programs, March 2013
4NCJRS-Youth/Teen Court Diversion Programs, March 2013
5NCJRS-Youth/Teen Court Diversion Programs, March 2013
6HFI Report Series- Youth Courts: An Empirical Update and Analysis ofFuture Organizational and Research Needs, 2008
7Onondaga County Youth Court Cost Benefit Analysis-1990
8HFI Report Series- Youth Courts: An Empirical Update and Analysis of Future Organizational and Research Needs, 2008
9OJJDP- Teen Courts A Focus on Research, Butts and Buck, October 2000
100nondaga County Youth Court Study- SU Maxwell Graduate School-1990
11Title V Incentive Grants for Local Delinquency Prevention Programs;2008 Report to CongressFormer U.S. Postal Service Mail Carrier Sentenced to Federal Prison for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - Vernon Harrison, of Montgomery, Ala., was sentenced to serve 111 months in federal prison and three years’ supervised release, along with an order to pay $82,791 restitution, for his role in a stolen identity refund fraud 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. Harrison was convicted on July 3, 2013, following a jury trial in the Middle District of Alabama. He was found guilty of conspiracy to file false claims, as well as numerous counts of mail fraud, aggravated identity theft, and embezzlement from the mail.
According to the evidence presented at the trial, Harrison was a corrupt U.S. Postal Service mail carrier who was recruited to join a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns, which claimed fraudulent tax refunds. The returns were filed from various locations, including houses and hotels around Montgomery and Birmingham, Ala. The tax refunds were placed on debit cards that were mailed to addresses along Harrison’s postal route in Montgomery. Harrison stole the debit cards from the mail and provided them to a co-conspirator in exchange for cash. During this period Harrison stole over 100 debit cards from the mail for his co-conspirators.
At trial, federal agents showed that they had uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham. This evidence included over 100 envelopes for debit cards that had been mailed to addresses on Harrison’s postal route, as well as agents’ observation that Harrison failed to deliver Turbo Tax debit cards.
Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Postal Service, Office of the Inspector General, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Michael Boteler, who prosecuted the case. Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
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Fax: (334) 223-7617Former New Orleans Traffic Court Accountant, Vandale Thomas, IndictedRead the Press Release
VANDALE THOMAS, age 40, a resident of Prairieville, Louisiana, was charged today by a Federal Grand Jury in a twelve (12) count Indictment alleging corruption which took place during THOMAS’s tenure with New Orleans Traffic Court, announced U. S. Attorney Kenneth Allen Polite, Jr.
On November 24, 2008, THOMAS and his accounting firm, Thomas & Thomas Accounting Services, LLC, were hired by the City of New Orleans Traffic Court to provide accounting and bookkeeping services. THOMAS was the Chief Financial Officer for Traffic Court and for the time period alleged in the indictment. THOMAS’s initial agreement with Traffic Court allowed him to bill at a rate of $75.00 an hour and his contract was not to exceed $75,000.00 for a twelve (12) month period. THOMAS’s billings exceeded $75,000.00 within the first four months of his agreement.
On six (6) additional occasions between November 24, 2008 and April 13, 2011, THOMAS received written authorization from the City of New Orleans and Traffic Court to expand the amount that he could bill. In total, the City and Traffic Court authorized THOMAS to submit invoices and receive compensation for accounting services in an amount not to exceed $627,000.00. However, subsequent audits by investigators and the FBI revealed that THOMAS submitted 174 invoices and was issued 173 checks totaling $1,311,065.53. According to today’s Indictment, THOMAS embezzled and overbilled the City of New Orleans and its department, Traffic Court, more than $680,000.00 between 2009 - 2011.
Today’s Indictment also charges THOMAS with three (3) separate counts of laundering illegal funds obtained from Traffic Court. Two counts allege that on September 14 and September 24, 2010, THOMAS used illegally obtained money from Traffic Court to purchase casino chips in excess of $10,000 at a New Orleans casino. The third money laundering count alleges THOMAS used illegally obtained money from Traffic Court to make a down payment on an $80,000 Bentley GT Coupe.
The structuring counts in today’s Indictment allege that THOMAS used numerous bank branches in order to evade federal currency transaction reporting requirements. Specifically, THOMAS went to multiple bank locations in New Orleans and Baton Rouge to structure cash withdrawals in order to evade the currency transaction reporting requirement that all transactions over $10,000 be reported by financial institutions to the Internal Revenue Service.
Counts 1 through 3 of the Indictment charge THOMAS with theft concerning programs receiving federal funds in violation of Title 18, United States Code, Section 666(a)(1)(A). The maximum penalty THOMAS may receive if convicted of Counts 1 through 3 is ten (10) years imprisonment per count. Counts 4 through 6 of the Indictment charge THOMAS with engaging in monetary transactions in property derived from specified unlawful activity in violation of Title 18, United States Code, Section 1957. The maximum penalty for each of these counts is ten (10) years imprisonment. Counts 7 through 12 of the Indictment charge THOMAS with structuring transactions to evade reporting requirements in violation of Title 31, United States Code, Section 5324(a)(3). The maximum penalty for each of these counts is five (5) years imprisonment.
“This indictment represents another example of our region’s coordinated efforts to root out public corruption,” stated U.S. Attorney Kenneth Allen Polite, Jr. “We will hold accountable anyone who allegedly defrauds our government.”
“We all suffer when our state and local municipalities are robbed by fraud,” stated IRS-CI Special Agent in Charge, Gabriel Grchan. “Today’s indictment of Vandale Thomas should send a clear message that we intend to stop public corruption in the city of New Orleans. It is the goal of IRS Criminal Investigation to work with Department of Justice and other Federal and State agencies to ensure that those engaged in illegal activities are brought to justice.”
“Today’s indictment is another example of the close relationship between the Office of Inspector General and our federal partners,” stated Ed Quatrevaux, Inspector General for the City of New Orleans. “The OIG will continue to pursue those who defraud the City of New Orleans.”
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations Division, and the New Orleans Office of Inspector General. The prosecution of this case is being handled by Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Forest Woman Sentenced to Five Years in Prison for Money LaunderingRead the Press Release
Jackson, Miss - Bridget Michelle Bland, 44, of Forest, was sentenced to 60 months in federal prison by U.S. District Judge Daniel P. Jordan, III, for conspiring to launder the drug proceeds of Jessie Hall, of Forest, Mississippi, and for causing a business to file a false IRS return, announced U.S. Attorney Gregory K. Davis and Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation.
Bland’s co-defendants, Shannon Denise Hall, 41, of Forest, Sylvania Laranda Young, 41, currently of Jackson, Jessie Hall, 39, of Forest, and Willie Charles Rhodes, 54, of Brandon, have all pled guilty in this case. All five defendants participated in an extensive scheme to launder Jessie Hall’s drug proceeds. Hall created Hall’s Trucking to facilitate his drug trade and to launder his drug proceeds. Agents discovered that, with the help of his co-defendants, Hall was able to launder over $900,000 in cash over a two year period.
Gabriel Grchan, Special Agent in Charge, IRS – Criminal Investigation stated: “Money laundering conspiracies such as the one executed by Bridget Bland and her co-conspirators represent extremely damaging criminal enterprises. These schemes erode and manipulate our financial systems by promoting an underground, untaxed economy which harms the entire nation’s economic strength. IRS – CI is committed to serving the law enforcement partnerships that are in place to bring these criminals to justice.”
The Internal Revenue Service Criminal Investigation Division and the Drug Enforcement Administration conducted the criminal investigation of the financial affairs leading to the current indictment. The Drug Enforcement Administration, in conjunction with officers from the Ridgeland Police Department, Jackson Police Department, Hinds County Sheriff’s Office, and the Mississippi Bureau of Narcotics initially investigated the drug trafficking organization of Jessie Hall.###
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Florida Man Admits Role in Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Florida man today admitted using his position in a doctor’s office to steal personal identifying information as part of his role in running a stolen identity refund fraud scheme, U.S. Attorney Paul J. Fishman announced.
Berness Swan, 44, of Spring Hill, Fla., formerly of Sicklerville, N.J., pleaded guilty today before U.S. District Judge Renée Marie Bumb, to an information charging him with one count of theft of government property and one count of aggravated identity theft. Swan caused numerous fraudulent U.S. income tax returns to be filed, which sought thousands of dollars in tax refunds and resulted in losses to the United States of more than $120,000.
Stolen Identity Refund Fraud (SIRF) is a common type of fraud that results in more than $2 billion in losses annually to the U.S. Treasury. SIRF schemes generally share a number of hallmarks:
• SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals;
• SIRF participants complete Individual Income Tax Return 1040 Forms using the fraudulently-obtained information, and falsify wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 form are entitled to tax refunds – when in fact, the various tax withholdings indicated have not been paid and no refunds are due; • SIRF perpetrators direct the U.S. Treasury Department to issue the refunds through checks to locations they control or can access, in various ways.
According to documents filed in this case and statements made in court:
Swan was employed by the Phoenix Medical Group in Mount Laurel, N.J., from Jan. 8, 2009, through March 23, 2012. Swan had access to numerous individuals’ personal identifying information, including Social Security numbers and dates of birth. Swan stole the personal identifying information and used it to file fraudulent income tax returns with the IRS. Swan sought federal tax refunds in filing the tax returns. The Department of the Treasury issued tax refunds to numerous bank accounts Swan had so that Swan could access the money for his personal benefit.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The count of theft of government property is punishable by a maximum potential penalty of 10 years in prison and up to a $250,000 fine. The count of aggravated identity theft is punishable by a statutory, mandatory two-year consecutive prison term to the sentence the court will impose on the theft of government property count. Sentencing is scheduled for Feb. 7, 2014.
The government is represented by Assistant U.S. Attorney R. Stephen Stigall, Attorney-in-Charge of the U.S. Attorney’s Camden Branch Office.
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Defense counsel: Mark W. Catanzaro Esq., Mt. Holly, N.J.Swan, Berness Information